School property taxes rise in Nebraska despite boost in state funding

LINCOLN, Neb. (KLKN) – Gov. Jim Pillen recapped the successes and shortcomings of the Education Future Fund on Monday.

“Our kids are our future, and having a tremendous education is really, really important,” he said. “And I believe that it’s important for the state to play a more active role.”

The goal of the fund, which was authorized by the Legislature this year, was to lower property taxes for Nebraskans by increasing state assistance to schools.

The original investment was $1 billion, and the state will continue to put $250 million into the fund every year after.

Each school district receives $1,500 per student.

The fund also increases the amount for special education funding.

“Certainly, the goal was that would be dollar-for-dollar property tax relief,” Pillen said.

SEE ALSO: Gov. Jim Pillen touts school funding at press conference

But for many school districts, the money wasn’t enough.

The Legislature set a 3% revenue growth cap for all 244 school districts in Nebraska.

But Pillen said 188 districts voted to override that cap.

Because of that, property taxes in K-12 school districts increased by $85 million this year.

Pillen said without the funding, taxes would’ve increased by $400 million statewide.

Still, he said this wasn’t the outcome he had hoped for.

“We have to stop spending money,” he said. “We have to become fiscal conservatives. If the solution is more people, more money, we’re not going to have a great place to live.”

Moving forward, he said the state will continue to work to decrease property taxes.

“I have confidence that as we work and build trust that those overrides of the 3% cap will be the exception to the rule, which was the intent of everybody in the Legislature,” Pillen said.