Revenue Committee

February 6, 2025

Committee Chair: Sen. Brad von Gillern | Bills Heard: 1 | Full Transcript (PDF)

LB509: Opportunity Scholarships Act - Educational Scholarship Tax Credits

Introduced by: Sen. Tony Sorrentino | Testimony: 15 proponents, 16 opponents, 0 neutral | Read bill text (PDF)

School choice bill returns to committee despite voter rejection, sparking heated debate over public funding and democratic will. LB509 would resurrect a scholarship tax credit program Nebraskans defeated at the ballot box just three months ago, reigniting a fierce battle over whether public dollars should support private schools.

Why it matters: The bill would divert $25 million annually to scholarship granting organizations during a $432 million state budget shortfall. Supporters say it helps low-income families access better schools; opponents argue it undermines public education and defies voter intent.

What they're saying:

Proponents: - "Every child deserves the opportunity to thrive in a learning environment that supports their growth," said school principal Jeremiah Majorins, noting 10+ families would leave his school without scholarships. - Student Rylee Rivera, 12, testified that the scholarship helped her overcome dyslexia through smaller class sizes and individualized attention. - Attorney Brenna Grasz argued tax credits are constitutional as indirect aid to students, not direct appropriations to schools.

Opponents: - "Nebraskans have spoken. Now listen," said petition organizer Melanie Knight, describing overwhelming public enthusiasm for repealing the program. - NSEA President Tim Royers cited Iowa's experience: voucher programs exploded to hundreds of millions, yet only 12% of recipients came from public schools, and average family income exceeded $128,000. - Dr. Shavonna Holman (Omaha Public Schools) warned the program diverts resources from schools serving 52,000 students speaking 119 languages.

By the numbers: 235 written proponents, 548 written opponents, 2 neutral. In November 2024, voters rejected the similar LB1402 by 57%-43%. The 2023-2024 LB753 program served 4,500+ students: 38% students of color, 12% with special needs, 45% rural. Fiscal note projects potential $6.5 million reduction in public school funding.

What's next: No vote was taken. The committee will decide whether to advance the bill.

Committee sentiment:   Supportive: Sen. Mike Jacobson, Sen. Dave Murman   Skeptical: Sen. George Dungan   Unclear: Sen. Kathleen Kauth, Sen. Suzanne Ibach

Sentiment estimated from questions and comments — not stated positions.

Session Notes

The Revenue Committee held an extended hearing on LB509 using an "annotated hearing procedure" with rotating proponent and opponent testimony blocks to avoid making testifiers wait all day. Committee Chair von Gillern announced 235 written proponent comments, 548 written opponent comments, and 2 neutral comments submitted via the Legislature's website. The hearing lasted approximately 2 hours, ending around 4:30 p.m. No vote was taken during the hearing.

Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.