Omaha Public Schools will face a significant budget shortfall for the 2026-27 school year after the Nebraska Department of Education made an error in state aid calculations, resulting in a $30.5 million overpayment this school year.
In an email sent Nov. 17 to OPS staff and families, district leaders explained that the mistake was uncovered during a recent audit by NDE of the Tax Equity and Educational Opportunities Support Act, or TEEOSA, formula, which determines state aid to school districts based on factors including property taxes, poverty levels, transportation, student growth, English proficiency, special education and more. OPS has often been the recipient of a large portion of these funds.
LB 1059 established TEEOSA in 1990. The general idea is that the needs minus the resources of a district equal the state equalization aid they receive. Typical state aid and local property taxes fill the cup first, and the state fills any space left with equalization aid. If property values increase, the state’s portion gets smaller and vice versa…