Supporters of public education in Nebraska are hoping a new bill can help the state finally arrive at a more equitable way of funding schools.
District 15 Senator Lynne Walz’ LB 890 was heard in the Nebraska Legislature’s Education Committee on Tuesday. It makes changes to the state education aid formula, increasing school districts allocated income tax and dedicating a half-cent of state sales tax to establishing a new funding source, called Education Stabilization Base Aid.
Walz says the plan would raise Nebraska’s standing in state support of schools.
District 15 Senator Lynne Walz’ LB 890 was heard in the Nebraska Legislature’s Education Committee on Tuesday. It makes changes to the state education aid formula, increasing school districts allocated income tax and dedicating a half-cent of state sales tax to establishing a new funding source, called Education Stabilization Base Aid.
Walz says the plan would raise Nebraska’s standing in state support of schools.
“The increased state funding of schools changes the overall funding split to an estimated 58% state, and 42% local. And, it moves us up, from 48th in the nation, to 13th. These are great improvements for schools and taxpayers across the state.”
Walz’ bill and a companion funding measure, LB 891, sponsored by Senator Brett Lindstrom, would reduce school districts general fund levy to a maximum of 95-cents, rather than a dollar-five cents. It also separates a district’s building fund, allowing a maximum of up to 10-cents.
The Walz bill also treats four-year-old prekindergarten students as one student, rather than six-tenths of a student currently, for state aid purposes.
Columbus School Superintendent Dr. Troy Loeffelholz says LB 890 accomplishes goals that were relevant in 1990, when the state school aid formula called TEEOSA, went into effect.
Columbus School Superintendent Dr. Troy Loeffelholz says LB 890 accomplishes goals that were relevant in 1990, when the state school aid formula called TEEOSA, went into effect.
“The intention of this bill is to be simple, transparent and equitable. There are two valuable outcomes with this bill….a structurally sound and sustainable school funding model, and a substantial reduction on he reliance on property taxes to fund schools.”
The revision of the state aid formula, according to supporters, would reduce school district property tax requests by over $700 million. Several organizations cooperated to formulate the revised state aid plan prior to this year’s 60-day legislative session. Dave Welsh is a farmer, and President of the Milford Board of Education. “LB 890 and 891, provide that improved TEEOSA formula, to increase state aid to all schools and to provide direct property tax relief all across the state. The goal of any new TEEOSA formula should be to bring all school levies down…and bring them closer together…so that there isn’t such a wide disparity of property tax levies across the state. LB 890 does just that.”
Nebraska City Public Schools Superintendent Mark Fritch says his district’s current total levy stands at $1.24….and would be reduced greatly under LB 890 and 891. “Requesting the same budget dollars, LB 890 would actually reduce our general fund levy, to 66-cents. The bill sets the maximum general fund levy at 95. But, Nebraska City Public Schools maximum spending authority would still only allow a 76-cent general fund levy.”
Fritch says his district has had to make several cuts under the current education formula. He said the new formula would provide flexibility to meet student needs. He describe the new formula as “a game changer” that eases the local tax burden.
Some districts could see a one-third to one-half reduction in their property tax levy for school district operations. One improvement suggested during the committee hearing was a minimum basic state funding level to all districts of 20%.
