Taking another run at school finance and property tax relief
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BEATRICE – It’s been a nearly every year event for the Nebraska Legislature…looking for ways to refine funding for public education in the state.
This year’s attempt is LB 303, sponsored by Seward Senator Jana Hughes. Other senators have worked with Hughes on the bill during the past year’s interim. One of those senators is Myron Dorn of Adams.
"The maximum (school) levy is now a dollar-five. What her bill does, as we lower that levy to a maximum of a dollar-two...now, the state will pick up that funding. That three cents of levy drop is about $60 million, so that would be part of the funding. Her bill, though, is a broader, longer-term one...it would be as the state is able to fund more property taxes, then this maximum levy, rather than a dollar-five or a dollar-three, it could...there's triggers in there where it go down to 85, 75 and so on."
The bill also proposes lowering what’s called the local effort rate for school districts, with the overall goal of the bill to maintain the school funding formula but have the state of Nebraska pick up more of the tab…not property taxpayers. The measure would also increase foundation aid, per student.
Recently, a legislative committee held a public hearing on the measure. Dorn says the state’s preliminary budget will be issued Tuesday, as lawmakers face approving a new biennial budget this session.
"With the budget and our deficit and everything, where does the funding come from to put this in place? One of the things we do have in there, is a trigger. If the state goes down ten cents of levy and it takes $225 million to do that...and the state isn't able to, the next year because of deficits or whatever...it now will allow the schools to go back up. So, it puts the onus back on the state. Yes, we're going to supply this property tax relief, but if for some reason the state is not able to, then the schools can go back to where they were before. That's why for many people, they don't want us to get rid of TEEOSA...is because the state hasn't always lived up to their responsibility."
Reaction from area schools has been generally favorable. Dorn says if the State of Nebraska can find the funding, he’s comfortable with the design of LB 303.