Gov. Pillen Urges Elimination of Confusing TEEOSA Formula Following NDE Error

LINCOLN, NE – Governor Jim Pillen is sharing his frustration with an error by the independent Nebraska Department of Education (NDE) that resulted in millions of dollars being overpaid to school districts receiving state equalization aid. Omaha Public Schools was among the districts impacted by the miscalculation and will receive reduced funding in the 2026-2027 school year to address the excess distribution of $30 million. The Department of Education is governed by an elected board and is not a code agency directly accountable to the Governor.

Gov. Pillen’s statement follows:
“This error is another example of how the TEEOSA formula continues to fail Nebraskans. Time and time again, I have said that we must do away with this complex formula that nobody understands and have the state fund schools while providing property tax relief. 

Unfortunately, this call has fallen on deaf ears with a small group of members of the Legislature, who continue to block any attempt at tax reform. This inaction is hurting kids and creating major challenges for local school boards and leaders as they budget for the future. 

TEEOSA is a failure, trust in that system is shaken, and it must be reformed.”