The commission charged with reviewing Nebraska’s school funding formula — the Tax Equity and Educational Opportunities Support Act — held its first meeting on Aug. 12, 2025. The commission will provide the Legislature with annual recommendations aimed at ensuring stable state aid for schools while also addressing the state’s heavy reliance on property taxes.
What is TEEOSA?
Passed in 1990, TEEOSA is Nebraska’s school funding formula. It determines how much money each school district receives from the state by factoring in student enrollment, local property values and other district needs. Its goal is to ensure equitable funding so all Nebraska students — no matter where they live — have access to quality education.
Last year, local school property taxes totaled about $2.9 billion, more than half of the $5.3 billion in property taxes collected statewide. In total, Nebraska schools receive roughly $5 billion annually from a mix of sources, including federal funds, general state aid and state tax credits designed to offset some of the local property tax burden.
During the meeting, commissioners broke into small groups to identify priorities. A recurring theme was the need to balance funding sources as state and local variables change and to move away from overreliance on property taxes.
Notably, Omaha Public Schools — the state’s largest district — has adopted a position opposing legislation that could increase reliance on state funding or erode local control over budgeting decisions, including teacher recruitment. The OPS board voted 7-0 in July 2024 to affirm this stance, a move that has drawn criticism from some lawmakers, including former state Senator Lou Ann Linehan.
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