Senators Ask SCC To Reconsider Levy

By Gordon HopkinsThe Southeast Community College (SCC) Board of Governors voted on Tuesday, June 27, 2023, to raise the tax levy to the maximum. Three days later, several Nebraska State senators responded by sending a letter asking for the board to reconsider.SCC covers fifteen counties in the southeast corner of the state: Jefferson, Gage, Thayer, Saline, Fillmore, Lancaster, Seward, York, Cass, Otoe, Johnson, Pawnee, Nemaha, Saunders and Richardson.The current SCC levy rate is 9.37 cents per $100 valuation. The proposed increase raises that rate to 11.25 cents, the maximum allowed under state statute.Those senators claim that the proposed levy, combined with an anticipated 15.3 percent average increase in property valuations, could result in taxpayers in the levy district seeing the amount they pay to support SCC increase by up to 40 percent.“This proposal runs counter to the intention of the Legislature in lowering the tax burden on the people of Nebraska,” the letter states. “Raising your levy to the maximum allowed under state law does not send a good message to Nebraskans. One of your own board members abstained from the vote for this very reason.”This year, the Nebraska Legislature passed LB (Legislative Bill) 243, called the “Adopt the School District Property Tax Limitation Act,” intended to change levying authority and provide aid to community college areas, and change provisions relating to the Tax Equalization and Review Commission and property and income taxes. The bill changes how community colleges are funded. Among other things, LB 243 replaces general-fund tax dollars with state funds by creating a 100 percent tax credit for property taxpayers for the transition year.On Wednesday, July 12, SCC issued a response that pointed out the school will be losing its ability to raise funds via the tax levy, “SCC set its 2023-24 levy rate based on a detailed study of its current and future needs, including operating maintenance, cost of living, and staffing expenditures. The new general fund levy rate of 9.25 cents includes 1.88 cents of unused authority. Beginning 2024-2025 SCC will no longer be able to levy a general fund tax. Although 2024-25 CCFF (Community College Future Fund) for SCC falls well short of addressing the College’s estimated unmet needs, the college will continue to explore other funding opportunities with its private, government, and education partners.”SCC also said, “One of the challenges of the current funding model was that the largest revenue stream came from property tax. This required the board to balance fulfilling its mission of providing a skilled workforce while not overburdening the taxpayer. The new funding model alleviates this tension by replacing general-fund tax dollars with state funds and by creating a 100% tax credit for the transition year to encourage the utilization of unused funds based on current and future needs.”However, the senators' letter, anticipating this argument, said, “It is our estimation that telling taxpayers that 'while they may see a huge increase on their tax bills this year, those dollars will be returned as the funding system for community colleges shifts over the next few years' is disingenuous,” the letter reads. “In the upcoming fiscal year the tax relief is being delivered through the refundable tax credit. While the tax credit is 100%, not everyone will take advantage of it. Our intention was to provide relief, this action, if finalized, piles on taxes at a time when people cannot afford it. Saying taxpayers will get their money back in the future does nothing to help alleviate their financial burdens in the present.”Signatories of the letter include: Tom Brandt, Myron Dorn, Robert Dover, Ray Aguilar, Julie Slama, Loren Lippincott, Daniel Conrad, Robert Clements, Carolyn Bosn, Barry DeKay, Kathleen Kauth, Brad von Gillern, Michael Jacobson, Jana Hughes, Rick Holdcroft, John Lowe, Lou Ann Linehan, David Murman, Tom Briese, Teresa Ibach, John Arch, Tom Brewer and Rita Sanders.The SCC Board of Governors approved the preliminary budget in a 10 to zero vote in June. The final vote will be in September of this year.

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