Lincoln senator slams Pillen’s push to scrap TEEOSA as Nebraska’s school funding fight escalates

LINCOLN, Neb. (KOLN) — Nebraska’s education funding has been the topic of much discussion this week, from a legislature-created commission studying the funding formula to an interim study that is in-part focusing on property tax contributions.

But a pointed statement from Gov. Jim Pillen is drawing ire from some legislators, and interest from others.

Pillen issued a statement Thursday night calling for the Unicameral to abolish TEEOSA — the Tax Equity and Educational Opportunities Support Act — after a $30 million overpayment to Omaha Public Schools.

TEEOSA is the funding formula used to determine state aid, by subtracting resources from needs, and it’s been in use since the 90s. But some legislators say getting rid of it is not as simple as it might sound.

Pillen, in his statement, blamed the “deaf ears” of some in the legislature for failing to pass tax reform.

Adams senator Myron Dorn told 10/11 because of valuation increases, TEEOSA has gone a different route than originally intended.

“I believe there could be definitely easier ways. There are solutions,” Dorn said. “We’ve tried to change it over the years. We haven’t had much success. Is it too complicated? Yes, it’s complicated.”

But abolishing the program outright isn’t something Lincoln Sen. Danielle Conrad will support, calling the governor’s comments “bizarre” and “unhinged.”

“It would be reckless and wrong to dismantle our school funding system without a clear, viable alternative that would ensure we can meet our students’ needs and ensure that we are good stewards of taxpayer dollars,” Conrad said.

She and Dorn clashed during an interim study hearing Thursday, where Conrad asked if protecting tax cuts for the wealthy and big corporations was more important than providing property tax relief.

Part of the funding issue is a massive budget deficit, something Conrad attributed in-part to tax cuts for the wealthy pushed by Gov. Pillen and his legislative allies in 2023.

“Gov. Pillen and his allies in the Legislature pushed forward blindly to engineer Kansas-style tax cuts that are inequitable and unsustainable and that benefit the wealthiest Nebraskans and the largest corporations,” Conrad said, “at the expense of ensuring a balanced budget and our ability to take care of critical things like roads and the university health care and child care and public education in our K-12 schools.”

Dorn added he has faith in the new School Finance Review Commission.

“I think if you give them a year or two, they’re going to come up with some very good concepts, some very good ideas in how we can make the TEEOSA formula better, or maybe have a different formula,” Dorn said.

Legislators will return Jan. 7 to begin their short, 60-day second session, with the budget expected to take up most of their time.

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