SIDNEY – Sidney Public Schools Superintendent Andrew Farber recently sent a letter to parents outlining an expected reduction in funding for the 2025-2026 school year.

While the district appreciates efforts by Gov. Jim Pillen and the Nebraska Unicameral to reduce property taxes and address public education funding, Farber emphasized the potential consequences of these decisions.

"Since the enactment of LB 243 in 2023, Sidney Public Schools has faced a revenue shortfall of more than $800,000. This has resulted in spending cuts of over $1 million for the 2024-2025 school year," Farber wrote.

To cover the deficit, address unforeseen expenses, and maintain financial stability, the district made the decision to reduce funding by just over $1 million.

The following key areas have been affected by the reductions:

  • Loss of staff members
  • Reduced busing services
  • Closure of the Cool Kids Club
  • Cuts to extracurricular activities
  • A 10 percent reduction in the district’s athletic fund
  • Closure of North Elementary

While property valuations are generally increasing across Nebraska, Sidney has seen a decline. Local valuations dropped from $775.56 million in the 2023-2024 school year to $775.44 million for the current year. This decrease resulted in a loss of more than $400,000 in local tax revenue. As a result, the district's General Fund operating budget has decreased by more than 3% from last year.

In addition to the funding changes driven by the governor and the Unicameral, the district has also seen a significant decline in student enrollment, losing about 240 students over the past several years.

The new funding formula, which allocates resources based on student enrollment, has resulted in further losses. The district is now funded for 1,100 students, down from 1,340.

"The reduction in per-student funding significantly impacts our ability to maintain the financial support and stability we once had, especially considering that 80% of our budget is allocated to personnel," Farber said. "Despite the funding loss, Sidney Public Schools is working diligently to realign our staff to meet student needs. Unfortunately, staffing adjustments are the only effective way to make meaningful budget reductions."

The district is also evaluating potential further reductions for the 2025-2026 school year, with a possible budget cut of up to $900,000.

"Our goal is to approach these decisions thoughtfully and methodically, working to protect core courses and Rule 10-related programs to the greatest extent possible," Farber said.

Nebraska Rule 10 establishes regulations and procedures for accrediting schools in the state, ensuring they meet legal standards. Its primary purpose is to guarantee that all students in public schools have equal educational opportunities.

"As we move forward, the Sidney School Board and district leadership will continue to collaborate with our community and stakeholders to ensure we maintain the high-quality educational experience our students deserve," Farber added.