LINCOLN -- Gov. Dave Heineman voiced concerns Tuesday that Nebraska might have to spend $30 million more to qualify for $59 million in new federal funds for teacher salaries.
Heineman said state officials are seeking clarification, but it appears that
the funding passed by the House on Tuesday to help states deal with
recession-induced, tax-revenue shortfalls requires Nebraska to spend an
additional $30 million to qualify.
"I don't think the federal government should be dictating that we spend
more money to get more money," Heineman said.
The congressional action comes as states across the country are looking at slashing budgets or raising taxes due to recession-depleted tax receipts. Nebraska is eying a projected $751 million budget gap.
Sen. Ben Nelson, D-Neb., said the $26 billion aid bill passed on Tuesday is intended to help states close those gaps, and avoid things like local property tax increases in Nebraska.
He said it is a state decision whether to go after the funds. "I recommend that they do what they think is right," Nelson said.
States can say "no," he said, but the money would help preserve
teacher jobs and help low-income people retain health care.
The Nebraska State Education Association, which represents the state's teachers, urged Heineman to apply for the extra funding "as soon as possible," even if it means coming up with $30 million more in state aid.
“Without this federal funding, local school districts could face two choices: lay off teachers and increase school classroom sizes; or raise property taxes to keep teachers in the classroom,” said NSEA President Jess Wolf.
NSEA spokeswoman Karen Kilgarin said that even if Nebraska got the $59 million in federal money and had to pump in $30 million more into state aid, the overall amount going to local schools next year would drop by about $50 million, or 6 percent, because the original federal stimulus funds have run out.
Nebraska is in line to receive $59 million in new stimulus funds for
education through the bill. That amount that equates to about 1,000 teaching jobs in the state. Another $69 million would go to Medicaid, the health insurance program for low-income residents.
To qualify for the education portion of the money, Nebraska would have to maintain its state education funding at 2009 levels, a so-called "maintenance of effort" requirement, according to Nelson's office.
That would mean spending of $840 million next year, according to state
budget figures — about $30 million more than the state plans to spend
this year on K-12 education.
Heineman said the state is still exploring if that is truly the requirement.
And there is a second major question -- can Nebraska use the $59 million
next year rather than this year, as the bill seems to indicate.
Copyright ©2012 Omaha World-Herald®. All rights reserved. This material may not be published, broadcast, rewritten, displayed or redistributed for any purpose without permission from the Omaha World-Herald.
