Listen To This Story
In Gov. Jim Pillen’s newly released executive budget proposal, $7 million would be allocated for private and parochial K-12 school scholarships. The governor’s office said extra funds would offer more choice, particularly for low-income families and students. This is not the first time Nebraska has attempted a private school voucher program, and opponents say Pillen’s reintroduction of the idea undermines Nebraska voters.
Nebraska’s teachers’ union – the Nebraska State Education Association – strongly opposes public funding for private school scholarships. In an NSEA statement, President Tim Royers said the organization is concerned about “misplaced priorities” during the budget season.
“In a year when the state budget dominates every discussion at the Capitol, Nebraska’s leaders should be putting students and educators first,” Royers added. “Public dollars belong in public schools.”
Pillen’s budget proposal -- released Thursday at a yearly State of the State address – aims to address Nebraska’s $472 million budget deficit with spending cuts to state agencies, a reorganization of the state’s cash fund and an elimination of retroactive Medicaid eligibility.
While the bill allocates $7 million for private school scholarships, Royers said it also cuts $20 million in special education funding. He calls that decision “candidly insulting.”
“We're taking away millions of dollars for some of our most vulnerable students, and we're giving it so that families who are already attending private school can now subsidize that decision,” Royers said.
A “lack of respect” for Nebraska voters?
In the 2024 general election, 57% of Nebraskans voted “repeal” on Referendum 435 – axing part of a Legislative Bill that authorized $10 million in state-funded scholarships for low-income students to attend private K-12 schools.
Pillen’s proposal would essentially establish a program similar to one about two-thirds of Nebraska voters opposed.
“They know how Nebraska voters feel about public dollars going to private schools, and the whole way they're going about approaching it this time really speaks to the fact that they know, but they still want to do it anyway,” Royers said.
The budget proposal did not clarify details on how the program would run, but did specify the Department of Labor would handle its operation. It would set potential income restrictions and scholarship caps. Royers said that choice makes it hard to assess potential impact.
“The fact, frankly, that they're choosing to have this go through the Department of Labor rather than the Department of Education really speaks to the fact that they're trying to sneak this under the radar and be really underhanded about it,” Royers said.
Supporters of a state-funded voucher program said it would allow more low-income students to attend the school of their choice. Opponents said public dollars belong in public schools.
The group behind the referendum – Support Our Schools Nebraska – was behind the referendum measure. The NSEA and National Education Association financially backed the initiative, and NSEA members held leadership positions in Support Our Schools Nebraska.
In a statement, Pillen spokeswoman Laura Strimple reaffirmed the governor's longstanding support of private and parochial schools.
"Public education is not the only choice for students, nor should it be," Strimple wrote to Nebraska Public Media. "Nebraska funds public schools at $2 billion annually. This new program allocates $7 million in scholarships to low-income families who want to be able to provide their child an opportunity to learn in the best environment possible. Providing that opportunity is a priority for Governor Pillen, who has long recognized that not all students thrive within a 'one-size-fits-all' public-school setting."
Strimple also said program funding could be used for all Nebraska students, including those attending public, private or home schools.
Nebraska’s previous scholarship program operated for a year before it was repealed by voters. In that time, Royers argued that it missed the mark on helping students and families in need of financial support.
“They only handed out a few thousand dollars to each recipient. They did not provide full tuition to families living deep in poverty,” Royers said. “The idea that this is going to help support families who otherwise wouldn't be able to make that choice, candidly, didn't play out.”
Other avenues for private school seekers
For those looking to enroll their children in private or parochial schools, Royers said there are other financial support options available.
One is the Federal Scholarship Tax Credit, which provides dollar-for-dollar tax credits up to $1,700 for those donating to scholarship-granting organizations. The tax credit was introduced under the “One Big Beautiful Bill” passed last July, and Pillen was the first governor to opt in.
Royers said the NSEA was willing to embrace the federal program, but he said he worries there won’t be a stopping point.
“They're always going to want more money. They're always going to want more programs,” Royers said. “Now, they want a second program that's exclusively for private schools, and they want it to be direct – your tax dollars going to support those schools.”
At the time of opting into the tax credit, Pillen told reporters Nebraskans support school choice regardless of the ballot measure’s outcome.
“The ballot initiative, in my humble opinion, needs work,” Pillen said. “In Nebraska, any ballot initiative – we're Nebraska nice, we never say no, we vote for things.”
Another option is charitable donations to tax-deductible organizations that grant scholarships. Royers cited Lutheran schools as an example.
“They said, ‘Look, if [the program] gets repealed, we have other means to support the families in need that want to attend our schools,’” Royers said. “You can make a tax-deductible contribution to any of those charitable organizations that can then subsidize those families.”
Royers said discussions with state legislators reveal some are prepared to remove the proposal before the final budget bill passes.
“They don't get it,” Royers said. “In their mind, the federal program already took care of this. Why would we allocate state tax dollars when a federal program provides the support that they claim is needed?”
Royers added the NSEA is already exploring options to eliminate the voucher program if the budget bill were to pass as proposed.
“If it means taking it to the ballot if it means filing a lawsuit, we will absolutely do it,” Royers said. “We are already meeting with our legal team, and we're already assessing what the best way is that we could stop this from happening if we failed to stop it during the legislative session.”
By way of full disclosure, Nebraska Public Media receives some of its funding from the state.