Lower school funding local effort rate advances

Senators gave first-round approval to a bill Feb. 5 that would make changes to the state aid formula one year early.

LB725, introduced by Cedar Rapids Sen. Kate Sullivan, would lower the local effort rate (LER) used to calculate aid under the Tax Equity and Educational Opportunities Support Act (TEEOSA).

Currently, the LER is scheduled to be decreased from $1.03 to $1.00 for the 2015-16 school fiscal year. The bill would implement the decrease for the 2014-15 school fiscal year and continue into the foreseeable future.

Sullivan said lowering the LER would result in more money that would go into the state aid formula.

“School districts stepped up to the plate during the recession. They knew they had to do their part, despite rising expectations on the part of patrons and families,” she said. “Our children deserve to have their schools funded in a way that allows educators to focus on education.”

Imperial Sen. Mark Christensen opposed increasing state aid without addressing rising agricultural land valuations.

“I get concerned when we put more money into [the aid formula] before we see the decrease in property values,” he said. “These top schools that will get most of the money – what are they going to do when they get used to spending that? We need to make sure we’re looking ahead.”

Omaha Sen. Bob Krist supported the bill, saying the state must make the best use of resources when they are available.

“If a crisis does come, we will need to make different decisions. That is our job and we’ll make those tough decisions,” Krist said, “but when the money is there, we need to put that money back into the state education funds.”

Sullivan introduced an amendment, adopted 29-0, which would change the calculation of the student growth adjustment correction. Under the amendment, the correction would equal the actual student growth for a school fiscal year minus the estimated student growth for the school fiscal year.

Senators voted to advance the bill to select file on a 29-0 vote.