During the February 2025 State Board of Education meeting, the Nebraska Department of Education (NDE) presented a detailed overview of its budget, which totals over $2 billion. A significant portion of this budget, approximately $1.95 billion, is designated as pass-through aid, primarily allocated to support schools across the state. This figure highlights the critical role of state and federal funding in maintaining educational services.

The budget discussion emphasized that the NDE operates under strict guidelines, with funds allocated by the legislature into specific categories that cannot be interchanged. This structure ensures that the majority of the budget—93%—is directed towards educational aid, while only 7% is reserved for the department's operational costs, which include salaries, rent, and supplies.

The meeting also shed light on the sources of funding, revealing that 66% of the total budget comes from state funds, with federal and cash funds making up the remaining 34%. Notably, federal funding has increased in recent years, largely due to the influx of ESSER funds and other grants aimed at enhancing educational resources.

In terms of operational spending, the NDE allocates 60% of its budget to regular education services, while vocational rehabilitation and disability determination services receive 26% and 11%, respectively. This distribution underscores the department's commitment to supporting a diverse range of educational needs.

The board discussed the biennial budget process, which requires the NDE to submit budget requests to the governor every two years. The current cycle is underway, with the commissioner scheduled to testify before the appropriations committee later this month.

Overall, the meeting highlighted the importance of understanding the budget's structure and its implications for educational funding in Nebraska. As the NDE continues to navigate funding challenges and opportunities, the focus remains on ensuring that resources are effectively utilized to support the state's educational goals.