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Gov. Pillen asks Nebraska lawmakers to overhaul school aid formula in 2025 • Nebraska Examiner

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Gov. Pillen asks Nebraska lawmakers to overhaul school aid formula in 2025 • Nebraska Examiner


LINCOLN — Gov. Jim Pillen is officially calling on Nebraska lawmakers to address “inconsistencies” in the state’s main school aid formula in the 2025 legislative session.

Pillen, in a Friday news release, pointed to a new report from his policy research office that compiled property tax data for new state senators. The governor noted that newly elected senators — with 16 fresh faces set to join the body in January — might not have a complete understanding of the state’s funding formula, or the impact of recent legislation.

Gov. Jim Pillen officially unviles his property tax plan as a summer-long attempt to find a path to reduce local property taxes. July 18, 2024. (Zach Wendling/Nebraska Examiner)

The report includes data from Nebraska’s 244 school districts in the previous school year and indicates how decreases in state aid led to property tax increases.

“This document helps illustrate the impact of those changes and, hopefully, [will] inform discussions as we embark on the next legislative session and resume efforts to provide additional property tax relief to Nebraskans,” Pillen said in a statement.

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TEEOSA breakdown

The conversation revolves around the Tax Equity and Educational Opportunities Support Act, better known as TEEOSA, which has been perennially updated since its adoption in 1990. 

TEEOSA, also known as the “equalization aid” formula, determines funding aid based on the difference of about 18 “needs” minus six “resources” for each public school district. If “resources” outweigh “needs,” the district doesn’t receive the aid and is classified as “unequalized.”

“Needs” include student growth, poverty and English as a second language. “Resources” include net option enrollment, allocated income tax funds and base aid per student.

These are the various components that make up the “resources” and “needs” that amount to “equalization aid” as part of the Tax Equity and Educational Opportunities Support Act (TEEOSA). (Courtesy of the Nebraska Department of Education)

Another “resource” is based on possible property tax collections, assuming a $1 hypothetical tax rate across each school district. This is the amount the state assumes a district could raise if it had that high of a tax rate, based on annual valuations.

This means when valuations go up, a district’s equalization aid automatically goes down, possibly to the point they are “unequalized” and lose the extra funding.

Finding stability

For example, Lincoln Public Schools, the state’s second largest district, is likely to be unequalized in the coming years. LPS lost $31.85 million in state aid this year, a decrease of 30.4%, and raised property taxes by $31.57 million in response, a 9.6% increase.

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Three other school districts — Millard Public Schools, Papillion-La Vista Public Schools and Gretna Public Schools — also saw “dramatic drops in state aid.” Combined with LPS, the four districts lost $56.27 million in state aid and increased property taxes by $62.25 million. That accounts for 82% of the total increase in property taxes statewide for that period.

State Sens. Lou Ann Linehan of Elkhorn and Tom Brandt of Plymouth meet at the front of the legislative chamber near Clerk of the Legislature Brandon Metzler. Aug. 17, 2024. (Zach Wendling/Nebraska Examiner)

Kenny Zoeller, director of the governor’s policy research office, said state aid decreased for 111 school districts for the 2024-25 school year.

“We need to find a way to better help districts budget for the aid they do get, thereby creating some predictability and, hopefully, further reduce what Nebraskans end up paying in property taxes year over year,” Zoeller said in a statement.

Pillen and Zoeller do not explain how to provide more stability. However, they state that initial research indicates newly placed soft “caps” on how much school districts can increase their property taxes slowed total increases to 2.5%, or about $75.82 million.

That’s the smallest annual increase since 2018 and the smallest percentage increase this century.

‘They’re on pins and needles’

Multiple state lawmakers proposed addressing TEEOSA in the Pillen-led special session on property taxes this summer, including State Sens. Lou Ann Linehan of Elkhorn and Jana Hughes of Seward.

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Linehan, the Legislature’s outgoing Revenue Committee chair, called for eliminating the “resources” side of the funding formula, to better calculate each district’s needs. She later proposed using TEEOSA to distribute increased sales and “sin” tax revenue to districts for property tax relief. Linehan is term-limited and won’t return next year.

State Sen. Jana Hughes of Seward meets with State Sens. Tom Brandt of Plymouth and Danielle Conrad of Lincoln during the first day of the Legislature’s special session on property taxes on Thursday, July 25, 2024. (Zach Wendling/Nebraska Examiner)

Hughes, a former school board member in Seward, worked with a bipartisan group of lawmakers on a proposal to reform TEEOSA over 10 years, or sooner if possible. Her proposal would have decreased maximum school property tax rates gradually over 10 years.

Pillen had proposed having the state take over nearly all local operational property taxes, which account for an average of 60% of Nebraskans’ property tax bills. However, when Linehan introduced Pillen’s core proposal, it did not include that component.

Hughes said she agrees TEEOSA needs to be a focus but thinks it will take time and an in-depth look, such as what happened when TEEOSA was first created, with the Revenue and Education Committees collaborating on the proposal, and relying on years of research and design.

“I get this sense from schools right now, every year they’re on pins and needles of what is going to change or what is the legislative body going to do?” Hughes said.

‘The formula is inconsistent’

In 2023, the Legislature helped to increase aid to schools by doubling special education reimbursements from 40% of expenditures to 80% and set a baseline “foundation aid,” about $1,500 per student in each public school district.

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Hughes said some school districts “hunker down” and ask residents to invest through property taxes to prevent budget cuts or to react to uncertainty of whether future funds will be available.

“It’s just a little vicious cycle a bit when valuations go up,” Hughes said.

State Sen. Brad von Gillern of Elkhorn, center. Aug. 20, 2024. (Zach Wendling/Nebraska Examiner)

State Sen. Brad von Gillern of Elkhorn, vice chair of the Legislature’s Revenue Committee, said he hadn’t yet digested the report but agreed with its main findings. He said he’s aware of people encouraging a reconsideration of TEEOSA and is “supportive of a thoughtful and patient process that includes all stakeholders, to improve the state funding calculation.”

Hughes said she and a team of lawmakers will return with a 2025 proposal that will be smaller but still “take a little bite” out of reforming TEEOSA.

Pillen has requested that lawmakers consider similar legislation.

“The formula is inconsistent and hits taxpayers hard,” the policy research office report states. “It is not fair to them or the schools. Providing certainty to school districts will allow Nebraska to have sustained property tax reductions for the first time in history.”

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Nebraska softball coaching staff finalized with a contract extension

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Nebraska softball coaching staff finalized with a contract extension


Nebraska softball finalized its coaching staff on Wednesday. Head coach Rhonda Revelle signed an extension that runs through the 2031 season. The program also finalized several previously announced coaching changes.

Revelle earned the extension after leading Nebraska to one of its best seasons in history, bringing the team back to the Women’s College World Series for the first time since 2013. The Huskers totaled a school-record 52 wins in Revelle’s 34th season as Nebraska’s head coach, helping solidify her as the winningest coach in Nebraska athletics history.

“As we said when we had the privilege of naming the field at Bowlin Stadium in her honor, Rhonda Revelle is Nebraska Softball. Rhonda is not only a great leader of our softball program, but she is a world-class individual who elevates our entire athletic department in many ways. The trajectory of our program is at an all-time high coming off a record-breaking season and we are excited for the years ahead under the leadership of Rhonda and her outstanding staff.”

Revelle also re-worked the responsibilities of her coaching staff, elevating existing staff members and bringing in a slew of former players as assistants. This comes following the retirement of long-time assistant Lori Sippel in June. 

Diane Miller has been elevated to associate head coach, and Mandie Nocita was promoted to assistant coach. Olivia Ferrell and Jordy Frahm also join the staff and will serve as assistant coaches. Hannah Coor and Hannah Camenzind have been added as graduate assistants. Lauren Camenzind will be a graduate manager for the Huskers.

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Contact/Follow us @CornhuskersWire on X (formerly Twitter) and like our page on Facebook to follow ongoing coverage of Nebraska news, notes and opinions.





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Gov. Jim Pillen calls for budget cuts, hiring freeze in new memo

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Gov. Jim Pillen calls for budget cuts, hiring freeze in new memo


Nebraska Gov. Jim Pillen on Wednesday announced measures to further cut state spending, including a cut in state agency spending and a hiring freeze on most positions.

Pillen said in a news release that the measures are necessary after the state paid out $307 million more in state tax refunds than anticipated in fiscal year 2026, which ended June 30. Tax receipts have come in below projections in March, April and May, leading to a current expected deficit of $172 million.

That’s after lawmakers closed a $646 million budget hole in their most recent legislative session.

The governor has previously sought to cut spending to provide more property tax relief to Nebraska residents and had called for additional cuts during the current fiscal year.

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“I am pleased with the progress we have made, but I’m not satisfied,” Pillen said in a news release.

Accompanying the release was a memo Pillen sent to state agencies, boards and commissions in which he called on them to “exercise additional fiscal restraint.”

Among the measures outlined in the memo:

  • A freeze on creating any new positions or filling any vacancies without approval from the state budget office. The freeze does not apply to law enforcement or corrections positions.
  • A 5% reduction in budgets for all state agencies.
  • All agencies, boards and commissions must provide monthly cash flow projections.
  • Agency leaders are directed to “concentrate” on eliminating redundant processes, services regulation and aid programs.
  • Agency leaders are directed to reduce their agencies’ physical footprint and “consolidate teams and services.”

All state entities are required to submit their plans for reducing spending by the end of the month.

The memo also said agencies should “prepare for downward adjustments to appropriations” not only in the current fiscal year but also in the 2028 and 2029 fiscal years.



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Supreme Court will hear Nebraska’s fight over access to Colorado’s South Platte River

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Supreme Court will hear Nebraska’s fight over access to Colorado’s South Platte River


The U.S. Supreme Court has agreed to hear Nebraska’s lawsuit against Colorado over a proposed canal that would take water out of the South Platte River in Colorado and send it to a reservoir in Nebraska.

Nebraska claims Colorado is deliberately obstructing efforts to build the ditch, known as the Perkins Canal, even though everyone agrees Nebraska has the right to do so. The canal is necessary, Nebraska says, because Colorado isn’t sending enough water into Nebraska.

The Perkins Canal would divert water from the South Platte River near Ovid to a storage site somewhere in Nebraska. The South Platte River Compact, ratified by both states and Congress in 1923, requires Colorado to guarantee a flow in the river of 120 cubic feet per second at a water gauge near the state line during the irrigation season. The compact also authorizes Nebraska to build the canal and grants the right to use the power of eminent domain to acquire land on which to build it. Initial work was done on the canal more than a century ago, but the project was abandoned as unfeasible.

Nebraska resurrected the idea in late 2021, citing fears that urban development along Colorado’s Interstate 25 corridor and plans to expand water storage were causing Colorado to violate the terms of the 1923 compact. 

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The idea that Nebraska might actually build the canal has water users in the lower reaches of the river worried that doing so would disrupt the water augmentation process that underpins much of the crop irrigation along the South Platte, especially between Fort Morgan and the Colorado-Nebraska state line. It is designed to help Colorado meet the terms of the 1923 compact. 

Colorado land owners have resisted Nebraska’s efforts to buy land in the Julesburg area so the canal can be built. Colorado Attorney General Phil Weiser and Gov. Jared Polis, while recognizing Nebraska’s right to build the canal, have nevertheless sworn to do all they can to protect Coloradans’ property and water rights. Seeing such rhetoric as subverting Nebraska’s right to build, Nebraska sued Colorado in the Supreme Court in July 2025, alleging that Colorado is obstructing Nebraska’s efforts to go ahead with the Perkins project. Nebraska also attacked Colorado’s water augmentation system, saying it doesn’t work.

To understand augmentation, it’s important to know that Colorado operates on the prior appropriation doctrine, meaning the oldest (senior) water right holders get their water first. During dry periods, senior users may place a “call” on a stream, forcing junior users to stop taking water to ensure the senior rights are fulfilled. When someone pumps water out of a river basin, it eventually pulls water out of nearby streams and rivers, which can illegally shortchange senior surface-right holders. In that case, the junior wells would have to be shut down until senior rights were satisfied

To avoid such shutdowns, called “curtailment,” Colorado devised a system called augmentation in which the water that is pumped during the irrigation season must be replaced during the winter months so it flows back through the aquifer into the river in the following irrigation season. Some augmentation is done simply by buying water rights from upstream users, increasing the amount of water in the river. The system is highly complex and requires detailed accounting of river flows.

In a prepared statement issued last week, after the high court agreed to hear the case, Colorado Attorney General Phil Weiser said Colorado is in compliance with the compact.

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The court’s decision, he wrote, “merely opens the door for Nebraska to bring its claims against Colorado. Nebraska’s burden to prove those claims is incredibly high and we will vigorously defend Colorado’s full entitlements under the compact.”

Perkins Canal needed because Colorado is harming Nebraska

But Nebraska officials insist water augmentation isn’t doing what it was supposed to do. In its 55-page complaint to the U.S. Supreme Court, Nebraska calls the augmentation system illegal and a violation of the river compact.

“Colorado’s water administration system, including its augmentation plans, have harmed and will continue to harm Nebraska,” the lawsuit reads. “For example, many augmentation projects … allow junior well owners to pump water out of priority during the irrigation season, provided they pump or divert additional water during the non-irrigation season and apply it to recharge ponds. This method assumes that water will percolate back into the water table and make its way to the South Platte River in time to make whole downstream senior users.”

Kent Miller is general manager of the Twin Platte Natural Resources District, which includes most of the South Platte River in Nebraska. He’s said he’s watched the river since 1972 and is skeptical that augmentation even works.

“Those plans have not been working, and I base that on the fact that the Western Irrigation District rarely receives what it’s supposed to receive,” Miller said. 

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In May, U.S. Solicitor General John Sauer filed an amicus brief with the high court recommending that the court allow the suit to go ahead, but with conditions. 

In its lawsuit, Nebraska addresses augmentation because of its complexity and insists that any mechanism Colorado uses to comply with the compact should be simple. In his amicus brief, Sauer recommended tossing the argument.

“Nebraska reads Article VIII (of the compact) as mandating that compliance mechanisms be ‘simple,’ and it alleges that Colorado has violated that requirement,” Sauer wrote. “But Article VIII imposes no such requirement; it merely authorizes Colorado officials to enforce the Compact without action by the Colorado legislature. Because Nebraska’s Article VIII claim is facially meritless, it should not be permitted to proceed further.”

Sauer further recommended disallowing arguments that Colorado is obstructing Nebraska’s efforts to build the canal, saying Nebraska offers no evidence of such obstruction.

In signaling its acceptance of the lawsuit on Monday, the Supreme Court said it wants to hear all of Nebraska’s complaints and let the justices judge for themselves whether parts of it lack merit. Colorado originally had 30 days to respond to the court’s action but, on July 2, requested a 60-day extension.

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