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LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 957
Introduced by Dungan, 26; Blood, 3; Cavanaugh, J., 9; Conrad, 46; DeBoer,
10; Hunt, 8; Vargas, 7; Walz, 15; Wishart, 27.
Read first time January 04, 2024
Committee: Education
1 A BILL FOR AN ACT relating to the Tax Equity and Educational
2 Opportunities Support Act; to amend sections 79-1001, 79-1009,
3 79-1017.01, 79-1021, 79-1022, 79-1022.02, 79-1023, 79-1027, and
4 79-1031.01, Revised Statutes Supplement, 2023; to provide for early
5 childhood aid; to change provisions relating to net option funding,
6 local system formula resources, the Education Future Fund, and
7 certain certification dates; to harmonize provisions; to repeal the
8 original sections; and to declare an emergency.
9 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Section 79-1001, Revised Statutes Supplement, 2023, is
2 amended to read:
3 79-1001 Sections 79-1001 to 79-1033 and section 2 of this act shall
4 be known and may be cited as the Tax Equity and Educational Opportunities
5 Support Act.
6 Sec. 2. (1) For school fiscal year 2024-25 and each school fiscal
7 year thereafter, the department shall determine the early childhood aid
8 to be paid to each school district in accordance with subsection (2) of
9 this section.
10 (2) The early childhood aid to be paid to each school district in
11 each school fiscal year shall equal one thousand five hundred dollars
12 multiplied by the qualified early childhood education average daily
13 membership for such school district.
14 (3) Twenty-four percent of the total amount of early childhood aid
15 paid each school fiscal year shall be paid from money appropriated from
16 the Education Future Fund.
17 (4) For school fiscal years 2024-25 and 2025-26, one hundred percent
18 of early childhood aid shall be included as a formula resource pursuant
19 to section 79-1017.01. For school fiscal year 2026-27 and each school
20 fiscal year thereafter, sixty percent of early childhood aid shall be
21 included as a formula resource pursuant to section 79-1017.01.
22 Sec. 3. Section 79-1009, Revised Statutes Supplement, 2023, is
23 amended to read:
24 79-1009 (1)(a) A district shall receive net option funding if (i)
25 option students as defined in section 79-233 were actually enrolled in
26 the school year immediately preceding the school year in which the aid is
27 to be paid, (ii) option students as defined in such section will be
28 enrolled in the school year in which the aid is to be paid as converted
29 contract option students, or (iii) for the calculation of aid for school
30 fiscal year 2017-18 for school districts that are members of a learning
31 community, open enrollment students were actually enrolled for school
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1 year 2016-17 pursuant to section 79-2110.
2 (b) The determination of the net number of option students shall be
3 based on (i) the number of students enrolled in the district as option
4 students and the number of students residing in the district but enrolled
5 in another district as option students as of the day of the fall
6 membership count pursuant to section 79-528, for the school fiscal year
7 immediately preceding the school fiscal year in which aid is to be paid,
8 (ii) the number of option students that will be enrolled in the district
9 or enrolled in another district as converted contract option students for
10 the fiscal year in which the aid is to be paid, and (iii) for the
11 calculation of aid for school fiscal year 2017-18 for school districts
12 that are members of a learning community, the number of students enrolled
13 in the district as open enrollment students and the number of students
14 residing in the district but enrolled in another district as open
15 enrollment students as of the day of the fall membership count pursuant
16 to section 79-528 for school fiscal year 2016-17.
17 (c) Except as otherwise provided in this subsection, net number of
18 option students means the difference of the number of option students
19 enrolled in the district minus the number of students residing in the
20 district but enrolled in another district as option students. For
21 purposes of the calculation of aid for school fiscal year 2017-18 for
22 school districts that are members of a learning community, net number of
23 option students means the difference of the number of students residing
24 in another school district who are option students or open enrollment
25 students enrolled in the district minus the number of students residing
26 in the district but enrolled in another district as option students or
27 open enrollment students.
28 (2)(a) For school fiscal years prior to school fiscal year 2023-24,
29 net option funding shall be the product of the net number of option
30 students multiplied by the statewide average basic funding per formula
31 student.
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1 (b) For school fiscal year 2023-24 and each school fiscal year
2 thereafter, net option funding shall be the product of the net number of
3 option students multiplied by the difference of the statewide average
4 basic funding per formula student minus the amount of foundation aid paid
5 per formula student pursuant to section 79-1006.
6 (c) For school fiscal year 2024-25 and each school fiscal year
7 thereafter, net option funding shall be the product of the net number of
8 option students multiplied by the difference of the statewide average
9 basic funding per formula student minus three thousand dollars.
10 (3) A district's net option funding shall be zero if the calculation
11 produces a negative result.
12 Payments made under this section for school fiscal years prior to
13 school fiscal year 2017-18 shall be made from the funds to be disbursed
14 under section 79-1005.01.
15 Such payments shall go directly to the option school district but
16 shall count as a formula resource for the local system.
17 Sec. 4. Section 79-1017.01, Revised Statutes Supplement, 2023, is
18 amended to read:
19 79-1017.01 (1) For state aid calculated for each school fiscal year
20 prior to school fiscal year 2023-24, local system formula resources
21 includes other actual receipts determined pursuant to section 79-1018.01,
22 net option funding determined pursuant to section 79-1009, allocated
23 income tax funds determined pursuant to section 79-1005.01, and community
24 achievement plan aid determined pursuant to section 79-1005, and is
25 reduced by amounts paid by the district in the most recently available
26 complete data year as property tax refunds pursuant to or in the manner
27 prescribed by section 77-1736.06.
28 (2) For state aid calculated for school fiscal year 2023-24 and each
29 school fiscal year thereafter, local system formula resources includes
30 other actual receipts determined pursuant to section 79-1018.01, net
31 option funding determined pursuant to section 79-1009, allocated income
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1 tax funds determined pursuant to section 79-1005.01, community
2 achievement plan aid determined pursuant to section 79-1005, and a
3 percentage of foundation aid determined pursuant to section 79-1006, and
4 is reduced by amounts paid by the district in the most recently available
5 complete data year as property tax refunds pursuant to or in the manner
6 prescribed by section 77-1736.06.
7 (3) For state aid calculated for school fiscal year 2024-25 and each
8 school fiscal year thereafter, local system formula resources includes
9 other actual receipts determined pursuant to section 79-1018.01, net
10 option funding determined pursuant to section 79-1009, allocated income
11 tax funds determined pursuant to section 79-1005.01, community
12 achievement plan aid determined pursuant to section 79-1005, a percentage
13 of foundation aid determined pursuant to section 79-1006, and a
14 percentage of early childhood aid determined pursuant to section 2 of
15 this act, and is reduced by amounts paid by the district in the most
16 recently available complete data year as property tax refunds pursuant to
17 or in the manner prescribed by section 77-1736.06.
18 Sec. 5. Section 79-1021, Revised Statutes Supplement, 2023, is
19 amended to read:
20 79-1021 (1) The Education Future Fund is created. The fund shall be
21 administered by the department and shall consist of money transferred to
22 the fund by the Legislature. Any money in the fund available for
23 investment shall be invested by the state investment officer pursuant to
24 the Nebraska Capital Expansion Act and the Nebraska State Funds
25 Investment Act.
26 (2) The fund shall be used only for the following purposes, in order
27 of priority:
28 (a) To fully fund equalization aid under the Tax Equity and
29 Educational Opportunities Support Act;
30 (b) To fund reimbursements related to special education under
31 section 79-1142;
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1 (c) To fund foundation aid under the Tax Equity and Educational
2 Opportunities Support Act;
3 (d) To fund early childhood aid under the Tax Equity and Educational
4 Opportunities Support Act;
5 (e) (d) To increase funding for school districts in a way that
6 results in direct property tax relief, which means a dollar-for-dollar
7 replacement of property taxes by a state funding source;
8 (f) (e) To provide funding for a grant program created by the
9 Legislature to address teacher turnover rates and keep existing teachers
10 in classrooms;
11 (g) (f) To provide funding to increase career and technical
12 educational classroom opportunities for students. Such funding must
13 provide students with the academic and technical skills, knowledge, and
14 training necessary to succeed in future careers;
15 (h) (g) To provide funding for a grant program created by the
16 Legislature to provide students the opportunity to have a mentor who will
17 continuously engage with the student directly to aid in the student's
18 professional growth and give ongoing support and encouragement to the
19 student;
20 (i) (h) To provide funding for extraordinary increases in special
21 education expenditures to allow school districts with large, unexpected
22 special education expenditures to more easily meet the needs of all
23 students; and
24 (j) (i) To provide funding to help recruit teachers throughout the
25 state by utilizing apprenticeships through a teacher apprenticeship
26 program and an alternative certification process.
27 (3)(a) The State Treasurer shall transfer one billion dollars from
28 the General Fund to the Education Future Fund in fiscal year 2023-24, on
29 such dates and in such amounts as directed by the budget administrator of
30 the budget division of the Department of Administrative Services.
31 (b) The State Treasurer shall transfer two hundred fifty million
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1 dollars from the General Fund to the Education Future Fund in fiscal year
2 2024-25, on such dates and in such amounts as directed by the budget
3 administrator of the budget division of the Department of Administrative
4 Services.
5 (c) It is the intent of the Legislature that two hundred fifty
6 million dollars be transferred from the General Fund to the Education
7 Future Fund in fiscal year 2025-26 and each fiscal year thereafter.
8 Sec. 6. Section 79-1022, Revised Statutes Supplement, 2023, is
9 amended to read:
10 79-1022 (1) On or before June 15, 2024 2023, and on or before March
11 1 of each year thereafter, the department shall determine the amounts to
12 be distributed to each local system for the ensuing school fiscal year
13 pursuant to the Tax Equity and Educational Opportunities Support Act and
14 shall certify the amounts to the Director of Administrative Services, the
15 Auditor of Public Accounts, and each local system. On or before June 15,
16 2024 2023, and on or before March 1 of each year thereafter, the
17 department shall report the necessary funding level for the ensuing
18 school fiscal year to the Governor, the Appropriations Committee of the
19 Legislature, and the Education Committee of the Legislature. The report
20 submitted to the committees of the Legislature shall be submitted
21 electronically. Except as otherwise provided in this subsection,
22 certified state aid amounts, including adjustments pursuant to section
23 79-1065.02, shall be shown as budgeted non-property-tax receipts and
24 deducted prior to calculating the property tax request in the local
25 system's general fund budget statement as provided to the Auditor of
26 Public Accounts pursuant to section 79-1024.
27 (2) Except as provided in this subsection, subsection (8) of section
28 79-1016, and sections 79-1005, 79-1033, and 79-1065.02, the amounts
29 certified pursuant to subsection (1) of this section shall be distributed
30 in ten as nearly as possible equal payments on the last business day of
31 each month beginning in September of each ensuing school fiscal year and
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1 ending in June of the following year, except that when a local system is
2 to receive a monthly payment of less than one thousand dollars, such
3 payment shall be one lump-sum payment on the last business day of
4 December during the ensuing school fiscal year.
5 Sec. 7. Section 79-1022.02, Revised Statutes Supplement, 2023, is
6 amended to read:
7 79-1022.02 Notwithstanding any other provision of law, any
8 certification of state aid pursuant to section 79-1022, certification of
9 budget authority pursuant to section 79-1023, and certification of
10 applicable allowable reserve percentages pursuant to section 79-1027
11 completed prior to the effective date of this act June 1, 2023, for
12 school fiscal year 2024-25 2023-24 are null and void.
13 Sec. 8. Section 79-1023, Revised Statutes Supplement, 2023, is
14 amended to read:
15 79-1023 (1) On or before June 15, 2024 2023, and on or before March
16 1 of each year thereafter, the department shall determine and certify to
17 each school district budget authority for the general fund budget of
18 expenditures for the ensuing school fiscal year.
19 (2) Except as provided in sections 79-1028.01, 79-1029, 79-1030, and
20 81-829.51, each school district shall have budget authority for the
21 general fund budget of expenditures equal to the greater of (a) the
22 general fund budget of expenditures for the immediately preceding school
23 fiscal year minus exclusions pursuant to subsection (1) of section
24 79-1028.01 for such school fiscal year with the difference increased by
25