Guest commentary from GIPS Interim Superintendent, Matt Fisher, was published in The Grand Island Independent on September 20, 2023.
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Budget season is here as the fiscal year for school districts in Nebraska runs from September 1 through August 31. As we get the 2023-24 school year underway we are also beginning the 2023-24 fiscal year. The beginning of a fiscal year is always marked with the approval of a budget and the setting of a tax request to support that budget.
Last Thursday the Grand Island Public Schools (GIPS) district conducted a budget workshop for Board of Education members and a public hearing to receive input on the budget for the coming year. On Monday night GIPS also took part in the joint public hearing held by the county. On September 25th the GIPS Board will meet in special session to approve the budget and accompanying tax request.
Everyone who is operating a business, or simply working to make ends meet, knows we have seen a dramatic increase in the cost of almost everything during the past few years. School districts, like everyone else, are feeling these increases too.
The district is taking steps to help check costs wherever possible. However, when almost 80% of our costs are for our valuable staff it is difficult to cut these costs. Especially when you are in a very competitive market for the services of every person you employ.
Catch "The GIPS Cast" podcast interview with Matt Fisher & Virg Harden on the 2023-24 Budget
Although the overall operational costs for the district have had to move upward in this budget cycle there is some positive news for our tax payers.
INCREASED SPECIAL EDUCATION REIMBURSEMENT FROM THE STATE WILL RELIEVE SOME PROPERTY TAX BURDENS
A part of the funding package that the Nebraska Unicameral passed this past session, and Governor Pillen signed into law, was a significant increase in the reimbursement for special education costs. The legislation moved the reimbursement to school districts for these costs from about 40% up to 80%. For GIPS this means that almost $6 million dollars of the cost for these services is moved off of the property taxpayer and is being covered by state funds.
WE ARE LOWERING THE TAX LEVY FOR THE FIRST TIME IN TWO DECADES
Combine these additional state funds with the highest valuation increase in twenty-eight years (a process we do not control) and the result is a lowering of the tax levy needed to support GIPS. This is the first time in twenty-two years that a reduction in the levy for the district’s general fund has been possible. The overall levy needed to support our schools will decrease by a total of over ten cents for each one hundred dollars of assessed valuation.
REBUILDING CASH RESERVES REMAINS A FOCUS
GIPS is continuing to make strategic investments in order to take care of today’s needs and plan for the future. This includes rebuilding necessary cash reserves to improve our financial position and to maintain our AA- Bond rating. This also helps us lower the cost of our bond debt and keeps us from having to borrow money.
In response to input received from our public, we have utilized Federal dollars to strengthen building security and improve traffic flow. As Federal funds for these projects are dwindling (ESSER III Funds) we need to position ourselves to use other revenue sources to continue this important work, as well as simply maintaining our facilities.
Increased state funding along with significant growth in valuation has created some breathing room for the finances of the district.
However, a very real need persists for us to continue to find ways to be as operationally efficient as possible. There is no crystal ball to know what the future holds, but GIPS can make measured strategic decisions as it relates to financial meters.
GIPS operates under the theory of budget maximization tempered by the very real need and desire to only spend what is necessary to ensure Every Student, Every Day, A Success!
— Mr. Matt Fisher
GIPS Interim Superintendent
