The Nebraska Department of Education has certified 2012-13 state aid for the Loup City Public Schools at $33,852, which is an increase of $1,102 from our 2011-12 aid. The high water mark for state aid received by the district was $1,389,902 in 1998-99. The $33,852 aid figure for this year (2011-12) is the lowest amount that the district has received since the current state aid system has been in place. A look the last 10 years of state aid shows a steady decrease in the amount of funding that we receive:
| Year | State Aid | Year | State Aid |
| 2003-04 | $975,008 | 2008-09 | $831,039 |
| 2004-05 | $831,571 | 2009-10 | $779,214 |
| 2005-06 | $958,087 | 2010-11 | $577,254 |
| 2006-07 | $918,955 | 2011-12 | $32,750 |
| 2007-08 | $933,114 | 2012-13 | $33,852 |
Why has state aid to the Loup City District been cut so drastically?
Last year, which was the first year of the state’s current two-year budget cycle, legislators were faced with a huge state-wide budget shortfall. To help address the deficit, most agencies and organizations receiving state support saw cutbacks in state funding. The school funding formula was adjusted to place greater reliance on local resources (property taxes) and less emphasis on state funding. This school funding shift resulted state-aid reductions in over 90% of Nebraska school districts.
How does the educational funding formula apply to LCPS?
The basic formula for determining state aid to education is: Needs minus Resources= State Aid
Factors on the needs side of the equation, which impact LCPS include:
● Basic Funding (general fund expenses)
● Poverty Allowance
● Limited English Proficiency
● Elementary Class Size Allowance
● Summer School Allowance
● Transportation Allowance
● Distance Education Allowance
● Local Choice Adjustment (option students)
Our Formula needs for 2012-13 are calculated at $3.495.789.74
Formula Resources include:
● Local Effort Rate: (Local valuation / 100 x 1.0395 local effort rate)
● Income Tax Funds
● Actual Receipts
● Retirement Aid
Our Total Formula Resources for 2012-13 are calculated at $3,589,049.91
Under this formula, since our resources are greater than our needs- we receive no equalization aid. The state aide that we will receive in 2012-13 will come in the form of Allocated Income Tax Funds ($16,506.27) and Retirement Aid ($17,346.57) for a total of $33,852.84.
Does our relatively low general fund levy ($0.96) mean that we get less state aid than districts that levy at a higher rate?
No. Districts that levy less than $.95 are penalized with a minimum levy adjustment in the state aid formula. While our low levy is the envy of many districts, that levy figure does not effect our state aid. It is not possible to spend our way to prosperity and increase state aid by increasing local spending.
The fact that our district has an assessed valuation in excess of $300m to support 310 students, under the present state aid formula, indicates to the state that the district does not need state support.
The state aid formula will be revisited by the Nebraska Unicameral in next year’s session. However, with local valuations increasing by an average of 6.85% over the last 10 years, our prospects for receiving dramatically increased state aid any time soon would appear to be remote at best.
Even with the decrease in state funding, the Loup City Public schools will continue to provide outstanding educational opportunities for our students, while continuing to be mindful of tax-payer burdens.
Complete State Aide Documents can be found at the NDE Website
