Reduced aid to schools proposed

LINCOLN — The state would ratchet down spending limits on Nebraska schools under a bill introduced Wednesday in the Nebraska Legislature.

Legislative Bill 5, proposed by the Education Committee, aims to reduce state aid to K-12 schools by about $47 million next year.

State Sen. Greg Adams of York, Education Committee chairman, said he hoped the bill would affect all school districts similarly and not create winners and losers.

“We’re kind of spreading the pain, so to speak,” he said.

About half the savings would come from tightening the spending lid, which applies to all school districts.

Under the bill, most districts could increase their budgets by 1 percent. Low-spending districts or those with rapid growth in needs could increase spending a little more.

An additional $24 million in savings would come from reducing the amount of state aid that is based on the number of teachers with graduate degrees.

The school aid measure was among seven bills introduced on the first day of the Legislature’s special budget-cutting session.

Five of the measures would implement Gov. Dave Heineman’s plan for cutting about $336 million from the current $6.94 billion, two-year state budget.

The governor has called for cutting the budgets of most state agencies and programs across the board; making specific cuts in other agencies and programs; taking back savings achieved by agencies last year; and tapping various cash funds. He left it to the Education Committee to figure out how to achieve savings in the state’s school aid formula.

The other two bills were prompted by the governor’s proposal to tap grain checkoff funds for the state’s general fund. Sen. Tom Carlson of Holdrege, Agriculture Committee chairman, said he offered the bills as alternative sources of savings.

One would eliminate a requirement to inspect dog and cat pet shops, kennels and breeders every two years and instead inspect them only in response to complaints. Carlson said the change could save $120,000 a year.

The other bill would change the use of some pesticide registration fees, for $30,000 in estimated savings.

Lawmakers can introduce more bills today and Friday.

But the Legislature cannot pass any bill that falls outside the special session’s limits, as set by the governor.

With that restriction in mind, Sens. Jeremy Nordquist, Heath Mello and Tom White asked for an opinion from the Attorney General’s Office about a proposal to restrict state property tax credits to Nebraska residents.

Sen. Rich Pahls of Omaha knows his measure for changing the state tax system — by eliminating exemptions to the state sales tax in exchange for drastically reducing other taxes — falls outside the limits. But he said he plans to introduce it anyway because he wants to continue discussing the idea.

Contact the writer:

402-473-9583, martha.stoddard@owh.com

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