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Gov. Pillen backs school choice in Nebraska with proposed tax break

Under a new bill in the Nebraska Legislature, a state fund could pay parents a combined $25 million in the first year.

Gov. Pillen backs school choice in Nebraska with proposed tax break

Under a new bill in the Nebraska Legislature, a state fund could pay parents a combined $25 million in the first year.

INFO. BACK TO YOU. SEAN, THANKS. NOW NEBRASKA CITY IS WORKING ON LEGISLATION THAT GIVES FINANCIAL HELP TO PARENTS WHO HAVE CHILDREN IN PRIVATE SCHOOLS. BUT IT LOOKS A LOT DIFFERENT THAN IT WAS. INSTEAD OF VOUCHERS, THIS WOULD INVOLVE A TAX CREDIT. BILL SCHNEIDER IS ON THE LIVE DESK. ROB, JULIA, IT’S CALLED THE OPPORTUNITY SCHOLARSHIPS ACT. ESSENTIALLY, IT WILL GIVE A TAX BREAK TO PEOPLE WHO DONATE TO ORGANIZATIONS THAT PROVIDE TUITION SCHOLARSHIPS FOR PRIVATE SCHOOLS. WE TALKED WITH THE GOVERNOR TODAY WHO SAYS NEBRASKA IS ONE OF THE LAST TWO STATES WITHOUT ANY SORT OF SCHOOL CHOICE LAW ON THE BOOKS. WE ALL TOGETHER HAVE TO HAVE IT, AND THAT’S IMPORTANT. AND WE NEVER, EVER QUIT ON KIDS AND EVERY EVERY KID NEEDS THE OPPORTUNITY IF IT’S RIGHT FOR THEM. HERE’S WHAT IT WOULD LOOK LIKE IN THE FIRST YEAR. THERE WOULD BE A POT OF $25 MILLION AVAILABLE THAT COULD GROW BY 25% A YEAR, DEPENDING ON HOW MUCH IS USED. PEOPLE WHO DONATE TO ORGANIZATIONS THAT PROVIDE PRIVATE SCHOOL TUITION, SCHOLARSHIPS COULD THEN GET AN INCOME TAX CREDIT FOR THAT AMOUNT. PRIORITY WOULD BE GIVEN FIRST TO PEOPLE WHO’VE RECEIVED AN EDUCATION SCHOLARSHIP BEFORE AND THEIR SIBLINGS. THEN FAMILIES WHO ARE AT OR BELOW 100% OF THE POVERTY LINE. KIDS WHO HAVE BEEN BULLIED, STUDENTS IN FOSTER CARE OR CHILDREN OF ACTIVE DUTY MILITARY MEMBERS. PUBLIC SCHOOL ADVOCATES STILL ARE NOT ON BOARD. BUT WHAT THIS ESCALATOR CLAUSE, AS YOU LOOK AT OVER $200 MILLION WITHIN TEN YEARS, IT’S $200 MILLION TAKING OFF THE TOP OF THE GENERAL FUND THAT COULD BE PUT TO GOOD USE TO CHANGING AND FIXING A LOT OF THE PROBLEMS THAT FRANKLY, ARE THE REASON WHY SOME KIDS ARE PERFORMING. YOU’RE TALKING ABOUT, YOU KNOW, FOOD SCARCITY. THE TEACHERS UNION ALSO COMING OUT IN OPPOSITION SAYING IN PART, QUOTE, CREATING A TAX CREDIT FOR CORPORATIONS AND THE WEALTHY TO AVOID PAYING INCOME TAXES WILL ONLY WEAKEN PUBLIC SCHOOLS AND PUBLIC PROGRAMS THAT ARE FUNDED BY SAID STATE TAX DOLLARS. A SIMILAR TYPE BILL HAS BEEN BROUGHT UP BEFORE BUT HAS YET TO MAKE IT THROUGH. IT’S BEEN SENT TO THE REVENUE COMMITTEE WHERE IT WILL LIKELY HAVE A HEARING NEXT MONTH. ROB? ALL RIGHT, BILL, THANKS. NOW, DOZENS OF STATES ALREADY HAVE SIMILAR LAWS IN PLACE, ACCORDING TO SCHOOL CHOICE WYCOMBE, 22 STATES AND WASHINGTON, D.C. OFFER PRIVATE SCHOOL SCHOLARSHIP PROGRAMS. EIGHT STATES OFFER BOTH SCHOLARSHIPS AND DEDUCTIONS.
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Gov. Pillen backs school choice in Nebraska with proposed tax break

Under a new bill in the Nebraska Legislature, a state fund could pay parents a combined $25 million in the first year.

Joined by educators and students from private and parochial schools across Nebraska, Gov. Jim Pillen backed a new proposal to give tax breaks to families with children in private schools. "No matter what socio-economic background you come from, if public education isn't for you, you ought to have the opportunity to go to a school that meets your needs," said Pillen on Tuesday. LB 753, sponsored by Omaha State Sen. Lou Ann Linehan would create the Opportunity Scholarships Act. It's similar to bills proposed in the past that have failed. "There's nothing more important to a parent then to do the very best for their kid," Linehan said on Wednesday. As currently written, the bill would give an income tax credit to families who donate to organizations that give tuition scholarships to private and parochial schools. They could get a credit for the full amount donated or 50% of their income tax liability for that year. According to the governor, Nebraska is one of two states that doesn't have any school choice law. "We all together have to have it and it's important we never quit on kids," Pillen said. "Every kid needs the opportunity that fits right for them.""The time is now and we have to get it done," Gov. Pillen told KETV. The Opportunity Scholarships Act would also come with prioritization and start with a pool of $25 million, which can go up by up to 25% every year after."With this escalator clause, you're looking at over $200 million in 10 years," said Dunixi Guereca, the executive director of Stand for Schools. "That's $200 million off the top of the general fund that could be put to use fixing and changing - frankly - a lot of the reasons people are underperforming - you're talking about food scarcity and poverty."According to the math, if the $25 million increased by 25% every year, the fund would reach more than $61 million by year five, more than $186 million by year 11, and more than $568 million by year 15. Guereca said that money could be better spent addressing poverty and teacher retention and recruitment.The prioritization would be as follows: first, for kids who've received scholarships previously or their siblings; second, for students whose family's income is at or below 100% of the federal poverty level, students in foster care, students who're bullied, or students of parents who're on active duty; third, for students under 158% of the federal poverty level; fourth, for students under 213% of the federal poverty level; and fifth, for students regardless of income level."What we've seen in previous years are requirements. This year it's just a priority," Guereca said. "That means if a scholarship fund receives 10 applicants and if no applicants fit the prioritization, it'll be going to wealthy kids."Still, the governor said it's time for Nebraska to join the 48 other states offering some school choice. "The time is now and we have to get it done," Pillen told KETV.

Joined by educators and students from private and parochial schools across Nebraska, Gov. Jim Pillen backed a new proposal to give tax breaks to families with children in private schools.

"No matter what socio-economic background you come from, if public education isn't for you, you ought to have the opportunity to go to a school that meets your needs," said Pillen on Tuesday.

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LB 753, sponsored by Omaha State Sen. Lou Ann Linehan would create the Opportunity Scholarships Act. It's similar to bills proposed in the past that have failed.

"There's nothing more important to a parent then to do the very best for their kid," Linehan said on Wednesday.

As currently written, the bill would give an income tax credit to families who donate to organizations that give tuition scholarships to private and parochial schools. They could get a credit for the full amount donated or 50% of their income tax liability for that year.

According to the governor, Nebraska is one of two states that doesn't have any school choice law.

"We all together have to have it and it's important we never quit on kids," Pillen said. "Every kid needs the opportunity that fits right for them."

"The time is now and we have to get it done," Gov. Pillen told KETV.

The Opportunity Scholarships Act would also come with prioritization and start with a pool of $25 million, which can go up by up to 25% every year after.

"With this escalator clause, you're looking at over $200 million in 10 years," said Dunixi Guereca, the executive director of Stand for Schools. "That's $200 million off the top of the general fund that could be put to use fixing and changing - frankly - a lot of the reasons people are underperforming - you're talking about food scarcity and poverty."

According to the math, if the $25 million increased by 25% every year, the fund would reach more than $61 million by year five, more than $186 million by year 11, and more than $568 million by year 15.

Guereca said that money could be better spent addressing poverty and teacher retention and recruitment.

The prioritization would be as follows: first, for kids who've received scholarships previously or their siblings; second, for students whose family's income is at or below 100% of the federal poverty level, students in foster care, students who're bullied, or students of parents who're on active duty; third, for students under 158% of the federal poverty level; fourth, for students under 213% of the federal poverty level; and fifth, for students regardless of income level.

"What we've seen in previous years are requirements. This year it's just a priority," Guereca said. "That means if a scholarship fund receives 10 applicants and if no applicants fit the prioritization, it'll be going to wealthy kids."

Still, the governor said it's time for Nebraska to join the 48 other states offering some school choice.

"The time is now and we have to get it done," Pillen told KETV.