Superintendent Press Release April 12, 2024
Dear Cedar Bluffs Families,
This week the Nebraska Legislature is poised to deliberate on a new proposal, an amendment to LB 1402, which seeks to allocate significant state funds to support private school scholarships. This initiative follows last year's legislation, LB 753, which provided tax credits for donations to private school scholarships. Unlike LB 753, LB 1402 opts for a direct appropriation of funds, potentially aiming to preempt a referendum challenge similar to what LB 753 faced. However, this strategy may encounter legal hurdles due to constitutional provisions regarding public fund appropriations.
LB 1402 proposes an initial appropriation of $25 million for private school scholarships, with the program's funding potentially expanding to $100 million annually. This represents a substantial escalation in state expenditure, with projected costs amounting to $676.8 million over the first decade if fully implemented. The bill includes an escalator clause allowing for a 125% annual growth in state spending on the program, far surpassing the provisions of LB 753.
One notable departure from LB 753 is the mechanism for program management. Under the proposed amendment to LB 1402, the state treasurer would select up to three private vendors to oversee the program. These vendors, which could include out-of-state entities experienced in administering voucher programs, would be permitted to retain up to 7.5% of the state's annual appropriation as administrative fees. In contrast, LB 753 entrusted nonprofit Scholarship Granting Organizations (SGOs) with soliciting donations and administering scholarships, with administrative costs capped initially at 10%.
The proposed expansion of private school scholarship programs mirrors trends observed in other states, where similar initiatives have seen exponential growth in costs. For example, Arizona's universal voucher program exceeded budget projections by over 1,300%, while Florida's voucher expansion skyrocketed from an estimated $646 million to $3.35 billion. Such expansions strain state budgets, diverting resources away from essential services and increasing pressure on taxpayers.
Furthermore, private schools eligible for state funding under LB 1402 operate with greater autonomy compared to public schools. They retain the discretion to select students without the obligation to report on academic performance. This lack of accountability raises concerns about the equitable distribution of resources and the effectiveness of oversight measures.
In summary, the proposed amendment to LB 1402 represents a significant departure from previous legislation by advocating for a direct appropriation of state funds to support private school scholarships. While proponents argue for increased educational choice and opportunities, the initiative raises questions about fiscal responsibility, legal compliance, and accountability in the allocation of public resources.
GO WILDCATS!