Superintendent John Schwartz says state school finance changes increased Nebraska’s share of K–12 funding and lowered local levies

Superintendent Dr. John Schwartz updated the Millard Public Schools Board of Education on work by the newly formed state school finance commission and what preliminary changes mean for district funding and local property taxpayers.

The superintendent told the board the commission — composed of superintendents, school board members, elected officials and a state college president — has met three times and is producing a phased report. He said the commission’s work focuses on evaluating the state’s needs‑minus‑resources formula and how recent changes affect equity, student populations and the distribution of state aid.

"That $1,369 was not paid by the homeowner," Dr. Schwartz said of the front‑loaded school tax credit applied on tax statements. "That $1,369 is a receipt that our district now receives from the state." He said, by the commission’s estimates, property taxes paid statewide in 2024–25 were about $606,000,000 less than they would have been because of the credit.

Dr. Schwartz outlined broader shifts in funding: before the changes the state accounted for roughly 38% of K–12 funding statewide; with the 2023–24 provisions and the front‑loaded tax credit, the state’s share is now estimated to be over 50% in aggregate. He said Millard’s share of state funding rose from about 42.9% to just under 55%, a shift that helped the district lower its levy from roughly $1.21 to about $1.09.

The superintendent cautioned figures are estimates pending audits but said the commission is working to ground discussion in common facts so it can move quickly into solution development. He described the commission’s three‑phase plan and said an initial phase‑one report is due Dec. 1, with follow‑up phases focused on options and implementation.

Board members asked clarifying questions about historical changes to the TEOSA formula, the effect of pandemic ESSER funds on spending measures, and the years when common levy rules applied. Dr. Schwartz answered with a short history of past commission work (noting an original commission in 1988 and subsequent changes) and said the commission is trying to provide a clear set of agreed facts to inform policy choices.

The board did not take any formal action on the commission report during the meeting; the update was presented for information and to help the board and community understand potential levy and state funding impacts going into the 2025 legislative session.