Statutes

Source:  Laws 1967, c. 514, § 1, p. 1721; Laws 1989, LB 611, § 4.

Effective date August 25, 1989.

79-1331.         School Foundation and Equalization Act; terms, defined.  As used in the School Foundation and Equalization Act, unless the context otherwise requires:
         (1) Classroom teacher shall mean a certificated teacher who has major responsibility for the instruction of one or more classes of pupils;
         (2) District shall mean a school district approved for continued legal operation under rules and regulations adopted and promulgated by the State Board of Education pursuant to subdivision (5)(c) of section 79-328;
         (3) Per pupil cost shall mean a district's current operating expense, as shown in the district's annual financial report to the State Department of Education, divided by the average daily membership of resident and nonresident pupils for the preceding school year;
         (4) Operating funds shall mean a district's current operating revenue for a fiscal year as shown in the district's annual financial report to the State Department of Education;
         (5) Summer school program shall mean a program consisting of thirty days of school at three hours per day, or the equivalent, conducted by a district to meet the academic needs of its pupils during a period other than the regular school year; and
         (6) Fall school district membership report shall mean a report setting forth the number of children between the ages of five and twenty-one enrolled in the district on the last Friday in September of a given school year.  The report shall enumerate (a) resident students by grade level and nonresident students and option students as defined in section 79-3402 by grade level and classification, including, but not limited to, nonresident high school, option high school, wards of the court, or contract, (b) eligible children in gifted and deprived programs as approved and verified by the state, (c) children eligible to be transported by bus according to section 79-490, and (d) total assessed valuation for the current fiscal year.

Source:  Laws 1967, c. 514, § 2, p. 1721; Laws 1980, LB 486, § 1; Laws 1986, LB 757, § 3; Laws 1989, LB 183, § 21; Laws 1989, LB 487, §11.

79-1332.         School Foundation and Equalization Fund; investment; funds appropriated by Legislature; administration.  There is hereby established in the state treasury a special fund to be known as the School Foundation and Equalization Fund.  Such fund shall consist of such sums as the Legislature may appropriate, and shall be administered by the State Board of Education.  Any money in the School Foundation and Equalization Fund available for investment shall be invested by the state investment officer pursuant to the provisions of sections 72-1237 to 72-1259.

Source:  Laws 1967, c. 514, § 3, p. 1722; Laws 1969, c. 584, § 80, p. 2394.

79-1332.01.         School Foundation and Equalization Fund; additional appropriation.  For fiscal year 1982-83 and each fiscal year thereafter, the Legislature shall appropriate an additional forty-four million eight hundred thirteen thousand dollars to the School Foundation and Equalization Fund.  Such amount shall be in addition to any other amounts appropriated to the School Foundation and Equalization Fund and shall be distributed pursuant to section 79-1334.

Source:  Laws 1982, LB 816, § 1.

79-1333.         Financial assistance to school districts; payment; basis; failure to submit report; effect;  early payment; when made.  (1) Financial assistance for each school year shall be based upon the second preceding school year's annual financial report and the preceding school year's fall school district membership report.  The State Department of Education shall determine the amount to be distributed to the various school districts and certify such amounts to the Director of Administrative Services.  Each amount shall be distributed in nine as nearly as possible equal monthly payments on the last business day of each month beginning in October, except that a school district may apply for early payment as provided in subsection (2) of this section.  The State Treasurer shall, on the business day preceding the last business day of each month, notify the Director of Administrative Services of the amount of funds available in the General Fund for payment purposes.  The Director of Administrative Services shall, on the last business day of each month, draw warrants against funds appropriated.  The annual financial reports shall be submitted to the Commissioner of Education by county superintendents for Class I school districts on or before the first day of October of each year and shall be submitted to the Commissioner of Education by Class II, III, IV, V, and VI school districts on or before the first day of November of each year.  When any Class I school district's annual financial report has not been received by the Commissioner of Education by the first day of October, any state assistance granted pursuant to the School Foundation and Equalization Act shall be based on the amount granted for the previous fiscal year and shall be reduced by ten percent of that amount, and when any such report has not been received by the first day of November, the district shall forfeit all assistance pursuant to such act for that year.  When any Class II, III, IV, V, or VI school district fails to submit its report to the Commissioner of Education by the first day of November, any state assistance granted pursuant to such act shall be based on the amount granted for the previous fiscal year and shall be reduced by ten percent of that amount, and when any such district fails to submit its report by the fifteenth day of November, it shall forfeit all assistance pursuant to such act for that year.
         (2) A school district which receives federal funds in excess of twenty-five percent of its current operations budget may apply for early payment of state financial assistance paid pursuant to the School Foundation and Equalization Act when such federal funds are not received in a timely manner.  Such application may be made at any time by a school district suffering such financial hardship and may be for any amount up to fifty percent of the remaining amount to which the district is entitled during the current fiscal year.  The State Board of Education may grant the entire amount applied for or any portion of such amount if, after a hearing, the board finds that a financial hardship exists in the district.  The board shall notify the Director of Administrative Services of the amount of funds to be paid in lump sum and the new reduced amount of the monthly payments.  The Director of Administrative Services shall, within five days after such notification, draw a warrant for the lump-sum amount from appropriated funds and forward such warrant to the district.  As used in this subsection, financial hardship shall mean a situation in which income to a district is exceeded by liabilities to such a degree that if early payment is not received it will be necessary for the district to discontinue vital services or functions.

Source:  Laws 1967, c. 514, § 4, p. 1722; Laws 1971, LB 426, § 1; Laws 1975, Spec. Sess., LB 3, § 6; Laws 1976, LB 903, § 8; Laws 1977, LB 33, § 1; Laws 1978, LB 874, § 4; Laws 1980, LB 486, § 2; Laws 1981, LB 318, § 1; Laws 1982, LB 933, § 4; Laws 1983, LB 59, § 4; Laws 1986, LB 929, § 5; Laws 1986, LB 757, § 4; Laws 1989, LB 487, § 12.

Operative date August 25, 1989.

79-1333.01.         Financial support to school districts; payment; increased; when.  When the membership of a district as reported in the preceding school year's fall school district membership report increases one half of one per cent or more above the membership of the year prior to the preceding year on the corresponding date, as reported on the fall school district membership report for the year prior to the preceding year, the total financial support pursuant to section 79-1336 shall be increased by the percentage of increase up to a maximum of ten per cent of the student membership over the previous year.  When the membership of a district as reported in the preceding school year's fall school district membership report is less than the fall school district membership report of the year prior to the preceding school year by more than two per cent, the total financial support pursuant to section 79-1336 shall be increased by the difference between two per cent and the per cent of decrease up to a maximum of ten per cent of the student membership of the preceding year over the year prior to the preceding year.

Source:  Laws 1971, LB 426, § 2; Laws 1972, LB 1167, § 1; Laws 1981, LB 318, § 2; Laws 1982, LB 933, §5; Laws 1986, LB 419, § 3.

79-1333.02.         School district membership report; filing required; failure; effect.  Annually on or before October 5, each school district shall deliver to the county superintendent the fall school district membership report.  Each county superintendent shall annually, not later than October 15, file a copy of such report with the State Department of Education.  When any school district fails to submit its fall school district membership report by November 1, any state assistance granted pursuant to the School Foundation and Equalization Act shall be based on the amount granted for the previous fiscal year and shall be reduced by ten percent of that amount, and when such district fails to submit its fall school district membership report by November 15, it shall forfeit all assistance pursuant to such act for that year.

Source:  Laws 1980, LB 486, § 3; Laws 1986, LB 757, § 5; Laws 1989, LB 487, § 13.

Operative date August 25, 1989.

79-1334.         School Foundation and Equalization Fund; financial support; foundation aid; amount; how computed.  Each district and the county nonresident tuition fund in eligible counties shall receive financial support from the School Foundation and Equalization Fund based upon the district's pupils in resident enrollment and number of the district's students contracted to other districts or agencies as provided in the fall school district membership report filed pursuant to section 79-1333.02 in each grade at the following rates until that amount which has been appropriated as foundation aid has been totally utilized:
         (1) The rate per kindergarten pupil shall be five-tenths times the rate established for a pupil in grades one through six;
         (2) The rate per pupil in grades seven and eight shall be one and two-tenths times the rate established for a pupil in grades one through six;
         (3) The rate per pupil in grades nine through twelve shall be one and four-tenths times the rate established for a pupil in grades one through six, but such rate shall be reduced proportionally by the amount of time, based on a six-hour day, any student is enrolled at a technical community college for high school credit and who is counted by the technical community college for determining its audited reimbursable educational units as funded under section 79-2651;
         (4) The rate per pupil in grades one through six shall be determined by multiplying the enrollment of each of the respective grade categories by the above determined rates and dividing the result into the amount which has been appropriated as foundation aid; and
         (5) The office of county superintendent shall receive the foundation aid for those high school pupils for which nonresident tuition is paid by that county.  Such funds shall be deposited in the nonresident tuition fund and used for tuition purposes.  The county superintendent shall take into account all such funds received when making the computations required by section 79-4,103.

Source:  Laws 1967, c. 514, § 5, p. 1723; Laws 1969, c. 467, § 3, p. 1622; Laws 1977, LB 33, § 2; Laws 1980, LB 486, § 4; Laws 1981, LB 318, § 3.

79-1335.         Equalization aid; requirements.  To be eligible for aid, except for foundation aid under the provisions of section 79-1334 and incentive payments under section 79-1340, from the School Foundation and Equalization Fund, each school district shall have levied, in the manner prescribed by law, a tax on the valuation of all taxable property within the school district for the preceding year, except intangible property, on each one hundred dollars, as follows:
         (1) For Class I school districts offering education in grades kindergarten through six, not less than nineteen cents, and in Class I school districts offering education in grades kindergarten through eight, not less than twenty-six cents;
         (2) for Class II, III, IV, and V school districts, not less than forty-two cents; and
         (3) for Class VI school districts offering education in grades seven through twelve, not less than twenty-three cents, and in Class VI school districts offering education in grades nine through twelve, not less than sixteen cents.

Source: Laws 1967, c. 514, § 6, p. 1723; Laws 1969, c. 467, § 4, p. 1622; Laws 1977, LB 33, § 13; Laws 1979, LB 187, § 247; Laws 1980, LB 486, § 5; Laws 1988, LB 940, § 16.

Operative date July 9, 1988.

79-1336.         School Foundation and Equalization Fund; equalization aid; how computed.  (1) Subject to the conditions imposed by sections 79-1330 to 79-1344, the balance of the School Foundation and Equalization Fund after the amount required for sections 79-1334 and 79-1340 has been deducted shall be used to insure each district financial support for each resident pupil enrolled and students contracted to other districts or agencies as reported in the fall school district membership report for the applicable year at the following rates until the balance of such fund has been utilized:
         (a) The rate for grades one through six shall be the base rate;
         (b) The rate per kindergarten pupil shall be five-tenths times the rate established in grades one through six;
         (c) The rate per pupil in grades seven and eight shall be one and two-tenths times the rate established for a pupil in grades one through six; and
         (d) The rate per pupil in grades nine through twelve shall be one and four-tenths times the rate established for a pupil in grades one through six.
         (2) When the population density in any school district is less than four persons per square mile, as determined from the most recent complete census, the total financial support under subsection (1) of this section insured for each district shall be increased by the following percentages: (a) If the population density is three or more but less than four persons per square mile, ten per cent; (b) if the density is two or more but less than three persons per square mile, twenty per cent; (c) if the density is one or more but less than two persons per square mile, thirty per cent; and (d) if the density is less than one person per square mile, forty per cent.

Source:  Laws 1967, c. 514, § 7, p. 1723; Laws 1969, c. 467, § 5, p. 1623; Laws 1977, LB 33, § 3; Laws 1980, LB 486, § 6.

79-1337.         School Foundation and Equalization Fund; support of schools; special programs.  In its calculations under section 79-1336, a district which provides a special program for (1) gifted children, or (2) culturally and educationally deprived children, shall be entitled to count each pupil regularly enrolled in such programs reported pursuant to section 79-1333.02 as one and one-fourth and two students respectively.  To qualify for such adjustment, such programs must be approved by the State Board of Education.  Criteria for the classification of gifted and culturally and educationally deprived children shall be established by the State Board of Education.  In addition, each student eligible to be transported by bus according to the provisions of section 79-490, shall be counted as one and one-fourth students.

Source:  Laws 1967, c. 514, § 8, p. 1724; Laws 1977, LB 33, § 4; Laws 1980, LB 486, § 7.

79-1338.         School Foundation and Equalization Fund; equalization aid; calculations.  From the sum calculated pursuant to section 79-1336, each district shall subtract operating funds obtained from (1) the State of Nebraska under section 79-1334, (2) the qualifying levy prescribed in section 79-1335; Provided, operating funds received from that portion of the local tax levy which exceeds the minimum prescribed in section 79-1335 shall be excluded from this computation, (3) tuition receipts as defined in this section, (4) fines, (5) license fees, (6) transportation reimbursements, (7) the Insurance Tax Fund, and (8) funds received under the provisions of Chapter 79, article 13.
         For purposes of making the computations required in subdivision (3) of this section, the school district shall exclude all special education tuition receipts.  Tuition receipts shall include only those receipts which exceed one hundred twenty-five per cent of the elementary or secondary per pupil costs, whichever is applicable, as reported in the annual financial report for the appropriate year based on the enrollment of nonresident students as reported in the fall school district membership report for the appropriate year.  Such tuition receipts shall be computed separately for elementary and secondary pupils.

Source:  Laws 1967, c. 514, § 9, p. 1724; Laws 1969, c. 732, § 1, p. 2768; Laws 1971, LB 659, § 4; Laws 1977, LB 33, § 5; Laws 1980, LB 486, § 8.

LB 659, Laws 1971, intended to provide financial assistance to nonpublic schools through the loan of secular textbooks, is unconstitutional.  Gaffney v. State Department of Education, 192 Neb. 358, 220 N.W.2d 550.  Provisions of this section reducing amount of aid to extent of federal funds received violates supremacy clause of United States Constitution.  Triplett v. Tiemann, 302 F.Supp. 1244.

79-1339.         School Foundation and Equalization Fund; support of schools; particular districts.  If, for a particular district, the total determined pursuant to section 79-1336 exceeds that determined pursuant to section 79-1338, such district shall be entitled to receive the difference from the School Foundation and Equalization Fund.

Source:  Laws 1967, c. 514, § 10, p. 1725.

79-1340.         School Foundation and Equalization Fund; support of schools; incentive payments.  Each district shall receive the following additional incentive payments from the School Foundation and Equalization Fund:
         (1) Three hundred fifty dollars for each certificated instructor holding a doctorate degree;
         (2) Two hundred fifty dollars for each certificated instructor having completed an approved six-year college program, or holding a master's degree or the equivalent;
         (3) One hundred fifty dollars for each certificated instructor holding a bachelor's degree; and
         (4) Twenty cents per student hour for each student participating in a summer school program.

Source:  Laws 1967, c. 514, § 11, p. 1725; Laws 1977, LB 33, § 13.

79-1341.         Repealed.  Laws 1969, c. 467, § 8.

79-1342.         School Foundation and Equalization Fund; support of schools; inadequate; proportionate reduction.  If money available in the School Foundation and Equalization Fund is, at any particular time, inadequate to pay districts the total amount due under sections 79-1330 to 79-1344, the State Board of Education shall apportion money available among the qualifying districts; Provided, the sum granted each district shall represent a proportionate reduction from the sum that it would otherwise receive.

Source:  Laws 1967, c. 514, § 13, p. 1726.

79-1343.         School Foundation and Equalization Fund; support of schools.  The funding requirements of section 79-1334 shall have first priority and the funding requirements of section 79-1340 shall have second priority on money available from the School Foundation and Equalization Fund.

Source:  Laws 1967, c. 514, § 14, p. 1726; Laws 1969, c. 467, § 6, p. 1623; Laws 1977, LB 33, § 6.

79-1344.         Approval of funds; state officials.  Except for the approval of programs as required by sections 79-1337 and 79-1340, no state official, department, committee, or commission shall exercise any discretionary power over any funds made available under sections 79-1330 to 79-1344.

Source:  Laws 1967, c. 514, § 15, p. 1726.

79-1344.01.         School districts; amount of foundation and incentive aid.  Each school district shall, out of appropriations for the purposes of sections 79-1330 to 79-1344.01, be guaranteed the total amount of foundation aid and incentive aid as computed under the provisions of sections 79-1334 and 79-1340.

Source:  Laws 1969, c. 467, § 7, p. 1624; Laws 1971, LB 27, § 1; Laws 1977, LB 33, § 13; Laws 1980, LB 486, § 9.