The Nebraska Legislature was called into special session beginning on Thursday, July 25, 2024 for the purpose of addressing property tax relief. This is a topic of high interest and many within our community have inquired about our position on proposed legislation.
We appreciate the interest of the Governor in looking for ways to lower property taxes and for his frequent statements in support of education. We also value the positive working relationships we have developed with Millard-area Senators and other legislative leaders.
First and foremost, Millard Public Schools supports property tax relief. We have demonstrated this consistently over time by proposing conservative budgets and through actions to lower our levy when we have had the ability to do so. For instance, in the prior fiscal year we were proud to be able to use additional state funding to lower our total levy from $1.21 to $1.09.
Unfortunately, over the years we have seen the proportion of funding for our schools decrease significantly. In the upcoming 2024-25 school year alone, we will see a decline of state aid to our district of more than $10 million. These reductions have put a burden on local taxpayers even as our district has continued to demonstrate fiscal responsibility as Nebraska’s lowest per pupil spending district. To this end, our district has engaged in good faith over the years with state leaders to explore solutions to strike a greater balance between the sources of school funding as a way to provide property tax relief.
It remains our belief that it is possible to achieve both meaningful property tax relief and properly fund schools. We have long advocated for a sustained, well-planned, collaborative process that includes a representative group of stakeholders who have the necessary knowledge and expertise to develop a quality plan for all of Nebraska.
The process and plans in the special session appear rushed and underdeveloped. We believe it is necessary to seek additional stakeholder engagement and perform detailed financial modeling of any conceptual plans prior to proceeding. We have great concerns that changes that could come from this special session will have unintended consequences which may have a far-reaching impact for years to come.
As a general statement, we would encourage lawmakers to proceed cautiously before passing any changes in the special session. Proposals of the magnitude being considered may be better suited for the focus and attention of a regular session where they can be more thoroughly vetted. With the long-term interests of our great state in mind, it is more important to get this done right than to get it done fast.
Knowing there will be multiple legislative bills and amendments considered, we suggest the following guiding principles for the process:
- Local Control: We believe that locally elected officials are better positioned to guide policy and direct resources for their communities than the State of Nebraska. We would not support any legislation which would further undermine the authority of local officials to make decisions in the best interest of our community. School districts already operate within a number of revenue, spending, and levy restrictions. Further restrictions such as hard caps would have considerable uneven and unintended consequences.
- Funding: School funding should reflect an adequate and equitable distribution of state revenue based on the unique needs of each school district. Funding should be predictable and stable.
- Governance: Legislative proposals should be fully modeled, evaluated for sustainability, and be subject to public hearing before they are considered on the floor of the legislature. In recent years, the legislature has normalized the practice of adopting large packages of legislation by combining multiple bills that would likely struggle to survive on their own merit. In a similar way, we have concerns that legislation considered during the special session will not be subjected to sufficient scrutiny before they become law. We believe strongly in the importance of sound governance processes which increase the probability of quality legislation.
- Democratic Process: We oppose any legislation which would increase the threshold for levy, revenue, or bond elections from 50% to any percentage greater than 50%. An arbitrary increase such as this for some elections and not others does not hold true to our democratic process.
The Millard Public Schools Board and administration remain committed to being engaged in the exploration of quality legislative solutions to provide property tax relief while concurrently properly funding schools. We will continue to monitor the session, and provide feedback on specific pieces of legislation under consideration. We would encourage the Governor and legislature to proceed cautiously as they consider any major change during the special session.
Sincerely,
The Millard Public Schools Board of Education