Omaha Public Schools to Raise Tax Levy Amid $50.6M State Aid Shortfall

District officials say they must turn to property taxpayers to cover the funding gap.

Published on Feb. 26, 2026

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Omaha Public Schools (OPS) announced plans to raise their tax levy in order to make up for an expected $50.6 million shortfall in state aid. OPS Chief Financial Officer Shane Rhian stated that the district will likely increase the general fund levy to the maximum $1.05 per $100 valuation or close to it, noting that "it's unfortunate that we have to go to our property taxpayers to help fill this hole." The district is not anticipating major impacts to student programs or school staffing, though they may scrutinize open positions more closely as people retire or leave for other jobs.

Why it matters

The funding shortfall and resulting tax levy increase highlights the ongoing challenges public school districts face in maintaining adequate budgets and resources, especially when state aid falls short. This decision will impact Omaha property owners, raising concerns about the affordability of living in the city and the equitable distribution of the tax burden.

The details

OPS Board President Jane Erdenberger acknowledged that "nobody on the board is happy about it" and that "all of us are paying property taxes." The district does not expect major impacts to student programs or staffing, but may take a closer look at whether open positions need to be filled as people retire or leave for other jobs.

  • OPS will likely raise the general fund levy to the maximum $1.05 per $100 valuation or near the maximum.
  • The Board of Education will hear a full report on the budget forecast at its meeting on February 23, 2026.

The players

Shane Rhian

OPS Chief Financial Officer who stated the district will raise the tax levy to make up for the state aid shortfall.

Jane Erdenberger

OPS Board President who acknowledged the board's unhappiness with having to raise taxes on property owners.

Omaha Public Schools (OPS)

The public school district in Omaha, Nebraska that is facing a $50.6 million shortfall in state aid and plans to raise property taxes to cover the gap.

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What they’re saying

“It's unfortunate that we have to go to our property taxpayers to help fill this hole.”

— Shane Rhian, OPS Chief Financial Officer (thereader.com)

“Nobody on the board is happy about it. Nobody working for OPS is happy about it. All of us are paying property taxes, but we know what our job is, going to keep doing it, going to make it stretch.”

— Jane Erdenberger, OPS Board President (thereader.com)

What’s next

The OPS Board of Education will discuss the full budget forecast and tax levy increase at their meeting on February 23, 2026.

The takeaway

This decision by Omaha Public Schools to raise property taxes highlights the ongoing challenges facing public education systems in maintaining adequate funding, especially when state aid falls short. While the district aims to minimize impacts to students, the tax burden will fall on local property owners, raising concerns about affordability and equity in the community.