LINCOLN- On Wednesday, lawmakers advanced the second part of Gov. Pillen's property tax reduction plan, but the massive increase in state aid such a change requires won't happen unless funding can be found for a $1 billion shift. LB1331, as currently written, would increase per-pupil "foundation aid" from $1,500 to $3,000, an increase funded by a variety of tax credits, increases to sales tax, and the elimination of some tax exemptions.

The goal is to significantly increase state funding for K-12 education. In doing so, and because of caps on school districts' revenues, property taxes would be forced down by an estimated 27.5%. However, LB388, the bill funding LB1331, took a hit on Tuesday when Sen. Linehan, the sponsor, agreed to pull out a major funding mechanism--a 1-cent increase in the state sales tax.

Should the increase fail to be included in LB388, LB1331 is dead in the water. However, Sen. Linehan confirmed that she was actively searching for sources of revenue to replace the sales tax increase. Sen. Bostar also said that "everything's on the table." Four days remain in the legislative session.

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