Nebraska City school reports financial improvement

NEBRASKA CITY – The Nebraska City Public School is reporting improvement in its financial situation since 2020, including a $6.6 million reduction in debt.

In 2021, voters rejected a proposed levy override  that was projected to generate $864,000 a year. A budget shortfall of $458,000 was expected prior to the election.

A school press release says the school has been able to reduce its short-term borrowing, which was at $1.7 million in August of 2020. The school expects short-term borrowing to fall to $350,000 by this summer.

Local debt was also cut. It has gone from $2.1 million in 2020 to $982,000 this January.

Superintendent Mark Fritch credited the trend to difficult decisions by the board of education and sacrifices by staff.

Fritch: “The financial situation of Nebraska City has improved tremendously. The board of education has a plan for the future that is sustainable pending state funding of public education, unfunded mandates and interest rates.”

He said reduced interest payments on local debt, selling the Pioneer Academy and eliminated dependency on a line of credit were among debt management actions.

There were also actions involving the general operating budget, including a reduction of 24 employees over four school years, reduction of five teachers and leaving six positions unfilled.

The middle school went to a seven-period day to allow sharing with high school staff and Hayward Elementary reduced from five to four sections in two grades.

Fritch said a lack of funding will continue to make things difficult for Nebraska City Public Schools.

Fritch: “The board of education has a debt service plan that will eliminate unbonded debt as the same time the general obligation bonds expire in 2035.”

Here is the school's press release: