Senators will likely begin discussing changes to the state aid formula Friday that could save about $33 million in state taxes.

The discussion will include a plan that would mean deeper cuts for schools that are not growing -- generally rural schools.

The Education Committee approved modifications in the state aid formula Tuesday that would greatly limit spending growth for schools that aren't seeing enrollment increases and would cut state aid next year by about $33 million.

The bill (LB5) is part of the budget-cutting special session where senators are expected to cut around $330 million from the two-year budget approved in the spring.

Deteriorating tax revenues led Gov. Dave Heineman to call the session, which is expected to end before Thanksgiving.

There are several ways to characterize the budget-cutting goal for state aid to schools, committee members said. Total state aid will be flat, $933.9 million this fiscal year, $933.9 million the next.

But that could be described as a cut, because it means schools will get 4 percent less than expected, Omaha Sen. Brad Ashford said.

"I wish I felt we needed to take that cut," said Ashford, hoping to persuade committee members to cut less, perhaps $20 million.

But schools are getting a break. The cut for schools is less than cuts for most agencies -- 2.5 percent this fiscal year and 5 percent the next, said Lincoln Sen. Bill Avery.

Schools must take some cut in aid because of declining state tax revenue, senators said.

"If you let (state aid) go on autopilot, it wouldn't fit reality," said Sen. Ken Haar of Malcolm.

The amount to be saved on state aid is just an estimate, one that changes as the Department of Education works on the complicated formula and the information required from each district, including valuation, spending and student population.

Committee members gave the bill a yes vote, but with some trepidation: They didn't know how the changes might affect schools in their legislative districts.

"How will this affect the schools in my district? That's what I look at. Do I stand to win or lose?" asked Omaha Sen. Gwen Howard.

Committee Chairman Greg Adams of York assured Howard her Omaha district was a winner under the proposed formula changes.

Reach Nancy Hicks at 473-7250 or nhicks@journalstar.com.