LINCOLN- The school aid fund established this year in the Nebraska Legislature at the behest of Gov. Pillen, which was intended to reduce property taxes, will dwindle far faster than state officials originally projected, according to a new report. This year, $1 billion was poured into the fund, with $250 million more set to go in each year going forward.

When the Legislature's Appropriations Committee weighed the issue in March, the state's budget director acknowledged that the fund would dwindle over time, but estimated that it would still have a $500 million balance by 2030. Despite this, new reports issued by the state's Tax Rate Review Committee suggest that the $1 billion fund will dip near $500 million as soon as 2025, with another $99.4 million decrease a year later.

"The Education Future Fund, created with a $1 billion investment this year, will be drained within a decade without a sustainable revenue stream that addresses the needs and outcomes for Nebraska's students," said Rebecca Firestone, executive director of the OpenSky Policy Institute. The updated forecast, which calls into question the sustainability of the fund, shows a reduction in part due to higher-than-expected special education costs.

For the full article click HERE