My boss let me go without following policy. I had already signed a new annual contract and there is no real reason given for my termination. That person is no longer there, but the Board above him decided I would not return; though they know all their policies were not followed. Long after the fact, they said it was for financial reasons, which is stated in the contract that they can do. However, this issue was not presented, nor dod they follow policies and take appropriate steps to ensure my success (also in the contract).
What's worse is that several months of being told I would still be employed has prevented me from finding a job that only opens during those few months.

What should they give me in a severence? What could I expect legally if the severence is not enough?

Unless you have a bona fide contract that guarantees severance, what, if anything, they give you is entirely up to company policy. Severance is not required by law.

Not considering severence, do they not legally owe me my contract? (Policy handbook verifies their responsibilities, it verifies that they did not follow policy, and it can be proven that harm was caused)

That would depend on if your contract is considered "enforceable". Your best best it to take your contract to a lawyer.