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Report shows per student funding in Nebraska could reduce student aid, raise property taxes

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OMAHA, Neb (KMTV) — School funding debates are a constant in Nebraska politics and this year's gubernatorial race is no exception.

"Every Nebraskan, no matter their circumstances should have a shot. But our schools are not set up that way. Some districts receive additional funding but others are left to fend for themselves," said Pillen in one of his television ads.

That additional funding he mentions is equalization aid, which is determined by the TEEOSA formula.

Of the $1.7 billion in school funding allocated every year around $880 million is for equalization aid.

That only goes to 86 out of 244 school districts that are serving around 78% of Nebraska students.

Pillen wants to see that change and spread IT equally on a per-student basis but a new report shows that idea might lead to a reduction in funding for most of Nebraska's students.

"When we look at the implications of that what we see is that for the school districts that educate around 78% of students in this state, potentially they would have a funding loss of around 270 million dollars," said Rebecca Firestone with OpenSky Policy Institute.

OpenSky Policy institute is the think tank that authored the report.

The consequences of per-student funding wouldn't just be felt by students but likely property owners as well.

OpenSky's analysis found that the average property tax levy would have to increase by 41 cents to cover the difference in lost funding.

Pillen and his campaign though aren't convinced by the report and in a statement to 3 News now said in part:

"When you make as many assumptions as this back-of-the-napkin 'analysis' does, you can arrive at whatever conclusion you want. Entrenched interests want to protect the TEEOSA status quo, but the status quo isn't working, it isn't fair, and it contributes to higher property taxes..."

The threat of higher property taxes is part of why Pillen's opponent, Democrat Carol Blood, doesn't support a per-student system.

"What's going to ultimately happen is you will see pockets of really high increases in property taxes. That's not an opinion that's a fact based on the math he presents with his idea," said Blood.

Blood is also critical of the TEEOSA formula and wants to see it replaced but says simple solutions like per-student funding won't work.

Ultimately the decision to change the way funding is allocated will fall to the legislature but Blood says it's impossible to ignore the influence a governor can have on legislation.

"It's been clear, especially over the last 20 years, that whoever sits in the executive branch can be a guide to some of the best and worst laws that have been passed in Nebraska, said Blood.

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