LB 589 – which would cap the amount by which public school district revenues could grow – will be the subject of a Revenue Committee hearing today.
The measure would limit school district revenue growth, regardless of enrollment growth or other educational needs, to 3%. While the bill contains some mechanisms to adjust the cap to reflect school district growth, most of these would be too low to ever be implemented, which means school districts would mostly be subjected to a provision in the bill that limits growth in property tax asking to 3% over the previous year’s tax asking. The bill does allow school districts to enact overrides to access more revenue.
OpenSky analysis shows large districts with high needs are likely to see significant revenue losses under the 3% cap. Also, many districts – particularly those in rural areas – have worked to keep property taxes down in recent years. LB 589 would force these schools to maintain these lower tax levels, which would make it hard for them to adjust to emerging needs without having to get an override.
Furthermore, Nebraska’s public schools are already subject to tax and spending caps. Adding further restrictions could harm funding for schools at a time when schools are already struggling to find teachers, cafeteria workers, bus drivers, and other essential personnel.
The hearing on LB 589 – which starts at 9:30 a.m. – will be streamed live by Nebraska Public Media.