Nebraska
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.
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.
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.
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.
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.
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.
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.
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.
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, 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
Nebraska ag experts say early detection for livestock parasites, illnesses will be important during summer show season
County fairs and livestock shows are ramping up this summer as several cattle illness threats are starting to emerge in Nebraska and other states. Livestock experts aren’t raising alarm about increased spread, but they are encouraging livestock owners to pay more attention this year to biosecurity efforts and the movement of their animals.
Two threats have emerged over the last several months: the rise in a tick-born disease called Theileria and the return of a flesh-eating parasite called the New World Screwworm.
At least 10 feedlots and three breeding herds have reported cases of imported cattle having Theileria. The disease is caused by the Asian longhorn tick, most commonly found on the East Coast. The tick itself hasn’t been found in Nebraska, but the disease can be spread further by reusing needles with an infected animal or through other blood-sucking organisms such as lice. The symptoms include anemia, jaundice, loss of appetite, exercise intolerance and weakness. In some cases, the disease can be fatal.
Cattle owners have been closely watching the spread of the New World Screwworm. It wreaked havoc on U.S. herds decades ago, but it was eradicated from the country in the 1960s. Cases started appearing in Texas in early June, and cattle owners in neighboring states have assumed that the parasite will eventually spread north. The screwworms lay eggs in the flesh of live animals, which can cause infections, disease and death if left untreated.
Nebraska Extension said early detection of the parasite is “critical for successful control efforts.” Possible early signs of New World Screwworm infections include non-healing wounds, depression or restlessness, foul-smelling lesions, presence of maggots in living tissue and animals showing pain or discomfort. They could show this behavior through shaking their heads or showing pain or irritation around wounds.
Several county fairs and shows have already started this summer. The Nebraska State Fair will kick off at the end of August in Grand Island. But several other large-scale shows, including the Burwell Rodeo that brings together animals from outside Nebraska, will culminate over the next few weeks.
Vaughn Sievers, the agriculture director for the Nebraska State Fair, said fair officials work closely with an official State Fair veterinarian to evaluate the health of animals before they are allowed onto fairgrounds.
“To date, the fair has not experienced a disease outbreak,” Sievers said. “However, we coordinate closely with our security and veterinary teams to maintain response plans and designated quarantine areas in the event one were to occur.”
Officials with the Nebraska Department of Agriculture said livestock owners should start biosecurity measures even before they set out to travel to shows. The state agency is recommending livestock owners ensure all their equipment is clean and disinfected, and they should monitor their animal’s health leading up to traveling for shows.
While livestock are at fairs, the department said exhibitors shouldn’t share tools with others, and when using a community hose, they should not allow their animals to drink directly from the hose or dip the community hose in their bucket.
After the shows or fairs are over and animals are heading back to farms, livestock owners should isolate all the show animals for at least two to three weeks, just in case illnesses develop several days after returning home. Experts recommend keeping animals away from nose-to-nose contact, if they’re able.
The Nebraska State Fair has a protocol for handling biosecurity measures and subsequent contingency plans.
Nebraska Extension has provided checklists for ag producers who are taking their animals outside state lines. Lindsay Waechter-Mead, a beef educator with Nebraska Extension, recommended certain regulations with traveling cattle that can take multiple days to complete. Even domestic pets, such as cats and dogs, also require a Certified Veterinary Inspection to cross state lines.
Nebraska
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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Nebraska
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.
“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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