Lawmakers to look at school aid's impact on property taxes

(AP) — Nebraska lawmakers are once again looking to lower property taxes, but this time they're turning to the single largest expense on landowners' tax bills: school funding.

Senators will launch a review of the state's school-aid formula next month to consider new funding options, including a possible boost in state aid or new revenue sources that would allow school districts to lower their levies.

The effort includes both urban and rural senators, who have traditionally been at odds over school funding, and a "facilitator" with mediation experience who will help senators try to reach an agreement.

Agricultural property values may have soared to record highs, he said, but farmers now face falling incomes because of lower commodity prices.

Sen. Al Davis of Hyannis said he doesn't see a way to lower rural property taxes without a new revenue source such as state aid or a local income tax similar to one he proposed earlier this year.