Broken Bow, NE, August 19, 2025
News Summary
During the recent school board meeting, Broken Bow Public Schools leaders discussed a significant cybersecurity incident that resulted in a loss of $1.8 million due to a phishing scam. They are collaborating with federal authorities to recover the funds. Additionally, concerns regarding insufficient state funding from the Education Futures Fund could impact local budgets, particularly special education reimbursements. The board also made personnel changes and approved the renaming of a school amidst ongoing renovations.
Broken Bow
Broken Bow Public Schools leaders addressed two major issues during the regular school board meeting on August 18: a significant cybersecurity theft that cost the district $1.8 million and concerns about state-level education funding that could affect local budgets. Board business also included personnel actions, school renaming tied to renovations, program reports from students, and scheduling of upcoming trainings and hearings.
Key incident and financial impact
The district confirmed it was the victim of a phishing scam that resulted in an unauthorized ACH transfer linked to a construction project, with an initial loss of $1.8 million. The fraudulent transaction occurred after an email was sent with fake payment instructions that were made to appear as if they came from a trusted vendor. The district began an immediate investigation and is working with the FBI, Nebraska State Patrol, and the U.S. Secret Service. As of the board meeting, nearly $700,000 of the lost funds had been recovered. Authorities noted shortcomings in internal safeguards that allowed the fraud to succeed; because the investigation remains active, no further details about suspects or leads are being released.
State funding concerns and local budget implications
Board members reported concerns raised at an August 9 Nebraska Association of School Boards (NASB) meeting about the Education Futures Fund. The fund began with a $1 billion infusion in 2023 and was expected to be renewed at $250 million annually. Attendees warned that current funding levels are falling short of expectations. The shortfall may affect state reimbursements to districts, specifically special education reimbursements and a planned $1,500 per-student foundation aid. One board member noted that reduced state aid could force the district to consider increasing local property tax levies to maintain services and obligations.
Board actions, personnel and facilities
Two board members, Jennifer Jackson and Amy Staples, were marked absent for the August 18 meeting. The board also approved an appointment to the Board of Education, naming Jennifer Jackson to replace Tim Chancellor, who resigned. As part of renovation planning, the board approved renaming Broken Bow Middle School to the Performing Arts Center, reflecting the building’s changing role during and after renovation work.
Programs, staff development and fees
Members of the district’s Future Business Leaders of America (FBLA) chapter presented on their recent trip to the FBLA National Leadership Conference in Anaheim, California. Students attended seminars on new technologies and competed against peers from the U.S., U.S. territories, and other countries; no Broken Bow students received national awards. The FBLA sponsor noted the trip was a valuable learning experience and thanked board and community supporters. Students are looking ahead to the next national conference, scheduled for San Antonio, Texas.
There was a correction about preschool fees: fees will increase beginning in 2025, but current fees will remain at $160 per month through 2027. Superintendent Darren Tobey reported that 14 North Park teachers and three middle school teachers attended a workshop on enhanced writing instruction. Tobey also praised school nurse Jory French for conducting first aid training for staff, which eliminated the need for an outside instructor.
Training and upcoming meetings
The board tentatively scheduled an NASB School Board retreat for August 29 to provide additional training on board member roles and priorities. Upcoming calendar items include a budget hearing on September 3 at 11:00 AM and the next regular board meeting on September 15 at 6:00 PM.
Context and possible local effects
Local districts across the state are watching the status of the Education Futures Fund because reductions in expected state support typically shift more pressure to local budgets. The phishing incident highlights risks that districts face when processing large vendor payments, especially for construction and capital projects. Recovery of funds is ongoing, and interagency support is in place, but the situation underscores the need for strengthened payment controls and verification procedures.
Key takeaways
- Phishing scam caused an initial loss of $1.8 million; nearly $700,000 recovered so far.
- Education Futures Fund funding appears insufficient relative to expectations; this could affect reimbursements and a $1,500 per-student aid plan.
- Board approved renaming the middle school to the Performing Arts Center and appointed Jennifer Jackson to the Board of Education.
- Preschool fees will remain $160 per month through 2027, with an increase beginning in 2025.
- Staff professional development and internal training have been conducted to strengthen instruction and emergency response readiness.
Table: Key features
| Item | Detail |
|---|---|
| Cybersecurity incident | Phishing scam leading to unauthorized ACH transfer tied to construction project |
| Initial loss | $1.8 million |
| Recovered to date | Nearly $700,000 |
| Agencies involved | FBI, Nebraska State Patrol, U.S. Secret Service |
| Education Futures Fund | Started with $1 billion in 2023; expected $250M annually but now short |
| Potential local impact | Reduced state aid may lead to higher local property tax levies |
| Preschool fee | $160/month through 2027; increase begins in 2025 |
Timeline
| Date/Time | Event | Status / Source |
|---|---|---|
| August 9 | NASB meeting where Education Futures Fund concerns were reported | NASB report summarized at board meeting |
| August 18 | Broken Bow School Board regular meeting | Board discussed funding, phishing incident, FBLA presentation |
| August 29 | Tentative NASB School Board retreat | Scheduled for additional training |
| September 3, 11:00 AM | Budget hearing | Public meeting |
| September 15, 6:00 PM | Next regular board meeting | Public meeting |
| Recent (national conference) | FBLA National Leadership Conference in Anaheim | Students attended seminars and competed; no awards won |
Simple visual statistics
Funds recovered vs. lost (approximate)
FAQ
What happened to the district’s funds?
The district was targeted by a phishing scam that triggered an unauthorized ACH transfer tied to a construction payment. The initial loss was $1.8 million, with nearly $700,000 recovered so far.
Who is investigating the theft?
The district is investigating the incident and is working with the FBI, the Nebraska State Patrol, and the U.S. Secret Service. Further details on suspects or leads are not being disclosed while the investigation is active.
Could this affect local taxes or school funding?
Concerns about decreased state-level support from the Education Futures Fund could lead to reduced reimbursements for special education and planned foundation aid. The board indicated that lower state aid may require local property tax increases to cover budget shortfalls.
What changes were made at the board meeting?
The board appointed Jennifer Jackson to the Board of Education to replace Tim Chancellor, approved renaming the middle school to the Performing Arts Center amid renovations, and confirmed preschool fee timing and staff training updates.
When are the next meetings or trainings?
A tentative NASB retreat is scheduled for August 29. The budget hearing is set for September 3 at 11:00 AM, and the next regular board meeting will be on September 15 at 6:00 PM.
What steps are being taken to prevent future fraud?
The district is working with law enforcement and reviewing internal controls. Authorities emphasized the need for stronger safeguards for public funds, and the district has undertaken training and process reviews to reduce future risk.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- KSNB Local 4 News
- Wikipedia: Phishing
- Sandhills Express News
- Google Search: Broken Bow Public Schools
- Custer County Chief News
- Google Scholar: Education Funding Nebraska
- KBEAR Radio News
- Encyclopedia Britannica: School Board
- Sandhills Express Local News
- Google News: Broken Bow School Board
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