Contentious Debate Over Nebraska School Funding Error Highlights Systemic Issues
In a recent Nebraska Board of Education meeting, a heated exchange emerged over a $30.5 million funding error involving Omaha Public Schools (OPS). The discussion underscored broader concerns about the state’s school funding formula, known as TEEOSA, which has been criticized for its complexity by various stakeholders, including Gov. Jim Pillen.
Deborah Neary, a board member representing a district overlapping with OPS, defended the department’s record, emphasizing past successes in financial audits. “As a matter of fact, we have always had one of the cleanest audits of any of the state agencies for many, many years,” Neary stated. She acknowledged the mistake but suggested that it could have been caught by other checks in the system, noting, “There’s many ways this could have been stopped, but actually, the system worked exactly the way it’s supposed to work, which is, it was found during the audit, which is what an audit is all about.”
However, Republican board member Kirk Penner sharply criticized OPS for not catching the error sooner, pointing out that the district’s financial team and superintendent failed to question the additional funds. “The OPS board approves the school budget, which relies on the TEEOSA funds, and they spend every penny – tens of millions of dollars,” Penner said. “Not a single soul questioned the extra tens of millions. Not one person.”
Penner further accused OPS and other districts of misappropriating educational dollars from other school districts, declaring, “OPS and two others of lesser degrees, stole. That’s the word I’m going to use. Stole educational dollars from the other 47 deserving school districts.” His statement prompted a tense exchange with Neary.
Nebraska Public Media News sought comment from OPS regarding Penner’s allegations but received no response. Additionally, a recent interview by Penner regarding Department of Education personnel matters linked to the miscalculation added to the controversy. Board chair Elizabeth Tegtmeier confirmed via social media that the employee responsible for the error is no longer with the department, though the NDE declined to comment on personnel issues.
To address these concerns, Commissioner Brian Maher indicated plans to propose new measures to prevent similar funding errors in the future. The school funding model, described by many lawmakers as intricate and confusing, faces potential reforms. Gov. Pillen has been vocal about the need to discard the TEEOSA formula, stating, “This error is another example of how the TEEOSA formula continues to fail Nebraskans.” He advocates for a simpler approach to school funding that also provides property tax relief.
For more information on Nebraska’s school funding system, visit the Nebraska Public Media article.
Note: Brian Maher serves on the Nebraska Educational Telecommunications Commission, which governs Nebraska Public Media.
