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Nebraska groups unveil school funding, property tax proposal

LINCOLN, Neb. (AP) — A Nebraska lawmaker and several advocacy groups say they'll work this year to increase state aid for schools while reducing what rural districts have to generate through property taxes.

Sen. Al Davis of Hyannis unveiled a proposal Tuesday to lower the percentage of agricultural land that districts can tax, while guaranteeing $500 per-pupil in state "foundation aid" for every school. The proposal would also allow districts to impose a local income tax, tied to a property tax cut.

Reducing the percentage of farm and ranch land that districts can tax would let more districts qualify for state equalization aid under Nebraska's funding formula.

Renee Fry of the OpenSky Policy Institute says the bill would move local governments away from their reliance on property taxes while preserving state aid for schools.

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