Gov. Heineman Comments on Unexpected
$53 Million Increase in Spending

(Lincoln, NE) Governor Dave Heineman issued the following statement regarding a dramatic revision to the previously estimated state aid to education spending in the coming 2008-2009 fiscal year.

“This $53 million additional spending increase to the state aid to education formula for the next fiscal year is a financial bombshell. A 17.5 percent state aid increase is evidence that the state aid formula needs a significant overhaul in the long term.

“I am a strong supporter of state aid to education, but this extraordinary increase and the projected 11 percent increases in fiscal years 2010 and 2011, are simply unsustainable. The amount of state aid to education should be a policy decision for the Legislature and the Governor, not a computer in the Department of Education.

“The current state aid formula is unpredictable and unsustainable. Long-term, the state of Nebraska needs a simplified and understandable state aid formula for education.”

Senator Lavon Heidemann, Chairman of the Legislature’s Appropriations Committee, is among those with similar concerns. Sen. Heidemann sent a letter to the Governor this week expressing concern at the dramatic compounding effects called for by the state aid formula and the challenges additional increases would present in the event of an economic down cycle.

Heidemann’s letter to Gov. Heineman (PDF 181k)