Nebraskans view funding of public education justifiably as a long-term investment in the state’s future. A strong K-12 education system not only expands economic opportunities for all, it helps strengthen the overall economy. Many of the policy choices made by our state’s lawmakers have major ramifications for our state’s vital investments in public education.
School spending has been a frequent discussion point as Nebraska lawmakers have worked to find ways to reduce our high reliance on property taxes to fund K-12 education. Below we examine some key factors regarding the way our state’s public schools utilize their funding.
Under scholarship tax credit programs such as the one created by LB 670, the state would forgo revenue to provide a tax benefit to those who make donations to private school scholarship-granting organizations (SGOs), which in turn, provide scholarships to students in private K-12 schools. LB 670 creates much greater tax benefits for donations to SGOs, as compared to all other nonprofits.
Fiscal policy proposals and issues that face the Legislature nearly every year are the focus of OpenSky’s new Issue Brief series.
Scholarship tax credits like the one proposed in LB 295 stand to divert state revenue at a time when we are experiencing revenue struggles. Enacting this measure could force lawmakers to make cuts to vital services such as public K-12 education or shift more of the load of funding our schools on to property taxpayers.
OpenSky's "Investing in Our Future: An Overview of Nebraska’s Education Funding System" helps break down the complex issue of K-12 funding in Nebraska in order to promote a dialogue on the vital issue of how we pay for our public schools.
Read an overview of priority bills that relate to OpenSky's work and about the positions we have taken on the measures.
Increased oversight of Tax Increment Financing – or (TIF) – which is the focus of two bills before the Legislature – would help ensure the programs work as intended while not creating unintended consequences that affect school funding and property taxes.
Taxing agricultural land at only 65 percent of its full market value – which is proposed in LB 293 and LB 350[1] -- would have a disparate impact on Nebraska taxpayers and would lead to revenue losses for schools, counties, community colleges and other local governments.
In spite of its gradual implementation, LB 357 would leave future lawmakers with a budget crisis as they inherit a depleted cash reserve and the need to make continuous cuts to vital services like schools and health care.
Learn more about how LB 280 would affect taxpayers and school finance in Nebraska.
