The area chart above compares four local entities that receive large amounts of state aid. Aid to municipalities and counties has grown less over the 20 year study period than aid to community colleges or schools.

For purposes of these charts and the data tables, total aid means all programs for that entity. For example, state aid to schools includes aid under the Tax Equity and Educational Opportunities Support Act as well as special education and apportionment. Total state aid to municipalities includes per capita personal property tax replacement aid, municipal equalization aid and road and street aid distributed from the Highway Trust Fund.

Key Points

As the line chart above indicates, total aid for these four entities has grown faster than inflation over the 20-year study period. The growth in spending on aid to local governments is approximately the same rate of growth as the Nebraska economy measured by either personal income or Gross State Product (GSP). These comparisons are based on data from the U.S. Bureau of the Census; the inflation measure is the Consumer Price Index for all Urban Consumers. These figures are subject to revision from time to time.

As was apparent from the first chart, city and county aid have grown more slowly than school aid, or even community college aid over the period. In fact, the only growth in municipal or county aid has been the natural growth in road and street funds distributed through the Highway Trust Fund and the 1998 creation of city and county equalization programs.

Explanation

School aid growth is primarily due to the Tax Equity and Educational Opportunity Support Act, or LB 1059 (1990) and the $110 million aid increase contained in LB 806 (1997). State aid to community colleges nearly doubled between 1998 and 2000 due to two legislative changes: LB 269 (1997) revised the aid program and provided additional aid in response to the lowering of levy limits on community colleges in LB 1114 (1996). LB 881 (1999) provided an additional $30 million of aid for fiscal years 1999-2000 and 2000-01 only.