Volume 4, Number 6 June 2002

INSIDE THIS ISSUE E-Rate Update Rural Nebraskans Support Their Schools New Reports Provide Education Data Vermont School Choice Experiment May Negatively Affect Rural Schools and Communities Census Shows Gaps Between Rural, Urban Matters of Fact About RPM RPM Archives

Rural Nebraskans Support Their Schools

The news surrounding rural schools sometimes appears to be all bad: declining enrollments, inadequate and discriminatory state financing schemes, consolidation. However, the demonstration of support for rural schools in the state of Nebraska is good news to balance out the bad.

In 1996 the Nebraska Legislature adopted LB 806, the law containing the state's school finance formula. A year later, the Legislature adopted LB 1114, which places state-imposed levy limits on local property taxes, including those that help finance schools. The law allows political subdivisions supported by property taxes--including school systems--to override these levy limits with the approval of the voters in the political subdivision. Essentially, citizens can choose to increase their property taxes.

Because of decreases in state aid to many school systems since the school finance formula was implemented, many school systems have faced the difficult choice of asking voters for more funding through increased property taxes. Generally, the alternative is stark: merge with another school system, significantly reduce educational programs and personnel or increase revenues. The decision is made doubly difficult by Nebraska's economy and tax structure--property taxes hit rural citizens very hard, particularly farmers and ranchers; incomes in rural Nebraska are among the lowest in the nation and Nebraska has one of the five highest rates of agricultural property tax rates in the nation.

Since 1998, there have been 60 school property tax override elections in the state (some districts have tried twice). Forty-one override attempts have passed, with citizens agreeing to raise property tax levies with an average "yes" vote of 69%. There is no better example of support for public schools.

However, given the facts of Nebraska's economy and tax structure, one would hypothesize that rural Nebraskans would be reluctant--if not downright hostile--to proposals to increase property taxes, while generally more prosperous urban and suburban voters would be more amenable. In fact, the results are the opposite. Of the 60 override elections, six occurred in urban, suburban or large rural school systems. Only two of those six override attempts passed (including the first school system override attempt in 1998 by what is generally considered the wealthiest suburban district in the state; it is also interesting to note that the two closest votes in successful override elections were these two larger school systems). The Lincoln school system--the state's second largest and home to the state capitol and the University of Nebraska--has failed in two override attempts by significant margins. Thus, small, rural school patrons have voted to increase their property taxes in 39 of 54 attempts.

These successful overrides were in districts with some of the smallest schools in the state. Many are also in agriculturally-based communities with low average incomes and high property tax burdens. The good news coming out of rural Nebraska is that its citizens are willing to raise their own taxes to support their schools--a demonstration of their commitment to community-school connections, to retaining community identity and, most importantly, to their children.

--Jon Bailey is the Rural Policy Program Director at the Center for Rural Affairs in Walthill, NE. He can be reached at jonb@cfra.org or by calling 402.846.5428. Visit the Center for Rural Affairs online at www.cfra.org.