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Omaha Public Schools faces $50.6 million budget shortfall after state error

Omaha Public Schools faces $50.6 million budget shortfall after state error
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OMAHA, Neb. (KMTV) — Back in November, we told you about an error by the Nebraska Department of Education (NDE) that resulted in an overpayment in state aid to school districts for this school year.

Omaha Public Schools is one of them, and now OPS is planning ahead to address next year's shortfall due to the error.

Here's how the district explained it: OPS was given $30.5 million more than they should have received. The district was told that the Department of Education will take that money out of the 2026-27 budget, something the district says is a 'significant challenge' to overcome.

"This is an extremely unfortunate error that is going to be difficult for us to work through in the coming years," said Shane Rhian, OPS Chief Financial Officer, in November.

The district says the NDE recently announced the official aid totals for next school year. OPS says it will receive $50.6 million less than this year.

So what can the district do?

In a letter sent to families Wednesday, it says with the new aid total, staff can now plan in more detail. They say it will impact taxpayers and that they will have to tap into district reserve funds. They say the budget for the next several school years will be strained.

Staff will present the five-year budget forecast to the Board of Education Thursday night. Those meetings are at the Teacher Administration Center at 6 p.m. You can attend in person or watch on YouTube.