Statutes
Tax Equity and Educational Opportunities Support Act (Current law as modified through the 2006 Legislative Session)
SOURCE: Laws 1990, LB 1059, § 1, Laws 1995, LB 542, § 1, Laws 1995, LB 840, § 3, R.S.Supp., 1995, § 79-3801, Laws 1996, LB 900, § 652, Laws 1996, LB 1050, § 10, Laws 1997, LB 806, § 29, Laws 1998, LB 1134, § 1, Laws 1998, LB 1219, § 13, Laws 1999, LB 149, § 1, Laws 2001, LB 833, § 3, Laws 2002, LB 898, § 2, Laws 2004, LB 1091, § 8, Laws 2006, LB 1024, § 71.§ 79-1002. Legislative intent. It is the intent, purpose, and goal of the Legislature to create a system of financing the public school system which will: (1) Provide state support from all sources of state funding sufficient to support the statewide aggregate general fund operating expenditures for Nebraska elementary and secondary public education that cannot be met by local resources; (2) Reduce the reliance on the property tax for the support of the public school system; (3) Broaden financial support for the public school system by dedicating a portion of the revenue received from the state income tax for support of the system; (4) Keep pace with the increasing cost of operating the public school system; (5) Assure a foundation support level for the operation of the public school system, taking local resources into consideration; (6) Recognize a portion of the costs of programs to address the unique educational needs of students who are in poverty or who have limited English proficiency as being specific to the local system providing such programs; (7) Create a process to collect information regarding the programs and the cost of the programs provided to address the unique educational needs of students who are in poverty or who have limited English proficiency in order to analyze which programs may be appropriate to receive state support and to analyze the poverty and limited English proficiency allowances; (8) Assure a greater level of equity of educational opportunities for all public school students; (9) Assure a greater level of equity in property tax rates for the support of the public school system; and (10) Assure measured growth in the state aid appropriation through the continuation of limits on the growth of general fund budgets of districts. SOURCE: Laws 1990, LB 1059, § 2, R.S.1943, (1994), § 79-3802, Laws 1996, LB 900, § 653, Laws 1996, LB 1050, § 11, Laws 1997, LB 806, § 30, Laws 2006, LB 1024, § 72.§ 79-1003. Terms, defined. For purposes of the Tax Equity and Educational Opportunities Support Act: (1) Adjusted general fund operating expenditures means (a) for school fiscal years before school fiscal year 2007-08, general fund operating expenditures as calculated pursuant to subdivision (24) of this section minus the transportation allowance and minus the special receipts allowance, (b) for school fiscal year 2007-08, general fund operating expenditures as calculated pursuant to subdivision (24) of this section minus the sum of the transportation, special receipts, and distance education and telecommunications allowances, and (c) for school fiscal year 2008-09 and each school fiscal year thereafter, the difference of the product of the general fund operating expenditures as calculated pursuant to subdivision (24) of this section multiplied by the cost growth factor for the school district's cost grouping calculated pursuant to section 79-1007.10 minus the transportation allowance, special receipts allowance, poverty allowance, limited English proficiency allowance, elementary class size allowance, and focus school and program allowance; (2) Adjusted valuation means the assessed valuation of taxable property of each local system in the state, adjusted pursuant to the adjustment factors described in section 79-1016. Adjusted valuation means the adjusted valuation for the property tax year ending during the school fiscal year immediately preceding the school fiscal year in which the aid based upon that value is to be paid. For purposes of determining the local effort rate yield pursuant to section 79-1015.01, adjusted valuation does not include the value of any property which a court, by a final judgment from which no appeal is taken, has declared to be nontaxable or exempt from taxation; (3) Allocated income tax funds means the amount of assistance paid to a local system pursuant to section 79-1005.01 or 79-1005.02 as adjusted by the minimum levy adjustment pursuant to section 79-1008.02; (4) Average daily attendance of a student who resides on Indian land means average daily attendance of a student who resides on Indian land from the most recent data available on November 1 preceding the school fiscal year in which aid is to be paid; (5) Average daily membership means the average daily membership for grades kindergarten through twelve attributable to the local system, as provided in each district's annual statistical summary, and includes the proportionate share of students enrolled in a public school instructional program on less than a full-time basis; (6) Base fiscal year means the first school fiscal year following the school fiscal year in which the reorganization or unification occurred; (7) Board means the school board of each school district; (8) Categorical funds means funds limited to a specific purpose by federal or state law, including, but not limited to, Title I funds, Title VI funds, federal vocational education funds, federal school lunch funds, Indian education funds, Head Start funds, and funds from the Education Innovation Fund; (9) Consolidate means to voluntarily reduce the number of school districts providing education to a grade group and does not include dissolution pursuant to section 79-498; (10) Converted contract means an expired contract that was in effect for at least fifteen years for the education of students in a nonresident district in exchange for tuition from the resident district when the expiration of such contract results in the nonresident district educating students who would have been covered by the contract if the contract were still in effect as option students pursuant to the enrollment option program established in section 79-234; (11) Converted contract option students means students who will be option students pursuant to the enrollment option program established in section 79-234 for the school fiscal year for which aid is being calculated and who would have been covered by a converted contract if the contract were still in effect and such school fiscal year is the first school fiscal year for which such contract is not in effect; (12) Department means the State Department of Education; (13) Distance education and telecommunications allowance means, for state aid calculated for school fiscal year 2007-08 and each school fiscal year thereafter, eighty-five percent of the difference of the costs for (a) telecommunications services, (b) access to data transmission networks that transmit data to and from the school district, and (c) the transmission of data on such networks paid by the school districts in the local system as reported on the annual financial report for the most recently available complete data year minus the receipts from the federal Universal Service Fund pursuant to section 254 of the Telecommunications Act of 1996, 47 U.S.C. 254, as such section existed on January 1, 2006, for the school districts in the local system as reported on the annual financial report for the most recently available complete data year; (14) District means any Class I, II, III, IV, V, or VI school district; (15) Ensuing school fiscal year means the school fiscal year following the current school fiscal year; (16) Equalization aid means the amount of assistance calculated to be paid to a local system pursuant to sections 79-1008.01 to 79-1022 and 79-1022.02; (17) Fall membership means the total membership in kindergarten through grade twelve attributable to the local system as reported on the fall school district membership reports for each district pursuant to section 79-528; (18) Fiscal year means the state fiscal year which is the period from July 1 to the following June 30; (19) Formula students means (a) for state aid certified pursuant to section 79-1022, the sum of fall membership from the school fiscal year immediately preceding the school fiscal year in which the aid is to be paid, multiplied by the average ratio of average daily membership to fall membership for the second school fiscal year immediately preceding the school fiscal year in which aid is to be paid and the prior two school fiscal years, plus qualified early childhood education fall membership plus tuitioned students from the school fiscal year immediately preceding the school fiscal year in which the aid is to be paid and (b) for final calculation of state aid pursuant to section 79-1065, the sum of average daily membership plus qualified early childhood education average daily membership plus tuitioned students from the school fiscal year immediately preceding the school fiscal year in which the aid was paid; (20) Free lunch and free milk student means a student who qualified for free lunches or free milk from the most recent data available on November 1 of the school fiscal year immediately preceding the school fiscal year in which aid is to be paid; (21) Full-day kindergarten means kindergarten offered by a district for at least one thousand thirty-two instructional hours; (22) General fund budget of expenditures means the total budget of disbursements and transfers for general fund purposes as certified in the budget statement adopted pursuant to the Nebraska Budget Act, except that for purposes of the limitation imposed in section 79-1023, the calculation of Class I total allowable general fund budget of expenditures minus the special education budget of expenditures pursuant to section 79-1083.03, and the calculation pursuant to subdivision (2) of section 79-1027.01, the general fund budget of expenditures does not include any special grant funds, exclusive of local matching funds, received by a district subject to the approval of the department; (23) General fund expenditures means all expenditures from the general fund; (24) General fund operating expenditures means the total general fund expenditures minus categorical funds, tuition paid, transportation fees paid to other districts, adult education, summer school, community services, redemption of the principal portion of general fund debt service, retirement incentive plans, staff development assistance, and transfers from other funds into the general fund for the second school fiscal year immediately preceding the school fiscal year in which aid is to be paid; (25) High school district means a school district providing instruction in at least grades nine through twelve; (26) Income tax liability means the amount of the reported income tax liability for resident individuals pursuant to the Nebraska Revenue Act of 1967 less all nonrefundable credits earned and refunds made; (27) Income tax receipts means the amount of income tax collected pursuant to the Nebraska Revenue Act of 1967 less all nonrefundable credits earned and refunds made; (28) Limited English proficiency student means a student with limited English proficiency from the most recent data available on November 1 of the school fiscal year preceding the school fiscal year in which aid is to be paid; (29) Local system means: (a) For school fiscal years prior to 2006-07, a Class VI district and the associated Class I districts or a Class II, III, IV, or V district and any affiliated Class I districts or portions of Class I districts; (b) for school fiscal year 2006-07, a Class VI district and the Class I districts or portions of Class I district that will be merged with the Class VI district to form a Class II or III district on June 15, 2006, pursuant to section 79-4,113 or 79-4,114 or a Class II, III, IV, or V district and any Class I districts or portions of Class I districts that will be merged with the Class II, III, IV, or V district on June 15, 2006, pursuant to section 79-4,113 or 79-4,114; (c) for school fiscal year 2007-08, a Class II, III, IV, or V district; and (d) for school fiscal year 2008-09 and each school fiscal year thereafter, a learning community or a Class II, III, IV, or V district that is not a member of a learning community. The membership, expenditures, and resources of Class I districts that are affiliated with multiple high school districts will be attributed to local systems based on the percent of the Class I valuation that is affiliated with each high school district; (30) Low-income child means (a) for school fiscal years prior to 2008-09, a child under nineteen years of age living in a household having an annual adjusted gross income of fifteen thousand dollars or less for the second calendar year preceding the beginning of the school fiscal year for which aid is being calculated and (b) for school fiscal year 2008-09 and each school fiscal year thereafter, a child under nineteen years of age living in a household having an annual adjusted gross income for the second calendar year preceding the beginning of the school fiscal year for which aid is being calculated equal to or less than the maximum household income that would allow a student from a family of four people to be a free lunch and free milk student during the school fiscal year immediately preceding the school fiscal year for which aid is being calculated; (31) Low-income students means the number of low-income children within the local system multiplied by the ratio of the formula students in the local system divided by the total children under nineteen years of age residing in the local system as derived from income tax information; (32) Most recently available complete data year means the most recent single school fiscal year for which the annual financial report, fall school district membership report, annual statistical summary, Nebraska income tax liability by school district for the calendar year in which the majority of the school fiscal year falls, and adjusted valuation data are available; (33) Poverty students means the number of low-income students or the number of formula students who are free lunch and free milk students in a local system, whichever is greater; (34) Qualified early childhood education average daily membership means the product of the average daily membership for school fiscal year 2006-07 and each school fiscal year thereafter of students who will be eligible to attend kindergarten the following school year and are enrolled in an early childhood education program approved by the department pursuant to section 79-1103 for such school district for such school year if: (a) The program is receiving a grant pursuant to such section for the third year; (b) the program has already received grants pursuant to such section for three years; or (c) the program has been approved pursuant to subsection (5) of section 79-1103 for such school year and the two preceding school years, including any such students in portions of any of such programs receiving an expansion grant, multiplied by the ratio of the actual instructional hours of the program divided by one thousand thirty-two; (35) Qualified early childhood education fall membership means the product of membership on the last Friday in September 2006 and each year thereafter of students who will be eligible to attend kindergarten the following school year and are enrolled in an early childhood education program approved by the department pursuant to section 79-1103 for such school district for such school year if: (a) The program is receiving a grant pursuant to such section for the third year; (b) the program has already received grants pursuant to such section for three years; or (c) the program has been approved pursuant to subsection (5) of section 79-1103 for such school year and the two preceding school years, including any such students in portions of any of such programs receiving an expansion grant, multiplied by the ratio of the planned instructional hours of the program divided by one thousand thirty-two; (36) Regular route transportation means the transportation of students on regularly scheduled daily routes to and from the attendance center; (37) Reorganized district means any district involved in a consolidation and currently educating students following consolidation; (38) School year or school fiscal year means the fiscal year of a school district as defined in section 79-1091; (39) Special education means specially designed kindergarten through grade twelve instruction pursuant to section 79-1125, and includes special education transportation; (40) Special grant funds means the budgeted receipts for grants, including, but not limited to, Title I funds, Title VI funds, funds from the Education Innovation Fund, reimbursements for wards of the court, short-term borrowings including, but not limited to, registered warrants and tax anticipation notes, interfund loans, insurance settlements, and reimbursements to county government for previous overpayment. The state board shall approve a listing of grants that qualify as special grant funds; (41) Special receipts allowance means the amount of special education, state ward, and accelerated or differentiated curriculum program receipts included in local system formula resources under subdivisions (7), (8), (16), and (17) of section 79-1018.01 attributable to the school district; (42) State aid means the amount of assistance paid to a district pursuant to the Tax Equity and Educational Opportunities Support Act; (43) State board means the State Board of Education; (44) State support means all funds provided to districts by the State of Nebraska for the general fund support of elementary and secondary education; (45) Temporary aid adjustment factor means (a) for school fiscal years before school fiscal year 2007-08, one and one-fourth percent of the sum of the local system's transportation allowance, the local system's special receipts allowance, and the product of the local system's adjusted formula students multiplied by the average formula cost per student in the local system's cost grouping and (b) for school fiscal year 2007-08 and each school fiscal year thereafter, one and one-fourth percent of the sum of the local system's transportation allowance, special receipts allowance, and distance education and telecommunications allowance and the product of the local system's adjusted formula students multiplied by the average formula cost per student in the local system's cost grouping; (46) Transportation allowance means the lesser of (a) each local system's general fund expenditures for regular route transportation and in lieu of transportation expenditures pursuant to section 79-611 in the second school fiscal year immediately preceding the school fiscal year in which aid is to be paid, but not including special education transportation expenditures or other expenditures previously excluded from general fund operating expenditures, or (b) the number of miles traveled in the second school fiscal year immediately preceding the school fiscal year in which aid is to be paid by vehicles owned, leased, or contracted by the district or the districts in the local system for the purpose of regular route transportation multiplied by four hundred percent of the mileage rate established by the Department of Administrative Services pursuant to section 81-1176 as of January 1 of the most recently available complete data year added to in lieu of transportation expenditures pursuant to section 79-611 from the same data year; (47) Tuition receipts from converted contracts means tuition receipts received by a district from another district in the most recently available complete data year pursuant to a converted contract prior to the expiration of the contract; and (48) Tuitioned students means students in kindergarten through grade twelve of the district whose tuition is paid by the district to some other district or education agency. SOURCE: Laws 1990, LB 1059, § 3, Laws 1991, LB 511, § 71, Laws 1992, LB 245, § 76, Laws 1994, LB 1290, § 3, Laws 1995, LB 840, § 4, R.S.Supp., 1995, § 79-3803, Laws 1996, LB 900, § 654, Laws 1996, LB 1050, § 12, Laws 1997, LB 347, § 29, Laws 1997, LB 710, § 5, Laws 1997, LB 713, § 1, Laws 1997, LB 806, § 31, Laws 1998, LB 306, § 42, Laws 1998, LB 1134, § 2, Laws 1998, LB 1219, § 15, Laws 1998, LB 1229, § 3, Laws 1998, Spec. Sess., LB 1, § 15, Laws 1999, LB 149, § 3, Laws 1999, LB 813, § 19, Laws 2001, LB 313, § 1, Laws 2001, LB 797, § 18, Laws 2001, LB 833, § 4, Laws 2002, LB 898, § 3, Laws 2005, LB 126, § 45, Laws 2005, LB 577, § 1, Laws 2006, LB 1024, § 73, Laws 2006, LB 1208, § 4.§ 79-1004. Repealed. Laws 1997, LB 806, § 69. § 79-1005. Repealed. Laws 1998, Spec. Sess., LB 1, § 63. § 79-1005.01. State aid calculation generally; income tax receipts; disbursement. For state aid calculated for all school fiscal years except school fiscal years 2002-03 through 2007-08: (1) An amount equal to the amount appropriated to the School District Income Tax Fund for distribution in school fiscal year 1992-93 shall be disbursed as option payments as determined under section 79-1009 and as allocated income tax funds as determined in this section and sections 79-1008.01, 79-1015.01, 79-1017.01, and 79-1018.01, except as provided in section 79-1008.02. Funds not distributed as allocated income tax funds due to minimum levy adjustments shall not increase the amount available to local systems for distribution as allocated income tax funds; (2) Not later than November 15 of each year, the Tax Commissioner shall certify to the department for the preceding tax year the income tax liability of resident individuals for each local system. The 1996 income tax liability of resident individuals of Class I districts that are affiliated with multiple high school districts shall be divided between local systems based on the percentage of the Class I district's valuation affiliated with each high school district; and (3) Using the data certified by the Tax Commissioner pursuant to subdivision (2) of this section, the department shall calculate the allocation percentage and each local system's allocated income tax funds. The allocation percentage shall be an amount equal to the amount appropriated to the School District Income Tax Fund for distribution in school fiscal year 1992-93 minus the total amount paid for option students pursuant to section 79-1009 with the difference divided by the aggregate statewide income tax liability of all resident individuals certified pursuant to subdivision (2) of this section. Each local system's allocated income tax funds shall be calculated by multiplying the allocation percentage times the local system's income tax liability certified pursuant to subdivision (2) of this section. SOURCE: Laws 1997, LB 806, § 33, Laws 1998, Spec. Sess., LB 1, § 16, Laws 1999, LB 149, § 4, Laws 2002, LB 898, § 4, Laws 2004, LB 1093, § 2§ 79-1005.02. State aid calculation; school fiscal years 2002-03 through 2007-08; income tax receipts; disbursement. For state aid calculated for school fiscal years 2002-03 through 2007-08: (1) Not later than November 15 of each year, the Tax Commissioner shall certify to the department for the preceding tax year the income tax liability of resident individuals for each local system. The 1996 income tax liability of resident individuals of Class I districts that are affiliated with multiple high school districts shall be divided between local systems based on the percentage of the Class I district's valuation affiliated with each high school district; and (2) Using the data certified by the Tax Commissioner pursuant to subdivision (1) of this section, the department shall calculate the allocation percentage and each local system's allocated income tax funds. The allocation percentage shall be an amount equal to the amount appropriated to the School District Income Tax Fund for distribution in school fiscal year 1992-93 minus the total amount paid for option students pursuant to section 79-1009 with the difference divided by the aggregate statewide income tax liability of all resident individuals certified pursuant to subdivision (1) of this section. Each local system's preliminary allocated income tax funds shall be calculated by multiplying the allocation percentage times the local system's income tax liability certified pursuant to subdivision (1) of this section. Each local system's allocated income tax funds shall be calculated by subtracting the difference of the temporary aid adjustment factor minus the reduction in net option funding due to the temporary aid adjustment factor, from the preliminary allocated income tax funds, except that a local system's allocated income tax funds shall not be less than zero. SOURCE: Laws 2002, LB 898, § 5, Laws 2004, LB 1093, § 3§ 79-1006. Repealed. Laws 1997, LB 806, § 69. § 79-1007. Repealed. Laws 1998, Spec. Sess., LB 1, § 63. § 79-1007.01. School fiscal years prior to 2008-2009; adjusted formula students for local system; calculation. For state aid calculated for school fiscal years prior to 2008-09: (1) The adjusted formula students for each local system shall be calculated by: (a) Multiplying the formula students in each grade range by the corresponding weighting factors to calculate the weighted formula students for each grade range as follows: (i) The weighting factor for early childhood education programs is six-tenths; (ii) The weighting factor for kindergarten is five-tenths; (iii) The weighting factor for grades one through six, including full-day kindergarten, is one; (iv) The weighting factor for grades seven and eight is one and two-tenths; and (v) The weighting factor for grades nine through twelve is one and four-tenths; (b) Adding the weighted formula students for each grade range to calculate the weighted formula students for the local system; and (c) Adjusting the weighted formula students by adding the following demographic factors: (i) The Indian-land factor shall equal 0.25 times the average daily attendance of students who reside on Indian land as reported by the United States Department of Education in calculating the local system's payment pursuant to 20 U.S.C. 7701 et seq., as such sections existed on April 12, 2002; (ii) The limited English proficiency factor shall equal 0.25 times the students in the local system with limited English proficiency as defined under 20 U.S.C. 7601, as such section existed on April 12, 2002; (iii) The department shall calculate the number of formula students to whom the poverty factor shall apply. The department shall calculate a ratio of the formula students to the total children under nineteen years of age residing in the local system and shall apply the ratio to the low-income children within the local system, in order to determine the number of low-income students within such local system. The number of children under nineteen years of age used in this calculation shall be derived from income tax information. The poverty factor shall equal the number of low-income students or the formula students qualified for free lunches or free milk under United States Department of Agriculture child nutrition programs, whichever is greater, multiplied by the following factors: (A) 0 for the qualified formula students comprising the first five percent of the formula students in the local system; (B) 0.05 for the qualified formula students comprising more than five percent and not more than ten percent of the formula students in the local system; (C) 0.10 for the qualified formula students comprising more than ten percent and not more than fifteen percent of the formula students in the local system; (D) 0.15 for the qualified formula students comprising more than fifteen percent and not more than twenty percent of the formula students in the local system; (E) 0.20 for the qualified formula students comprising more than twenty percent and not more than twenty-five percent of the formula students in the local system; (F) 0.25 for the qualified formula students comprising more than twenty-five percent and not more than thirty percent of the formula students in the local system; and (G) 0.30 for the qualified formula students comprising more than thirty percent of the formula students in the local system; and (iv) The extreme remoteness factor shall equal 0.125 times the formula students in the local system for each local system that has fewer than two hundred formula students, more than six hundred square miles in the local system, less than three-tenths formula student per square mile in the local system, and more than twenty-five miles between the high school attendance center and the next closest high school attendance center on paved roads; and (2) The total adjusted formula students for each local system shall equal the weighted formula students plus the demographic factors, except that (a) for local systems qualifying for the extreme remoteness factor, the total adjusted formula students shall be greater than or equal to one hundred fifty adjusted formula students, (b) the total adjusted formula students for a local system shall not include the extreme remoteness factor or any adjustment to the adjusted formula students resulting from qualification for the extreme remoteness factor for the calculation of the average formula cost per student in each cost grouping pursuant to subdivision (2) of section 79-1007.02, and (c) the total adjusted formula students for a local system shall include the extreme remoteness factor and any adjustment to the adjusted formula students resulting from qualification for the extreme remoteness factor for the calculation of the local system's formula need pursuant to subdivision (3) of section 79-1007.02. SOURCE: Laws 1997, LB 710, § 9, Laws 1997, LB 806, § 35, Laws 1998, Spec. Sess., LB 1, § 17, Laws 2001, LB 797, § 19, Laws 2002, LB 898, § 6, Laws 2005, LB 577, § 2, Laws 2006, LB 1024, § 74.§ 79-1007.02. Cost groupings; average formula cost per student; local system's formula need; calculation. For state aid calculated for school fiscal year 1998-99 and each school fiscal year thereafter: (1) Using data from the annual financial reports for the second school fiscal year immediately preceding the school fiscal year in which aid is to be paid, the annual statistical summary reports for the school fiscal year immediately preceding the school fiscal year in which aid is to be paid, the fall membership reports and supplements thereto for the school fiscal year immediately preceding the school fiscal year in which aid is to be paid, and the school district census as reported under sections 79-524 and 79-578 for the second school fiscal year preceding the school fiscal year in which aid is to be paid, the department shall divide the local systems into three cost groupings prior to the certification of state aid based upon the following criteria: (a) The very sparse cost grouping will consist of local systems that have (i)(A) less than one-half student per square mile in each county in which each high school attendance center is located, based on the school district census, (B) less than one formula student per square mile in the local system, and (C) more than fifteen miles between the high school attendance center and the next closest high school attendance center on paved roads or (ii)(A) more than four hundred fifty square miles in the local system, (B) less than one-half student per square mile in the local system, and (C) more than fifteen miles between each high school attendance center and the next closest high school attendance center on paved roads; (b) The sparse cost grouping will consist of local systems that do not qualify for the very sparse cost grouping but which meet the following criteria: (i)(A) Less than two students per square mile in the county in which each high school is located, based on the school district census, (B) less than one formula student per square mile in the local system, and (C) more than ten miles between each high school attendance center and the next closest high school attendance center on paved roads; (ii)(A) Less than one and one-half formula students per square mile in the local system and (B) more than fifteen miles between each high school attendance center and the next closest high school attendance center on paved roads; (iii)(A) Less than one and one-half formula students per square mile in the local system and (B) more than two hundred seventy-five square miles in the local system; or (iv)(A) Less than two formula students per square mile in the local system and (B) the local system includes an area equal to ninety-five percent or more of the square miles in the largest county in which a high school attendance center is located in the local system; and (c) The standard cost grouping will consist of local systems that do not qualify for the very sparse or the sparse cost groupings. For purposes of subdivision (1) of this section, if a local system did not operate and offer instruction in grades nine through twelve within the boundaries of the local system during the school fiscal year immediately preceding the school fiscal year in which aid is to be paid, the local system shall not be considered to have a high school attendance center; (2)(a) The department shall calculate the average formula cost per student in each cost grouping by dividing the total estimated general fund operating expenditures for the cost grouping by the difference between the total adjusted formula students for all local systems in the cost grouping minus (i) the adjusted formula students attributed to early childhood education programs approved by the department pursuant to section 79-1103 for the first two school fiscal years for which students attributed to early childhood education programs approved by the department pursuant to section 79-1103 are being included in the calculation of state aid for the local system and (ii) for the first two school fiscal years immediately following the school fiscal year in which a district in the local system received an expansion grant pursuant to section 79-1103, the difference between the adjusted formula students attributed to early childhood education programs approved by the department pursuant to section 79-1103 for the school fiscal year immediately following the school fiscal year in which a district in the local system received an expansion grant minus the adjusted formula students attributed to early childhood education programs approved by the department pursuant to section 79-1103 for the school fiscal year in which a district in the local system received an expansion grant. For the calculation of state aid for school fiscal year 1999-00 and for each school fiscal year thereafter, the average formula cost per student in each cost grouping shall not be recalculated for the final calculation of state aid pursuant to section 79-1065. The calculation of total adjusted formula students for purposes of this subdivision shall take into account the requirements of subdivision (2) of section 79-1007.01. For school fiscal years prior to school fiscal year 2008-09, the total estimated general fund operating expenditures for the cost grouping is equal to the total adjusted general fund operating expenditures for all local systems in the cost grouping multiplied by a cost growth factor. For school fiscal year 2008-09 and each school fiscal year thereafter, the total estimated general fund operating expenditures for the cost grouping is equal to the total adjusted general fund operating expenditures for all local systems in the cost grouping. (b) The cost growth factor for each cost grouping is equal to the sum of: (i) One; plus (ii) the product of two times the ratio of the difference between the formula students attributable to the cost grouping without weighting or adjustment pursuant to section 79-1007.01 and the sum of the average daily membership plus tuitioned students attributable to the cost grouping for the most recently available complete data year divided by the sum of the average daily membership plus tuitioned students attributable to the cost grouping for the most recently available complete data year, except that the ratio shall not be less than zero; plus (iii) the basic allowable growth rate pursuant to section 79-1025 for the school fiscal year in which the aid is to be distributed; plus (iv) the basic allowable growth rate pursuant to section 79-1025 for the school fiscal year immediately preceding the school fiscal year in which the aid is to be distributed; plus (v) one-half of any additional growth rate allowed by special action of school boards for the school fiscal year in which the aid is to be distributed as determined for the school fiscal year immediately preceding the school fiscal year when aid is to be distributed; plus (vi) one-half of any additional growth rate allowed by special action of the school boards for the school fiscal year immediately preceding the school fiscal year when the aid is to be distributed; (3) For school fiscal years 2002-03 through 2006-07, each local system's formula need shall be calculated by subtracting the temporary aid adjustment factor from the sum of the local system's transportation allowance, the local system's special receipts allowance, and the product of the local system's adjusted formula students multiplied by the average formula cost per student in the local system's cost grouping. The calculation of total adjusted formula students for purposes of this subdivision shall take into account the requirements of subdivision (2) of section 79-1007.01; (4) For school fiscal year 2007-08, each local system's formula need shall be calculated by subtracting the temporary aid adjustment factor from the sum of the local system's transportation allowance, special receipts allowance, and distance education and telecommunications allowance and the product of the local system's adjusted formula students multiplied by the average formula cost per student in the local system's cost grouping. The calculation of total adjusted formula students for purposes of this subdivision shall take into account the requirements of subdivision (2) of section 79-1007.01; and (5) For school fiscal year 2008-09 and each school fiscal year thereafter, each school district's formula need shall equal the greater of (a) the sum of the school district's transportation allowance, elementary class size allowance, focus school and program allowance, limited English proficiency allowance, poverty allowance, special receipts allowance, and distance education and telecommunications allowance plus the product of the school district's adjusted formula students multiplied by the average formula cost per student in the school district's local system cost grouping or (b) if the school district's general fund levy was at or above ninety-nine cents per one hundred dollars of valuation for the previous year, the school district's prior year formula need multiplied by one hundred percent. The calculation of total adjusted formula students for purposes of this subdivision shall take into account the requirements of subdivision (2) of section 79-1007.03. SOURCE: Laws 1997, LB 710, § 10, Laws 1997, LB 806, § 36, Laws 1998, LB 989, § 6, Laws 1998, Spec. Sess., LB 1, § 18, Laws 1999, LB 149, § 5, Laws 1999, LB 813, § 20, Laws 2002, LB 898, § 7, Laws 2003, LB 67, § 11, Laws 2004, LB 1093, § 4, Laws 2005, LB 577, § 3, Laws 2006, LB 1024, § 76, Laws 2006, LB 1208, § 5.§ 79-1007.03. School fiscal year 2008-09 and subsequent fiscal years; adjusted formula students for local system; calculation. For state aid calculated for school fiscal year 2008-09 and each school fiscal year thereafter: (1) The adjusted formula students for each school district shall be calculated by: (a) Multiplying the formula students in each grade range by the corresponding weighting factors to calculate the weighted formula students for each grade range as follows: (i) The weighting factor for early childhood education programs is six-tenths; (ii) The weighting factor for kindergarten is five-tenths; (iii) The weighting factor for grades one through six, including full-day kindergarten, is one; (iv) The weighting factor for grades seven and eight is one and two-tenths; and (v) The weighting factor for grades nine through twelve is one and four-tenths; (b) Adding the weighted formula students for each grade range to calculate the weighted formula students for the local system; and (c) Adjusting the weighted formula students by adding the following demographic factors: (i) The Indian-land factor shall equal 0.25 times the average daily attendance of students who reside on Indian land as reported by the United States Department of Education in calculating the local system's payment pursuant to 20 U.S.C. 7701 et seq., as such sections existed on January 1, 2006; and (ii) The extreme remoteness factor shall equal 0.125 times the formula students in the school district for each school district that has fewer than two hundred formula students, more than six hundred square miles in the school district, less than three-tenths formula student per square mile in the local system, and more than twenty-five miles between the high school attendance center and the next closest high school attendance center on paved roads; and (2) The total adjusted formula students for each school district shall equal the weighted formula students plus the demographic factors, except that (a) for school districts qualifying for the extreme remoteness factor, the total adjusted formula students shall be greater than or equal to one hundred fifty adjusted formula students, (b) the total adjusted formula students for a school district shall not include the extreme remoteness factor or any adjustment to the adjusted formula students resulting from qualification for the extreme remoteness factor for the calculation of the average formula cost per student in each cost grouping pursuant to section 79-1007.02, and (c) the total adjusted formula students for a school district shall include the extreme remoteness factor and any adjustment to the adjusted formula students resulting from qualification for the extreme remoteness factor for the calculation of the school district's formula need pursuant to section 79-1007.02. SOURCE: Laws 2006, LB 1024, § 75.§ 79-1007.04. Elementary class size allowance; calculation. For school fiscal year 2008-09 and each school fiscal year thereafter, the department shall determine the elementary class size allowance for each school district. The allowance shall equal the statewide average general fund operating expenditures per formula student multiplied by 0.20 then multiplied by the number of students in the school district in kindergarten through grade five who qualify for free or reduced-price lunches and who spend at least fifty percent of the school day in a classroom with a minimum of ten students and a maximum of twenty students as reported on the fall membership report from the school fiscal year immediately preceding the school fiscal year in which the aid is to be paid for state aid certified pursuant to section 79-1022 and as reported on the annual financial report from the school fiscal year immediately preceding the school fiscal year in which the aid was paid for the final calculation of state aid pursuant to section 79-1065. SOURCE: Laws 2006, LB 1024, § 77.§ 79-1007.05. Focus school and program allowance; calculation. For school fiscal year 2008-09 and each school fiscal year thereafter, the department shall determine the focus school and program allowance for each school district in a learning community. The allowance shall equal the statewide average general fund operating expenditures per formula student multiplied by 0.10 then multiplied by the number of students participating in a focus school or program as reported on the fall membership report from the school fiscal year immediately preceding the school fiscal year in which the aid is to be paid for state aid certified pursuant to section 79-1022 and as reported on the annual financial report from the school fiscal year immediately preceding the school fiscal year in which the aid was paid for the final calculation of state aid pursuant to section 79-1065. SOURCE: Laws 2006, LB 1024, § 78.§ 79-1007.06. Poverty allowance; calculation. (1) For school fiscal year 2008-09 and each school fiscal year thereafter, the department shall determine the poverty allowance for each school district that has not been disqualified pursuant to section 79-1007.07. The school district may designate a maximum poverty allowance on or before November 1 of the school fiscal year immediately preceding the school fiscal year for which aid is being calculated on a form prescribed by the department. The school district may decline to participate in the poverty allowance by providing the department with a maximum poverty allowance of zero dollars on or before November 1 of the school fiscal year immediately preceding the school fiscal year for which aid is being calculated on such form. (2) The poverty allowance for each school district that has not been disqualified pursuant to section 79-1007.07 shall equal the lesser of: (a) The maximum amount designated pursuant to subsection (1) of this section by the school district in the local system, if such school district designated a maximum amount, for the school fiscal year for which aid is being calculated; or (b) Sixty-one percent of the sum of: (i) The statewide average general fund operating expenditures per formula student multiplied by 0.05 then multiplied by the poverty students comprising more than five percent and not more than ten percent of the formula students in the school district; plus (ii) The statewide average general fund operating expenditures per formula student multiplied by 0.10 then multiplied by the poverty students comprising more than ten percent and not more than fifteen percent of the formula students in the school district; plus (iii) The statewide average general fund operating expenditures per formula student multiplied by 0.15 then multiplied by the poverty students comprising more than fifteen percent and not more than twenty percent of the formula students in the school district; plus (iv) The statewide average general fund operating expenditures per formula student multiplied by 0.20 then multiplied by the poverty students comprising more than twenty percent and not more than twenty-five percent of the formula students in the school district; plus (v) The statewide average general fund operating expenditures per formula student multiplied by 0.25 then multiplied by the poverty students comprising more than twenty-five percent and not more than thirty percent of the formula students in the school district; plus (vi) The statewide average general fund operating expenditures per formula student multiplied by 0.30 then multiplied by the poverty students comprising more than thirty percent of the formula students in the school district. SOURCE: Laws 2006, LB 1024, § 79.§ 79-1007.07. Financial reports relating to poverty allowance; department; duties; report; appeal of department decisions. (1)(a) For school fiscal year 2007-08, the annual financial report required pursuant to section 79-528 shall include: (i) The amount of federal funds received based on poverty as defined by the federal program providing the funds; and (ii) The expenditures and sources of funding for each program related to poverty with a narrative description of the program and the method used to allocate money to the program and within the program. (b) The department shall set up accounting codes for the receipts and expenditures required to be reported on the annual financial report pursuant to this subsection. The department shall also determine for each school district an amount that shall be deemed the poverty allowance for purposes of this section. Such amount shall equal the adjustments to the weighted formula students pursuant to subdivision (1)(c)(iii) of section 79-1007.01 multiplied by the average formula cost per student in the school district's cost grouping. (2)(a) For school fiscal year 2008-09 and each school fiscal year thereafter, the annual financial report required pursuant to section 79-528 shall include: (i) The amount of the poverty allowance used in the certification of state aid pursuant to section 79-1022 for such school fiscal year; (ii) The amount of federal funds received based on poverty as defined by the federal program providing the funds; and (iii) The expenditures and sources of funding for each program related to poverty with a narrative description of the program and the method used to allocate money to the program and within the program. (b) The department shall set up accounting codes for the receipts and expenditures required to be reported on the annual financial report pursuant to this subsection. (3) For school fiscal year 2009-10 and each school fiscal year thereafter, the department shall determine the poverty allowance expenditures using the reported expenditures on the annual financial report for the most recently available complete data year that would include in the poverty allowance expenditures only those expenditures that were used to specifically address issues related to the education of students living in poverty, that do not replace expenditures that would have occurred if the students involved in the program did not live in poverty, and that are not paid for with federal funds. The department shall establish a procedure to allow school districts to receive preapproval for categories of expenditures that could be included in poverty allowance expenditures. (4) For school fiscal year 2009-10 and each school fiscal year thereafter, if the poverty allowance expenditures do not equal 117.65 percent or more of the poverty allowance for the most recently available complete data year, the department shall calculate a poverty allowance correction. The poverty allowance correction shall equal the poverty allowance minus eighty-five percent of the poverty allowance expenditures. If the poverty allowance expenditures do not equal fifty percent or more of the allowance for such school fiscal year, the school district shall also be disqualified from receiving a poverty allowance for the school fiscal year for which aid is being calculated. (5) The department may request additional information from any school district to assist with calculations pursuant to this section. If the school district does not provide information upon the request of the department pursuant to this section, the school district shall be disqualified from receiving a poverty allowance for the school fiscal year for which aid is being calculated. (6) The department shall annually provide the Legislature with a report containing a general description of the expenditures and funding sources for programs related to poverty statewide and specific descriptions of the expenditures and funding sources for programs related to poverty for each school district. (7) The state board shall establish a procedure for appeal of decisions of the department to the state board for a final determination. SOURCE: Laws 2006, LB 1024, § 80.§ 79-1007.08. Limited English proficiency allowance; calculation. (1) For school fiscal year 2008-09 and each school fiscal year thereafter, the department shall determine the limited English proficiency allowance for each school district that has not been disqualified pursuant to section 79-1007.09. The school district may designate a maximum limited English proficiency allowance on or before November 1 of the school fiscal year immediately preceding the school fiscal year for which aid is being calculated on a form prescribed by the department. The school district may decline to participate in the limited English proficiency allowance by providing the department with a maximum limited English proficiency allowance of zero dollars on or before November 1 of the school fiscal year immediately preceding the school fiscal year for which aid is being calculated on such form. (2) The limited English proficiency allowance for each school district that has not been disqualified pursuant to section 79-1007.09 shall equal the lesser of: (a) The amount designated pursuant to subsection (1) of this section by the school district, if such school district designated a maximum amount, for the school fiscal year for which aid is being calculated; or (b) The statewide average general fund operating expenditures per formula student multiplied by 0.25 then multiplied by: (i) The number of students in the school district who are limited English proficient as defined under 20 U.S.C. 7801, as such section existed on January 1, 2006, if such number is greater than or equal to twelve; (ii) Twelve, if the number of students in the school district who are limited English proficient as defined under 20 U.S.C. 7801, as such section existed on January 1, 2006, is greater than or equal to one and less than twelve; or (iii) Zero, if the number of students in the school district who are limited English proficient as defined under 20 U.S.C. 7801, as such section existed on January 1, 2006, is less than one. SOURCE: Laws 2006, LB 1024, § 81.§ 79-1007.09. Financial reports relating to limited English proficiency; department; duties; report; appeal of department decisions. (1)(a) For school fiscal year 2007-08, the annual financial report required pursuant to section 79-528 shall include: (i) The amount of federal funds received based on students who are limited English proficient as defined by the federal program providing the funds; and (ii) The expenditures and sources of funding for each program related to limited English proficiency with a narrative description of the program and the method used to allocate money to the program and within the program. (b) The department shall set up accounting codes for the receipts and expenditures required to be reported on the annual financial report pursuant to this subsection. The department shall also determine for each school district an amount that shall be deemed the limited English proficiency allowance for purposes of this section. Such amount shall equal the adjustments to the weighted formula students pursuant to subdivision (1)(c)(ii) of section 79-1007.01 multiplied by the average formula cost per student in the school district's cost grouping. (2)(a) For school fiscal year 2008-09 and each school fiscal year thereafter, the annual financial report required pursuant to section 79-528 shall include: (i) The amount of the limited English proficiency allowance used in the certification of state aid pursuant to section 79-1022 for such school fiscal year; (ii) The amount of federal funds received based on students who are limited English proficient as defined by the federal program providing the funds; and (iii) The expenditures and sources of funding for each program related to limited English proficiency with a narrative description of the program and the method used to allocate money to the program and within the program. (b) The department shall set up accounting codes for the receipts and expenditures required to be reported on the annual financial report pursuant to this subsection. (3) For school fiscal year 2009-10 and each school fiscal year thereafter, the department shall determine the limited English proficiency allowance expenditures using the reported expenditures on the annual financial report for the most recently available complete data year that would only include in the limited English proficiency allowance expenditures those expenditures that were used to specifically address issues related to the education of students with limited English proficiency, that do not replace expenditures that would have occurred if the students involved in the program did not have limited English proficiency, and that are not paid for with federal funds. The department shall establish a procedure to allow school districts to receive preapproval for categories of expenditures that could be included in limited English proficiency allowance expenditures. (4) For school fiscal year 2009-10 and each school fiscal year thereafter, if the limited English proficiency allowance expenditures do not equal 117.65 percent or more of the limited English proficiency allowance for the most recently available complete data year, the department shall calculate a limited English proficiency allowance correction. The limited English proficiency allowance correction shall equal the limited English proficiency allowance minus eighty-five percent of the limited English proficiency allowance expenditures. If the limited English proficiency allowance expenditures do not equal fifty percent or more of the allowance for such school fiscal year, the school district shall also be disqualified from receiving a limited English proficiency allowance for the school fiscal year for which aid is being calculated. (5) The department may request additional information from any school district to assist with calculations pursuant to this section. If the school district does not provide information upon the request of the department pursuant to this section, the school district shall be disqualified from receiving a limited English proficiency allowance for the school fiscal year for which aid is being calculated. (6) The department shall annually provide the Legislature with a report containing a general description of the expenditures and funding sources for programs related to limited English proficiency statewide and specific descriptions of the expenditures and funding sources for programs related to limited English proficiency for each school district. (7) The state board shall establish a procedure for appeal of decisions of the department to the state board for a final determination. SOURCE: Laws 2006, LB 1024, § 82.§ 79-1007.10. Cost growth factor; computation. For state aid calculated for school fiscal year 2008-09 and each school fiscal year thereafter, the cost growth factor for each cost grouping is equal to the sum of: (1) One; plus (2) the product of two times the ratio of the difference between the formula students attributable to the cost grouping without weighting or adjustment pursuant to section 79-1007.03 and the sum of the average daily membership plus tuitioned students attributable to the cost grouping for the most recently available complete data year divided by the sum of the average daily membership plus tuitioned students attributable to the cost grouping for the most recently available complete data year, except that the ratio shall not be less than zero; plus (3) the basic allowable growth rate pursuant to section 79-1025 for the school fiscal year in which the aid is to be distributed; plus (4) the basic allowable growth rate pursuant to section 79-1025 for the school fiscal year immediately preceding the school fiscal year in which the aid is to be distributed; plus (5) any additional growth rate allowed by special action of school boards for the school fiscal year in which the aid is to be distributed as determined for the school fiscal year immediately preceding the school fiscal year when aid is to be distributed; plus (6) any additional growth rate allowed by special action of the school boards for the school fiscal year immediately preceding the school fiscal year when the aid is to be distributed. SOURCE: Laws 2006, LB 1024, § 83.§ 79-1008. Repealed. Laws 1998, Spec. Sess., LB 1, § 63. § 79-1008.01. Equalization aid; amount. (1) Except as provided in subsection (2) of this section and sections 79-1008.02 to 79-1010, each local system shall receive equalization aid in the amount that the total formula need of each local system, as determined pursuant to sections 79-1007.01 to 79-1007.10, exceeds its total formula resources as determined pursuant to sections 79-1015.01 to 79-1018.01. (2) Except as provided in section 79-1008.02, a local system shall not receive state aid for any school fiscal year, except school fiscal years 2002-03 through 2007-08, which is less than an amount equal to the difference of eighty-five percent of the amount of aid certified in the preceding school fiscal year minus an amount equal to any increase in the adjusted valuation between the adjusted valuation used for the certification of aid in the preceding school fiscal year and the adjusted valuation used for the aid being calculated multiplied by the maximum levy, for the school fiscal year for which aid is being certified, pursuant to subdivision (2)(a) or (b) of section 77-3442 without a vote pursuant to section 77-3444. (3) Except as provided in section 79-1008.02, a local system shall not receive state aid for school fiscal years 2002-03 through 2007-08 which is less than an amount equal to the difference of eighty-three and three-fourths percent of the amount of aid certified in the preceding school fiscal year minus an amount equal to any increase in the adjusted valuation between the adjusted valuation used for the certification of aid in the preceding school fiscal year and the adjusted valuation used for the aid being calculated multiplied by the maximum levy, for the school fiscal year for which aid is being certified, pursuant to subdivision (2)(a) of section 77-3442 without a vote pursuant to section 77-3444. (4) Except as provided in subsection (2) or (3) of this section, no local system may receive equalization aid such that, when total aid is added to a levy ten cents less than the maximum levy, for the school fiscal year for which aid is being certified, pursuant to subdivision (2)(a) or (b) of section 77-3442 without a vote pursuant to section 77-3444, multiplied by the local system's adjusted valuation, would result in total local system revenue from state aid plus property tax receipts which exceeds the total of: (a) The sum of state aid, receipts from other school districts related to annexation, and property tax receipts received by the local system during the preceding school fiscal year multiplied by the total of (i) 1.01 plus (ii) the applicable allowable growth rate for the local system calculated pursuant to section 79-1026 as determined for the school fiscal year immediately preceding the school fiscal year when aid is to be distributed plus (iii) the percentage growth in formula students from the certification of state aid for the immediately preceding school fiscal year to the formula students for the certification of state aid for the current school fiscal year, except that the percentage growth shall not be less than zero; (b) Unused budget authority authorized pursuant to section 79-1030 for all school districts in the local system; (c) The difference between the other actual receipts included in local system formula resources for the certification of state aid in the preceding school fiscal year and other actual receipts included in local system formula resources for the certification of state aid for the current school fiscal year, except that such difference shall not be less than zero; and (d) The absolute value of any negative prior year adjustment pursuant to section 79-1065. For local systems that have reorganized, state aid, property tax receipts, and number of formula students shall be attributed based on valuation. The formation of a learning community shall be considered a reorganization for purposes of this subsection. The revenue from property tax receipts shall be calculated by multiplying the reported general fund common levy by the assessed valuation subject to the levy divided by one hundred. (5) For all school fiscal years except school fiscal years 2002-03 through 2007-08, the aid that is not distributed through equalization based on subsection (4) of this section shall be distributed through this subsection to the extent local systems qualify for such distributions. Local systems qualify for distribution under this subsection if they have nine hundred or less formula students and adjusted general fund operating expenditures per formula student less than the average for all local systems with nine hundred or less formula students. The aid shall be distributed proportionally to qualifying districts based on the dollar amount each local system's calculated state aid plus the product of a levy of one dollar multiplied by the assessed valuation divided by one hundred is below ninety percent of state aid plus property tax receipts received by the local system during the preceding school fiscal year. No system shall receive aid pursuant to this subsection such that the calculated state aid plus the product of a levy of one dollar multiplied by the assessed valuation divided by one hundred is ninety percent or more of state aid plus property tax receipts received by the local system during the preceding school fiscal year. (6) For school fiscal years 2002-03 through 2007-08, the aid that is not distributed through equalization based on subsection (3) of this section shall be distributed through this subsection to the extent local systems qualify for such distributions. Local systems qualify for distribution under this subsection if they have nine hundred or less formula students and adjusted general fund operating expenditures per formula student less than the average for all local systems with nine hundred or less formula students. The aid shall be distributed proportionally to qualifying districts based on the dollar amount each local system's calculated state aid plus the product of a levy equal to the maximum levy, for the school fiscal year for which aid is being certified, pursuant to subdivision (2)(a) or (b) of section 77-3442 without a vote pursuant to section 77-3444, multiplied by the assessed valuation is below eighty-eight and three-fourths percent of state aid plus property tax receipts received by the local system during the preceding school fiscal year. No system shall receive aid pursuant to this subsection such that the calculated state aid plus the product of a levy equal to the maximum levy, for the school fiscal year for which aid is being certified, pursuant to subdivision (2)(a) or (b) of section 77-3442 without a vote pursuant to section 77-3444, multiplied by the assessed valuation is eighty-eight and three-fourths percent or more of state aid plus property tax receipts received by the local system during the preceding school fiscal year. SOURCE: Laws 1997, LB 710, § 11, Laws 1997, LB 806, § 38, Laws 1998, LB 989, § 7, Laws 1998, Spec. Sess., LB 1, § 19, Laws 1999, LB 149, § 6, Laws 2001, LB 797, § 20, Laws 2002, LB 898, § 8, Laws 2003, LB 540, § 4, Laws 2004, LB 1093, § 5, Laws 2006, LB 1024, § 84.§ 79-1008.02. Minimum levy adjustment; calculation; effect. A minimum levy adjustment shall be calculated and applied to any local system that has a general fund common levy in the calendar year in which aid is certified that is less than ninety percent of the maximum levy allowed pursuant to subdivision (2)(a) or (b) of section 77-3442 without a vote pursuant to section 77-3444. To calculate the minimum levy adjustment, the department shall subtract the local system general fund common levy in the calendar year when aid is certified from ninety percent of the maximum levy allowed pursuant to subdivision (2)(a) or (b) of section 77-3442 without a vote pursuant to section 77-3444 and multiply the result by the local system's adjusted valuation divided by one hundred. The minimum levy adjustment shall be added to the formula resources of the local system for the determination of equalization aid pursuant to section 79-1008.01. If the minimum levy adjustment is greater than or equal to the allocated income tax funds calculated pursuant to section 79-1005.01 or 79-1005.02, the local system shall not receive allocated income tax funds. If the minimum levy adjustment is less than the allocated income tax funds calculated pursuant to section 79-1005.01 or 79-1005.02, the local system shall receive allocated income tax funds in the amount of the difference between the allocated income tax funds calculated pursuant to section 79-1005.01 or 79-1005.02 and the minimum levy adjustment. This section does not apply to the calculation of aid for a local system containing a learning community for the first school fiscal year for which aid is calculated for such local system. SOURCE: Laws 1997, LB 806, § 39, Laws 1998, Spec. Sess., LB 1, § 20, Laws 2001, LB 797, § 21, Laws 2002, LB 898, § 9, Laws 2006, LB 1024, § 85.§ 79-1009. Option school districts; net option funding; calculation. (1) A district shall receive net option funding if option students as defined in section 79-233 (a) were actually enrolled in the school year immediately preceding the school year in which the aid is to be paid or (b) will be enrolled in the school year in which the aid is to be paid as converted contract option students. (2) For purposes of this section: (a) For all school fiscal years except school fiscal years 2002-03 through 2007-08, net option funding means the sum of the products of the net number of option students in each grade range multiplied by the statewide average cost grouping cost per student multiplied by the weighting factor for the corresponding grade range pursuant to section 79-1007.01; and (b) for school fiscal years 2002-03 through 2007-08, net option funding shall be calculated by subtracting the temporary aid adjustment factor from the sum of the products of the net number of option students in each grade range multiplied by the statewide average cost grouping cost per student multiplied by the weighting factor for the corresponding grade range pursuant to section 79-1007.01, except that a local system's net option funding shall not be less than zero. Net number of option students means the number of option students actually enrolled in a grade range in the current data year minus the number of students residing in the district but enrolled in another district in the same grade range in the current data year as option students as defined in section 79-233. A district's net option funding shall be zero if the calculation produces a negative result. (3) The determination of the net number of option students shall be based on (a) the number of option students enrolled in the district or enrolled in another district as of the day of the fall membership count pursuant to section 79-528, for the school fiscal year immediately preceding the school fiscal year in which the aid is to be paid and (b) the number of option students that will be enrolled in the district or enrolled in another district as converted contract option students for the school fiscal year in which the aid is to be paid. Payments made under this section shall be made from the funds to be disbursed under section 79-1005.01 or 79-1005.02. (4) Payments made pursuant to this section shall go directly to the option school district but shall count as a formula resource for the local system. SOURCE: Laws 1996, LB 1050, § 18, Laws 1997, LB 806, § 40, Laws 1998, Spec. Sess., LB 1, § 21, Laws 1999, LB 813, § 21, Laws 2001, LB 797, § 22, Laws 2001, LB 833, § 5, Laws 2002, LB 898, § 10, Laws 2004, LB 1093, § 6§ 79-1009.01. Converted contract option students; application; procedure. A district which will have converted contract option students shall apply to the department on a form approved by the department on or before November 1 of the calendar year preceding the beginning of the school fiscal year for which there will be converted contract option students. The department shall determine the amount of tuition receipts from converted contracts to be excluded from the calculation of local system formula resources for each of the first two school fiscal years for which the converted contract will not be in effect and shall determine the number of converted contract option students to be attributed to the receiving district in the calculation of state aid for the first school fiscal year for which the converted contract will not be in effect and the same number shall be attributed as optioning out of the resident school district. In the final calculation of state aid pursuant to section 79-1065, students that were attributed as optioning into or out of a district shall be replaced with the actual number from the fall membership count pursuant to section 79-528. The department shall notify the applicant district within thirty days after receipt of the completed application. SOURCE: Laws 2001, LB 833, § 7§ 79-1010. Incentives to reorganized districts and unified systems; qualifications; requirements; calculation; payment. (1) To encourage consolidation and unification of school districts, incentives shall be paid to reorganized districts and unified systems in certain size ranges for a three-year period to reward the reorganized districts or unified systems for their efforts to increase efficiency in the delivery of educational services. This section shall only apply to consolidations and unifications with an effective date after May 31, 1996, and before August 2, 2001. (2) To qualify for incentive payments under this section, the consolidation or unification must be approved for incentive payments by the State Committee for the Reorganization of School Districts. For consolidations, when reviewing a petition for the boundary change pursuant to section 79-413, the state committee shall issue a preliminary approval or disapproval for incentive payments along with a notice specifying application procedures. For consolidations, affected school districts shall file an application for incentive payments with the state committee within thirty days following the issuance of the boundary change order pursuant to subsection (1) of section 79-479. For unifications, the unified system or participating districts shall file an application for incentive payments with the state committee either following approval of the application for unification or in conjunction with the application for unification. The state committee shall, within thirty days, approve or disapprove incentive payments. For consolidations, if there are no material changes in the reorganization plan between a preliminary approval and application for incentive payments following the boundary change order, the state committee shall approve the incentive payments. If a preliminary disapproval was issued or if there was a material change in the reorganization plan prior to the issuance of the boundary change order, the state committee shall reconsider the approval or disapproval of incentive payments. The state committee shall make the determination regarding whether or not any changes in a reorganization plan are material for the purpose of approving or disapproving incentive payments. (3) For incentive payments to be approved for either consolidations or unifications by the state committee, a reorganization study, including efficiency, demographic, curriculum, facility, financial, and community components, must be completed. If a study containing such elements is completed and the reorganization plan or unification agreement will most likely result in more efficiency in the delivery of educational services or greater educational opportunities, the state committee may approve incentive payments for the affected districts. (4)(a) Incentive payments shall be based on the number of students moving from one size range to a lower cost size range based on the average daily membership in each affected district in the school fiscal year immediately preceding the first school fiscal year the boundary change or unification is in effect and the average daily membership the consolidated district or unified system would have had following the boundary change or unification if it had occurred in the school fiscal year immediately preceding the first school fiscal year the boundary change or unification is in effect. The reorganized school districts or unified systems existing after the qualified boundary change or unification shall receive incentive payments based on the following criteria for each student meeting the criteria: For grades one through six, including full-day kindergarten:
For grades seven and eight:
For grades nine through twelve:
(b) For local systems that will receive base fiscal year incentive payments for school fiscal year 2001-02 for a consolidation that includes two districts which entered into an agreement under the Interlocal Cooperation Act in which one district did not offer instruction in either grades seven through twelve or nine through twelve and contracted with the other district for the education of seventh through twelfth grade students or ninth through twelfth grade students for the school year prior to the consolidation, those seventh through twelfth grade students or ninth through twelfth grade students who were being educated outside their resident district pursuant to the agreement by a school that is in the local system receiving the incentives shall be included in the average daily membership of the resident district before consolidation for purposes of calculating incentive payments under this section. SOURCE: Laws 1996, LB 1050, § 19, Laws 1997, LB 806, § 41, Laws 1998, LB 1134, § 4, Laws 1998, LB 1219, § 17, Laws 1998, Spec. Sess., LB 1, § 22, Laws 1999, LB 149, § 7, Laws 2001, LB 313, § 2, Laws 2001, LB 797, § 23, Laws 2001, Spec. Sess., LB 3, § 7, Laws 2006, LB 795, § 1.§ 79-1010.01. Repealed. Laws 2003, LB 10, s. 1; Laws 2003, LB 67, § 34. § 79-1011. Incentives for consolidation; qualification; requirements; payment. (1) To encourage consolidation of Class II and III school districts with less than three hundred ninety students, incentives shall be paid to reorganized Class II, III, IV, or V districts resulting from consolidations which meet the requirements of this section. This section shall only apply to consolidations with an effective date after May 31, 2005, and before June 1, 2007. (2) To qualify for incentive payments under this section, the consolidation must be approved for incentive payments by the State Committee for the Reorganization of School Districts. Consolidating school districts shall file an application with the state committee within thirty days following the issuance of the boundary change order pursuant to subsection (1) of section 79-479. The state committee shall approve or disapprove incentive payments within thirty days after receipt of the application. (3) For incentive payments to be approved by the state committee, a reorganization study, including efficiency, demographic, curriculum, facility, financial, and community components, must be completed. If a study containing such elements is completed and the reorganization will most likely result in more efficiency in the delivery of educational services or greater educational opportunities, the state committee may approve incentive payments. (4) Incentive payments shall be based on the number of students moving from Class II or III school districts with less than three hundred ninety students into a reorganized Class II, III, IV, or V school district with at least three hundred ninety students based on the average daily membership in each affected district in the school fiscal year immediately preceding the first school fiscal year the boundary change will be in effect and the average daily membership the consolidated district would have had following the boundary change if it had occurred in the school fiscal year immediately preceding the first school fiscal year the boundary change will be in effect. The per-student incentive amount for each district involved in the reorganization having an average daily membership of less than three hundred ninety students shall equal four thousand dollars minus the product of the average daily membership in such district multiplied by the ratio of three thousand divided by three hundred ninety. The total incentives for each such district shall equal the district's per-student incentive amount multiplied by the district's average daily membership. (5) For school fiscal years 2005-06 and 2006-07, one million dollars shall be transferred from the Education Innovation Fund to the School District Reorganization Fund pursuant to section 9-812. (6) Except as otherwise provided in this subsection, base fiscal year incentive payments shall equal fifty percent of the amount calculated pursuant to subsection (4) of this section. Base fiscal year incentive payments shall be calculated as of August 2 immediately preceding the base fiscal year and shall be paid directly to the reorganized district from the School District Reorganization Fund pursuant to subsection (5) of this section. The payments shall be made in ten as nearly as possible equal payments on the last business day of each month, beginning in September and ending the following June, for the base fiscal year. If the total amount of base fiscal year incentive payments for that school fiscal year exceeds the amount in the School District Reorganization Fund, the base fiscal year incentive payments shall be reduced proportionately so that the total amount of base fiscal year incentive payments equals the amount in the fund. The base fiscal year incentive payments shall not be included in local system formula resources as calculated under section 79-1018.01. (7) The amount calculated pursuant to subsection (4) of this section minus the amount of base fiscal year incentive payments pursuant to subsection (6) of this section shall be included in the distribution of state aid for the first school fiscal year following the base fiscal year. SOURCE: Laws 2004, LB 1091, § 9§ 79-1012. School District Reorganization Fund; created; use; investment. The School District Reorganization Fund is created. The fund shall be administered by the department. The fund shall consist of money transferred from the Education Innovation Fund and shall be used to provide payments to reorganized school districts pursuant to section 79-1011. Any money remaining in the fund on July 1, 2008, shall be transferred to the General Fund on such date. Any money in the School District Reorganization Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act. SOURCE: Laws 2004, LB 1091, § 10§ 79-1013. Repealed. Laws 1997, LB 806, § 69. § 79-1014. Repealed. Laws 1998, Spec. Sess., LB 1, § 63. § 79-1015. Repealed. Laws 1998, Spec. Sess., LB 1, § 63. § 79-1015.01. Local system formula resources; local effort rate; determination. (1) Local system formula resources shall include local effort rate yield which shall be computed as prescribed in this section. (2) For state aid certified pursuant to section 79-1022, the local effort rate shall be the maximum levy, for the school fiscal year for which aid is being certified, authorized pursuant to section 77-3442 less ten cents. For the final calculation of state aid pursuant to section 79-1065, the local effort rate shall be the rate which, when multiplied by the total adjusted valuation of all taxable property in local systems receiving equalization aid pursuant to the Tax Equity and Educational Opportunities Support Act, will produce the amount needed to support the total formula need of such local systems when added to state aid appropriated by the Legislature and other actual receipts of local systems described in section 79-1018.01. The local effort rate yield shall be determined by multiplying each local system's total adjusted valuation by the local effort rate. SOURCE: Laws 1997, LB 806, § 45, Laws 1998, Spec. Sess., LB 1, § 23, Laws 1999, LB 149, § 8, Laws 2001, LB 797, § 24§ 79-1016. Adjusted valuation; how established; objections; filing; appeal; notice; correction due to clerical error; injunction prohibited. (1) On or before August 25, the county assessor shall certify to the Property Tax Administrator the total taxable value by school district in the county for the current assessment year on forms prescribed by the Property Tax Administrator. The county assessor may amend the filing for changes made to the taxable valuation of the school district in the county if corrections or errors on the original certification are discovered. Amendments shall be certified to the Property Tax Administrator on or before September 30. For 2005, pursuant to orders issued by the State Committee for the Reorganization of School Districts on or before December 1, 2005, for a Class I school district which dissolves and attaches its territory to a Class II, III, IV, or VI school district in such a manner that the parcels of property do not become a part of the local system with which they were previously affiliated or to which they were previously attached, the Property Tax Administrator shall require the county assessor to recertify the Class I district's taxable valuation according to the new affiliation on or before December 20, 2005, on forms prescribed by the Property Tax Administrator. For any local system's territory which is affected by a recertification of a Class I district's taxable valuation, the Property Tax Administrator shall compute and recertify the adjusted valuation to each local system and the department on or before February 1, 2006. (2) On or before October 10, the Property Tax Administrator shall compute and certify to the State Department of Education the adjusted valuation for the current assessment year for each class of property in each school district and each local system for state aid to be certified for the following school fiscal year. The adjusted valuation of property for each school district and each local system, for purposes of determining state aid pursuant to the Tax Equity and Educational Opportunities Support Act, shall reflect as nearly as possible state aid value as defined in subsection (3) of this section. The Property Tax Administrator shall notify each school district and each local system of its adjusted valuation for the current assessment year by class of property on or before October 10. Establishment of the adjusted valuation shall be based on the taxable value certified by the county assessor for each school district in the county adjusted by the determination of the level of value for each school district from an analysis of the comprehensive assessment ratio study or other studies developed by the Property Tax Administrator, in compliance with professionally accepted mass appraisal techniques, as required by section 77-1327. The Property Tax Administrator shall adopt and promulgate rules and regulations setting forth standards for the determination of level of value for school aid purposes. (3) For purposes of this section, state aid value means: (a) For real property other than agricultural and horticultural land, one hundred percent of actual value; (b) For agricultural and horticultural land, eighty percent of actual value as provided in sections 77-1359 to 77-1363. For agricultural and horticultural land that receives special valuation pursuant to section 77-1344, eighty percent of special valuation as defined in section 77-1343; and (c) For personal property, the net book value as defined in section 77-120. (4) On or before November 10, any local system may file with the Property Tax Administrator written objections to the adjusted valuations prepared by the Property Tax Administrator, stating the reasons why such adjusted valuations are not the valuations required by subsection (3) of this section. The Property Tax Administrator shall fix a time for a hearing. Either party shall be permitted to introduce any evidence in reference thereto. On or before January 1, the Property Tax Administrator shall enter a written order modifying or declining to modify, in whole or in part, the adjusted valuations and shall certify the order to the State Department of Education. Modification by the Property Tax Administrator shall be based upon the evidence introduced at hearing and shall not be limited to the modification requested in the written objections or at hearing. A copy of the written order shall be mailed to the local system within seven days after the date of the order. The written order of the Property Tax Administrator may be appealed within thirty days after the date of the order to the Tax Equalization and Review Commission in accordance with section 77-5013. (5) On or before November 10, any local system or county official may file with the Property Tax Administrator a written request for a nonappealable correction of the adjusted valuation due to clerical error or, for agricultural and horticultural land, assessed value changes by reason of land qualified or disqualified for special use valuation pursuant to sections 77-1343 to 77-1348. For purposes of this subsection, clerical error means transposition of numbers, allocation of value to the wrong school district, mathematical error, and omitted value. On or before the following January 1, the Property Tax Administrator shall approve or deny the request and, if approved, certify the corrected adjusted valuations resulting from such action to the State Department of Education. (6) On or before May 31 of the year following the certification of adjusted valuation pursuant to subsection (2) of this section, any local system or county official may file with the Property Tax Administrator a written request for a nonappealable correction of the adjusted valuation due to changes to the tax list that change the assessed value of taxable property. Upon the filing of the written request, the Property Tax Administrator shall require the county assessor to recertify the taxable valuation by school district in the county on forms prescribed by the Property Tax Administrator. The recertified valuation shall be the valuation that was certified on the tax list, pursuant to section 77-1613, increased or decreased by changes to the tax list that change the assessed value of taxable property in the school district in the county in the prior assessment year. On or before the following July 31, the Property Tax Administrator shall approve or deny the request and, if approved, certify the corrected adjusted valuations resulting from such action to the State Department of Education. (7) No injunction shall be granted restraining the distribution of state aid based upon the adjusted valuations pursuant to this section. (8) A school district whose state aid is to be calculated pursuant to subsection (5) of this section and whose state aid payment is postponed as a result of failure to calculate state aid pursuant to such subsection may apply to the state board for lump-sum payment of such postponed state aid. Such application may be for any amount up to one hundred percent of the postponed state aid. The state board may grant the entire amount applied for or any portion of such amount. The state board shall notify the Director of Administrative Services of the amount of funds to be paid in a lump sum and the reduced amount of the monthly payments. The Director of Administrative Services shall, at the time of the next state aid payment made pursuant to section 79-1022, draw a warrant for the lump-sum amount from appropriated funds and forward such warrant to the district. SOURCE: Laws 1990, LB 1059, § 9, Laws 1991, LB 829, § 32, Laws 1991, LB 511, § 76, Laws 1992, LB 245, § 81, Laws 1992, LB 719A, § 198, Laws 1994, LB 1290, § 7, Laws 1995, LB 490, § 185, R.S.Supp.,1995, § 79-3809, Laws 1996, LB 900, § 662, Laws 1996, LB 934, § 5, Laws 1996, LB 1050, § 24, Laws 1997, LB 270, § 103, Laws 1997, LB 271, § 53, Laws 1997, LB 342, § 4, Laws 1997, LB 595, § 6, Laws 1997, LB 713, § 3, Laws 1997, LB 806, § 46, Laws 1998, Spec. Sess., LB 1, § 24, Laws 1999, LB 194, § 34, Laws 1999, LB 813, § 22, Laws 2000, LB 968, § 80, Laws 2001, LB 170, § 28, Laws 2002, LB 994, § 30, Laws 2004, LB 973, § 66, Laws 2005, LB 126, § 46, Laws 2005, LB 263, § 16, Laws 2006, LB 808, § 46, Laws 2006, LB 968, § 16.§ 79-1017. Repealed. Laws 1998, Spec. Sess., LB 1, § 63. § 79-1017.01. Local system formula resources; income tax funds; allocation. Local system formula resources includes allocated income tax funds determined for each such district pursuant to the provisions of section 79-1005.01 or 79-1005.02 and adjustments pursuant to section 79-1008.02. SOURCE: Laws 1997, LB 806, § 48; Laws 2002, LB 898, § 11.§ 79-1018. Repealed. Laws 1998, Spec. Sess., LB 1, § 63. § 79-1018.01. Local system formula resources; other actual receipts included. Local system formula resources include other actual receipts available for the funding of general fund operating expenditures as determined by the department for the second school fiscal year immediately preceding the school fiscal year in which aid is to be paid, except that receipts from the Community Improvements Cash Fund, receipts acquired pursuant to the Low-Level Radioactive Waste Disposal Act, and, beginning with the calculation of state aid to be distributed in school fiscal year 2004-05, tuition receipts from converted contracts shall not be included. Other actual receipts include: (1) Public power district sales tax revenue; (2) Fines and license fees; (3) Tuition receipts from individuals, other districts, or any other source except receipts derived from adult education, tuition receipts from converted contracts, and receipts from educational entities as defined in section 79-1332 for providing distance education courses through the Distance Education Council to such educational entities; (4) Transportation receipts; (5) Interest on investments; (6) Other miscellaneous noncategorical local receipts, not including receipts from private foundations, individuals, associations, or charitable organizations; (7) Special education receipts, excluding grant funds received pursuant to section 9-812; (8) Special education receipts and non-special education receipts from the state for wards of the court and wards of the state; (9) All receipts from the temporary school fund. Beginning with the calculation of aid for school fiscal year 2002-03 and each school fiscal year thereafter, receipts from the temporary school fund shall only include receipts pursuant to section 79-1035 and the receipt of funds pursuant to section 79-1036 for property leased for a public purpose as set forth in subdivision (1)(a) of section 77-202; (10) Motor vehicle tax receipts received on or after January 1, 1998; (11) Pro rata motor vehicle license fee receipts; (12) Other miscellaneous state receipts excluding revenue from the textbook loan program authorized by section 79-734; (13) Impact aid entitlements for the school fiscal year which have actually been received by the district to the extent allowed by federal law; (14) All other noncategorical federal receipts; (15) All receipts pursuant to the enrollment option program under sections 79-232 to 79-246; (16) Receipts under the federal Medicare Catastrophic Coverage Act of 1988, as such act existed on May 8, 2001, as authorized pursuant to sections 43-2510 and 43-2511 but only to the extent of the amount the local system would have otherwise received pursuant to the Special Education Act; and (17) Receipts for accelerated or differentiated curriculum programs pursuant to sections 79-1106 to 79-1108.03. SOURCE: Laws 1997, LB 710, § 12, Laws 1997, LB 806, § 50, Laws 1998, LB 306, § 44, Laws 1998, LB 1229, § 4, Laws 1998, Spec. Sess., LB 1, § 25, Laws 1999, LB 149, § 9, Laws 2001, LB 797, § 25, Laws 2001, LB 833, § 6, Laws 2006, LB 1208, § 6.§ 79-1019. Repealed. Laws 1998, Spec. Sess., LB 1, § 63. § 79-1020. Aid allocation adjustments; department; duties. Nothing in the Tax Equity and Educational Opportunities Support Act shall be construed as altering, amending, or changing in any manner the duties or obligations of the department under section 79-1065, and the provisions of the act shall not be construed as relieving the department of its obligation to make appropriate aid allocation adjustments following a final determination of the amount of funds due to any school district or local system under the provisions of or through the operation of the act. SOURCE: Laws 1995, LB 542, § 3, R.S.Supp., 1995, § 79-3811.02, Laws 1996, LB 900, § 666, Laws 1996, LB 1050, § 28, Laws 1998, Spec. Sess., LB 1, § 26§ 79-1021. Tax Equity and Educational Opportunities Fund; created; investment. The Tax Equity and Educational Opportunities Fund is created. The fund shall receive dedicated income tax appropriations and appropriations made by the Legislature to fund the Tax Equity and Educational Opportunities Support Act and shall be administered by the state board. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act. SOURCE: Laws 1990, LB 1059, § 12, Laws 1994, LB 1066, § 94, Laws 1995, LB 840, § 8, R.S.Supp., 1995, § 79-3812, Laws 1996, LB 900, § 667, Laws 1996, LB 1050, § 29, Laws 1998, Spec. Sess., LB 1, § 27§ 79-1022. Distribution of income tax receipts and state aid; effect on budget. (1) On or before March 1, 2006, and on or before February 1 for each year thereafter, the department shall determine the amounts to be distributed to each local system and each district pursuant to the Tax Equity and Educational Opportunities Support Act and shall certify the amounts to the Director of Administrative Services, the Auditor of Public Accounts, each learning community, and each district. The amount to be distributed to each district that is not a member of a learning community from the amount certified for a local system shall be proportional based on the weighted formula students attributed to each district in the local system. The amount to be distributed to each district that is a member of a learning community from the amount certified for the local system shall be proportional based on the formula needs calculated for each district in the local system. On or before March 1, 2006, and on or before February 1 for each year thereafter, the department shall report the necessary funding level to the Governor, the Appropriations Committee of the Legislature, and the Education Committee of the Legislature. Certified state aid amounts, including adjustments pursuant to section 79-1065.02, shall be shown as budgeted non-property-tax receipts and deducted prior to calculating the property tax request in the district's general fund budget statement as provided to the Auditor of Public Accounts pursuant to section 79-1024. (2) Except as provided in subsection (8) of section 79-1016 and sections 79-1033 and 79-1065.02 the amounts certified pursuant to subsection (1) of this section shall be distributed in ten as nearly as possible equal payments on the last business day of each month beginning in September of each ensuing school fiscal year and ending in June of the following year, except that when a school district is to receive a monthly payment of less than one thousand dollars, such payment shall be one lump-sum payment on the last business day of December during the ensuing school fiscal year. SOURCE: Laws 1990, LB 1059, § 13, Laws 1991, LB 511, § 79, Laws 1992, LB 245, § 84, Laws 1994, LB 1290, § 8, Laws 1994, LB 1310, § 16, Laws 1995, LB 840, § 9, R.S.Supp., 1995, § 79-3813, Laws 1996, LB 900, § 668, Laws 1996, LB 1050, § 30, Laws 1997, LB 710, § 13, Laws 1997, LB 713, § 5, Laws 1997, LB 806, § 51, Laws 1998, Spec. Sess., LB 1, § 28, Laws 1999, LB 149, § 10, Laws 1999, LB 194, § 35, Laws 1999, LB 813, § 23, Laws 2002, LB 898, § 12, Laws 2002, Second Spec. Sess., LB 4, § 1, Laws 2003, LB 67, § 12, Laws 2003, LB 540, § 5, Laws 2004, LB 973, § 67, Laws 2005, LB 126, § 47, Laws 2005, LB 198, § 3, Laws 2006, LB 1024, § 86.§ 79-1022.01. Repealed. Laws 2001, LB 797, § 55. § 79-1022.02. School year 2003-04 certification null and void; recertification. Notwithstanding any other provision of law, the certification of state aid pursuant to section 79-1022 to be paid to school districts during school year 2003-04, the certification of applicable allowable growth rates pursuant to section 79-1026 for school fiscal year 2003-04, and the certifications of Class I school district allowable general fund budgets of expenditures pursuant to section 79-1083.03 for school fiscal year 2003-04 are null and void. State aid to be paid during such school year and the certifications pursuant to section 79-1022 shall be recertified on or before June 15, 2003, using data sources as they existed on February 1, 2003. SOURCE: Laws 2002, LB 898, § 13, Laws 2003, LB 540, § 6§ 79-1023. Class II, III, IV, V, or VI district; general fund budget of expenditures; limitation. No Class II, III, IV, V, or VI district shall increase its general fund budget of expenditures more than the local system's applicable allowable growth rate. SOURCE: Laws 1990, LB 1059, § 14, Laws 1991, LB 829, § 33, Laws 1992, LB 1063, § 202, Laws 1992, Second Spec. Sess., LB 1, § 173, Laws 1995, LB 613, § 3, Laws 1996, LB 299, § 27, R.S.Supp., 1995, § 79-3814, Laws 1996, LB 900, § 669, Laws 1998, LB 989, § 8, Laws 2003, LB 67, § 13§ 79-1024. Budget statement; submitted to department; Auditor of Public Accounts; duties; failure to submit; effect. (1) The department may require each district to submit to the department a duplicate copy of such portions of the district's budget statement as the Commissioner of Education directs. The department may verify any data used to meet the requirements of the Tax Equity and Educational Opportunities Support Act. The Auditor of Public Accounts shall review each district's budget statement for statutory compliance, make necessary changes in the budget documents for districts to effectuate the budget limitations imposed pursuant to sections 79-1023 to 79-1030, and notify the Commissioner of Education (a) of any district failing to submit to the auditor the budget documents required pursuant to this subsection by the date established in subsection (1) of section 13-508 or failing to make any corrections of errors in the documents pursuant to section 13-504 or 13-511 and (b) of any Class I district failing to submit the items required by this subsection to its high school districts by the date established in section 79-1083.03. (2) If a school district fails to submit to the department or the auditor the budget documents required pursuant to subsection (1) of this section by the date established in subsection (1) of section 13-508 or fails to make any corrections of errors in the documents pursuant to section 13-504 or 13-511 or a Class I district fails to submit the items required by subsection (1) of this section to its high school districts by the date established in section 79-1083.03, the commissioner, upon notification from the auditor or upon his or her own knowledge that the required budget documents and any required corrections of errors from any school district have not been properly filed in accordance with the Nebraska Budget Act and after notice to the district and an opportunity to be heard, shall direct that any state aid granted pursuant to the Tax Equity and Educational Opportunities Support Act be withheld until such time as the required budget documents or corrections of errors are received by the auditor and the department. In addition, the commissioner shall direct the county treasurer to withhold all school money belonging to the school district until such time as the commissioner notifies the county treasurer of receipt of the required budget documents or corrections of errors. The county treasurer shall withhold such money. For school districts that are members of learning communities, a determination of school money belonging to the district shall be based on the proportionate share of property tax receipts allocated to the school district by the learning community coordinating council, and the learning community coordinating council shall withhold any such school money in the possession of the learning community coordinating council from the school district. If the school district does not comply with this section prior to the end of the state's biennium following the biennium which included the fiscal year for which state aid was calculated, the state aid funds shall revert to the General Fund. The amount of any reverted funds shall be included in data provided to the Governor in accordance with section 79-1031. The board of any district failing to submit to the department or the auditor the budget documents required pursuant to this section by the date established in subsection (1) of section 13-508 or failing to make any corrections of errors in the documents pursuant to section 13-504 or 13-511 or the board of a Class I district failing to submit the items required by subsection (1) of this section to its high school districts by the date established in section 79-1083.03 shall be liable to the school district for all school money which such district may lose by such failing. SOURCE: Laws 1990, LB 1059, § 15, Laws 1991, LB 511, § 80, Laws 1992, LB 245, § 85, Laws 1992, LB 1001, § 43, R.S.1943, (1994), § 79-3815, Laws 1996, LB 900, § 670, Laws 1997, LB 269, § 61, Laws 1997, LB 710, § 14, Laws 1998, Spec. Sess., LB 1, § 29, Laws 1999, LB 272, § 93, Laws 1999, LB 813, § 24, Laws 2001, LB 797, § 26, Laws 2003, LB 67, § 14, Laws 2006, LB 1024, § 87.§ 79-1025. Basic allowable growth rate; allowable growth range. The basic allowable growth rate for general fund expenditures other than expenditures for special education shall be the base limitation established under section 77-3446 and the allowable growth range shall be from the base limitation to three percent above the base limitation. The budget authority for special education for all classes of school districts shall be the actual anticipated expenditures for special education subject to the approval of the state board. Such budget authority and funds generated pursuant to such budget authority shall be used only for special education expenditures. SOURCE: Laws 1990, LB 1059, § 16, Laws 1991, LB 511, § 81, Laws 1992, LB 245, § 86, Laws 1992, LB 1063, § 203, Laws 1992, Second Spec. Sess., LB 1, § 174, Laws 1995, LB 613, § 4, Laws 1996, LB 299, § 28, R.S.Supp., 1995, § 79-3816, Laws 1996, LB 900, § 671, Laws 1998, LB 989, § 9, Laws 1998, Spec. Sess., LB 1, § 30, Laws 2003, LB 540, § 7§ 79-1026. School fiscal years prior to 2008-09; applicable allowable growth rate; determination; target budget level. For school fiscal years prior to 2008-09: On or before March 1, 2006, and on or before February 1 for each year thereafter, the department shall determine and certify to each Class II, III, IV, V, or VI district an applicable allowable growth rate carried out at least four decimal places for each local system as follows: (1) The department shall establish a target budget level range of general fund operating expenditure levels for each school fiscal year for each local system which shall begin at twenty percent less than the local system's formula need and end at the local system's formula need. The beginning point of the range shall be assigned a number equal to the maximum allowable growth rate established in section 79-1025, and the end point of the range shall be assigned a number equal to the basic allowable growth rate as prescribed in such section such that the lower end of the range shall be assigned the maximum allowable growth rate and the higher end of the range shall be assigned the basic allowable growth rate; and (2) For each school fiscal year, each local system's general fund operating expenditures shall be compared to its target budget level along the range described in subdivision (1) of this section to arrive at an applicable allowable growth rate as follows: If each local system's general fund operating expenditures fall below the lower end of the range, such applicable allowable growth rate shall be the maximum growth rate identified in section 79-1025. If each local system's general fund operating expenditures are greater than the higher end of the range, the local system's allowable growth rate shall be the basic allowable growth rate identified in such section. If each local system's general fund operating expenditures fall between the lower end and the higher end of the range, the department shall use a linear interpolation calculation between the end points of the range to arrive at the applicable allowable growth rate for the local system. SOURCE: Laws 1990, LB 1059, § 17, Laws 1991, LB 511, § 82, Laws 1992, LB 245, § 87, Laws 1996, LB 299, § 29, R.S.1943, (1994), § 79-3817, Laws 1996, LB 900, § 672, Laws 1996, LB 1050, § 31, Laws 1997, LB 710, § 15, Laws 1997, LB 806, § 52, Laws 1998, LB 989, § 10, Laws 1999, LB 149, § 11, Laws 1999, LB 813, § 25, Laws 2001, LB 797, § 27, Laws 2003, LB 67, § 15, Laws 2003, LB 540, § 8, Laws 2005, LB 126, § 48, Laws 2006, LB 1024, § 88.§ 79-1026.01. School fiscal year 2008-09 and subsequent fiscal years; applicable allowable growth rate; determination; target budget level. For school fiscal year 2008-09 and each school fiscal year thereafter, on or before February 1, the department shall determine and certify to each Class II, III, IV, or V district an applicable allowable growth rate carried out at least four decimal places as follows: (1) The department shall establish a target budget level range of general fund operating expenditure levels for each school fiscal year for each school district which shall begin at twenty percent less than the school district's formula need and end at the school district's formula need. The beginning point of the range shall be assigned a number equal to the maximum allowable growth rate established in section 79-1025, and the end point of the range shall be assigned a number equal to the basic allowable growth rate as prescribed in such section such that the lower end of the range shall be assigned the maximum allowable growth rate and the higher end of the range shall be assigned the basic allowable growth rate; and (2) For each school fiscal year, each school district's general fund operating expenditures shall be compared to its target budget level along the range described in subdivision (1) of this section to arrive at an applicable allowable growth rate as follows: If each school district's general fund operating expenditures fall below the lower end of the range, such applicable allowable growth rate shall be the maximum growth rate identified in section 79-1025. If each school district's general fund operating expenditures are greater than the higher end of the range, the school district's allowable growth rate shall be the basic allowable growth rate identified in such section. If each school district's general fund operating expenditures fall between the lower end and the higher end of the range, the department shall use a linear interpolation calculation between the end points of the range to arrive at the applicable allowable growth rate for the school district. SOURCE: Laws 2006, LB 1024, § 89.§ 79-1027. Budget; restrictions. No district shall adopt a budget, which includes total requirements of depreciation funds, necessary employee benefit fund cash reserves, and necessary general fund cash reserves, exceeding the applicable allowable reserve percentages of total general fund budget of expenditures as specified in the schedule set forth in this section.
On or before March 1, 2006, and on or before February 1 each year thereafter, the department shall determine and certify each district's applicable allowable reserve percentage. SOURCE: Laws 1990, LB 1059, § 18, Laws 1991, LB 511, § 83, Laws 1992, LB 245, § 88, Laws 1992, LB 1063, § 204, Laws 1992, Second Spec. Sess., LB 1, § 175, R.S.1943, (1994), § 79-3818, Laws 1996, LB 900, § 673, Laws 1998, Spec. Sess., LB 1, § 31, Laws 1999, LB 149, § 12, Laws 1999, LB 813, § 26, Laws 2001, LB 797, § 28, Laws 2002, LB 460, § 2, Laws 2003, LB 67, § 16, Laws 2005, LB 126, § 49§ 79-1027.01. Property tax requests exceeding maximum levy; reductions; procedure. If the total levy required for property tax requests for all general fund budgets in a local system exceeds the amount that can be generated by the maximum levy pursuant to subdivision (2)(a) of section 77-3442, the high school district shall be entitled to take the necessary steps to comply with such maximum levy by: (1) Reducing the property tax request for each district up to the amount by which the district's budgeted general fund cash reserve exceeds fifteen percent of the district's general fund budget of expenditures for the preceding school fiscal year, and for Class I districts, this difference multiplied by the percentage of the Class I district's valuation which is affiliated with or part of the high school district; (2) If the reductions under subdivision (1) of this section do not reduce the required levy to the maximum levy permitted under subdivision (2)(a) of section 77-3442, reducing the property tax request for each district proportionately based on the amount of the difference between the district's general fund budget of expenditures minus the special education budget of expenditures for the current budget year and a two-year average for the two preceding school fiscal years of the general fund budget of expenditures minus the special education budget of expenditures up to such difference, and for Class I districts, this difference multiplied by the percentage of the Class I district's valuation which is affiliated with or part of the high school district; and (3) If the reductions under subdivisions (1) and (2) of this section do not reduce the required levy to the maximum levy permitted under subdivision (2)(a) of section 77-3442, reducing the property tax request for each district by an amount proportional to the district's share of the total property tax request for the preceding school fiscal year such that the required local system levy shall be the maximum levy allowed under subdivision (2)(a) of section 77-3442. Class I districts with multiple high school districts which are required to reduce their general fund property tax request pursuant to this section shall make such reduction as necessary to effect the total required from this calculation within each local system requiring the reduction. SOURCE: Laws 1998, LB 1219, § 14, Laws 1999, LB 813, § 27, Laws 2003, LB 67, § 17§ 79-1028. Applicable allowable growth rate; Class II, III, IV, V, or VI district may exceed; situations enumerated. (1) A Class II, III, IV, V, or VI school district may exceed its applicable allowable growth rate for (a) expenditures in support of a service which is the subject of an agreement or a modification of an existing agreement whether operated by one of the parties to the agreement or an independent joint entity or joint public agency, (b) expenditures to pay for repairs to infrastructure damaged by a natural disaster which is declared a disaster emergency pursuant to the Emergency Management Act, (c) expenditures to pay for judgments, except judgments or orders from the Commission of Industrial Relations, obtained against a school district which require or obligate a school district to pay such judgment, to the extent such judgment is not paid by liability insurance coverage of a school district, (d) expenditures to pay for sums agreed to be paid by a school district to certificated employees in exchange for a voluntary termination of employment, or (e) expenditures to pay for lease-purchase contracts approved on or after July 1, 1997, and before July 1, 1998, to the extent the lease payments were not budgeted expenditures for fiscal year 1997-98. (2) A Class II, III, IV, V, or VI district may exceed its applicable allowable growth rate by a specific dollar amount if the district projects an increase in formula students in the district over the current school year greater than twenty-five students or greater than those listed in the schedule provided in this subsection, whichever is less. Districts shall project increases in formula students on forms prescribed by the department. The department shall approve, deny, or modify the projected increases.
The department shall compute the district's estimated allowable budget per pupil using the budgeted general fund expenditures found on the budget statement for the current school year divided by the number of formula students in the current school year and multiplied by the district's applicable allowable growth rate. The resulting allowable budget per pupil shall be multiplied by the projected formula students to arrive at the estimated budget needs for the ensuing year. The department shall allow the district to increase its general fund budget of expenditures for the ensuing school year by the amount necessary to fund the estimated budget needs of the district as computed pursuant to this subsection. On or before July 1, the department shall make available to districts which have been allowed additional growth pursuant to this subsection the necessary document to recalculate the actual formula students of such district. Such document shall be filed with the department under subsection (1) of section 79-1024. SOURCE: Laws 1990, LB 1059, § 19, Laws 1991, LB 511, § 84, Laws 1992, LB 245, § 89, Laws 1992, LB 719, § 4, Laws 1992, LB 1063, § 205, Laws 1992, Second Spec. Sess., LB 1, § 176, Laws 1993, LB 310, § 14, Laws 1995, LB 490, § 186, Laws 1996, LB 299, § 30, R.S.Supp., 1995, § 79-3819, Laws 1996, LB 900, § 674, Laws 1996, LB 1050, § 32, Laws 1998, LB 989, § 11, Laws 1999, LB 87, § 88, Laws 1999, LB 149, § 13, Laws 2001, LB 797, § 29, Laws 2003, LB 67, § 18, Laws 2004, LB 1091, § 11, Laws 2005, LB 126, § 50, Laws 2005, LB 503, § 11, Laws 2005, LB 577, § 4, Laws 2006, LB 1024, § 90, Laws 2006, LB 1208, § 7.§ 79-1029. Basic allowable growth rate; Class II, III, IV, V, or VI district may exceed; procedure. (1) A Class II, III, IV, V, or VI district may exceed the basic allowable growth rate prescribed in section 79-1025 upon an affirmative vote of at least seventy-five percent of the board. The total growth shall not exceed the applicable allowable growth rate certified for the local system under section 79-1026 plus one percent. The vote shall be taken at a public meeting of the board following a special public hearing called for the purpose of receiving testimony on such proposed increase. The board shall give at least five calendar days' notice of such public hearing and shall publish such notice at least once in a newspaper of general circulation in the local system. (2) A Class II, III, IV, V, or VI district may exceed the applicable allowable growth rate prescribed in section 79-1026 by an amount approved by a majority of legal voters voting on the issue at a primary, general, or special election called for such purpose upon the recommendation of the board or upon the receipt by the county clerk or election commissioner of a petition requesting an election signed by at least five percent of the legal voters of the district. The recommendation of the board or the petition of the legal voters shall include the amount and percentage by which the board would increase its general fund budget of expenditures for the ensuing school year over and above the current year's general fund budget of expenditures. The county clerk or election commissioner shall place the question on the primary or general election ballot or call for a special election on the issue after the receipt of such board recommendation or legal voter petition. The election shall be held pursuant to the Election Act or section 77-3444, and all costs for a special election shall be paid by the district. A vote to exceed the applicable allowable growth rate may be approved on the same question as a vote to exceed the levy limits provided in section 77-3444. SOURCE: Laws 1990, LB 1059, § 20, Laws 1991, LB 511, § 85, Laws 1992, LB 245, § 90, Laws 1994, LB 76, § 608, Laws 1996, LB 299, § 31, R.S.1943, (1994), § 79-3820, Laws 1996, LB 900, § 675, Laws 1997, LB 345, § 29, Laws 1998, LB 989, § 12, Laws 1999, LB 813, § 28, Laws 2000, LB 1213, § 1, Laws 2003, LB 67, § 19§ 79-1030. Unused budget authority; carried forward. A Class II, III, IV, V, or VI district may choose not to increase its general fund budget of expenditures by the full amount of its applicable allowable growth rate. In such cases, the department shall calculate the amount of unused budget authority which shall be carried forward to future budget years so a Class II, III, IV, V, or VI district may increase its general fund budget of expenditures in future budget years by the amount of such total unused budget authority in addition to its applicable allowable growth rate for the specific budget year. SOURCE: Laws 1990, LB 1059, § 21, R.S.1943, (1994), § 79-3821, Laws 1996, LB 900, § 676, Laws 1998, LB 989, § 13, Laws 1998, Spec. Sess., LB 1, § 32, Laws 2006, LB 1024, § 91.§ 79-1031. Department; annual estimate required. The department, with assistance from the Property Tax Administrator, the Legislative Fiscal Analyst, and the budget division of the Department of Administrative Services, shall annually, on or before November 15, provide an estimate of the necessary funding level for the next school fiscal year under the Tax Equity and Educational Opportunities Support Act to the Governor, the Appropriations Committee of the Legislature, and the Education Committee of the Legislature. SOURCE: Laws 1990, LB 1059, § 22, Laws 1991, LB 511, § 86, Laws 1992, LB 245, § 91, Laws 1993, LB 348, § 72, R.S.1943, (1994), § 79-3822, Laws 1996, LB 900, § 677, Laws 1996, LB 1050, § 40, Laws 1997, LB 401, § 4, Laws 1997, LB 710, § 16, Laws 1997, LB 806, § 53, Laws 1998, Spec. Sess., LB 1, § 33, Laws 1999, LB 149, § 14§ 79-1031.01. Appropriations Committee; duties. The Appropriations Committee of the Legislature shall annually include the amount necessary to fund the state aid certified to school districts on or before March 1, 2006, and on or before February 1 for each ensuing school year thereafter in its recommendations to the Legislature to carry out the requirements of the Tax Equity and Educational Opportunities Support Act. SOURCE: Laws 1997, LB 710, § 17, Laws 1997, LB 806, § 54, Laws 1998, Spec. Sess., LB 1, § 34, Laws 1999, LB 149, § 15, Laws 2002, LB 898, § 14, Laws 2005, LB 126, § 51§ 79-1032. Repealed. Laws 2002, Second Spec. Sess., LB 41, § 1. § 79-1033. State aid; payments; reports; use; requirements; failure to submit reports; effect; early payments. (1) Except as otherwise provided in the Tax Equity and Educational Opportunities Support Act, state aid payable pursuant to the act for each school fiscal year shall be based upon data found in applicable reports for the most recently available complete data year. The annual financial reports and the annual statistical summary of all school districts shall be submitted to the Commissioner of Education pursuant to the dates prescribed in section 79-528. If a school district fails to timely submit its reports, the commissioner, after notice to the district and an opportunity to be heard, shall direct that any state aid granted pursuant to the act be withheld until such time as the reports are received by the department. In addition, the commissioner shall direct the county treasurer to withhold all school money belonging to the school district until such time as the commissioner notifies the county treasurer of receipt of such reports. The county treasurer shall withhold such money. For school districts that are members of learning communities, a determination of school money belonging to the district shall be based on the proportionate share of state aid and property tax receipts allocated to the school district by the learning community coordinating council, and the treasurer of the learning community coordinating council shall withhold any such school money in the possession of the learning community coordinating council from the school district. If the school district does not comply with this section prior to the end of the state's biennium following the biennium which included the school fiscal year for which state aid was calculated, the state aid funds shall revert to the General Fund. The amount of any reverted funds shall be included in data provided to the Governor in accordance with section 79-1031. (2) A district which receives, or has received in the most recently available complete data year or in either of the two school fiscal years preceding the most recently available complete data year, federal funds in excess of twenty-five percent of its general fund budget of expenditures may apply for early payment of state aid paid pursuant to the act when such federal funds are not received in a timely manner. Such application may be made at any time by a 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 school fiscal year. The state board may grant the entire amount applied for or any portion of such amount if the state board finds that a financial hardship exists in the district. The state board shall notify the Director of Administrative Services of the amount of funds to be paid in lump sum and the reduced amount of the monthly payments. The Director of Administrative Services shall, at the time of the next state aid payment made pursuant to section 79-1022, draw a warrant for the lump-sum amount from appropriated funds and forward such warrant to the district. For purposes of this subsection, financial hardship means 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 1990, LB 1059, § 24, Laws 1991, LB 511, § 88, Laws 1992, LB 245, § 93, Laws 1992, LB 1001, § 44, Laws 1993, LB 348, § 73, Laws 1994, LB 1290, § 9, R.S.1943, (1994), § 79-3824, Laws 1996, LB 900, § 679, Laws 1997, LB 710, § 18, Laws 1998, Spec. Sess., LB 1, § 36, Laws 1999, LB 272, § 94, Laws 2006, LB 1024, § 92. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||