January 31, 2024
Sen. Lou Ann Linehan, Chairperson
Sen. Joni Albrecht
Sen. Eliot Bostar
Sen. George Dungan
Sen. Kathleen Kauth
Sen. Fred Meyer
Sen. Dave Murman
Sen. R. Brad von Gillern
Chairperson Linehan and Members of the Revenue Committee,
Lincoln Public School District submits this testimony in opposition to LB 1241 and AM 2135. LB 1241 fundamentally changes the school finance package crafted by Governor Pillen and advanced by this legislature last spring in LB 583 (Foundation Aid and Special Education Reimbursement), LB 589 (a new soft property tax request cap preserving local control) and establishment of the Education Future Fund. LB 1241, as amended in AM 2135, essentially freezes the property tax request. This approach does not account for how the system to fund schools in the state of Nebraska works and will have catastrophic implications defunding our states public school system.
The state aid formula TEEOSA looks to property taxes as the major source of funding for schools. As valuation goes up state equalization aid goes down – needs minus resources equals aid. The provision is called the local effort rate and assumes the district is levying $1.00 at the local level.
Lincoln Public Schools expects our state aid to drop by $30 million dollars this year due to valuation growth last year. If the property tax request is held flat and the district is not able to raise property taxes to make up for the loss in state aid, we will experience a massive gap in funding. This is will be true for equalized school districts across the state.
We cannot address school finance in a piecemeal fashion. Every change has impacts with known consequences impacting our ability to effectively serve children across the state.
Sincerely,
Liz Standish MBA, EdD
Associate Superintendent for Business Affairs
lstandis@lps.org
402-436-1636
