Education trust fund proposed

Members of the Education Committee heard testimony Feb. 28 on a bill that would establish an education trust fund.

Under LB1025, introduced by Lincoln Sen. Kate Bolz, sales tax proceeds from online purchases occurring after Jan. 1, 2015, would be directed to a newly created Educational Trust Fund. The fund would provide a dedicated source of revenue to stabilize state aid to schools under the Tax Equity and Educational Opportunities Support Act (TEEOSA).

Bolz said pending federal legislation will give states the tools to collect online sales tax, estimated at $61.3 million in 2012.

“[This bill] will stabilize our educational funding streams,” she said. “It will protect local taxpayers from tax hikes during an economic downturn, when they can least afford one.”

The Legislature would be authorized to transfer funds from the Educational Trust Fund to fund TEEOSA aid whenever it is deemed necessary.

Jason Hayes, representing the Nebraska State Education Association, supported the bill, saying Nebraska currently ranks 49th in the nation in state aid to schools.

“Nebraska consistently falls short of providing the level of aid our schools require,” he said. “Establishing an Educational Trust Fund will send a clear message that we value education and recognizes the importance of consistency when it comes to funding education.”

Deborah Lyons, a teacher at Alcott Elementary in Hastings, also supported the bill. She said 53 percent of her district’s annual budget is dependent on state aid.

“Our district is completely dependent on state aid due to our landlocked status,” she said. “[This bill] could help smooth the economic peaks and valleys for our schools and provide our students with quality teachers and a quality education.”

No one testified in opposition to the bill and the committee took no immediate action on it.