Interim study to examine the financing of public education through the Tax Equity and Educational Opportunities Support Act formula and develop recommendations for improving school funding in Nebraska

109th Legislature (2025-2026) Introduced by Myron Dorn

An interim study by Nebraska's Education Committee to review TEAOS-based school funding and, if warranted, bolster state aid to cut property tax burdens.

Notice of hearing for November 20, 2025

Overview

Bill Number: LR 189

Title: Interim study to examine the financing of public education through the Tax Equity and Educational Opportunities Support Act (TEAOS) formula and develop recommendations for improving school funding in Nebraska

Type: Legislative Resolution (interim study)

Sponsor(s): Primary — Dorn; Co-sponsor — Hughes (also listed as sponsors)

Status: Notice of hearing scheduled for November 20, 2025

Introduced: May 14, 2025

Purpose and intent

LR 189 proposes an interim study conducted by the Nebraska Legislature to scrutinize how public education is financed using the TEAOS Act formula. The resolution aims to develop recommendations to improve school funding in Nebraska. A central goal is to explore ways to increase state aid to offset reliance on property taxes, thereby reducing property taxes as a share of total state and local taxes.

Key provisions and scope

Study design and leadership: The Education Committee of the Legislature is designated to conduct the interim study and carry out its purposes.

Focus areas of the study:

Fairness and equity for public school students across all parts of the state.
Efficiencies and effectiveness in the use of tax resources to educate Nebraska public school students.
Stability in resources available to school districts, particularly during economic volatility.

Deliverable: At the conclusion of the study, the committee will report its findings and recommendations to the Legislative Council or the Legislature.

Relation to funding: The study specifically examines financing through the TEAOS formula and considers increasing state aid to reduce property tax burdens on individuals and localities.

Affected parties and potential impact

School districts and students: Potential implications for funding levels, financial stability, and the allocation of state aid.

Property taxpayers: Possible reductions in property tax shares used to fund schools if recommendations favor greater state funding.

State and local governments: Impact on budgeting, tax policy, and the structure of the TEAOS-based funding formula.

Legislative process: The Education Committee will study and then propose recommendations, which could lead to future legislation or policy changes.

Procedural timeline and process

May 14, 2025: Introduced and referred to the Executive Board; subsequently referred to the Education Committee (May 19, 2025).

October 3, 2025: Notice of hearing issued for November 20, 2025.

November 20, 2025: Interim study hearing date (as scheduled).

Post-study: The Education Committee will prepare a report detailing findings and recommendations for consideration by the Legislative Council or Legislature.

Summary

LR 189 is an interim, non-binding resolution that authorizes a focused review by Nebraska’s Education Committee of how public education is funded under the TEAOS formula, with an emphasis on fairness, efficiency, and stability. Its objective is to generate actionable recommendations to improve school funding and potentially increase state aid to reduce property tax burdens. The study culminates in a formal report to the Legislative Council or Legislature.

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