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Yahoo
06-05-2025
- Business
- Yahoo
Alternative Nebraska budget would repurpose, eliminate 16% of property tax relief
State Sen. Machaela Cavanaugh of Omaha leads a listening session for Lincoln residents on property taxes. She is flanked by State Sens. Terrell McKinney of Omaha and Lynne Walz of Fremont. July 22, 2024. (Zach Wendling/Nebraska Examiner) LINCOLN — As debate on Nebraska's budget for the next two years begins, one state lawmaker has proposed a counter budget that would eliminate about 16% in anticipated property tax relief. State Sen. Machaela Cavanaugh of Omaha filed amendments Tuesday to defund the property tax credit meant to offset local school district taxes, which as of last fall became automatic on annual property tax statements. Next year, that fund will grow to $780 million and will grow again by $38 million in the following fiscal year. Eliminated tax relief Cavanaugh, a first-time member of the Appropriations Committee, seeks to instead direct about 58% of the $780 million total next year, or $455 million, toward more aid to schools, indirectly lowering property taxes. School district maximum property tax rates would fall from $1.05 to 80 cents, mirroring proposals from Gov. Jim Pillen and State Sen. Jana Hughes of Seward during the most recent special session on property taxes and again in this year's Legislative Bill 303. Another 26% of the property tax credit total, $203 million, would be directed to counties, aimed at reimbursing them for the expenses of operating local jails. Cavanaugh's proposal would not touch the $422 million planned next year for a separate property tax credit fund that directly offsets property taxes based on valuations. The remainder is $122 million that would be directed to other priorities, including investments in public health, public safety, court services and preventing sweeps of certain cash funds to shore up the funds. 'Solution to a manufactured budget crisis' The core budget bills are LBs 261 and 264 that the Appropriations Committee advanced with Cavanaugh as a lone 'no' vote. While lawmakers must budget for the next two years, Cavanaugh limited the breakdown of her amendments to just the next fiscal year. While declining to answer certain follow-up questions on her proposal, Cavanaugh said her budget would be balanced over the biennium. 'These amendments are a responsible solution to a manufactured budget crisis,' Cavanaugh said in a statement. 'They protect working families, ensure our schools and health systems remain strong, and invest in community-based justice — all without shifting the burden onto Nebraskans through tax hikes or reckless cuts.' Five Omaha-area senators and two lawmakers from Lincoln and Bellevue host a listening session on property taxes in Omaha on Sunday, July 21, 2024. From left, State Sens. Carol Blood, Christy Armendariz, Jane Raybould, Merv Riepe, Terrell McKinney, John Cavanaugh and Machaela Cavanaugh. (Zach Wendling/Nebraska Examiner) Separately, the conservative-leaning, free market-focused Platte Institute also proposed a budget alternative that includes 'freezing' the school district property tax credits and a separate fund for property tax relief at current levels. That would save about $162 million over the next two years. Cavanaugh's budget amendments also would take $135 million from the planned Perkins County Canal in western Nebraska and about $150 million set aside for a new state prison. About $100 million would be invested in the Nebraska State Penitentiary in Lincoln 'for comprehensive renovation, modernization and improvement,' while the other amount would be invested elsewhere. Targeted investments Among Cavanaugh's top priorities is preserving or investing: $28.7 million for the Vocational and Life Skills Programming Fund. $15.3 million for behavioral health. $10 million for food banks. $8 million for the Nebraska Water Sustainability Fund. $8 million for the Education Future Fund (retaining an annual $250 million transfer). $5 million for the Nebraska Soil and Water Conservation Fund. $5 million for the State Park Cash Revolving Fund. $4 million for the Middle Income Workforce Housing Investment Fund. $3.5 million for local public health departments. $3 million for domestic violence housing. $1.3 million for state specialized courts (such as problem-solving or veterans courts). $1.2 million for the Economic Recovery Contingency Fund. $1.2 million for court interpreters. $999,422 for probation community corrections. $500,000 for federally qualified health centers. $373,840 for juvenile justice. $284,738 for the Office of Public Guardian. Cavanaugh proposes to also fund all state 'code agencies,' those under the governor's direct oversight, at each agency's full appropriations request. All other state agencies would get a budget increase of up to 2.5% next year. She declined to say what the overall spending increase would be compared to the proposed Appropriations Committee budget. For example, Cavanaugh would give the University of Nebraska $50.6 million more than the Appropriations Committee proposed over the next two years — adding up to a $63.7 million bump for NU. The Attorney General's Office would be held flat, which comes as progressives such as Cavanaugh or State Sen. Danielle Conrad of Lincoln have scrutinized its spending. Similar to the advanced budget bills, Cavanaugh proposes to sweep money from at least 60 cash funds, but she declined to detail the total savings. 'These are not just line items — they are lifelines,' Cavanaugh said. 'We're choosing to invest in people, protect long-term reserves and lay a foundation for future prosperity.' 'We have to do what we can' Multiple senators said the Cavanaugh amendments were dead on arrival as property tax relief rises among a top issue for constituents, even though it is assessed locally. State Sen. Paul Strommen of Sidney meets with his staff on the floor of the Nebraska Legislature. March 26, 2025. (Zach Wendling/Nebraska Examiner) Pillen, too, has set his sights on increased property tax relief after the budget is balanced, saying in a recent interview with the Nebraska Examiner that he is '100% confident' that the Legislature can balance the budget and keep growth in statewide property taxes flat. That comes in the face of what has in two of the past three years been an annual increase of $300 million. Last year, for the first time in 26 years, property taxes decreased by $6 million from a $5.3 billion total. State Sen. Paul Strommen of Sidney, a freshman on the Appropriations Committee, said he has learned this year that part of his committee's role is balancing taxes and state services, not choosing one over another. Like many senators, he said the top concern for constituents is tax relief. 'At the end of the day, we just have to figure out what we can do to balance all of that,' Strommen said. 'Not everybody's going to be happy, but we have to do what we can.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
29-01-2025
- Business
- Yahoo
Clearing red tape: A smarter path to Nebraska growth
Panelists discuss the state's workforce problems and possible solutions at the annual legislative summit of the Platte Institute. Pictured, from left, are State Sen. Danielle Conrad, Diane Good-Collins of Metropolitan Community College, Heath Mello, head of the Greater Omaha Chamber of Commerce, and moderator Laura Ebke. (Paul Hammel/Nebraska Examiner) Imagine a Nebraska where innovation is not stifled by red tape, where businesses can thrive under a streamlined regulatory system and where government spending is scrutinized for maximum impact. Thanks to bipartisan leadership and forward-thinking legislation being considered this session, this vision is closer than ever to becoming reality. Recently, the Platte Institute hosted a press conference on regulatory modernization featuring Speaker John Arch, State Sen. Rita Sanders of Bellevue, Chair of the Government, Military, and Veterans Affairs Committee, and Sen. Danielle Conrad of Lincoln, a longtime champion of regulatory reform. This diverse coalition, representing both sides of the aisle, underscored the urgency of modernizing Nebraska's regulatory framework. Their united support demonstrates that reforming outdated regulations is not a partisan issue. It is a commonsense investment in our state's future. Several promising bills under consideration this session build upon Nebraska's reputation as a leader in regulatory reform. The REINS Act, introduced by Sen. Merv Riepe of Ralston, would require legislative approval for any regulation deemed to have a significant economic impact. This ensures that costly rules are rigorously scrutinized before being imposed on businesses and families. Recent polling commissioned by the Platte Institute reveals that an overwhelming 74% of Nebraskans support legislative oversight of new regulations, with 72% favoring periodic reviews of existing rules by the Legislature. Additionally, the act empowers lawmakers to reassess original authorizing legislation when the economic consequences of regulations prove significant, fostering greater accountability and transparency. Conrad's proposal to codify Governor Ricketts' 2017 executive order on reviewing existing regulations every three years is another critical step forward. By requiring state agencies to review the necessity of current rules and report their findings to the Legislature, this bill will help Nebraska stay ahead of regulatory inefficiencies and ensure our laws evolve with the times. Other proposals address specific challenges while enhancing Nebraska's competitive edge. Omaha Sen. Bob Andersen's Federal Fund Inventory would require a full audit of federal funds received by the state, providing a contingency plan in case of a federal funding reduction. Whitman Sen. Tanya Storer's Venue Freedom bill would allow businesses to resolve disputes with state agencies in local courts, cutting down on travel costs and legal fees for Nebraska entrepreneurs. Meanwhile, the proposed Office of Regulatory Management introduced by Amherst Sen. Dan McKeon draws inspiration from a successful model in Virginia, where a small office has saved millions through cost-benefit analyses and streamlined regulatory oversight. Similarly, the Regulatory Advisories bill sponsored by Grand Island Sen. Dan Quick ensures that businesses are not burdened by non-binding advisories unless federally mandated, promoting fairness and consistency in regulatory compliance. These initiatives are not just about cutting rules. They represent a smarter approach to governance — one that balances regulatory rigor with economic opportunity. As Platte Institute Senior Fellow Laura Ebke recently highlighted, Nebraska has already made great strides in occupational licensing reform, including universal license recognition and fair chance licensing for those with criminal records. But there is still more we can do to ensure that our regulatory system serves the public interest and not special interests. The Platte Institute's research on regulatory modernization highlights the significant economic benefits of reform. From 2020 to 2023, states that aggressively pursued regulatory reform experienced higher GDP growth than those that did not. Nebraska can be next in reaping these rewards by passing legislation that caps regulatory growth, ensures outdated rules are sunset and reduces compliance costs for businesses and workers. Modernizing Nebraska's regulatory framework is not just a policy debate. It is a pivotal step toward building a state where families and entrepreneurs can thrive. The bipartisan coalition advocating for these reforms, coupled with the low-cost investment they require, makes this a win-win for Nebraskans. With the support of lawmakers, businesses, and communities, we can unlock Nebraska's full economic potential and set an example for the rest of the nation. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
