Nebraska lawmakers are eying a plan that would allow community colleges to use property tax dollars to back revenue bonds for capital improvements.

The bill shifts the formula model for the state’s six community colleges. State aid, which makes up 40% of a community college’s revenue, would be maintained at $88 million for the next two years. Any additional amount would be distributed based on a new formula that features enrollment as a key criteria.

One provision would allow colleges to tap local property taxes currently used for operations for capital projects. It allows colleges to use up to 2% of their tax levy for revenue bonds to finance projects.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.