Capitol Updates

Friday, March 15, 2024

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  • Increase in TEEOSA Expected in 2024 Budget Bill
  • ACTION ALERT: $100 Million Private School Appropriation Up Soon
  • Bill Criminalizes Access to Certain Library Books
  • Review of Education Related Priority Bills

Increase in TEEOSA Expected in 2024 Budget Bill

This week, senators gave first round approval to the mid-biennium state budget adjustments in LB1412 on a vote of 39-4. The budget bill calls for a spending increase of 3.1%, which is slightly higher than the 2% increase called for by the governor. The adjustments include an unexpected increase in state aid to K-12 schools. The Appropriations Committee’s budget proposed a modest spending increase while leaving a significant surplus in the state's reserve funds. The Committee’s budget recommendation can be found online here

The unexpected increase in state aid to K-12 schools is mainly due to higher actual spending reported by districts like Omaha Public Schools, which had to replace federal pandemic funds that are no longer available. In FY2024-25, $65.3 million is attributed to an increase in state aid to schools (TEEOSA), and $27.5 million is an increase in special education funding pursuant to the estimated 80% of total reimbursable costs for school districts as required by LB243 (2023). Total TEEOSA funding will be $1.028 billion in FY2023-24, and $1.01 billion in FY2024-25, which is down overall due to higher local valuations. The governor had proposed $944.9 million in TEEOSA funding for FY2024-25, so the legislature’s increase in funding is positive news. 

The proposal adhered closely to the governor's original recommendation. A significant amount of $904 million will be left in the state’s cash reserve fund at the end of the two-year budget in June 2025, and the budget will have excess funds of roughly $575 million; however, this excess will shrink to $69 million at the end of the 2026-27 fiscal year, as the reduction in income tax revenue from last year’s tax cut takes effect. This cut will put undue pressure on the state’s ability to fund important services in upcoming years. 

The budget includes specific allocations for foster care and increasing staff at the state-run psychiatric hospital. However, it excludes healthcare provider payment rate increases for the second year, which had been vetoed by the governor previously. Instead, there is a separate plan to leverage federal Medicaid funds. Senators have been given flexibility to adjust the budget with up to $23 million per year for additional spending or tax reductions. This will likely be reflected in two revenue bills, still in committee but prioritized, expected to have additional tax cuts and revenue changes found in LB937 and LB1023

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$100 Million Private School Appropriation Up Soon

LB1402 could be debated on General File as early as next week! It initially appropriates $25 million in state public tax dollars to fund private schools, but that amount is permitted to escalate up to $100 million. The money will be given to private school scholarship-granting organizations (SGOs) that will distribute it to pay for private school education. LB1402 and LB753 represent the erosion of public education funding and steps towards eliminating equal access to  our Nebraska public education system.

Here are the reasons why publicly funding private schools will cause detrimental harm to Nebraska’s education system:

Erosion of Public Education Funding: Channeling public dollars into private schools will undoubtedly lead to a reduction in funding for public education. As resources are diverted, public schools, which serve 90% of students in Nebraska, will face budget cuts, resulting in larger class sizes, a de-professionalized workforce, and a decline in overall educational quality.

Exacerbating Inequality: Public schools are required to accept all students, regardless of their socio-economic background, academic ability, or special needs. Private schools, on the other hand, have selective admissions processes, potentially leaving behind students who are unable to meet certain criteria. This can further entrench disparities in educational opportunities.

Lack of Accountability and Transparency: Public schools are held accountable to the government, subject to regulations and oversight to ensure they provide quality education. Private schools, however, have more flexibility and autonomy, raising concerns about accountability. Public dollars going to private institutions does not guarantee the same level of transparency, making it difficult for taxpayers to assess the effectiveness of the money transfer.

Risk of Segregation: Public funding of private schools will likely contribute to increased segregation in Nebraska, as has occurred in other states with such programs. If private schools predominantly attract students from certain socio-economic backgrounds, it will lead to a separation of students based on economic status, further perpetuating social divides.

Diversion of Public Resources for the Few: Public funds should prioritize investments that benefit the entire community, such as improving infrastructure, healthcare, and social services. Diverting taxpayer money to private schools, which serve a limited number of students, is a misallocation of resources that would otherwise have broader societal benefits.

LB1402 is this year’s version of LB753 and is an attempt to usurp Nebraskans right to vote and decide the issue of using tax dollars to fund private schools. Last year, when lawmakers passed LB753’s voucher plan to divert public dollars to pay for private schools, more than 117,000 Nebraskans signed a referendum petition to put the issue on this November’s ballot to be decided by voters.

ACTION ALERT: We urge you to contact your senator now to express concerns about LB1402. Find your senator here. Please let your senator know that LB1402’s direct appropriation to fund private schools is a clear violation of the Nebraska Constitution. Emphasize the importance of respecting voter decisions and protecting Nebraskans’ right to vote on this issue in November. Draw parallels between LB1402 and LB753.

Bill Criminalizes Access to Certain Library Books

Currently, LB441 by Sen. Joni Albrecht is on the legislative agenda for debate. The bill seeks to criminalize school librarians, PK-12 educators, and public library workers for providing access to certain books and information. Under the proposed change, educators and librarians could face up to one year of jail time and/or a $10,000 fine for providing access to “obscene” material to minors. The bill would remove explicit protection for educators and librarians now existing in state statute. There are several categories now protected by defenses to prosecution under Neb. Rev. Stat. section 28-815.

Most laws prohibiting the provision of obscene material typically include defenses for certain professions, such as teachers and librarians, for several important reasons. First and foremost, teachers and librarians play crucial roles in providing access to information and fostering intellectual growth. Laws that allow them to access and provide materials for educational and informational purposes ensure the protection of free speech and the free exchange of ideas, which are fundamental rights in many democratic societies.

Teachers often need access to a wide range of materials, including those that might be considered controversial or explicit, to effectively educate their students. Prohibiting teachers from accessing such materials would hinder their ability to provide a comprehensive education. Without protections for teachers and librarians, they might be hesitant to provide certain materials even if they are relevant to the curriculum or beneficial for educational purposes. This chilling effect would undermine the quality of education and limit intellectual exploration.

Including defenses for teachers and librarians in laws prohibiting the provision of obscene material strikes a balance between protecting against the distribution of harmful content and safeguarding the rights of educators and librarians to fulfill their roles in providing access to information and fostering intellectual growth.

The Bottom Line: The legislature originally provided this defense because what is obscene to one person may not necessarily be obscene to another – or not be considered obscene by most people in a community. If LB441 is adopted, educators and librarians across the state will be fearful that they could be sentenced to jail and fined for providing access to books and information. Without such defenses in 28-815, the threat of prosecution will have a chilling effect on all information primarily out of concern of what may be obscene to one local prosecutor could result in a librarian or teacher being charged with a crime.

Review of Education Related Priority Bills

Final Reading

LB43 (Sanders) Adopt First Freedom Act and the Personal Privacy Protection Act
NSEA Position: Support

LB198 (McDonnell) Change NPERS provisions relating to returning to work after termination
NSEA Position: Support

Select File

LB287 (Brewer) Changes to petitions, conflicts of interest, voter registration and voting
NSEA Position: Monitor

LB1412 (Arch) Mainline Budget - Provide appropriations for operation of government
NSEA Position: Support

General File

LB71 (Sanders) Changes to parental involvement / access to learning materials in schools
NSEA Position: Support

LB441 (Albrecht) Change provisions relating to obscenity
NSEA Position: Oppose

LB1027 (Clements) Changes to schools not meeting accreditation / approval requirements
NSEA Position: Monitor

LB1284 (Walz) Provide for a statewide computer science education expansion program
NSEA Position: Support

LB1306 (Education) Eliminate the Professional Practices Commission
NSEA Position: Support

LB1329 (Murman) Change provisions Career Scholarship Act
NSEA Position: Support (Oppose section w/ LB1339)

LB1402 (Linehan) Appropriate funds for grants to private scholarship-granting organizations
NSEA Position: Oppose

In Committee

LB25 (Wayne) Authorize punitive damages as prescribed and provide for distribution
NSEA Position: Monitor

LB388 (Linehan) Change provisions relating to sales taxes
NSEA Position: Monitor

LB575 (Kauth) Adopt the Sports and Spaces Act
NSEA Position: Oppose

LB937 (Bostar) Adopt the Caregiver Tax Credit Act
NSEA Position: Monitor

LB1023 (von Gillern) Provide income tax deductions for certain research expenditures
NSEA Position: Monitor

LB1092 (Murman) Adopt the Online Age Verification Liability Act
NSEA Position: Monitor

LB1317 (Linehan) State findings relating to property taxes
NSEA Position: Monitor

LB1331 (Murman) Changes to truancy / attendance and programs administered by NDE
NSEA Position: Monitor