Special Session Aimed at Lowering Property Taxes is Set to Convene
July 24th, 2024
Hello Friends and Neighbors,
Special session begins this Thursday, for the limited purpose of achieving property tax relief, and it will move quickly. Everything will happen on an accelerated timeline. If you want to testify at a hearing, this is your heads-up! Bills can only be introduced during the first three days of special session and committees must schedule hearings ASAP (no more than 5 days later). We will be in session this Saturday, the 27th, for the last day of bill introductions. This means hearings will likely be scheduled for Monday and Tuesday, July 29th and 30th.
As a reminder, you can stream live coverage of special session on Nebraska Public Media or watch a recording of this stream from the local, independent group, Nebraska Legislative Study Group (and their Facebook link).
One significant difference between regular and special session is that senators are limited in what kind of legislation we can bring during a special session. The Governor must officially sign a proclamation to call the Legislature into special session, where the purpose and scope of the call must be stated. Each bill we introduce must fall under that subject, however broad or specific it may be. The Governor may amend the scope of the call at any time to add additional subjects for the Legislature to consider. With only one day until the special session is set to begin, Governor Pillen has yet to release a formal proclamation. To push through such significant legislation without comprehensive evidence and data is irresponsible, particularly when the stakes for Nebraska's future are so high.
This special session is a critical moment for our state, and the stakes are high. We are facing unattainable promises made with no feasible plan to achieve them, especially when the Governor has explicitly excluded major items like expanding our tax base through legalizing marijuana or adjusting income tax brackets so that the wealthy pay their fair share. Nebraskans deserve solutions that are practical and sustainable, not empty promises that jeopardize our future.
Nebraskans don’t want property tax relief at the expense of their local school board’s authority. We need to ensure that any tax reform measures do not undermine the essential services our communities rely on, particularly our public schools. Tax relief for wealthy landowners should not come at the cost of our most vulnerable children, who depend on well-funded government programs and services that are slated to be cut. It's crucial that we find a balanced approach that addresses property taxes without compromising the quality of education and other vital public services.
Groups from across the political spectrum, in urban and rural areas alike, have been outspoken in their opposition to Governor Pillen's tax shift onto working Nebraskans. This broad-based discontent highlights the need for a fair and inclusive process that genuinely considers the needs and voices of all Nebraskans. We must work together to develop a plan that provides meaningful relief while ensuring that our state remains a place where everyone can thrive.
Fifteen current senators will not return next year. This underscores the critical importance of participating in local elections, where a small number of votes can decide outcomes. The decisions we make now will shape the future of Nebraska for years to come. Whatever measures are passed during this special session will then be later amended by a vastly different legislative body. It is imperative that we engage fully in this process and hold our leaders accountable to ensure that the voices of all Nebraskans are heard and respected.
Best,
Meg
Background
This special session comes after LB388, part of Governor Pillen's declaration to reduce property taxes by 40%, failed to pass during the 2024 regular legislative session. The initial proposal aimed to lower property taxes by shifting to an increased sales tax, along with additional taxes on CBD, hemp, legal services, and other goods and services; falling mostly on lower-income Nebraskans.
Over the past several decades, we’ve created a structural deficit and eroded our revenue with special interest exemptions, which has cut into the resources we have to provide property tax relief. We need to look at new revenue sources and tax bracket reform for Nebraska so we can not only provide property tax relief, but make sure we have a fair public school funding system, and that Nebraskans can access the public services they need.
Our state constitution explicitly gives the Legislature authority over making appropriations for government expenses. The Legislature holds the purse strings and creates laws, while the judicial branch interprets them, and the executive branch administers and enforces them.
Days after the Governor signed the updated budget, he directed state agencies to slash their recently approved budgets internally, without informing lawmakers. Every department has been put on notice, including the State Patrol, Child Welfare, Department of Health and Human Services (DHHS), and even our dangerously overcrowded and underfunded correctional system. These unprecedented cuts are a blatant disrespect of the essential principle of separation of powers, going as far as to cut programs that the Legislature specifically wrote into law and passed in recent years. This is clear legislating and appropriating money by the executive branch.
This is not the first time that this executive branch has violated the principle of separation of powers. Attorney General Mike Hilgers has twice now legislated via his attorney general opinions, and state officials have ignored current, legally binding, statutes in favor of the non-legally binding opinions.
In 2023, AG Hilgers released an opinion questioning the legality of Offices of Inspector General (OIG) overseeing our state’s prison system and the child services division of DHHS — two of our largest and most troubled agencies. That very same day, those agencies blocked the OIG's full access to files and facilities. To this day, the OIG's office is unable to fulfill it's statutory reporting and oversight responsibilities due to the agencies' response to this AG opinion.
More recently, just two days before LB20 - a law to restore voting rights to Nebraska felons who completed their sentence - was set to take effect, AG Hilgers released another opinion saying the Legislature does not have the authority to restore civil rights. LB53 is included in the opinion, allowed for the restoration of voting rights after a two year waiting period rather than the previously required restoration process through the Board of Pardons, has been in effect since 2005 and unchallenged until now.
AG opinions are not legally binding. And yet, state agencies and officers are cherry-picking when to follow state statutes under the guise of a legal opinion. As we saw with the previous OIG opinion, Secretary of State Bob Evnen has followed AG opinion over current law by prohibiting felons who are now eligible to vote from registering to participate in November's election.
Governor Pillen's Proposal
Much of what we have heard from Governor Pillen has been centered around the significant problem of high property taxes in our state, which I agree with, as do most of us. The Governor has made lofty promises to reduce property taxes by 50%. However, he fails to explain how exactly the state will be able to affordable these expenditures in future years while maintaining critical public services and quality public education.
Citizens and senators both got our first look at the "detailed" version of Governor Pillen's proposal last Thursday, only one week ahead of the special session. This is simply not enough time for senators to thoroughly review, digest, consult with their constituents and stakeholders. This issue is too important to the people of Nebraska to be rushed through at the last minute with little evidence to support it's feasibility.
Main aspects of Governor Pillen's proposal:
- Hard caps on county and municipality property tax collections.
- Having the state take over funding for public schools to the tune of ~$2.6 billion. School tax rates would be reduced from a maximum of ~$1.05 per $100 of valuations to 15 cents, 7.5 cents and 0 cents in a three-year period.
- Frontloading and retooling existing property tax relief programs, including homestead exemptions and property tax credits.
- Removing more than 100 sales and use tax exemptions.
- Raising “sin” taxes on cigarettes, candy, pop, vaping, spirits, keno gambling, games of skill and consumable hemp.
These "details" have generated more questions than answers. Concerns have been raised over how funds will be distributed to schools, the loss of local control, unfair tax shifts onto lower-income families, and whether removing tax exemptions will generate enough income. These concerns are just scratching the surface.
Governor Pillen's plan to run the state like a business misses the mark by failing to addressing rising valuations, refusing to expand our tax base in innovative ways (like legalizing marijuana), and is simply out of touch with the reality that a majority of Nebraskans face every day. This plan was created by a millionaire governor in closed-door meetings with a hand-picked group of individuals, while intentionally leaving the state's two most populous cities off his property tax listening session tour. The process has been anything but transparent. It comes as no surprise that this unsustainable overall tax increase is the best Governor Pillen was able to offer under those conditions.
A pressure and urgency campaign by the executive branch won't change the fact that any "relief" passed during the special session would not be effective until the 2025 property tax statements. We could achieve the same goal, on the same timeline, during our regular session, at no added expense to taxpayers, with that benefit of having time to work with stakeholders to find the best solution for our state.
As we head into this special session, the stakes couldn't be higher. We need to tackle the pressing issue of property tax reform without compromising our schools and essential services. This is a challenging fight, and I can’t do it alone. Your support is crucial.
A contribution of any amount—whether it's $1, $5, or $100—makes a significant difference. Your donation helps us mobilize, advocate, and ensure that every voice is heard in this critical debate.
We are at a pivotal moment for Nebraska, and your support will empower us to push for fair and balanced solutions. By standing together, we can protect our communities and build a brighter future.
Please consider donating today to strengthen our efforts in this special session and beyond. Thank you for your support!
