About 75 people filled a hearing room at the County-City Building on Thursday night for a heated public hearing to express concerns about rising taxes after Lincoln Public Schools proposed raising its property tax levy by nearly four cents in its 2024-25 budget.
Dozens of people lined up to speak at the hearing required by state law, many echoing the same message that they stand against a spending increase for the district and a subsequent increase in their property taxes.
Homeowners were informed about the hearing through pink postcards that were recently mailed out informing property owners of entities with revenue proposals that would result in an overall increase in property taxes.
The postcards and public hearing are the result of the “Truth in Taxation†law, which went into effect in 2022. The law requires local entities to inform taxpayers of proposals to increase property tax revenues by more than 2% in the coming year. LPS also holds a number of public hearings each budget cycle.
This year, LPS is looking to raise its property tax request by 9%, or $31 million, to help cover a $32 million state aid deficit the district will see this school year. However, many speakers at the hearing said that was too large of an increase.
The proposed LPS budget will see a more than 5% spending increase from last school year — going from nearly $514 million in 2023-24 to more than $539 million this year. The budget also calls for a hike in the property tax levy by about 3.9 cents after the board implemented the largest levy decrease in more than 20 years last fall.
LPS receives about 66% of its revenue from property taxes while other sources come from state aid and special education support from the state. Based on the state equalization aid formula, which is based heavily on property values, the district is set to receive $72.4 million in aid for the 2024-25 school year.
If the nearly 3.9-cent increase in the tax levy — which is still down about 10 cents from two years ago after LPS passed a 14-cent decrease in 2023 — is approved, homeowners would see their levy go up to $1.11. That would mean someone who owns a home worth $281,614, the average value of a home in Lincoln, would pay $3,124 in taxes to LPS, $110 more than in 2023.
Several people who spoke Thursday suggested the district make cuts to the proposed budget in order to prevent homeowners' property taxes from going up.
A majority of the proposed budget, which the Lincoln Board of Education is set to vote on Tuesday, will be put toward funding various staff raises, increasing staffing levels and expanding early childhood offerings.
A handful of speakers voiced frustration that while they are forced to make changes to their lifestyles and budgets by choosing not to eat out, skip vacations or avoid other extra activities as expenses rise, the district is continuing to grow its budget and “live outside its means.â€
One woman suggested placing a freeze on salary raises for administrators. Another man pointed toward LPS’ goal to grow early childhood as one area of the budget that could be cut.
“You’re asking for too much. It’s time to make some changes,†he said.
Additionally, multiple speakers shared disappointment in the fact that many members of the school board were not present at the hearing Thursday. Board members Kathy Danek and Barb Baier were in attendance.
“What is so important tonight that they are not here? I don't understand,†said a man who brought a “Taxed to death†sign. “These are board members representing all these people. They should be here. It's a board meeting, it's a budget meeting, it's a public hearing.â€
Other speakers shared that they have children who attend private schools or are homeschooled and were upset to see they would be paying more taxes to a school district they don’t send their children to.
Several people said if property taxes continue to rise, they will have to consider selling their homes and moving out of Lancaster County because they can no longer afford it.
Another woman, who said she grew up in Lincoln, attended LPS and had a mother who worked as a teacher for 15 years, said while she supports paying teachers higher wages, she can't afford to have her property taxes continue to rise.
“I support our local schools, but I am at a breaking point,†she said.