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# Nebraska School Finance Panel Backs 4% Aid Increase, Formula Changes
- URL: https://www.theamericanquorum.com/state-news-nebraska-2026-10-21-a/
- Published: 2026-10-21T16:26:22.000Z
- Updated: 2026-10-21T16:26:22.000Z
- Description: Nebraska’s school-finance commission approved recommendations for a minimum 4% annual increase in foundation aid and a broad rewrite of formula allowances. The plan is advisory and now moves to lawmakers.
- Author: News Desk
- Tags: Policy, Nebraska

Nebraska’s School Financing Review Commission has approved a package of recommendations that would raise foundation aid by at least 4% annually and rework several parts of the state’s K-12 funding formula. The commission adopted its [2026 annual report](https://www.education.ne.gov/wp-content/uploads/2026/10/SFRC-Report-due-November-1-2026%5F10.5.2026-DRAFT.pdf?ref=theamericanquorum.com) on October 20 for submission to the Legislature.

The proposal is advisory; it does not immediately change district budgets or property-tax bills. Lawmakers would need to translate the recommendations into legislation and decide how to pay for any added state support. State law directs the commission to evaluate the Tax Equity and Educational Opportunities Support Act, or TEEOSA, and recommend changes that may help prevent property-tax increases, according to the commission’s [governing statute](https://nebraskalegislature.gov/laws/statutes.php?statute=79-10,147.02&ref=theamericanquorum.com).

The most visible recommendation would build an annual cost adjustment of at least 4% into foundation aid, the per-student payment the state began providing under recent property-tax changes. For the 2027-28 school year, that would increase the amount from $1,500 to $1,560 per student, [the Nebraska Examiner reported](https://nebraskaexaminer.com/2026/10/20/18-changes-suggested-for-state-funding-for-k-12-schools-local-property-taxes/?ref=theamericanquorum.com). The commission also backed using multi-year averages in basic funding calculations to reduce abrupt swings between budget years.

Other recommendations target the complexity of TEEOSA. The report proposes eliminating a telecommunications allowance that it says would be largely offset by higher basic funding, streamlining the allowance for students with limited English proficiency and revising the poverty calculation. It would use direct certification data already maintained by the Department of Health and Human Services rather than relying heavily on free-lunch applications. A proposed hold-harmless provision would prevent districts from receiving less poverty-allowance funding during the initial transition. Commission members said the changes are designed to improve data accuracy while avoiding immediate losses for districts.

The commission did not fully settle the larger question of how much school funding should come from the state rather than local property taxes. [Nebraska Public Media reported](https://nebraskapublicmedia.org/en/news/news-articles/nebraska-school-finance-commission-revives-discussion-on-state-contribution-amount-approves-legislative-recommendations/?ref=theamericanquorum.com) that the draft identified the state share at about 51% through TEEOSA, foundation aid and other sources. Former state senator and treasurer Tom Briese argued that maintaining that share could still allow property-tax bills to rise, prompting the commission to add language acknowledging different views about the appropriate state contribution.

The 18-member commission was created by the Legislature in 2025 and is chaired by Education Commissioner Brian Maher. Its [official webpage](https://www.education.ne.gov/commissioner/school-financing-review-commission/?ref=theamericanquorum.com) says the panel must review both the “needs” and “resources” sides of the formula, consider students with higher needs and examine how school funding affects outcomes.

Maher said the report would receive a final review to reflect the October 20 discussion before its November 1 deadline. The Legislature will determine whether the recommendations become bills, how quickly any formula changes would phase in and whether increased state aid is paired with enforceable property-tax relief. The package therefore sets a policy agenda, not a final appropriation.