Local Educators React To Governor’s Plan For School Funding

By Gordon HopkinsOne of the primary components of Governor Jim Pillen’s proposed tax plan is to move funding from schools districts to the state.Pillen has made property tax relief the cornerstone of his administration’s policy. The governor has announced he will be calling a special session of the Nebraska Legislature to pass a new tax package.Pillen said his plan that will: Put a hard cap on property tax collections. Cutting state spending by $360 million to help finance this plan. Cut property taxes by 50 percent. (Previously, Pillen said his goal was 40 percent.) Invest more in public education.However, some educators have expressed concern over the potential impact of allowing the state to take over the bulk of school funding. FJN reached out to local school superintendents to get their reactions.Devin Embray, Fairbury Public Schools: “I have not been following the story until lately, so I may not be totally up to speed, but it makes sense to shift from property tax to sales and other taxes to fund schools if schools can remain fully funded. My only concern would be what things are in the broadened scope of sales tax and what miscellaneous taxes are being implemented to address the replacement of property tax funding schools. I think it is important for people to know so they can weigh in. In my experience, schools are not inefficient financially, so my worry would be if the shift happens will schools be reduced in the exchange of funding. I come from Iowa where it (funding of schools) is a mix of funding of property tax and state aid with the majority of it coming from state aid. Generally speaking it is not a bad idea as long as schools can be funded at the appropriate level to continue to provide quality programming and experiences for our students.”Mike Meyerle, Diller-Odell Public Schools: “I think it is a recipe for a disaster for small schools. I can see swimming pools going up in the metro, while rural areas deal with funding basic programming. Just a hunch, but would probably lead to forced consolidation once the funding is coming from the state. I am all for lowering property taxes, but not by having the state control school finance.”Eric Miller, Thayer Central: “My real fear is for the smaller schools who have a higher per/pupil cost. With the state controlling or determining our operating costs, it could really put a strain on a small district’s ability to enhance programs, add a teacher, compete for employees, or upgrade facilities. For example, I had a HVAC system go down this year and we had to do an emergency board meeting to discuss and pay for it. How will that process for something like this work under this state run system? Who do I go to for permission if it isn’t my board? How long will I have to wait?”Chris Prososki, Southern Schools District 1: “The governor’s proposed thought is very similar to how the state began funding the six community colleges in Nebraska, but one has to remember that community colleges receive tuition from students as another revenue source unlike school districts. I think everyone needs to take a step back and look at the established role of an elected school board member.“The role of a school board is (1) to establish a mission, goals, and policies; (2) to establish and maintain school facilities; (3) to select a superintendent; (4) to adopt a fiscally responsible budget; and (5) to evaluate programs. No one in Lincoln understands the budgetary needs of a local school district better than the elected officials that oversee the day-to-day budget operations.“I also have concerns when a future economic downturn occurs, how will we fund schools? Especially when around 85 percent of a school’s budget is made up of personnel costs and the other 15 percent is made up of fixed costs. During a future economic downturn, it will force a school district’s hand to make tough decisions on cutting programs or activities (e.g., FFA, quiz bowl, music/band, etc.), cutting athletic programs (e.g., junior high and high school athletic offerings), or cutting staff members (e.g., certified and classified staff positions). If you think people in Nebraska are upset about high property taxes, try cutting all of the junior high and high school athletic programs in Nebraska and see what kind of outcome you will get from that. It would also make it difficult for school districts to add programming and services based on identified priorities. In addition, a school district would not have the ability to address ongoing student needs, that have gotten greater since the pandemic, because of program and service cuts that had to be made during an economic downturn to balance the state’s budget in Lincoln.”

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