Changes to education funding formula proposed
The Education Committee heard testimony Feb. 11 on a bill that would amend the Tax Equity and Educational Opportunities Support Act (TEEOSA).
LB407, introduced by Cedar Rapids Sen. Kate Sullivan, would make both permanent and temporary changes to the act. Sullivan said properly funded schools always have been a priority for Nebraska.
“Even before Nebraska was a state, the responsibility to fund education has been shared between state and local sources,” she said. “Just as school funding has been continually revised, we continue to study the formula to improve it and make it fit in current circumstances.”
Permanent modifications proposed in the bill include:
• including tuition paid and transportation fees paid to other districts in general fund operating expenditures;
• removing the teacher education allowance, instructional time allowance, averaging adjustment and local choice adjustment;
• limiting the summer school allowance to reported summer school expenditures that are not included in other allowances; and
• allowing additional budget authority for early childhood education when programs move from grant funding to being included in the calculation of TEEOSA aid.
The bill also would adjust the basic allowable growth rate and local effort rate for school districts. For the 2012-13 school year, the basic allowable growth rate was 0.5 percent and the local effort rate was $1.0395. LB407 would adjust rates according to the following schedule:
• a basic allowable growth rate of 1.5 percent and local effort rate of $1.03 for 2013-14;
• a basic allowable growth rate of 2.5 percent and local effort rate of $1.03 for 2014-15; and
• a basic allowable growth rate of 2.5 percent and local effort rate of $1.00 for 2015-16.
Hastings Public Schools superintendent Craig Kautz supported the bill, saying it was not a perfect solution for his district but the best proposal for the state.
“This bill falls short on about everything my district would like it to address,” he said, “It represents a collaborative effort to provide adequate funding for all districts in the state.”
Linda Richards, Ralston Public Schools Board of Education president, opposed the bill. She said her district constantly has had to adjust and make sacrifices to accommodate a continually evolving aid formula.
“To change the formula once again will drastically impact the educational opportunities for the students of Ralston,” Richards said.
The committee also heard testimony on LB416, introduced by Omaha Sen. Rick Kolowski, which would put a sunset date on the teacher education allowance provided under TEEOSA. Kolowski said the current formula only measures degree attainment and not other forms of professional development.
“Teachers have the greatest impact on student achievement,” he said. “We need to hire qualified teachers who are able to teach to the diverse needs of our students.”
Kolowski said he intends to introduce an interim study to analyze the best ways to address teacher development. The current teacher education allowance would remain in effect until a new solution is adopted.
Megan Brown, president of the Student Education Association of Nebraska, supported the bill, saying that continuing education is important in preventing teachers from leaving the workforce within the first five years of teaching.
“I’m the daughter of teachers and have witnessed the importance of continuing education,” Brown said. “Any measure legislators take to incentivize school districts is crucial to maintaining and attracting high-quality candidates.”
No one testified in opposition to LB416 and the committee took no immediate action on either bill.
