The Office of the Governor of the State of Nebraska

08/02/2024 | Press release | Distributed by Public on 08/02/2024 21:09

Gov. Pillen Points to Economic Analysis Touting Benefits of The Nebraska Plan to Cut Property Taxes

CONTACT:

Laura Strimple, (402) 580-9495

Allan Urlis, (531) 510-8529

Gov. Pillen Points to Economic Analysis Touting Benefits of The Nebraska Plan to Cut Property Taxes

LINCOLN, NE - A recently published independent analysis of The Nebraska Plan to Cut Property Taxes, highlights multiple benefits to taxpayers and the state, including fulfilling the state's constitutional obligation for funding state education. The Nebraska Plan, unveiled two weeks ago by Governor Jim Pillen, has been incorporated into LB1, sponsored by Revenue Committee Chairwoman Lou Ann Linehan. A committee hearing on the bill was held this week.

During that hearing, Dr. Ernie Goss, professor of economics at Creighton University, testified as to the findings of an analysis he conducted titled, Making Nebraska More Economically Competitive: An Evaluation of Governor Pillen's Tax Reform Plan. According to the study, The Nebraska Plan would provide the following three-year impacts:

  • An overall economic increase of $25.4 billion
  • An upturn in wages and salaries of $8.2 billion
  • Boost self-employment income by $1.3 billion
  • Support an annual employment increase of 41,273 jobs

  • Lift state and local tax revenue by $1.7 billion

During his testimony for LB1, Gov. Pillen shared two documents as well. The first, a letter containing the names of more than 1,000 Nebraskans from across the state, endorsing components contained in The Nebraska Plan. In his letter to the Revenue Committee, Gov. Pillen spoke about the dozens of town halls he hosted across the state.

"I heard personally from people who are considering the cost of staying versus moving to another state. We can't afford to turn a blind eye to the impact of people who will leave or who won't move here in the first place. If we stop growing, our future is dim," said Gov. Pillen.

The Governor also presented a second letter signed by dozens of business leaders expressing their support for principles outlined in The Nebraska Plan. In summary, they stated, "…by every objective measure The Nebraska Plan is a tax cut for Nebraskans. To oppose this plan would be to oppose a tax cut for the people of our state."

"Nebraskans have shared their gratitude and support for this effort," said Gov. Pillen. "They are people of all ages who question their ability to stay in a state where they can no longer afford their homes. They don't have paid lobbyists to speak on their behalf and many can't take time off from work to come to the State Capitol and testify. Yet, they are begging for relief."

Primary components of The Nebraska Plan will:

  • Place local caps on spending at 0% or CPI, whichever is greater. Exceptions protect investments in public safety and criminal justice. It also provides flexibility to accommodate new growth and permit an override of the cap by the approval of voters.
  • Retool existing property tax programs to provide direct relief to homeowners and property owners by front loading credits instead of forcing taxpayers to claim them during the filing process.
  • Implement a new tax credit fund that will be applied against school taxes paid. When fully enacted, it will eliminate general fund taxing authority for school districts from the current $1.05 down to $0.0 in 2026. This proposal also allows for local controls, including leaving education decisions to superintendents and school boards and provides allowances for collecting property taxes to support school infrastructure.

"This plan puts a stop to out-of-control property tax increases and provides comprehensive and sustainable taxpayer relief," said Gov. Pillen.

The Governor encouraged Nebraskans to continue reaching out to state senators while the special session is ongoing.

"The momentum certainly is there, and your voice is being heard," said Gov. Pillen. "Please keep making your voice heard every day until this crisis is finally fixed."

A copy of the analysis provided by Dr. Ernie Goss is included with this release.

Ernie Goss Analysis