Governor’s Education Plan Gets Mixed Marks from Local School Officials

By Gordon HopkinsLocal school officials have expressed mixed feelings about Governor Jim Pillen's education funding plans.On Tuesday, April 4, 2023, the Governor's education funding proposal, LB (Legislative Bill) 583, advanced through the first round of debate in a 39 to three vote, following two days of debate. It will still need to pass two more rounds of debate before it can be sent to the governor's desk and be signed into law.LB 583 would increase state aid to public schools by $1,500 per student, beginning with school fiscal year 2023-24.“I am sure the bill is coming with trade-offs on other bills, but we need something more from the state regarding financial commitment,” said Diller-Odell Public Schools Superintendent Mike Meyerle. “A lot of people don't like the $1,500 per student. I don't have a problem with it as it offers some consistency.”Senator Tom Brandt (District 32) of Plymouth, is a supporter of LB583. Brandt had previously introduced his own education bill, LB320, intended to make a number of changes within the TEEOSA (Tax Equity and Educational Opportunities Support Act) formula. Brandt introduced an amendment to LB589 that incorporated some elements of LB320.Brandt's proposed amendment would have reimbursed schools for special education expenses at the same level as LB583, and would also have provided each district with 10 percent of its basic funding, or at least $1,500 per student.The amendment was also intended to reduce agricultural and residential valuations inside the state school funding formula, which Brandt said would result in more districts receiving equalization aid than under the governor’s proposal.Brandt estimated his amendment would cost approximately $70 million more per year than LB583, and it would use unclaimed income tax credits under the Nebraska Property Tax Incentive Act to cover the difference.The amendment failed with a vote of 17-29.Dr. Tiffanie Welte, Tri County Superintendent, told FJN, “I was disappointed to see that Senator Brandt's amendment was not adopted, but remain optimistic that efforts are being made to address ongoing concerns regarding the state's obligation to fund public education in as equitable a manner as possible. While there are several positive aspects of the original 3-part plan (LB583, LB589 & LB 681) that was introduced on Governor Pillen's behalf, the conversation has been muddied with the addition of LB753 as part of an 'all-or-nothing' package. An all-or-nothing mindset is not at all representative of Nebraska and out-of-state special interests that polarize our communities have no business in our Unicameral.”LB753 was introduced by Senator Lou Ann Linehan (District 39) of Elkhorn at the behest of Governor Pillen and would create the Opportunity Scholarships Act. Under the Act, individual and corporate taxpayers would qualify for a non-refundable tax credit equal to the amount the taxpayer contributed to a scholarship-granting organization. The bill would make $25 million available for credits in 2024, with annual increases in the program of up to 25 percent possible in future years.LB753 advanced in March after a three-day filibuster.The Institute of Taxation and Economic Policy (ITEP), a national nonprofit, released a statement opposing the bill in March, claiming that in states which have passed similar measures, the bulk of the credits are being claimed by wealthy families. The statement reads, in part, “These tax credits are among the most significant tools eroding the public education system and propping up private schools.”LB583 is just one of three bills that are part of the governor’s proposed school finance package. The others are LB589, Adopt the School District Property Tax Limitation Act, and LB681, Change provisions relating to a fund and provide for transfers under the Tax Equity and Educational Opportunities Support Act.It is LB589 that concerns Dr. Chris Prososki, Superintendent of Southern Schools District, “Southern is currently 1 of the 86 equalized school districts (Beatrice is another equalized school district in the area) and there is no way LB 589 will work for any equalized school districts. The passage of LB 589 would require all equalized school districts to make massive cuts to our current staff.”Dr. Prososki said, “If LB589 is approved, Southern would lose $439,396 in state aid next year.”

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