Pinning down school aid cuts

LINCOLN — Nebraska might be able to balance its budget with smaller cuts in state school aid than previously thought, the Education Committee chairman said Monday.

But State Sen. Greg Adams of York warned that the school aid changes in Legislative Bill 5 still might not save enough.

“We are still refining our projections,” he said. “We don't want to not do enough, and we certainly don't want to do too much.”

The state had initially expected its aid to school districts to grow by $47 million in the 2010-11 school year. Gov. Dave Heineman has called for changes in the state aid formula to eliminate that growth.

The state needs to close a $334 million hole in the $6.94 billion, two-year budget ending June 30, 2011.

Adams had estimated that LB 5 would cut the growth by the desired $47 million for next year, but an analysis by the legislative fiscal office concluded that it would cut growth by less than that.

New tentative projections show state aid for next year growing more slowly than had been expected under current law, Adams said. That would mean lawmakers would not need to rein in aid as much.

Adams cautioned that many numbers and projections remain in flux.

State education officials are working on new estimates of school district needs, property valuations and other factors involved in the aid formula.

Adams said he hopes to get the new state aid estimate today. Education Committee members decided to wait for those figures before voting on sending LB 5 to the full Legislature.

At the public hearing, school officials expressed grudging support for the bill.

Alan Katzberg, executive director of the Nebraska Rural Community Schools Association, said districts think that they need to participate in the state's budget solution and that LB 5 is a reasonable approach.

Steve Baker, superintendent of the Elkhorn Public Schools, offered similar testimony. But he also said the state should make investments in education during good economic times rather than just restore the money lost during down times.

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402-473-9583, martha.stoddard@owh.com