Business, Farm Groups Support Property Tax Cuts; Schools Oppose

A plan to lower property taxes drew support from farm and business groups, but was opposed by school officials, in a public hearing Wednesday. And a package of bills was introduced to improve conditions at the state’s youth rehabilitation and treatment centers.

For years, farmers and others have been complaining about property taxes, which despite legislative efforts have continued to increase. This year, the Revenue Committee is proposing to begin a three-year plan to reduce those taxes. Steve Nelson, president of the Nebraska Farm Bureau, said the plan is needed for more than just farmers.

“Actual property taxes on agricultural property have increased in most cases more than 128 percent, but in some cases more than 200 percent over 10 years. Overall property taxes have increased more than 50 percent which is why it is important to drive down property taxes for ag producers, as well as residential and commercial property owners,” Nelson said.

The plan relies on the state using about $500 million, mostly from income and sales taxes, to increase aid to schools and reduce their ability to tap into property taxes. Nicole Fox of the Platte Institute said that’s necessary.

“This is a tough pill for a lot of school districts to swallow, but the only way to significantly and sustainably reduce our reliance on property taxes is to reduce how much property tax is allowed to be levied under the current law,” Fox said.

Many supporters of the plan said it was far from perfect, but an important first step. Bud Synhorst of the Lincoln Independent Business Association used a football analogy to describe the frustration of recent years.

“We’ve watched the Legislature get the ball on their own 10 yard line with 12 minutes left to go in the first quarter, and throw Hail Mary after Hail Mary after Hail Mary, only to be batted down. It’s time to move the ball down the field and do something to improve the chances of property tax relief to taxpayers,” Synhorst said.

But the plan met opposition from schools of all sizes. Dave Welsch, president of the Milford Board of Education, laid down one objection.

“I cannot support a bill which takes away the local control of locally-elected school board members, such as myself, and over 1,400 others across the state,” Welsch said.

Liz Standish of Lincoln Public Schools said schools are concerned that the state won’t meet its obligation for increased aid over time. And John Schwartz, speaking for 19 mid-sized districts known as STANCE --Schools Taking Action for Nebraska Children’s Education -- elaborated on that concern.

“Funding for LB974 is not sustainable. While STANCE generally supports the concept of foundation aid, we do not believe using projected short term revenue surpluses to fund the proposal is sustainable over time,” Schwartz said.

That drew some pushback from Revenue Committee Chair Sen. Lou Ann Linehan.

“What you’re referring to, I think, as a ‘surplus’ is not a surplus. It’s what our average growth is. If you go back 20 years, revenues increase on average 4.5 percent a year,” Linehan said.

The committee took no immediate action on the bill.

Also Wednesday, a package of bills was introduced to improve the state’s youth rehabilitation and treatment centers. Those are centers for youth ages 14 to 19 who have been sent there by the courts after offenses such as shoplifting, assault, or theft. Many of them have also been subject to abuse or neglect at home.

Senators who visited the YRTC for girls in Geneva last summer found buildings falling apart and girls having no programs to occupy them. Sen. Sara Howard, chair of the Legislature’s Health and Human Services Committee, says the purpose of the YRTCs need to be clarified.

“We don’t just want to put kids away and lock up the key and then let them out when they’re 19 and put them on a path to Tecumseh (State Correctional Institution) or our state penitentiary. We want to make sure that they get the treatment and the programming they need so that they can be truly rehabilitative and sort of give back to the state of Nebraska,” Howard said.

The bills introduced Wednesday include defining the role and requiring a long-term plan for the YRTCs, beginning closer oversight, calling for capital improvements, and studying the cost of a new adolescent inpatient psychiatric unit. (For a press release and link to a full report on the YRTC's, click here).

Also Wednesday, Chief Justice Mike Heavican delivered his annual State of the Judiciary speech to the Legislature. Heavican said the Nebraska Supreme Court has established an Access to Justice Commission.

“The purpose of the commission is to provide equal access to expeditious and fair justice for all Nebraskans, regardless of income, race, ethnicity, disability, age or language,” Heavican said.

In the past year, courts in 65 of the state’s 93 counties used interpreters speaking 49 languages, Heavican added. (For a story on court interpreters, click here).

Before Heavican spoke, Sen. Ernie Chambers criticized the appointment of Judge Julie Smith, who devised the execution protocol for the Department of Correctional Services, to a three-judge panel. That panel is evaluating whether convicted murderer Aubrey Trail should get the death penalty.

“Guess who ‘at random’ chose this person to sit as one of the three judges to choose if the death penalty is going to be inflicted? The chief justice, who’s going to talk to you,” Chambers told his fellow senators. “That kind of coincidence doesn’t even happen in Walt Disney movies.”

State Court Administrator Corey Steel said Heavican had not heard the criticism and had no comment. Trail’s lawyer has challenged Smith’s appointment.