TEEOSA review commission created

Lawmakers gave final approval May 30 to a measure that creates a commission to review the state’s school funding formula.

Introduced by Seward Sen. Jana Hughes, LB303 establishes the School Finance Reform Commission. The commission is tasked with studying and providing advisory recommendations related to school funding, including an evaluation of the Tax Equity and Educational Opportunities Support Act formula, and issuing annual reports to the Clerk of the Legislature.

The 18-member committee will include 12 members appointed by the governor, including five at-large members, four superintendents or school board members and representatives of a class V school, a class IV school and postsecondary education with expertise in school finance.

The three nonvoting legislative members will include the chairperson or a designee of the Revenue and Education committees, with no more than two members from the same political party. The commission also will include the commissioner of education, the property tax administrator and a representative of the governor’s office.

The bill also provides that expenditures to pay for employer contributions to the School Employees Retirement System — to the extent such expenditures exceed the amount that would have been made at a contribution rate of 7.35% — may be included in the general fund budget of expenditures.

For school fiscal years 2025-26 and 2026-27, the amount of such expenditures from school fiscal year 2024-25 may be carried over and included in the budget authority for the general fund budget of expenditures for those fiscal years.

LB303 passed on a 48-0 vote and takes effect immediately.