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Ballot Language Filed For Referendum To Repeal New “Opportunity Scholarships Act”

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      A group backed by the Nebraska State Educational Association, the main teachers union in the state, has taken the first step toward repealing the new law allowing generous tax breaks for donations for scholarships to private schools.

     “Support Our Schools” filed language this week with the Secretary of State’s Office for a ballot referendum repealing LB 753. The group needs about 61,000 signatures in the next 90 days to get the repeal referendum on next year’s general election ballot.

      If the group gathers about 122,000 signatures – 10% of the state’s registered voters –  the law would be put on hold until after that election. If not, the tax credits would be available next tax year.

      In 2004, opponents of a just-passed bill requiring Class 1 elementary school districts to merge with K-12 districts gathered enough signatures to put repeal on the ballot but not to stop the mergers from happening before the general election.

      LB 753, the Opportunity Scholarships Act, provides a tax credit of up to $100,000 or half of the tax owed for donations to organizations that provide scholarships to private and parochial K-12 schools with a priority for low-income students.

      A $10,000 donation to a public school or other charity brings a tax credit of about $650 while LB 753 would allow a credit for the full $10,000.

      Supporters say the law signed Tuesday gives low-income families an option to public schools that might night work for their children while opponents say it at least indirectly takes money away from public schools

     The tax credits would be capped at $25-million dollar the first two years, but could eventually grow to as much at $100-million.

      Opponents also object to tax money going, either directly or indirectly, to church schools – especially those with limits on LGBTQ students.