Schools districts can issue bonds, exceed tax levy

Senators passed a bill Feb. 28 that allows school districts to issue refunding bonds and exceed the current maximum tax levy.

LB633, introduced by York Sen. Greg Adams, permits school districts to issue refunding bonds to redeem any part of an outstanding bond authorized under current law at or before the maturity date.

The bill was amended to include provisions of LB634, also introduced by Adams, which allows a school district to exceed the 5.2-cent levy if its current valuation is lower than the year in which bonds were last issued and the current maximum levy cannot service the bonds.

The amount generated from the increased levy rate cannot exceed the difference between the principal and interest obligations and the sum of the current maximum levy and federal payments or subsidies associated with the bonds.

The amended bill also requires that the state Department of Education determine by May 1 the amount of state aid to be distributed to each school district for the next school year.

The bill passed on a 41-0 vote.