Revenue Committee Hears Testimony on School Bond Guardrails
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The Nebraska Legislature’s Revenue Committee heard testimony this week on LB 765, a bill introduced by Rick Holdcroft of Bellevue that would establish additional voter requirements for school bond approvals.
LB 765 would require any successful school bond issue to be voted on by at least 50.1% of the "qualified electors" in that school district. Nebraska Farm Bureau (NEFB) supports the bill, saying the measure would better reflect overall community support and create clearer guardrails around long-term spending commitments.
NEFB member Dan Backer of Randolph testified in support of the bill, sharing his decades of experience with school finance and governance.
Backer, a Wayne County producer with a cow-calf operation, row crops and alfalfa, served on his local school board for 16 years, including time as board president and 14 years on the salary negotiation team. He continues to attend annual budget hearings and closely follows school finance issues in his district.
In his testimony, Backer described how his district pursued a $9.75 million bond in 2024 after commissioning a facilities audit. The bond failed during the general election by just eight votes — 484 against and 476 in favor.
Several months later, the district held a special election with the bond amount listed at $8.75 million. However, Backer explained that no projects were removed from the original plan; instead, $1 million was shifted from the district’s special building fund. The total spending remained the same. In that special election, the bond passed with 429 votes in favor and 290 opposed — with 719 total voters participating, significantly fewer than in the general election.
Backer told senators that these experiences highlight the need for clearer guardrails.
“We must start to put some clear guard rails in place to slow this out-of-control spending,” Backer testified. “We often lose sight of the fact that school bond payments are here not just from the moment you cast your vote, but for the next 20 years.”
He also referenced a neighboring district where a $25 million bond passed by just one vote.
“With only a one-vote majority, no one is a clear winner,” Backer said. “By increasing the voter turnout requirements, this bill ensures that community voices are heard on these bonds and that they show the true will of the people.”
Backer emphasized the pressure many rural Nebraskans are facing, noting that school bonds represent significant, multi-decade financial obligations that directly affect property taxpayers, including farmers, ranchers, homeowners and rural businesses.
“We need to think about young people and businesses in rural Nebraska struggling to make it,” he said. “Generations of producers are facing these challenges today.”
LB 765 remains under consideration by the Revenue Committee. Nebraska Farm Bureau will continue engaging on this issue and advocating for policies that promote fiscal responsibility and protect rural communities.