Thank you for visiting my website. It is an honor to represent the people of the 42nd legislative district in the Nebraska Unicameral Legislature.

You’ll find my contact information on the right side of this page, as well as a list of the bills I’ve introduced this session and the committees on which I serve. Please feel free to contact me and my staff about proposed legislation or any other issues you would like to address.

Sincerely,
Sen. Mike Jacobson

This past Thursday, I had the honor of speaking at the Constitution Week Community Celebration hosted by the Sioux Lookout Chapter of the Daughters of the American Revolution. The event was held under the Liberty Tree on the Lincoln County Courthouse lawn and concluded with the annual Bells Across America tradition. I want to thank the Sioux Lookout Chapter for organizing the event and for its more than a century of work preserving our history, educating future generations, and promoting patriotism. 

This year’s celebration was especially meaningful as our nation commemorates the 250th anniversary of the Declaration of Independence. The Declaration expressed the principles upon which our country was founded, including liberty, individual rights, and government deriving its authority from the people. Eleven years later, the Constitution created a framework for putting those principles into practice. 

The delegates in Philadelphia represented different interests and held strong opinions about the proper role of government. The Constitution resulted from months of debate and compromise. No delegate got everything he wanted, but they remained committed to a system through which they could resolve their disagreements. That remains an important lesson. We will never agree on every issue, but our constitutional system allows us to disagree, speak openly, and resolve disputes through elections, courts, and the rule of law. 

The success of freedom can also make us forget its cost. Most Americans have never been told what opinions they may express, which faith they may practice, or whether they may criticize the government or vote for their leaders. Because these freedoms are part of everyday life, we can begin to view them as ordinary. They are not. America is not perfect, but our constitutional system provides a way to address injustice and correct mistakes. Despite our challenges, I continue to believe there is no better country on earth. 

The freedoms protected by our Constitution have never been preserved without sacrifice. Generations of veterans and military members have left their families, suffered injuries, and, in many cases, made the ultimate sacrifice. North Platte also has its own remarkable example of service. During World War II, approximately 55,000 North Platte Canteen volunteers served about six million military personnel. These everyday citizens saw a need and took responsibility for meeting it despite wartime shortages. Their example reminds us that a strong country depends on people willing to show up for one another. 

The Constitution begins with the words “We the People.” Those words give citizens authority, but they also give us responsibility. The Constitution is not self-sustaining. It is only as strong as the people’s willingness to understand, respect, and defend it. As we celebrate America’s 250th anniversary, we should reflect on what we have inherited and recommit ourselves to preserving it for future generations.

It is a privilege to represent you in the Nebraska Legislature, and I look forward to hearing from you regarding issues that are important to you. I can be reached at 402-471-2729 or by emailing me at mike.jacobson@leg.ne.gov.

Some of you may have received a “Pink Postcard” in the mail. This is a signal that one or more of the political subdivisions that assess a tax against your property will be requesting a property tax revenue increase that exceeds the state’s allowable growth limit compared to the previous year. Naturally, this has renewed the public outcry about the cost of property taxes. Although the state has taken steps to reduce the “net” taxes you owe, property taxes continue to rise.

The purpose behind the pink notices is to let you know when public hearings will be held to discuss the upcoming budget and taxing process when the tax increase will pass a certain threshold. If you are concerned about a tax ask, now is the time to say something! I can’t speak for all elected officials, but I can tell you that I care about what my constituents think, and most others will as well. Local control requires local engagement by both the public and the elected officials. It is up to you to help guide priorities.

Even if you don’t want to say anything, these meetings can be a good way to understand why the political subdivision’s tax asking is going up. Just like with everyday consumers, the cost of operating is increasing, and there may be a special project that is being undertaken. But shining a light on a budget and asking tough questions is important to ensure conservative spending.

Keep in mind that the increase in property taxes is not due to your property “value” rising. The mill levy is set based on the available taxable property, and that is what really determines what you pay. Your taxes are calculated with the equation A = B x C. A is the amount requested, B is the tax levy, and C is the tax value. If the tax ask increases (A) and the tax value goes up (C), then the tax levy (B) is adjusted to generate enough funding to meet the tax ask (A). If the tax base (C) goes down and the tax ask (A) goes up, the tax levy (B) must go up to balance the equation. In the end, it is the tax ask (A) that impacts your tax liability.

Also keep in mind that if your individual property value went up due to inflation, then your neighbors’ values went up as well. If the tax ask (A) holds steady and the tax value (C) goes up, then the tax levy (B) will be reduced. When politicians tell you they left the levy flat when values went up significantly, that is a sign spending is going up.

Political subdivisions should not be setting their budgets until after public hearings, including those noticed on the Pink Postcard. Even then, this will not be the full picture of your property taxes for the upcoming year. The state now fully funds community colleges, taking over the local property tax assessment. We have also made significant investments in property tax credits that will further reduce your bill. The credit related to K-12 public school funding has increased by $750 million for each of the last three years. This is in addition to providing $1,500 per student to each public school in the form of “foundation aid.” The state also provides over $1.2 billion per year in TEEOSA funding to schools with higher needs and lower tax bases.

In addition to carefully managing spending, we also need to grow our property tax base. This means building more houses, attracting more businesses, improving properties, and recruiting more individuals to our communities. Even when incentives like TIF are used to make this happen, the base eventually is increased. Many projects that were TIF-ed several years ago are now fully on the property tax rolls. Had they not been incentivized, they may never have been built, and the sales taxes and income taxes created by new jobs would never have happened. We need to grow if we want to stay ahead of inflation pressures.

It is a privilege to represent you in the Nebraska Legislature, and I look forward to hearing from you regarding issues that are important to you. I can be reached at 402-471-2729 or by emailing me at mike.jacobson@leg.ne.gov.

This past Thursday night, the Nebraska Medical Association honored me with its Friend of Medicine award, the highest honor awarded to a non-medical provider. The award was primarily due to LB527, which I introduced and helped pass last year. LB527 provides additional Medicaid funds for medical providers who are not employed by a hospital through a state and federal matching program. It generally mirrors LB1087, which I also introduced. LB1087 provided access to nearly $1 billion of federal funds to be provided to Nebraska hospitals that care for patients on Medicaid. The dollars are primarily targeted at rural hospitals.

The significance of these bills is that Nebraska hospitals and independent medical providers can get better reimbursements for providing care to Nebraska Medicaid patients without needing more funding from the state Medicaid fund. Instead, the providers commit an assessment to the program that is used for the state match, which comes back to them in addition to more federal dollars. I am honored to receive an award for carrying a bill that costs the state nothing but gives significant support for medical providers who are struggling to offer care to patients in need and who may otherwise not get timely care. It also allows providers to keep their doors open.

Many of you know that I serve on the Great Plains Health Board of Directors. My time there has given me a unique perspective on the healthcare system and how costs and reimbursements work. Generally, health insurance companies pay a disproportionate amount of the overall costs for medical care. Medicare and Medicaid pay reimbursement rates well below the cost of care, which leaves health insurance plans paying higher rates. Then, when you bring in Medicare Advantage insurance products, which replace Medicare for seniors, hospitals are forced to receive even lower reimbursements. That is why many providers have ceased accepting Medicare Advantage. Meanwhile, we need to provide services to residents regardless of where they live.

We are fortunate that Great Plains Health is located in the heart of District 42. It attracts quality medical staff and has facilities that can house the equipment needed to perform necessary procedures close to home. They also provide support for clinics and small hospitals in the region. I see first-hand how tight operating margins are and how important these federal dollars are to make the system work. Over the coming years, we will need to be creative as to how we continue to generate the funds necessary to maintain our healthcare system in rural areas.

After spending my entire career working in banking and economic development, I have found that retaining and attracting new residents to the area is dependent on having quality available housing, medical care, educational opportunities, recreational opportunities, retail stores, and quality air and ground transportation. Over the past several years, North Platte has rebuilt our shopping mall and brought other retail outlets to the area. Significant new housing has been and continues to be built, and the hospital has also grown exponentially. The new airport terminal opened a couple of weeks ago helps to meet the critical needs necessary to stabilize and grow the area. Although LB527 and LB1087 funds will help, much still needs to be done to keep our healthcare system viable in the region. But this is a great start. Thank you again to the NMA for this recognition

It is a privilege to represent you in the Nebraska Legislature, and I look forward to hearing from you regarding issues that are important to you. I can be reached at 402-471-2729 or by emailing me at mike.jacobson@leg.ne.gov.

Over the past several months, I have spent a lot of time discussing some of the “hot button” issues facing Nebraska. Those issues matter, but other issues that may not generate the same headlines or social media attention and are every bit as important, if not more so, to the Nebraskans directly affected by them.

This past week, I participated in a roundtable discussion hosted by Senator Victor Rountree on Nebraska’s developmental disability system. The discussion included families, service providers, industry professionals, advocates, and several individuals from District 42. It was an important opportunity to hear directly from those who rely on these services and those who provide them.

For those of us who do not have a child or family member with a developmental disability, it can be easy for this issue to be “out of sight, out of mind.” Behind every discussion about waiver services, assessments, provider rates, and funding are real people and loving families who depend on these services every day. Hearing directly from them reminded me of our responsibility to ensure the system works as intended.

President George W. Bush famously described his philosophy as “compassionate conservatism.” I like to think I fall into that category. Being fiscally conservative should not mean turning our backs on people who genuinely need help. At the same time, we can be compassionate while also ensuring programs are effective, sustainable, and responsible to the taxpayers who fund them. I believe we can and should do both.

A significant part of the discussion focused on changes to the way the Department of Health and Human Services (DHHS) assesses the needs of individuals receiving developmental disability services. Families and providers have raised concerns that the current assessment process does not always fully capture an individual’s needs and can result in reductions in services.

Senator Machaela Cavanaugh introduced legislation during the last session to address some of these concerns. I supported the legislation, which ultimately passed the Legislature and added safeguards to the assessment process. Importantly, those provisions did not require a new state appropriation. That is a good example of how we can sometimes improve a system without spending more money.

I expect developmental disability services will again be an issue before the Legislature next year. I am hopeful that the conversations taking place during the interim will allow Senators, families, providers, DHHS, and other stakeholders to identify reasonable changes that can gain broad bipartisan support.

In making improvements we cannot afford, quite literally, to ignore the state’s financial position. If additional investments in developmental disability services are necessary, we also need to determine how we will pay for them. That does not mean we should refuse to make needed investments. It means we need to make certain they are targeted, effective, and sustainable. We should look for efficiencies, opportunities to redirect existing dollars or draw down federal dollars, and other responsible ways to meet these needs. Being a good steward of taxpayer dollars and providing appropriate services to some of our most vulnerable citizens are not mutually exclusive goals. I believe we have a responsibility to do both.

I appreciate Senator Rountree for bringing everyone together and, most importantly, the families and providers who shared their experiences. These are exactly the conversations we should be having during the interim so we can be prepared to find workable solutions.

It is a privilege to represent you in the Nebraska Legislature, and I look forward to hearing from you regarding issues that are important to you. I can be reached at 402-471-2729 or by emailing me at mike.jacobson@leg.ne.gov.

This past week was National Volunteer Firefighters Week. The week celebrates and honors the contributions of volunteer firefighters across the United States. This week typically includes various events and activities aimed at recognizing their dedication and service to the community. In the United States, volunteers make up 65% of all firefighters. In District 42, all firefighters are volunteers except for a limited number of paid firefighters employed by the city of North Platte.

Given the devastating wildfires we have experienced this past year, and indeed the last several years, it is not hard to see how critical our local volunteer firefighters are to protect our property and our lives. It is also easy to compare this to the North Platte Canteen’s work during World War II. The Canteen effort seemed overwhelming (and it was), yet everyday citizens donated their time and resources when many were already rationing because of the war effort. Despite the challenge, these volunteers from a wide area showed up to support their fellow citizens. Every time I hear the Canteen story, I am amazed and proud to live among the descendants of these amazing volunteers. I am equally impressed by the commitment of our volunteer firefighters, who do more than just volunteer their time to protect their fellow citizens. Many probably don’t realize that volunteer firefighters pay for their own transportation to go to fires and give up time that would be spent at their paid jobs to participate in training and actual fires. Unlike a structural fire that may last a few hours, the wildfires raged on for weeks at a time, day and night. I can only imagine the fatigue that many felt while performing their “volunteer” duties.

I also want to recognize those who employ volunteer firefighters and allow them the time to do their “second” job. In some cases, they are paid, and in others they are unpaid. Nonetheless, it takes everyone to make all this happen. I cannot imagine how much more devastating the wildfires would have been without our volunteer firefighters. With the Canteen effort, the volunteers came from a wide area stretching into Kansas, Colorado, and Wyoming, plus the entire panhandle and into central Nebraska. The same happens with firefighting. The wildfires were so large that volunteers from as far east as Omaha and many paid forces also showed up to assist. It is like Governor Pillen always says, it is the people that make Nebraska special. In our area of the state, the Canteen spirit continues to present itself when a crisis arises. We live in a very special place!

Our volunteers also include our EMS personnel who provide emergency medical assistance. This is another area where our neighbors volunteer their talents to provide life-saving services. Again, they are unpaid and, in most cases, pay for their own training and certification. During our trip to Thedford a few Saturdays ago to participate in the Thomas County fair parade and barbecue, I had the chance to visit with Pat Neben, who has over 47 years of service as an active EMT while also working with 4-H and extension. Pat took the time to visit with me about the ongoing challenges of finding and retaining volunteers, especially in small communities. Pat is a great example of commitment to public service and devotion to her community. I will continue to work to find ways to better support the effort you are so committed to.

We are truly blessed to have volunteers like our firefighters and EMTs to serve and protect us.

It is a privilege to represent you in the Nebraska Legislature, and I look forward to hearing from you regarding issues that are important to you. I can be reached at 402-471-2729 or by emailing me at mike.jacobson@leg.ne.gov.

One of the highlights from this past week was attending the ribbon-cutting for the new North Platte airport terminal. The existing terminal was the oldest in the state and was built in 1952. Planning for the new terminal began when I served on the North Platte Airport Authority Board. Although the planning was well underway, there was still significant work to be done when I left the Board for the Nebraska Legislature.

The new terminal was a project that benefited from the pandemic infrastructure bill that was passed to help stimulate the economy. We were also fortunate that U.S. Senator Deb Fischer was in a leadership position, which allowed her to direct significant funding to this project. In total, she shepherded $17 million of the $30 million project, and Governor Pillen directed $2 million in state dollars from the newly created fund that generates sales tax revenues from aircraft-related sales for these types of projects. This last piece was essential to allowing the Airport Authority to close the funding gap.

Anyone who attended the ribbon cutting had to be impressed with the final product that the current Airport Authority coordinated with HDR, who developed the architectural plan, and Sampson Construction, the general contractor. Both are Nebraska-based companies who pay taxes in Nebraska and employ workers who live in Nebraska. I must say that when I walked through the doors on Monday, it was breathtaking. I couldn’t believe we now have this facility in North Platte that will serve the entire region.

I also believe that this project will help cement the relationship with Skywest, which brought a reliable jet service to the region with nonstop service to Denver. I remember when I first joined the Board, when we had unreliable turboprop service with very few enplanements. Today, the enplanements are over 2,000 per month and growing. I expect enplanements to continue to grow as this new facility will drop passengers from an even larger service area. With ample free parking close to the terminal and simple, fast check-in, there is no reason to ever drive to Denver for your travel needs.

I believe the fundamental factor in growing the business community is making sure we are connected. Having the interstate highway and quality air travel is a huge boost to attracting more businesses and growing our tax base. One of the best ways to lower our reliance on property taxes is to spread the property tax burden over a larger base. If we can increase the tax base faster than the growth in taxes, we can lower costs for individual taxpayers.

Access to services and housing is also critical. We are blessed to have Great Plains Health located in North Platte, which employs outstanding physicians and support staff that provide quality medical care throughout the area. Communities in the region are also supported by a wide variety of non-profit organizations, small businesses, and outstanding first responders. Over the past few years, the area has made a major effort to build more housing at all price points. Housing availability is essential to growing both new and existing businesses. Having housing, retail, great schools, and recreational opportunities are all necessary ingredients to attract workers to locate here. It is easy to focus on the negatives, but sometimes we need to step back to appreciate all the wonderful things that our area of the state has to offer.

Economic development does not happen on its own. I am so appreciative of the work by county commissioners, city councils, the North Platte Airport Authority, local school boards, and those who work and volunteer as part of the North Platte Area Chamber and Development Corporation for their leadership and the confidence so many investors have shown in us to invest in the businesses and housing stock. Change is the only way forward, and these efforts will be felt for decades to come.

It is a privilege to represent you in the Nebraska Legislature, and I look forward to hearing from you regarding issues that are important to you. I can be reached at 402-471-2729 or by emailing me at mike.jacobson@leg.ne.gov.

Last week, I walked through the history of the state’s revenues from its four main sources. As I pointed out in that article, the state does not assess property taxes and, as a result, your property tax bill is not determined by the state. So, when I have constituents contact me about what I am doing to reduce their property tax burden, my first response is to contact their local school board, county commissioner, and city council representative, since they are the political subdivisions that assess the largest amount of property taxes. I also remind constituents that the Legislature has reduced the pressure on your property taxes by removing community college operating expenses from the property tax rolls at a cost of $300 million/year to the state. The Legislature also reimburses the local taxing authorities for the lost revenue created by the Homestead Exemptions provided to those who qualify.

But the largest property tax help comes from the Tier I and Tier II property tax credits that you can find on your property tax statements. Over the past three years, this credit amounts to over $1.5 million annually. So, when you see TV ads that suggest that Nebraska’s property taxes are the 4^th highest in the nation, they are referring to the “gross” tax, not the “net” tax after the state credits are applied. (It’s an election year, so many political ads are grossly misleading.)

The other step the Legislature has taken is to place caps on how much additional revenue municipalities and counties can derive from property taxes year over year. This is designed to prevent large windfalls that result from valuation increases with no corresponding decrease in the mill levy. With the caps, some political subdivisions are forced to either keep the mill levy the same or reduce the mill levy when valuation increases would generate more property taxes than permitted by law.

In the end, I do agree that property taxes are still too high and can only be fixed by either broadening the tax base (growth), reducing spending, or better diversifying the tax sources. I remain convinced that reliance on property taxes is too high, particularly for K-12 funding. I have no issue with property taxes being used to fund county expenses and our cities and villages because they are locally assessed by locally elected boards for local uses. However, I do believe that public school funding is a state mandate that should be funded to a greater extent by the state. The problem is where to find the money. I agree with much of the Governor’s plan to expand the sales tax base if we can truly shift from property taxes to sales taxes.

I also wanted to point out that the Legislature voted to reduce the maximum income tax rate from 6.85% to 3.99% over five years. This was the largest state income tax cut in state history. I was happy to vote for this change as a newly appointed Senator at the time. I was joined in that vote by then-Senators Lynn Walz and Brett Lindstrom. We knew, along with then-Governor Pete Ricketts, that having a higher state income tax rate than our neighboring states would make it difficult to keep and attract businesses to Nebraska. All we need to do is look at what is happening in Seattle and New York City to see how businesses leave states with high taxes for those with low taxes.

Similarly, I think it is important to note that the state’s incentive program, the ImagiNE Act, was passed in 2020 to replace the expiring Nebraska Advantage Act. Every state has some kind of business incentives to compete for employers. It is important to note that then-Senators Walz and Lindstrom also voted for the ImagiNE Act. I note their voting record only to show that much of our current tax and business policies were bipartisan because they are necessary. Property tax reductions are also necessary, but it has been hard to craft a plan that can gain bipartisan support and truly solve the property tax problem.

I will close with these thoughts: If we reduce one tax without equally reducing spending, we must shift the spending to another tax source. Likewise, when we exempt certain taxpayers from paying a tax, other taxpayers must make up the difference. Right now, we are experiencing increases in sales tax revenue, but reduced revenue from income taxes. We are also “spending” more, not for state government, but for property tax relief by funding property tax credits, more state aid to schools, and property tax exemptions for those who can least afford it. We need to find additional revenues to ensure the longevity of these initiatives.

It is a privilege to represent you in the Nebraska Legislature, and I look forward to hearing from you regarding issues that are important to you. I can be reached at 402-471-2729 or by emailing me at mike.jacobson@leg.ne.gov.

As many of you know, we have been dealing with budget shortfalls during the last two years. I thought it might be worthwhile to explain the state’s budget process, where the revenues come from, and why we are dealing with deficits.

First, let’s remember that the General Fund’s primary revenue comes from four sources: Sales and Use Taxes, Individual Income Taxes, Corporate Income Taxes, and Miscellaneous Taxes. Over the past 25 years, the revenues from these four sources have grown from approximately $2.46 billion in fiscal year 2000-01 to $6.74 billion in fiscal year 2025-26.

The Nebraska Economic Forecasting Advisory Board forecasts net receipts from the four main tax categories (including accounting for refunds), but it does not account for General Fund transfers, appropriations, expenditures, or balances. Changes to federal tax policy can also impact state receipts, which can be hard to anticipate. The Legislature relies on the Forecasting Board’s estimates when making the state’s budget, and deficits occur when the Forecasting Board’s estimates, and therefore the budget, do not align with actual revenues.

In the last 25 years, we’ve generally seen approximately 4-5% annual growth as a state. However, federal COVID relief contributed to unusually strong economic activity and revenue growth for some recent fiscal years. In FY2020-21, General Fund receipts grew from $4.94 billion to $5.96 billion, a 20.6% increase. Combined individual and corporate income tax receipts increased approximately $865 million in FY2020-21, from about $2.84 billion to $3.70 billion. Approximately $280 million of that increase resulted from the COVID-related shift of the 2019 income tax filing deadline from April to July. Corporate income taxes alone were up over $1 billion in FY2023-24.

Nebraska’s pass-through entity tax was also a major factor in the FY2023-24 increase and subsequent decline. The state received approximately $1.5 billion in pass-through entity tax payments in FY2023-24, but only about half of the related credits were claimed that year, resulting in a net General Fund gain of approximately $750 million. Most of the remaining credits were claimed in FY2024-25. Because the law was retroactive for five tax years, the first two years were unusually skewed, but those effects are now beginning to even out.

Total General Fund receipts peaked at approximately $7.16 billion in FY2023-24. They fell to $6.16 billion the following year and rose to $6.74 billion this past year, even with the decrease in the state income tax rate.

At its low, the Cash Reserve was approximately $18 million, or 1.0% of expenditures, at the end of FY1995-96. With smart spending of prior administrations and effects of COVID dollars, the state’s Cash Reserve rose to approximately $928 million at the end of FY2021-22. By the end of FY2022-23, the state’s Cash Reserve grew to approximately $1.64 billion. The state’s Cash Reserve has dropped to approximately $830 million at the end of FY2025-26 and is projected under current law to decline to approximately $526 million, or 9.9% of expenditures, at the end of FY2026-27. These projections are based on current law and assume the Legislature makes no additional budget changes in upcoming sessions, which is very unlikely.

If the Cash Reserve declines to approximately $426 million at the end of FY2028-28, it would still represent 7.6% of expenditures. So, let me be clear: the state is not bankrupt.

So, the question many are asking: Where has the money gone, and why? By the end of FY2022-23, early in my tenure in the Legislature, our Cash Reserve stood at 31.8% of expenditures. The Legislature’s focus in 2022 and 2023 was to make strategic investments with the excess reserves that would positively impact the state’s future.

The most sizable investments included the Perkins County Canal, the new state penitentiary, and property tax relief. The Legislature set aside $53.5 million in 2022 to fund the initial stages of the Perkins County Canal project. This was a bold priority of then-Governor Pete Ricketts, a priority embraced by Governor Jim Pillen as he pushed to preserve the existing fund and add another $574.5 million in 2023, bringing total funding set aside for the project to $628 million.

The Legislature also committed approximately $352 million from the Cash Reserve Fund for planning and construction of the new prison facility.

Governor Pillen advocated for the Education Future Fund, which was designed to reduce K-12 schools’ dependence on property taxes by providing more state funding. The Education Future Fund was seeded with a $1 billion General Fund transfer in FY2023-24. Including subsequent transfers and those scheduled during the current biennium, approximately $1.73 billion has been transferred or committed to the fund.

He also pushed to create the Tier II property tax credit fund to help offset the cost property taxpayers are paying to fund public schools. For FY2026-27, the state is providing nearly $1.7 billion in General Fund support through the two property tax credit programs and the Community College Future Fund, totaling approximately $5.35 billion.

Income tax relief has also been provided through rate reductions, rather than supplemental funding. The state’s maximum individual income tax rate dropped from 6.84% to the current 4.55%. It is scheduled to drop to 3.99% next year.

All these factors are reflected in the state’s General Fund Financial Status and affect the total dollars available to spend. But, of course, the budget is based on what will come in during the next one or two fiscal years, not the receipts from the prior year. Discrepancies between estimates and actual revenues create a “deficit.” State budget increases have been well contained and remain below annual projected revenue increases.

It is a privilege to represent you in the Nebraska Legislature, and I look forward to hearing from you regarding issues that are important to you. I can be reached at 402-471-2729 or by emailing me at mike.jacobson@leg.ne.gov.

I took part in a press conference with Governor Pillen last Monday to discuss his executive order placing a hold on large data center applications to participate in the state’s business incentive program called the ImagiNE Nebraska Act. The ImagiNE became law in 2020 through LB1107, replacing the previous state incentive program known as the Nebraska Advantage Act.

All 50 states have one or more business incentive programs. Both ImagiNE and Advantage were passed to help make Nebraska competitive when it comes to attracting, retaining, and expanding businesses that will make significant investments and create good-paying jobs in Nebraska.

Two of the incentives included in the ImagiNE Act allow for a refund of all sales taxes paid by the business and a refund of personal property taxes paid on equipment investments. Investments over $50 million have no employment requirements. Taxes paid for the land and buildings stay with the local political subdivisions, but the sales taxes and personal property taxes go back to the applicant as an incentive along with other state incentives.

I generally support targeted incentives when we are competing with another state to attract or retain a project or when the project needs initial support but will bring large future tax revenues or a large employment base. In today’s environment, I see no need to provide any incentives to attract large data centers. Nebraska naturally has many things that make it attractive to data centers, if we want them here, and it is important to prioritize the tax revenues they offer over incentives to move here. The intent of the Governor’s executive order and the bill that I intend to offer in the next session is to make certain that any large data center development in Nebraska would result in the maximum tax revenue benefits for the state and the local political subdivisions, which means no refunding of sales and personal property taxes.

The executive order is not intended to stop development of data centers if they can reach agreement with local governments, along with complying with state and federal regulations, to locate in Nebraska. Preserving local control and allowing cities and counties to make decisions that are right for their constituents remains a key component of all economic development. The Governor’s order is simply designed to avoid any loss of new tax revenue at both the local and state levels. With the current state budget shortfall and the need for property tax relief, it is important to preserve all available sources of revenue.

There currently are five data centers operating in Sarpy County. It is my understanding that the Springfield/Plainview School District has reduced its property tax ask by 30%, even after building a new school, with the revenues generated by these data centers. Some of these data centers received benefits under the Advantage Act (Neb. Rev. Stat. § 77-5701 to 77-5735), which included a tier of incentives specifically for data centers. The logic at the time was simple: data centers required sizable capital investment, generated significant property tax revenues, and employed high-salaried individuals while not requiring so many workers to create a drain on local services paid for with property taxes. Although there are still businesses in Nebraska that benefited from the Advantage Act, the state stopped taking applications for the program in 2021 when it was replaced by the ImagiNE Act. The ImagiNE Act places no special emphasis on data center recruitment, and instead categorizes benefits solely based on investment and/or employment base.

I’ve received some questions about why the Executive Order was necessary when an amendment was introduced during the session to prohibit incentives for data centers. The amendment in question was AM2123, offered by Senator Danielle Conrad during floor debate on LB1261. LB1261 was offered by Senator Barry DeKay, chair of the Natural Resources Committee, to allow construction of energy plants using private capital for energy users requiring over 1,000 megawatts of power. It requires the energy user to cover project and utility costs while preserving public power’s retail role. This ensures the cost of energy development is not borne by ratepayers. The bill enjoyed broad support from public power entities during its committee hearing.

Although large data centers are the most likely industry to reach the 1,000-megawatt threshold, other heavy manufacturing sectors also approach or exceed this power need. AM2123 was introduced by Senator Conrad during floor debate on LB1261 and would have barred a privately owned generation facility from receiving benefits from the Advantage or ImagiNE Acts. This amendment was one of almost a dozen amendments, including one to require the facility to use renewable energy and battery storage to the extent feasible. Many of the concepts raised by Senator Conrad’s amendments did not have a committee hearing, so there was no opportunity for Senators to hear testimony and weigh the pros and cons. Had AM2123 been a stand-alone bill, it would have gone to the Revenue Committee – not the Natural Resources Committee – so there was also a question of germaneness. Since her amendment was not limited to future application, there was a very real and unanswered question about the impact the amendment’s provisions would have had on existing data centers approved for Advantage Act incentives. All of these procedural questions are what led to the amendment’s failure, not necessarily an objection to the concept.

I am pleased to see that the state is joining local governments in evaluating what economic development projects are right for Nebraska. I am hopeful that the task force’s review of state rules and regulations regarding water, energy, and other resources will provide comfort that Nebraska is growing responsibly.

It is a privilege to represent you in the Nebraska Legislature, and I look forward to hearing from you regarding issues that are important to you. I can be reached at 402-471-2729 or by emailing me at mike.jacobson@leg.ne.gov.

We have officially begun the annual area celebrations and parades. It begins each year with the Nebraskaland Days parade, followed by the annual Sutherland celebration and parade. This past weekend was the Perkins County Fair (and parade). Julie and I drove our ‘68 Camaro through all three parades and had the opportunity to greet many constituents along the way.

In the coming weeks, we will participate in Brady Days, Maxwell Old Settlers, the Lincoln, Logan, Hooker, and Thomas County Fairs, and the Wallace, Wellfleet, and Hershey Fall Festivals. After the parade season ends, we plan to once again attend the annual Turkey Dinner in Seneca. Every one of these events is unique, and each has something special we look forward to enjoying in addition to participating in the parade.

Julie and I also attended the 50th anniversary celebration of the Lincoln County Historical Museum last weekend. I cannot say enough about the great leadership that Director Jim Griffin has provided in keeping our history alive. There is currently a $6 million fundraising effort underway for the North Platte Canteen Expansion project, which includes a new addition, new exhibits, and creation of an endowment to assist with ongoing maintenance. The Canteen involved all of District 42 and even volunteers in Kansas, Colorado, and Wyoming. What a truly unbelievable act of patriotism by everyone involved; it is certainly something we should continue to teach future generations about.

Talking with constituents is one of the best parts of spending more time in the District during the interim. Sometimes the issues constituents ask me to weigh in on or take action on are outside the scope of a state Senator. I remember early on in my legislative service, when I attended a Chamber ribbon-cutting in North Platte. At the time, the mayor made his usual remarks, and afterward I was also asked to speak. I declined to do so because I did not want to encroach on the mayor’s role. In that setting, I was a resident showing my support for the project.

I also regularly get asked to take steps to change federal policies such as the SAVE America Act, immigration policy, or the One Big Beautiful Bill. Decisions on these issues, of course, are the responsibility of our federal delegation. I certainly can discuss these issues with them, but in the end, they cast the votes.

Legal issues and other local disputes are also among the reasons for many calls and emails. This, again, is not something that I should get involved in. Instead, I try to help connect constituents with professionals who can help them. Many times, we refer to the Ombudsman’s office, which is generally very helpful. In the end, I try to stay in my lane by focusing on issues that fall within the Legislature’s authority.

Another benefit of traveling through the District is the reminder of how special Nebraska and its communities are. Governor Pillen always says our greatest asset is our people, and I couldn’t agree more. As we talk about our budget, one of the best ways we can grow Nebraska is by recruiting more people to our state, especially to our rural communities.

During the 2026 session, a bill was brought that would have merged the Nebraska Tourism Commission with the Nebraska Department of Economic Development (DED). The bill was brought primarily due to those in the Legislature who were frustrated with a former tourism campaign that said “Nebraska. Honestly, it’s not for everyone.” Although the campaign had some success, it was not at all popular with many throughout the state. The Tourism Commission’s leadership has changed, but several senators wanted to merge the two agencies.

I opposed the bill to merge the agencies and offered to hold an interim study this summer to gather public input prior to making any further changes. I intend to hold that public hearing in a round table format in North Platte to allow more western Nebraska residents to participate. It is important to keep in mind that tourism promotion was part of the DED, but the Tourism Commission was created in 2012 because many believed tourism efforts were too focused on the metro area rather than a statewide effort. I remain concerned that rural Nebraska loses if the two agencies are combined. Having a board with statewide representation that continues to be funded by hotel occupation taxes seems to be a good model.

The Legislature did pass a bill a year ago to add the DED Director to the Tourism Commission board, along with a member of the state Chamber board to help coordinate efforts. At this time, I’d prefer to look for additional synergies and cooperation instead of combining the two entities. However, I remain open-minded and look forward to hearing input from stakeholders as part of the interim study.

It is a privilege to represent you in the Nebraska Legislature, and I look forward to hearing from you regarding issues that are important to you. I can be reached at 402-471-2729 or by emailing me at mike.jacobson@leg.ne.gov.