Education (School Funding)

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.