Legislature Debates Governor’s Tax Package

By Gordon HopkinsThe board of NACO (Nebraska Association County Officials) met on March 13, 2024, and voted to conditionally oppose Governor Jim Pillen’s property tax package.Rick Vest, Lancaster County Commissioner, made the motion, which was seconded by Jefferson County Commissioner Mark Schoenrock. Schoenrock emphasized that, while he and NACO are supportive of Governor Pillen’s intention to reduce property taxes, they have expressed concerns that any funding lost due to the proposed tax cuts be replaced with an alternative source of funding. NACO officials have also opposed the loss of control at the local level, in particular any caps on counties’ ability to raise funds via taxes.Schoenrock advised his fellow Jefferson County Commissioners of the vote at a meeting on Tuesday, March 19, “We had a very long Wednesday afternoon session, met for a number of hours regarding the NACO position regarding Governor Pillen’s tax revisions.”Schoenrock explained that they opposed the plan, “Unless we have a reasonable exception for public safety costs and the current reduction or elimination of revenue streams without sustainable revenue replacement.” Another concern raised is the loss of funding for mental and behavioral health services. According to Schoenrock, NACO wants to see an, “Increase to our total mental health funding across the state.”Governor Jim Pillen has recommended a $15 million cut to the behavioral health aid base in fiscal year 2024 and 2025 as part of the biennial budget adjustment. The funds are being removed from Program 38, which is responsible for distributing state aid for behavioral health services, including mental health, substance abuse and addiction services. Despite these concerns, on Thursday, March 21, the Nebraska Legislature’s Revenue Committee advanced the appropriations bill, LB (Legislative Bill) 388, to the floor for debate. The vote was 7-0.In a statement that same day, Governor Pillen said, “I want to congratulate the members of the Revenue Committee on advancing historic and transformational property tax relief and reform out of committee on a 7-0 vote. Thank you for delivering once in a lifetime transformational property tax relief plan to all Nebraskans.” Debate on LB 388 began on Wednesday, March 27. While the 2024 legislative session ends in less than two weeks, on April 18, Schoenrock remains optimistic that NACO’s concerns can be addressed.Governor Pillen has made tax reform, and specifically a 40 percent reduction in property taxes, the cornerstone of his administration. He has warned that if a tax deal is not reached, he may call the legislature back for a special session.

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