LINCOLN - A trio of Nebraska education leaders unveiled a plan Thursday aimed at revamping the state’s school aid formula and saving property taxpayers $715 million a year. Application of the plan this year would have meant $1.762 billion for state school aid instead of the currently budgeted figure of $1.047 billion. The plan would require a similar figure to be matched by state dollars, resulting in a 68% increase in state support for K-12 education.

Chair of the Legislature's Education Committee, State Senator Lynne Walz, announced that she would be introducing the bill in the upcoming legislative session. It is more than an education funding plan to her, citing the funds saved by property owners which can help improve local communities as well.

“We recognize that education is the cornerstone to economic development and a strong workforce,” Walz said. “Education is a priority for every Nebraskan. We need to be responsive and assure that the funding and resources are available not only today but well into the future.”

Nearly 60% of the total property tax bill statewide is funded by school property taxes, leading lawmakers to continually increase state aid to schools as a means of easing property taxes. Recently, however, lawmakers have preferred property tax credit programs that provide money directly to property owners to offset their tax bills. The state will provide nearly $1 billion for those programs in the coming year.

This shift in preference is likely the cause of Education Committee members not signing off on the plan yet. Other groups, like Greater Nebraska Schools Association, are still studying the issue as well.

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