Board approves TEOSA spending‑lid exclusions after public concern; finance staff explains exclusions don't change state aid

A member of the public told the State Board of Education on Aug. 8 that she was concerned about agenda item 6.7.a, which asks the board to approve district requests for exclusions to the TEOSA (Tax Equity and Educational Opportunity Support Act) spending limitation.

Public commenter Loewen Eby (Papillion) said a department memo listed total recommended income exclusions of $121,240,452 across 62 districts and argued some districts were not fully reporting income; she urged the board to insist on accurate and transparent financial reporting before approving exclusions.

Board members then moved the item from consent for discussion. Finance Officer Bryce Wilson explained that spending‑lid exclusions apply to income sources that are not taxpayer dollars (for example, federal grants, donations or private funds) and are intended to allow districts to spend those revenues even if they exceed the district’s statutory spending lid. Wilson told the board that these exclusions do not change TEOSA state-aid calculations and do not affect local property taxes: “These exclusions do not impact TEOSA. Not only are they not impacting the amount of funds that the state is required to pay out in TEOSA to school districts, but they're excluded from the following year's spending numbers that are used to calculate TEOSA.”

After the explanation and brief board discussion, the board approved the districts’ requests for exclusions to the spending limitation by roll-call vote (8 yes).

What to watch: Board members asked staff to continue explaining the mechanics and reporting of exclusions when the item returns in future budget and finance briefings.