Change provisions relating to foundation aid, local effort rate yield, adjusted valuations of property, and certification dates under the Tax Equity and Educational Opportunities Support Act

Nebraska bill LB 597 modifies how public school districts receive state education funding under the Tax Equity and Educational Opportunities Support Act. Starting with the 2025-26 school year, foundation aid will be calculated as the greater of $1,500 per formula student or 7.5% of each district's basic funding. It also reduces the percentage of foundation aid counted toward formula resources from 100% to 60% for future years and adjusts local effort rate calculations (reducing the deduction from property tax levies from 5 cents to 10 cents). These changes directly affect all Nebraska public school districts receiving state aid.