Earlier decrease in local effort rate proposed

The local effort rate (LER) used to calculate aid under the Tax Equity and Educational Opportunities Support Act (TEEOSA) would be decreased one year earlier than planned under a bill heard by the Education Committee Jan. 21.

Currently, the LER is scheduled to be decreased from $1.03 to $1.00 for the 2015-16 school fiscal year. Under LB725, introduced by Cedar Rapids Sen. Kate Sullivan, that decrease would be implemented for the 2014-15 school fiscal year and continue into the foreseeable future.

Sullivan said it is important to continue to put school districts back into a more secure financial position for the future.

“The only reason we didn’t return to the lower LER last year was because we didn’t think we had the money,” she said. “By doing this now, the increases in TEEOSA in the next biennium will not be so dramatic.”

Nebraska Rural Community Schools Association executive director Jon Habben testified in support of the bill. He said it represents a preservation of funds for education in Nebraska.

“To leave money that was intended for educational use on the table does not help the state of Nebraska at all,” he said. “This bill is intended to keep that from happening. It’s making sure that money that was intended for pre-K12 education is used for pre-K12 education.”

No one testified in opposition to the bill and the committee voted to advance the bill on a 7-0 vote.