OPS shares details on $30M error that led to Nebraska education funding issue

OMAHA, Neb. (WOWT) – Omaha Public Schools is sharing more details about the district’s $30 million funding error that impacted school districts across the state of Nebraska.

Background on the calculation

In 2024, 72% of OPS students qualified for free or reduced lunch. That percentage was high enough for 100% of the district to receive free meals. State Sen. Christy Armendariz of Omaha, a member of the State Appropriations Committee, said the problem arose when OPS calculated what state aid it should receive.

Armendariz said she called a meeting with OPS after reviewing the numbers. She said OPS incorrectly entered that 100% of students were at the poverty level — a figure based on 100% of the district qualifying for free meals, even though not all students individually qualified. Armendariz said OPS should have used the 72% figure.

“Remember, that was money that they shouldn’t have gotten in the first place. They did get it, applied for it a second year. Foley said, no, that’s not how you’re supposed to calculate it and took it back,” Armendariz said.

OPS transparency questioned

Armendariz said OPS has not shared its specific role in the miscalculation with property owners who are now facing potential tax increases…

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