LINCOLN — The mistaken distribution of millions of dollars of “in lieu of taxes” by the Douglas County Treasurer’s Office is causing some budget headaches in the state’s largest county.

Douglas County Board members P.J. Morgan and Mike Friend, who serve on the county budget committee, said the county is facing a shortfall of about $5.5 million going into next year's budget.

The two officials said the distribution mistake is a major factor in the angst surrounding the budget, though rising inflation and the need to increase worker salaries to remain competitive are also factors.

Morgan said that the budget gap for the 2023-2024 budget is expected to be resolved. Both officials, however, said the county likely faces some challenges beyond that due to the loss of in lie of tax revenue.

“It could have some have long-lasting impact. We’re not really sure yet,” Friend said.

A state audit recently revealed that the Douglas County Treasurer's Office, for six decades, had been miscalculating how much funding in lieu of taxes paid by the Omaha Public Power District was due to taxing entities in the county.

It shorted some taxing entities, such as the Elkhorn, Ralston, and Westside school districts, by up to $4 million in revenue a year and overpaid other entities, such as Douglas County, by more than $5 million.

For the full article click HERE