Nebraska’s Governor Signs School Choice Measure

Nebraska Gov. Jim Pillen poses with children holding up signs promoting school choice at the state's capitol building on May 30, 2023. Courtesy Nebraska Office of the Governor

Nebraska Gov. Jim Pillen on May 30 signed legislation that implements the state’s first school choice program, which supporters say will help meet the needs of students.

Nebraska joins 48 other U.S. states that have some form of school choice policy; Texas is the lone state without one.

The Nebraska Legislature passed the bill in a 33–11 vote last week. The new law—LB 753 (pdf)—takes effect 90 days after the legislative session ends, which is around the end of August.

LB 753 provides tax credits for scholarships, with priority for children in certain circumstances.

“This legislation is a historic step forward for the state of Nebraska,” Pillen said in a statement.

“Our kids are our future, and we all believe that every Nebraska kid should have the opportunity to have their educational needs met, whether they live in Omaha or Scottsbluff. This law ensures that we are funding students, not systems.”

Pillen signed the measure into law at the state’s Capitol, accompanied by state senators, school choice advocacy representatives, and students.

Priorities

The program’s highest priority includes students who received a scholarship in the previous year and students who are siblings of those who received a scholarship and live in the same household.

The second priority is given to those whose household income doesn’t exceed the poverty level. A similar level of priority is given to those who were previously denied from enrolling into another public school, who have an individualized education plan, or who are subject to bullying or other forms of harassment. Those who are in foster care or who have parents who are serving or died while serving in the military are also given second priority.

The other three priorities are determined by household income that exceeds the poverty level.

Dollar-for-Dollar Tax Credit

Under the new law, people who donate to a “scholarship-granting organization” are eligible to receive a dollar-for-dollar tax credit against their income tax. The limit is $100,000 or half of what the person owes in income taxes, whichever is lower.

The legislation initially sets aside $25 million a year in tax credits from the general fund for 2024, 2025, and 2026. Thereafter, the annual limit will be updated and could rise to as much as $100 million, depending on the demand, after which “no further increases will be allowed.”

A “scholarship-granting organization” is a charitable organization certified to provide tax-credit-supported scholarships to religious or private schools to help eligible students attend them.

State Sen. Lou Ann Linehan, who has long advocated for the new law and is a sponsor of LB 753, said in a statement that it will change lives by allowing children to attend schools that best fit their needs.

Linehan said that state Sen. Justin Wayne “has been essential” to the passing of the legislation “and has boldly and consistently put the best of interest of children before political gain.”

Wayne said in a statement: “This is not an anti-public school bill. This is a pro-parent bill. This is a bill that gives parents an option to help them and to give their kid hope for their education.”

Opponents and Supporters

Opponents of the new law have said the measure may threaten funding for public schools.

One opponent, Stand for Schools, signaled disappointment.

“What Nebraskans have shown is a deep love for their school. Today is an unfortunate day in which senators weren’t listening to their districts,” Dunixi Guereca, the group’s executive director, said in a statement, per ABC affiliate KETV.

He told the outlet the new law would benefit families that already have resources.

“These are folks that a lot of times are well-to-do individuals that already attend private schools.”

He added that the law may result in schools’ rejecting students, telling the outlet, “What we’ve seen is that it actually increases discrimination and segregation in a lot of cases.”

Another group, Support Our Schools Nebraska, is seeking to get 60,000 signatures on a petition to put the legislation on the November ballot, reported NBC affiliate KSNB.

The group has to wait until the legislative session is over before the petition can start. They said they have until Aug. 30 to submit the signed petition to the Nebraska Secretary of State to get the referendum on the ballot, the outlet reported.

The American Federation for Children said that efforts from advocates and families to pass school choice legislation in Nebraska have faced “stubborn resistance from special interest groups—in particular, the state teachers’ union,” for more than a decade.

“Children and families won today in a long battle to tear down barriers to equal opportunity for a high-quality education that meets the unique needs of every child," Lauren Garcia, state director of the American Federation for Children–Nebraska, said in a statement.

“We look forward to the work ahead to ensure this program thrives and serves the families in most need of another educational option.”

Other supporters of the legislation also cheered on the bill, with Clarice Jackson, the executive director of the Voice Advocacy Center, saying in a statement that the new program “will give children an opportunity to get an education that best fits them in their academic lifetime.”

Tanya Santos, principal at Holy Name School, said in a statement that the legislation “will give opportunity to Nebraska kids, regardless of their socioeconomic status” and that “many more parents will have the ability to choose the right educational fit” for their children.

Jeremy Ekeler, the associate director of education policy for the Nebraska Catholic Conference, said the measure means that more Nebraska parents “have the opportunity to find the best school for their children.”

“This is critical because kids get just one shot at an education.”