Nebraska School Choice Bill’s Fate in Voters’ Hands
Nebraska Voters to Decide on Tax Credit for Private School Scholarships
In the upcoming 2024 general election, Nebraska voters will have the power to determine the fate of new state legislation that proposes a 100 percent tax credit for donations to K-12 scholarship funds for private schools.
The bill, known as LB753, commits $50 million in tax credits to provide scholarships for Nebraska children. Priority is given to children living in poverty or foster care, those experiencing bullying or harassment, and those with parents or guardians serving in the military. Governor Jim Pillen signed the measure on May 30.
Opponents of the legislation have gathered approximately 117,000 signatures to place a question on repealing the bill before the voters.
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“Our goal is to give Nebraskans the opportunity to vote to repeal this harmful bill,” stated Jenni Benson of Support Our Schools on May 31.
“Our public schools educate 9 out of 10 kids in Nebraska. Strong public schools support a strong Nebraska and a strong economy,” Ms. Benson wrote. “Diverting millions of tax dollars to private schools will hurt our public schools as well as other essential public services and infrastructure.”
The Nebraska Farmers Union also supports the repeal effort, expressing concerns about the legislation blurring the line between church and state funding in a statement on July 6.
Support Our Schools organized petition-signing events across the state and delivered them to the secretary of state on Aug. 30. Sixty thousand valid signatures are required to place the measure on the ballot.
Governor Vows to Continue the Fight
Despite the opposition, Governor Pillen, a strong supporter of the bill, questioned the success of the campaign.
“The union bosses running this political campaign failed to gather enough signatures to suspend this great program. We should not be fighting this fight. With the support of the Legislature, I provided the largest funding increase in the State’s history for public education,” said Governor Pillen in an Aug. 30 statement.
“The signatures collected will now have to be certified by the Secretary of State. If this initiative makes it onto the 2024 ballot, I can promise you the fight will not be over. I have confidence in education, both public and private. I will continue to make sure each student in Nebraska has the educational freedom to choose where they want to attend school. We will never give up on our kids,” the governor added.
Income Tax Credits
The bill, sponsored by State Sen. Lou Ann Linehan, a Republican, allows businesses, individuals, estates, and trusts to donate a portion of the money they would owe in state income taxes to scholarship funds.
It’s important to note that public schools in Nebraska are primarily funded by local property taxes, not income taxes.
Under the legislation, businesses and individuals can donate up to $100,000 per year, while estates and trusts can donate up to $1 million a year.
The bill allocates $25 million a year for two years from the state’s general fund to cover the tax credits, starting in 2024. After that, the general fund will cover up to $100 million per year in tax credits.
Donated funds will be managed and allocated by nonprofit groups, which may retain up to 10 percent of what they receive for administrative costs. Scholarship allocations m
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