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.