I spent most of this past week in Lincoln to meet with my staff and wrap up work on unfinished business from this past legislative session. One piece of unfinished business was LB32, which proposes changes in requirements for issuers of Medicare supplement insurance policies or certificates relating to coverage of individuals under sixty-five years of age who are eligible for Medicare by reason of disability or end-stage renal disease. This issue was brought to my attention by a constituent from North Platte who was forced to move to North Dakota a few years ago to obtain such coverage for his wife, who was suffering from MS. Because she was under age 65, she was unable to obtain coverage under Medicare, and yet the costs associated with her disease would have ultimately bankrupted them. They have since returned to North Platte after his wife turned 65.

After a lengthy bill hearing earlier this year before the Banking, Commerce, and Insurance Committee, the committee was divided on how to proceed with LB32. I agreed that I would work with the industry during the interim to try to reach an acceptable compromise. The meeting this week marks the third meeting with the industry to discuss my primary concerns that prompted the bill. First and foremost, it was imperative that coverage was available to all disabled residents. I also wanted to see to it that there was an acceptable alternative for those living with end-stage renal disease to have affordable care. Although we did not reach a final agreement on their proposal, I believe there is a good faith effort to reach an agreement that would put Nebraska on par with many other states while significantly impacting the cost of Medicare Supplement coverage for all existing residents.

As I ponder this offer, I am mindful that any bills that do not pass during the coming 60-day legislative session will die. Additionally, it will be difficult to get sufficient floor time for any bills to get through three rounds of debate that do not have full committee support. To help ensure passage, I’ll be working to get LB32 included in the committee priority bill. Like so many bills that come before the legislature, it is important not to let perfection get in the way of progress. In many cases, we need to focus on incremental progress to reach the goals we set. I will keep you posted on this bill as we get closer to the next legislative session.

I also spent time this week attending the second of four meetings of the Governor’s “Property Valuation Working Group.” The first meeting held last month was spent discussing the scope of our mission. This month, we discussed various valuation issues that have frustrated taxpayers. There is no question that property taxes have now gotten the attention of legislators throughout the state. Historically, the urban Senators have focused more on income taxes; however, they, too, have now heard the drumbeat from constituents about the problems caused by high property taxes.

As I have discussed in the past, the property tax problem is a local problem that is caused by the spending of local taxing authorities. In some cases, the spending is federally- or state-mandated, but the digressionary spending must be controlled by locally elected boards if we want to control the growth of property taxes. The state has been playing a role in reducing the “net” cost of property taxes by providing a property tax credit (reflected on your property tax statement), and, over the past couple of years, an income tax rebate equal to 30% of the amount of property taxes paid by property taxpayers to your local public school and community college. The Legislature has also taken steps this session to remove community colleges from taxing for their operating expenses beginning in 2025 and providing these funds from the State.

More still needs to be done despite these major steps forward. Although the working group was created to focus on “property valuations,” the group is clearly focused on how to address property taxes better. I did raise the point to the group that there was a time when property taxes, sales taxes, and income taxes would each contribute approximately 1/3 of the total tax needs for the state. Today, approximately $2.1 billion is generated from sales taxes, $4 billion from income taxes, and $5 billion from property taxes. Clearly, the balance is off. It seems clear to me that sales taxes are not holding up their part. However, it will also be imperative that, should we expand the sales tax base and generate more funding, those dollars are sent directly back to property taxpayers. This will likely be a major focus of the working group in our final two meetings.

I look forward to continuing to hear from you regarding issues that are important to you. It is a privilege to serve as your State Senator, and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or by calling my legislative office at 402-471-2729.