The governor’s proposed education finance plan, LB 583, and the three bills containing the governor’s budget priorities, LBs 813, 814 and 818, had hearings recently, while a couple other education and revenue bills will be heard in committee next week.

Governor’s education finance bill combines with revenue caps to harm schools

OpenSky Policy Institute testified in opposition to the education finance proposal, heard by the Education Committee Feb. 7, because of concerns about how it would interact with another proposal, LB 589, limiting schools’ ability to raise revenue. Modeling of the two proposals’ impact on nine school districts showed that while special education and foundation aid provisions set out in LB 583 would send additional resources to schools, each district lost tax revenue in the first year of implementation because of revenue caps limiting growth. OpenSky also expressed concerns that no mechanism was included in LB 583 to grow the $1,500 per student in foundation aid over time.

Budget proposals unsustainable

OpenSky also opposed the budget bills, heard by the Appropriations Committee Feb. 12, over concerns about their long-term sustainability, the limited amount of funds they left to the Legislature’s discretion and apparent assumption that those funds left on floor would go unspent this session.

Increases to property tax fund, credit

Three other bills heard in the Revenue Committee recently, LBs 242, 243 and 244, would increase funds going toward the Property Tax Relief Program and the Property Tax Incentive Act. If all three passed, it would divert over a billion dollars to the programs, which already send out hundreds of thousands of dollars to offset taxpayers’ property tax bills.

Education finance, revenue bills up next week; Forecasting Board to meet Friday

LB 386, a bill to change the base limitation and local effort rate pieces of the state’s school funding formula will be heard by the Education Committee on Tuesday, Feb. 21. LB 689, which would increase the portion of the income tax credit created by the Property Tax Incentive Act that applies to taxpayers’ property taxes levied by community colleges.

The Forecasting Board will meet at 10 a.m. on Friday, Feb. 24.