February 11, 2026
Sen. Rita Sanders, Chairperson
Sen. Bob Andersen, Vice Chairperson
Sen. John Cavanaugh
Sen. Dunixi Guereca
Sen. Megan Hunt
Sen. Dan Lonowski
Sen. Fred Meyer
Sen. Dave Wordekemper
Chairperson Rita Sanders and members of the Appropriations Committee:
The Lincoln Public School District opposes LB 765. While special election participation often exceeds primary elections, the participation requirements in LB 765 will make general elections the main election for school bond issues. This will drive construction timelines to one uniform timeframe each year flooding the market and driving up costs.
Bond issues are necessary to provide adequate and well-maintained places for students to learn. School boards do not have access to other funding mechanisms to support construction of new schools, additions, renovations, or major infrastructure projects. The building fund is under caps and lids in conjunction with general operating funds.
Special elections save taxpayers money. Schools are able to plan special elections to access the most desirable timeline for taxpayers in bidding projects. In 2020, LPS conservatively estimated $2,000,000 in cost savings with a February election. The district was able to get into the 2020 construction market early instead of an election later in the Spring or Fall which would have pushed construction back to late/off-season or delayed the project a full year. Cost escalations based on timing delays add up quickly when planning hundreds of millions in construction work.
LB 765 will result in higher property taxes. November elections will cost districts more and the additional costs will be passed on to property tax payers. School districts have no other way to pay debt service on bonds than from property taxes. LPS has been focused on reducing property tax burdens, and this bill will force the district to pursue options which will tend to have an inflationary effect on property taxes. November is problematic because the school district budget and tax levy are set in September. The levy to support a successful bond would have to wait a year and revenue would come in to pay for the debt the following year. This means that construction projects would be delayed until funds are available to pay the debt which would result in inflationary cost increases. The alternative would be to capitalize bond payments to front load the funds which is also costly.
Local Control – School districts plan bond elections based on the need for new schools, renovated facilities, and/or large maintenance projects to support students. Students need access to quality spaces to learn. The layers of planning that are included in a bond issue blend together a finance plan and a construction plan that is developed in conjunction with community input to support students. Planning for facilities to support student needs is both challenging and complex. LB 765 would take away from a school board’s ability to address needs.
Narrowing Time Windows for School Bond Construction – The construction and construction-related businesses in Nebraska benefit from a stable stream of projects. Property tax payers benefit from project costs representing a stable construction economy, not peaks and valleys. Limiting windows for bond issues could result in high volumes of work in some time periods requiring out-of-state providers to meet the need and very little work in other time periods.
Sincerely,
Liz Standish
Associate Superintendent for Business Affairs
Lincoln Public Schools
lstandis@lps.org
402-436-1635
