Nebraska

Funding priorities for p–12 and/or higher education for 2015

Four bills were approved by the legislature and included priorities for both P-12 and higher education.

• • LB 525 (approved 46–0) addresses multiple areas in P-12 including (1) clarification of homeless students attendance in districts, (2) redefinition of poverty students in the Tax Equity and Educational Opportunities Support Act (TEEOSA) for schools that provide free meals to students under a federal program, (3) replacement of the TEEOSA poverty allowance disqualification with a reduction of funds, and (4) a redirection of a portion of school land funds to support implementation of an educator evaluation model. LB 525 also adds income eligibility to the Access College Early (ACE) Scholarship Act.

• • LB 519 (approved 48–0) creates the Nebraska Education Improvement Fund (NEIF) and directs distribution of lottery funds for P-12 educational purposes from 2017–18 through 2020–21 school years; and requires establishments of a competitive grant program for a portion of the NEIF funds. Grantees can be a combination of entities but must include at least one school district or Education Service Unit (ESU). LB 519 also directs a study of affordability of higher education and strategies to address high costs for students.

• • LB 431 (approved 43–0) increased the dollar value, from $40,000 to $100,000, allowed for exceptions to bidding requirements for school district construction and repair.

• • LB 432 (approved 46–0) provides grant funding to support qualified high school equivalency training programs by entities other than educational institutions. The bill authorizes $400,000 from the Job Training Cash Fund to support the grant program. (Nebraska Legislative Updates, July, 2015).

Changes to funding formula for p–12

A budget deficit request was filed in October 2014 for an increase in TEEOSA funding to cover a deficit of $1,181,754 that represented the difference between the receipt of estimated funds and the amount certified by the state.

Proposed net change to TEEOSA aid under the current formula is an increase of $40.1 million (4.3%) in FY2015–16 followed by a $7.6 million (0.8%) increase in FY16–17 (State of Nebraska (b) 2015, p. 2).

Pressing State Issues Affecting P–12 Education Funding

Charter school movement remains a prime concern for multiple legislators and interest groups. Also, property assessments of rural property are increasing; interest gr reductions in assessment percentage for agricultural land or reduction in rates of taxation. Education organizations are calling for increased funding of TEEOSA. Approximately 50% of school systems in the 2013–14 academic year received no equalization aid as calculated by the current regulation in the funding formula. Education and Revenue Committees plan joint inquiry to consider new education funding options for the next session of the Legislature as they pursue lowering property taxes.

Forces Diverting Funds from Traditional Public School Districts and Higher Education

Current governor has assigned new management to state agencies that have demonstrated past mismanagement of personnel, clients, revenue and expenditures; new management and assessments call for increased revenues to these agencies as programs are restructured. Revenue shifts to other agencies may divert or stall state funding to public school districts and universities.

Other information

The percenta ge of the proposed state general funds operational budget for P-12 education is 28% for 2015–16 (State of Nebraska (b) 2015; p. 32; p.50).