Passage of Nebraska school finance legislation ends lawsuit
The five-year court battle over school finance drew to a quick end after a series of events that included a new state aid system being established and the Omaha Public Schools (OPS) declaring that Nebraska is giving new attention to disadvantaged students. Immediately after the legislature gave final approval to Legislative Bill 988 and Gov. Dave Heineman signed the bill, OPS and its lawsuit partners, the Grand Island, Lexington, and South Sioux City school districts, dismissed their state aid lawsuit. That ended a case that sharply divided state and school district officials while calling attention to the pressing academic needs of students in poverty and children from immigrant families who are just learning English. “We have worked hard with the Legislature,” said Elizabeth Eynon-Kokrda, a lawyer for the school districts. “We’re very pleased with the work of the Legislature the last two years with regard to the learning community and funding.” Heineman and Attorney General Jon Bruning applauded the development, with Bruning calling it “a big win for Nebraska’s taxpayers.” Both Heineman and Bruning also aimed parting shots at OPS for spending money on the lawsuit. As of early 2007, OPS and the State of Nebraska had spent nearly $10 million on legal fees stemming from the suit. Sandra Jensen, president of the OPS board, said the funding lawsuit was a last resort to try to enact changes.
The schools coalition filed the suit in 2003, alleging that the state aid system discriminated against poor and minority students and underfunded education so much as to be unconstitutional. But the lawsuit suffered some legal setbacks, including the Nebraska Supreme Court choosing to stay out of a similar lawsuit filed by rural schools. This legislative session, Education Committee Chairman Ron Raikes introduced LB 988—proposing a wholesale rewrite of how Nebraska figures the financial needs of each school district. Lawmakers approved the bill on a 33-14 vote. The law includes new calculations for directing aid to poor students and those who speak limited English. It eases spending restrictions that have been a concern to OPS. And it recognizes the cost of offering summer school and small class sizes, two issues that OPS said were lacking. Overall, the law will increase state aid to schools by $70.4 million over last year—$29 million of which will go to the four coalition school districts. OPS alone will receive $21.3 million extra.
Jensen called the new law “a monumental shift in policy.” She said it will ensure that all children are given an equal chance at a quality education. But part of the changing policy involves a shift of funding from rural districts to larger districts with more disadvantaged kids. Many of the 14 senators who voted against the bill are from rural areas. Sen. Annette Dubas said the new formula would compromise some schools’ ability to educate their students. Within her legislative district are two of the biggest financial losers under the law. Sen. Cap Dierks said, “I’ve always called these bills reorganization bills rather than school funding bills, because that’s what ends up happening.” The resolution of Nebraska’s state aid dispute comes at a time when the state actually is ratcheting back what it planned to spend on state aid. Until LB 988 started advancing, schools were set to receive $132.3 million more in state aid under the now-former funding system.
Source: North Platte Telegraph, 4/2/08, By Jeffrey Robb
[Editor’s Note: The Nebraska Supreme Court’s ruling in the case brought by rural school districts and more about this case are below. Ms. Eynon-Kokrda serves on the board of directors of the NSBA Council of School Attorneys (COSA).]
NSBA School Law pages on Nebraska Coalition for Educ. Equity and Adequacy v. Heineman