Slama tweets governor's property tax plan in a 'pickle' over school pensions

 

NEBRASKA CITY – State Sen. Julie Slama is questioning who will pay if Gov. Jim Pillen’s plan to eliminate K-12 property taxes.

She asks where the government is going to find the $1.1 billion in additional taxes to remove property tax from school funding.

 

 

In her tweet regarding a Nebraska Examiner report on the Omaha Public Schools’ pension fund, Slama surmised that the governor will have to leave Omaha with high K-12 property taxes or tax people in rural communities more to bail out Omaha.

https://nebraskaexaminer.com/2024/07/15/ops-teacher-pension-fund-faces-questions-before-state-takes-over-management/

Slama earlier said she drafted her own tax plan citing a need for cuts in state spending rather than a shift in tax burden.

A Platte Institute press release today says Pillen’s plan includes caps to control local spending.

Jim Vokal, CEO of the Platte Institute, said he hopes the state Legislature will find alternatives to taxing farm and business inputs, such as energy, advertising and machinery.

He said the plan must also address valuation increases by decreasing levy rates.

 A special session of the state Legislature is scheduled July 26 to Aug. 15.

Here is the Platte Institute press release

OMAHA, NE — The Platte Institute is encouraged the proposed plan includes crucial measures such as hard caps to control local spending, state spending decreases, and the retooling of 1107 credits to fund the plan, resulting in dollar-for-dollar property tax relief for Nebraska property owners. 

Jim Vokal, CEO of the Platte Institute, stated, “We are pleased to see that the Governor’s plan aims to provide substantial property tax relief through controlled local and state spending. However, we hope that as the plan moves through the legislature, alternatives to taxing business and agricultural inputs (machinery and energy) and advertising will be considered. These taxes can lead to economic inefficiencies and increased consumer costs.” 

The Platte Institute also cautions against the reliance on cigarette tax increases as a revenue source. Vokal emphasized, “History and research show that increases in cigarette taxes can result in unreliable income due to tax avoidance. It’s essential to find stable and sustainable funding mechanisms for the property tax relief plan.” 

Additionally, the plan must address valuation increases by decreasing levy rates to completely offset the valuation hikes. This step is vital to ensure that property tax relief is meaningful and effective. 

“We applaud Governor Pillen’s goal of reducing property taxes and look forward to being a resource to policymakers and the public as this package moves through the special session,” Vokal added. 

The Platte Institute remains dedicated to promoting sustainable and effective tax reform that supports long-term fiscal responsibility and economic growth.