County Budget A Challenge This Year

By Gordon HopkinsDespite healthy tax revenues for 2021 and an infusion of funds from the federal government in the form of COVID-19 pandemic relief (The American Rescue Plan Act of 2021, or ARPA), many rural counties are expected to struggle with budgets this year.Earlier this month, Governor Pete Ricketts wrote, “Thanks to Nebraskans’ hard work, our state has achieved strong growth, and State revenues have been much stronger than anticipated. After last month’s revised revenue forecast, we’re now expected to increase tax receipts by $1.6 billion more than anticipated at the end of the 2021 Legislative session. That represents a nearly 17% increase in our revenue forecast for this biennium.”That does not necessarily translate to a windfall for counties. While counties are receiving some ARPA funds, the use of those funds are limited by federal guidelines. The benefit is also somewhat offset by rampant inflation that shows few signs of abating anytime soon.Another issue is the passage of Legislative Bill (LB) 310, which cuts inheritance tax. Governor Ricketts has made reducing property taxes a hallmark of his administration. Some fear the inheritance tax cut could have the opposite effect. Opponents of the bill recently testified before the legislature that the loss of inheritance tax revenue could possibly mean counties would be forced to raise property taxes to make up the difference.At a meeting of the Jefferson County Commissioners last week, Commissioner Mark Schoenrock said, “That is going to be very challenging process for us at the County Board, as we have increased costs across the entire spectrum. And one of the challenges that we face as County Commissioners is that nobody wants to pay more, but yet nobody wants to cut any services. And I've had numerous conversations with numerous constituents. When they say they don't want to pay more taxes, and then I say, well, you know, the cost of everything is going up for us as a County Board as well as it is for you and your individual budgets and your individual businesses. What would you like to cut? Nobody wants to cut anything. They don't want less gravel on the roads, they don't want less law enforcement, they don't want less ambulance service and on down the line of all the services that are provided by the county.” Wind Energy and SchoolsA discussion on regulations governing wind turbines in the county led to a discussion on tax revenue, because of the potential tax revenue source that wind farms represent. Commissioner Michael Dux noted, “I've been on the board quite a while and we are always, always looking for different sources of revenue for our county. The windmill farm is a source of revenue. It's unclear how much it would be, you know, depending on the towers. Talk was $1.5 to $1.8 million. And roughly two thirds of that would go to the schools. And they would be Diller-Odell, Tri County, and Fairbury. We're always looking for different sources of revenue.”Given that school districts are a beneficiary of wind farm tax revenue, FJN contacted area school superintendents to get their positions.Stephen Grizzle, superintendent of Fairbury Public Schools, said, “Speaking strictly as a superintendent, any increase in revenue would be welcome. Currently, our local property tax owners represent about 81% of our revenue yearly. If the wind farms could lessen that, it would obviously help our taxpayers. However, I understand there is much more to this issue than just the potential revenue.”Diller-Odell superintendent Mike Meyerle told FJN, “I am in favor of renewable energy. We already have a wind farm in our school district, and I think some of the regulations are restrictive to the point of not having such projects. I approve of reasonable regulations on such things.”“I understand that some people don't like to see the windmills etc. I don't really like looking at power stations or power poles either…but I enjoy having electricity. Others may not enjoy having a feed lot near their property etc. etc.,” said Meyerle. “So…we get some revenue from the turbines at Diller-Odell Public Schools, but there is a misconception that we were able to have facility upgrades due to that money. We get about $130,000 annually from a Name Plate Capacity Tax from the turbines. All revenue sources are appreciated in the school world, and $130,000 goes a great way to pay for a couple of staff positions, but is not a determining factor in school projects.”Meyerle added, “In the end, I support alternatives to help reduce property taxes. I also support people's rights to oppose such projects and reasonable regulations.” Community InvolvementCommissioners have been frustrated over the years by the lack of community involvement in the budget process, which is open to the public. There were a considerable number of people attending that meeting for the wind farm discussion and Schoenrock said, “So we have a lot of people here this morning. I would highly encourage you to come when we have our budget discussions. It's a very long, very intensive process that takes place in July and August. And you can be part of that process. I can assure you, the years I've served on the board, this year is going to be by far our most challenging budget.”

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