Property Tax Compromise Remains Elusive After Latest Legislative Debate

LINCOLN-(KFOR Feb. 19)-Nebraska lawmakers Wednesday debated LB 974, the Legislature’s major property tax relief and school funding reform package. The package would reduce local property taxes through a phased reduction in tax valuation while increasing state aid to schools.

The proposal would not raise income or sales tax rates or eliminate any sales tax exemptions. the current state property tax credit relief fund would stay the same if the bill was passed.

Henderson Senator Curt Friesen spoke in support of the bill, saying that every school will receive state aid, making up for any cut to the rate at which their funding increases. Friesen also said that if that does not work, it could easily be fixed sometime in the future.

North Platte Senator Mike Groene was another supporter of LB 974, and said that schools will be for the most part unaffected. “When it becomes law, schools will be open the next day, the lights will be turned on, and the learning will take place,” Groene said.

Most Omaha and Lincoln area senators have indicated they are banding together to oppose the package. Lincoln Senator Patty Pansing Brooks opposed the bill, and said that schools should not be viewed as a means to make money.

Bellevue Senator Carol Blood shared the same sentiment as Senator Pansing Brooks, and said that K-12 public schools should not be run as a business model. “Aren’t we trying to take over the role, a little bit, of our local officials to kind of reel in what we think might be excessive school spending?” said Blood. “I’m not sure I agree with that.”

Lawmakers did not vote on the bill before adjourning.