March 4, 2025
Sen. Mike Moser, Chairperson
Sen. Beau Ballard
Sen. Carolyn Bosn
Sen. Tom Brandt
Sen. Wendy DeBoer
Sen. John Fredrickson
Sen. Dunixi Guereca
Sen. Tanya Storer
The Lincoln Public School District offers testimony in opposition to LB 714. LB 714 reduces the Motor Vehicle Tax revenue allocation to school districts from 60 to 37 percent. Last year, Lincoln Public Schools received approximately $25 million in motor vehicle taxes. This will be a reduction of over $9 million.
During the first two years of implementation for equalized school districts, the gap in revenue will have to be made up for through increasing property taxes. This will require an increase in the maximum levy limits and property tax request cap. It will take two years for the lost revenue to be reflected in the TEEOSA calculation. At that point, equalized districts will receive more equalization aid, however, non-equalized school districts will continue to experience the loss in revenue.
LB 714, if advanced, will require companion legislation to increase property taxes.
Sincerely,
Liz Standish
Associate Superintendent for Business Affairs
Lincoln Public Schools
