Nebraska's small schools have been shortchanged by recently enacted school finance policies. LB 1114, which limited property tax levy rates, and LB 806, which changed the state aid distribution formula, were first implemented for the 1998-99 school year. These measures were intended to force cuts in school expenditures, especially among smaller,…

Citizens in rural Nebraska filed a lawsuit challenging the reliance on local property taxes for school funding that has led to inequities between rural and urban schools. One answer may be to give smaller school districts more money through a state system of taxation and equalization aid to improve school standards. (LP)