NEBRASKA LEGISLATURE
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Sen. Mike Groene

Sen. Mike Groene

District 42

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On Friday, June 15th, a group of us senators held a press conference to announce the creation of the Tax Equity and Educational Opportunities Support Act (TEEOSA): School Funding Legislative Study Group which will meet during this 2018 interim. At the end of the session this year, Speaker Scheer encouraged the members of the Unicameral to seek common ground to find a solution to the property tax issue. As the present Chairman of the Education Committee which hears legislation related to the school funding, I took it as my responsibility to initiate an effort to heed the Speaker’s advice.  The ten members of the study group are Tom Brewer (LD 43), Mike Hilgers (LD 21), Brett Lindstrom (LD 18), Lou Ann Linehan (LD 39), Jim Scheer (LD 19), Tom Briese (LD 41), Curt Friesen (34), Suzanne Geist (25), Justin Wayne (LD 13) and myself.  Collectively, this group represents all regions of the state, various sized schools, and local taxpayers affected uniquely by the funding formula.  Furthermore, they have all shown an interest in addressing the problem by previously introducing TEEOSA related legislation or investing time in understanding the issue. The group has a statewide perspective on creating an equitable solution. We have also made it clear that input from all of the senators in the Unicameral will be appreciated and they are free to attend any of the hearings and meetings we have.

At the press conference, we emphasized that “this is a unicameral effort to do the will of the people.” We emphasized that the role of the study group is to look at the side of the school formula that directs how we fund our public schools.

Senator Briese commented at the press conference, that community, business and political leaders across his district have made it clear that property taxes are “choking off economic growth in rural Nebraska.” He stated that he, “looks forward to working with this group.”

The 1990 passage of LB 1059 that created TEEOSA, calculates the sources of school revenue.   It is now obvious that the formula has major flaws. Two factors have come into play: the authors of the original legislation never foresaw the last decade of rapidly increasing property valuations and subsequent Legislatures have made changes to the TEEOSA formula during years when state revenues fell.  Those factors have caused an overreliance on property taxes as the major source of school funding.

The Study Group plans to begin meeting next month and has a three-prong approach to its effort:

  1. Study the history of TEEOSA to understand where we are and where we started. This will include understanding changes made over the years leading to the current formula, comparing public education funding of neighboring states and across the nation, looking at TEEOSA allowable spending growth factors, and studying factors causing the funding shift to property taxes (i.e. property valuations and property tax diversion programs such as Tax Increment Financing, Homestead Exemptions, low income housing exemptions, etc.).

  1. Seek a sustainable and constant local State Aid resource to serve as the Foundation Aid. This will include seeking innovative new ideas, as well as looking at options already presented in recent proposed legislation. Senators Briese, Friesen, Groene, Scheer and Wayne have all introduced related bills.

  1. Create a legislative solution for the 2019 Session that stabilizes state aid to ALL local school districts while reversing the present property tax burden that stabilizes at a responsible inflationary growth.

As the third prong indicated, the end goal of the study is an introduction of a single 2019 legislative bill addressing the TEEOSA revenue flaw that puts equity back into school funding and can garner the support of the full Legislature.

The people of Nebraska have made it clear they want the Legislature to address property tax relief. They have also indicated a desire for statewide, stable and equitable funding for their public schools. Many of the members of the Legislature have heard the message and are ready to roll up their sleeves to look for a solution. Stay tuned for updates in the coming months.

Contact Sen. Mike Groene: mgroene@leg.ne.gov or 402-471-2729.

Sen. Mike Groene

District 42
Room #1306
P.O. Box 94604
Lincoln, NE 68509
Phone: (402) 471-2729
Email: mgroene@leg.ne.gov
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