School Financing Review Commission discusses need for rural school aid
By Fred Knapp 
, Senior Reporter/Producer Nebraska Public Media
April 30, 2026, 5 p.m. ·
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The state’s school aid formula may need to change to help rural schools, the School Financing Review Commission heard Thursday.
Nebraska determines much of the state aid for each district by comparing its needs to the taxes it can raise on property. So many rural districts with lots of valuable farmland don’t get any so-called “equalization” aid.
Thursday, Sen. Dave Murman told fellow commissioners that doesn’t work when farmers are losing money.
“If 90% or all farmers in the district didn't have income that year or negative income, they don't have any more ability to pay property taxes, or they would still need extra state aid,” Murman said
One proposal would base some aid on things like how many district families receive food aid or welfare.
State Auditor Mike Foley has criticized the Department of Education for miscalculating how much schools got for teaching students from low income families under the current formula. The state Board of Education is expected to discuss the issue at its meeting on Friday, May 8.
The commission is expected to recommend possible changes to the formula later this year.