Coordinating Commission warns fund repeals and transfers in bills would deplete student aid and teacher programs

Mike Baumgartner, executive director of the Coordinating Commission for Postsecondary Education, told the Appropriations Committee that budget language in LB 10 71/72 unintentionally repeals or redirects funds the commission relies on to offset general‑fund reductions.

Baumgartner said a repeal of NRS 85‑1420 (the commission trust fund) would prevent the commission from using private gifts and endowed scholarship administration offsets the agency planned to rely on, and that another provision would repeal a $2,000,000 transfer from the Workforce Development Fund to the Nebraska Opportunity Grant (NOG) established in prior legislation. He said eliminating that transfer would accelerate declines in the NOG balance and cost roughly the equivalent of 1,100 students losing an average FY25 award.

He also cautioned that proposed transfers out of the Excellence in Teaching cash fund would deplete its balance and undermine forgivable‑loan programs aimed at growing teachers in shortage areas. The commission asked the committee to remove several sections from LB 10 72 or to otherwise preserve the offsets so student‑aid and teacher‑pipeline programs remain funded.

Baumgartner provided program enrollment and financial estimates showing NOG currently serves 13,386 students out of about 31,185 eligible under FY25 data and noted lottery transfer reductions already required lowering aid amounts.

Next steps: the commission requested specific sections be removed from LB 10 72 and asked the committee to determine whether transfers proposed from the Davis Scholarship Trust Fund meet the trust’s requirements before redirecting those dollars.