     Nebraska Governor Jim Pillen’s package of tax and school finance changes received 39-3 1st-round approval in the Legislature on TuesdayÂ
The bill would provide property tax relief by using record state revenues to increase state school aid, especially to rural schools, by just over $300-million dollars, about a 30% increase. Nebraska is 49th in state support for K-12 schools.
An amendment to add another $70-million to the package by lowering assessments on ag land from 75% of market value to 42% and on residential and commercial land from 96% to 86% of market.
It drew extensive debate with supporters saying schools need even more state money and opponents warning that changing any of the provisions could put the whole package in jeopardy.
47th District Senator Brian Hardin of Gering opposed the amendment because of that risk. He said property tax relief is desperately needed in his district, where property taxes are 4 times higher than across the state line in Wyoming.
Revenue Committee chair Lou Ann Linehan also complained that it was unfair to urban areas that ag assessments would drop 33% while urban lands would drop 10%. The amendment eventually lost 27-17.
Senator Linehan did agree that more aid should be given to districts with a high percentage of students in poverty, but said such changes could be negotiated before the bill comes up for second-round debate.