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Falls City Public Schools Likely To Lose State Aid Funds

By John Nixon

02/10/2015

(KLZA)-- Four bills introduced in the Nebraska Legislature this year are intended to reduce property taxes. While that is a noble idea, it may not turn out that way for many Nebraskans due to changes in State Aid to Schools including District 56 in Falls City. Due to the heavy reliance on property taxes in districts like Falls City, with no plan to replace revenue lost due to a reduction in property taxes, it may cause school districts to increase their property tax levies.

Falls City Superintendent Tim Heckinlively reported during Monday nights Board meeting, that due to increasing property values in recent years it has allowed District 56 to decrease the levy. That means District 56 will become an unequalized school district. For the current school year, District 56 has a property tax levy of approximately 95-cents per $100 of assessed valuation. Because of that, a model released by the Nebraska Department of Education about a week-and-a-half ago indicates Falls City would lose $395,000 in state aid for the 2015-16 school year.

Under a recently released model, 189 Nebraska school districts are projected to receive no state aid for the 2015-16 school year. Just 86 districts will receive state aide. While State Aid has not yet been certified, the numbers are likely going to be close to those projections. Heckinlively said it is interesting that Nebraska largest 15 school districts will be receiving all of the state aid increases while smaller rural schools continue to lose State Aid.

Even if property taxes are reduced by the legislature, due to State Aid to Schools changes, it is likely may school districts would have to make up for the loss by increasing their tax levy, which in essence would not result in property tax relief for land owners.

Schools in Educational Service Unit #4 projected have declining State Aid in 2015-16 are Auburn, Falls City, HTRS, Johnson-Brock, Johnson County Central, Pawnee City, Sterling and Syracuse.

Lewiston, Nebraska City and Palmyra are projected to gain state aid.

Also projected to lose state aid are the Southern, Beatrice, Freeman, Diller-Odell, Norris and Friend school districts.

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