In an effort to reduce property taxes, Nebraska Governor Jim Pillen said Wednesday he will once again propose the state start paying for school operations.
In a Nebraska Public Media interview, Pillen discussed his priorities for the 2026 legislative session. He said under his plan local school districts would continue to use property taxes for the cost of buildings, but the state would be paying roughly $1 billion for the operations.
He said he would get the funds offsetting property taxes by broadening the sales tax base, which could result in a tax decrease.
Pillen has previously proposed similar tax shifts, but they have been blocked by opponents who claim the shifts would impose higher taxes on middle-income Nebraskans and reduce local control of schools.
He denied having the state pay 100% of schools operating costs would erode local control.
State Senator Jana Hughes, Vice Chairwoman of the legislature's Education Committee, said she appreciates Pillen's increasing state support for schools but also has some concerns.
According to a report by the School Financing Review Commission, funding from the state has increased from 38 percent to 53 percent in the last six years.