In planning for the 2024-25 school year, the North Platte Public School Board has three budget options – one with a 4.5% increase in property taxes, one with a 3% tax increase, and one with no increase.

Finance Director Stuart Simpson and Supt. Todd Rhodes presented the options during a budget workshop on Aug. 21.

No votes were taken at the meeting. The decision will be made Monday, Sept. 9, when the board plans to hold a public hearing followed by a vote on the budget.

Simpson previously presented option 1 to the board at a July 16 budget workshop. He said that despite raising property taxes, the district’s overall spending would still decrease by 2.6%. That’s largely because the district’s other major revenue source – state aid — is expected to decline.

He said the taxable valuations of property in the school district are increasing by more than 8%, so the district has more “resources.” Meanwhile enrollment is decreasing, so the district has fewer “needs.” In the state aid formula, that adds up to less money for North Platte.

The district could levy $29.5 million from property owners, similar to a year ago. In addition, if five (a super majority) of board members agree, the district could levy more from the taxpayers – either nearly $31 million or $31.4 million, under budget scenarios that were presented at the meeting. 

Simpson said a $29.5 million property tax request equates to a spending reduction of about $1.7 million. To achieve this, cuts could be made to the building fund, from $757,000 to $300,000. Also, some open staffing positions would be left open. Cash reserves could be reduced. Professional development and curriculum costs could be reduced, and it would also help to transfer some funds into different depreciation funds (e.g., turf, track, computer, etc.)

He said no employees would be eliminated.  

Other options

Board President JoAnn Lundgreen and Rhodes presented another option. School boundaries could be adjusted, and schools consolidated to reduce costs.

Rhodes suggested that the board explore the option, considering the decrease in enrollment, which he said is primarily caused by fewer young families in the district. Lundgreen said indications are that enrollment will increase due to the economic progress in town; however, there is no uptick yet and the district does not know when it will happen.

Board Secretary Cindy O’Connor asked what the savings would be if some schools were consolidated. Rhodes said he didn’t have a number but felt it essential to present a comprehensive report on consolidation to the board in the future.

Board member Angela Blaesi said the district needs to examine daily expenses before they talk about consolidation. She gave the example of phone bills. Currently, the district provides $100 per administrator for their phone bills. Blaesi said switching to a business phone plan with Verizon would only cost $45 per person, representing a savings of more than 50%.

Blaesi acknowledged that it would be a relatively small saving but emphasized such savings add up, and taxpayers would know the district is trying to make the best use of its money.

She also mentioned that the charges on the school’s debit cards should be thoroughly examined to ensure they are for educational needs.

She reminded the board that just last month, a personal charge was made by an administrator, and others may also be making those mistakes.

Vice President Emily Garrick generally agreed with that point of view. Garrick said while consolidating schools would have a more significant impact dollar-wise, it also would impact the students more.

Garrick said she would rather start by restricting what purchase cards are used for and cutting out delivered meals during staff meetings, with the goal of minimizing the effects on students.

Rhodes said those were valid points, and work is underway to cut down on such expenses.

During the discussion, Matt Pederson and Skip Altig spoke in favor of a $31 million tax request. Blaesi and Garrick wanted to take a closer look.

Rhodes said he would endeavor to answer any other questions by email from any of the board members.

There may be more budget discussions on Aug. 28 when the board meets for another work session as the Committee of the Whole. After that, a public hearing on the budget is set on Sept. 9, with a vote expected after the hearing. 

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