In the recently concluded legislative session, the Nebraska Legislature passed a historic measure of property tax relief and reform. These include increasing the amounts distributed through the property tax credit fund; increasing the refundable income tax credit for K-12 school taxes paid; replacing community college property tax collections with state funding; and through the passage of LB 583, injecting $300 million annually into public education in the form of foundation aid and increased special education funding.

Importantly, this last component — more dollars into public schools — is meant to take pressure off of our property taxpayers. The Legislature did it’s job, and now we need the help of local school administrators and school boards to ensure these dollars yield the intended dollar for dollar property tax relief.

In an effort to ensure the LB 583 dollars yield property tax relief, the legislature also passed revenue cap provisions in LB 243. Under these provisions, schools are generally limited to a 3% cap on overall revenue growth. This cap can be exceeded by a vote of 60% of the school board, or a vote of 70% of the public. But staying within this 3% cap is necessary to help ensure the additional dollars we are putting into public education actually lower property taxes.

For years, Nebraska has had a reputation for relying far too heavily on local property taxes to fund public education. U.S. Census Bureau data shows that we are nearly last in the country in the percentage of K-12 education funding derived from the state. Instead, the state has forced local property taxpayers to foot most of the bill for our schools. LB 583 is a needed step to help correct this overreliance on property taxes.

In order to end our overreliance on local taxpayers to fund education, this $300 million revenue stream flowing into public schools must be used to drive down property taxes. Those dollars were not intended, nor are they needed, simply to increase overall school spending in Nebraska.

An examination of U.S. Census Bureau data will show that per pupil spending in Nebraska is about $1,500 per student higher than the average of five of our neighboring states. This doesn’t suggest a shortage of school funding or spending in our state. Furthermore, a 2021 Rutgers University report on the adequacy and fairness of state school finance systems found Nebraska ranked in the top four in adequacy of school spending. The clear takeaway: public education in Nebraska is already well-funded.

It was a monumental task, led by Governor Pillen, to get the above components of property tax relief enacted. In doing so, stakeholders and senators rolled up their sleeves, came together for the good of all Nebraska, and got these items across the finish line. It truly was a team effort on behalf of all Nebraskans.

And now we need local administrators and school boards to be part of the team. Our local partners need to resist the temptation to increase spending with this new funding, do everything possible to stay within the cap provisions of LB 243, and ensure that these additional dollars injected into public education yield property tax relief for everyday Nebraskans.