After reading the account of the Lincoln County Commissioners’ discussions and joint public hearing regarding its budget, I felt it necessary to address the impact of LB34 on county budgets. Passed during the 2024 special session, LB34 (Property Tax Limitation Act) was designed to limit annual property tax increases for cities, counties, and certain other taxing entities. The goal was to limit spending tied to property taxes, as opposed to limiting either property value growth or mill levy increases individually, while also allowing increases from other revenue generators. This provision became effective on July 1, 2025.

Under LB34, the annual property tax revenue increases are limited to the greater of 0% or the rate of inflation percentage based on the state and local consumption expenditures and gross investment (SLCE), which has averaged 3.9% over the past 20 years compared to the Consumer Price Index’s 2.6%, plus actual growth. The cap applies to property taxes collected from existing properties, excluding revenue from new construction, improvements, annexations, or changes in use.

“Exceptions” to the cap for allowable increases relate to voter-approved overrides, public safety services, emergencies (as declared by the Emergency Management Act), bond repayments, and costs related to county attorneys and public defenders. However, some of these exceptions require an equal deduction in the budget for the subsequent year.

The key exception to the cap deals with the “carryover authority” provision that allows up to 5% of unused taxing authority from the prior year, providing flexibility for frugal entities that did not use their maximum authority. However, it was never intended to encourage taxing authorities to view it as a “use it or lose it” proposition since political subdivisions can always ask the voters to approve a bond issue if they have needs above the cap. At that point, of course, you need to make your case to the voters, i.e., property taxpayers.

In the case of Lincoln County, the commissioners are proposing a sizable one-year property tax increase for road improvements and other projects, along with additional bonding authority for road projects. I normally don’t weigh in on local issues, but when the Legislature is getting blamed for the excessive property tax increase, I felt it was necessary to explain the bill. The timing of this increase is especially troublesome, considering current grain prices and the stress currently being felt in the agricultural economy.

In the end, your local taxing authorities determine your property taxes. There have been several opportunities for taxpayers to voice their concerns regarding proposed property tax increases and the local projects funded with them. You must decide what is most important to you.

In fairness to the Lincoln County Commissioners, they historically bring forward very conservative budgets and have held their tax increases in check. That is what made them eligible for the carryover provision. I know they have many items to consider when setting their budget, including a long-term plan for road improvements that will improve public safety. Being an elected official is not easy, and the commissioners must look at their budget from all viewpoints.

As Senators, we face similar challenges when considering our votes on complex legislation, particularly when it comes to changes to Nebraska’s tax structure. Part of the beauty of our state is the diversity in types of communities and industries, but it can also make it challenging to adopt fair policies that don’t either favor or disfavor some. Despite not collecting property taxes at the state level, rapidly rising property taxes are a problem that Senators are often asked to solve by their constituents. In the end, this Legislature felt capping property tax increases, while allowing the local political subdivisions to determine their budgeting priorities within that amount and targeted exceptions, was the fairest way to address local spending of property tax dollars. This is in addition to our efforts to send more state tax dollars back into local communities through increased school funding and taking over community college funding entirely.

It has been a pleasure serving as your State Senator. I have enjoyed the challenge and will continue to do my best to serve the interests of District 42. Please continue to reach out to me about issues important to you at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov.

This past week has included political subdivisions holding budget planning meetings that will determine their tax requests. This is perhaps a good time to review how the system works and how your taxes are determined. Each year, your County Assessor determines the market value of your property as of January 1 of the current year. Once all the valuations are set, the collective values of the properties in each political subdivision become what is known as the property “tax base.” The property tax base is the first half of the equation when determining your individual property tax. The second half of the equation is the “mill levy,” which is set once the collective budget requests are set by the various political subdivisions with tax collection authority. Budgets or net spending requests ultimately determine property taxes.

To illustrate this point, the City of North Platte recently held its budget planning meeting. During the meeting, the proposed tax ask was $41.6 million, an increase of $189,275 or 2.49% from the previous year. However, because of the rate at which valuations increased, the City can reach that number by reducing the mill levy by 1.23%. If this budget is approved, it will be the third year in a row that the City has reduced its mill levy.

Keep in mind that the City of North Platte also collects a “local option sales tax,” which reduces the amount of its budget that has to come from property tax needs. Although sales tax growth is beginning to level off, it has grown significantly during the past three years. This is a direct result of our ability to recruit and retain retailers, including three TIF beneficiaries: the Mall renovations, Menards, and Hobby Lobby. The sales tax collections, personal property tax collections, and the effect these projects have had on growing our population all help reduce property tax askings.

At this point in time, sales taxes fund 28% of the city budget and are projected to bring over $11 million in revenue to the city this coming year.

The state is also doing its part to reduce property taxes, including by taking over the operating expenses of the community colleges. This has directly reduced property tax collections statewide by nearly $300 million annually.

The North Platte Public Schools Board also met last week and decided to forgo an additional budget increase of 5%. I applaud the Board for taking this action and focusing its spending on the growth of inflation and student body growth, rather than building a cushion by raising taxes at a higher rate.

In the end, the Legislature chose not to impose additional spending caps on school districts because, unlike their city and county counterparts, school districts are funded only by state and federal funds, along with property taxes. Yet, school districts have different student body demographics, varying tax bases, and varying geographic areas. This makes it challenging to use a one-size-fits-all formula for school districts. The TEEOSA formula has attempted to do this, but has fallen short, especially for rural school districts. More work is being done to resolve this challenge. However, for now, we must rely on local school boards to distinguish between “wants” and “needs” and take steps to protect taxpayers, all while providing a quality education for students. More work will be done in the Legislature to address this challenge.

It has been a pleasure serving as your State Senator. I have enjoyed the challenge and will continue to do my best to serve the interests of District 42. Please continue to reach out to me about issues important to you at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov.

We have spent much time over the past year discussing property taxes and their impact on home affordability. Clearly, property taxes will continue to have my full attention, but there are other factors that also impact home affordability costs. One in particular is the cost of homeowner’s insurance and the rate at which premiums are increasing.

In most cases, homeowners who carry a mortgage have their property taxes and their homeowner’s insurance premiums escrowed, so they are included in the monthly mortgage payment. In many cases, these premiums are out of sight, out of mind, and may get overlooked. Many assume increases in their escrow payment are due to increased property tax payments. However, homeowner’s insurance premiums can be comparable to your property tax costs in many cases. As a result, I have initiated two interim studies to investigate the factors contributing to these costs and identify steps that can be taken to mitigate them.

Nebraska has some of the highest homeowner’s premiums in the nation. One of the leading reasons for this is a large number of wind and hail claims. Over the past two years, Omaha has had large areas impacted by wind. Western Nebraska has long been affected by hail losses, often accompanied by wind damage. Our insurance costs are also affected by disasters in other states that increase claims for national and regional insurers.

Another factor is increases or decreases in the costs of performing repairs for which claims are filed. A significant increase in premiums began during the pandemic when labor and material costs skyrocketed, driving replacement costs literally through the roof. Insurance companies (and reinsurers) were taken aback by these claims. As a result, their reserves were depleted, and the need to rebuild them contributed to premium increases.

The interim study workshops will also focus on several other issues that many believe contribute to cost increases. For example, one contributor raised by insurers is the practice of out-of-area roofers convincing homeowners to assign their claim to the roofer to complete the repairs and deal with the insurer. In these circumstances, many out-of-area roofers push the limits on the damages they claim and employ aggressive tactics to displace local contractors available to do work and establish long-term relationships with local customers. In many cases, this includes suing the insurer in the name of the homeowner, even though the homeowner may not be aware that a lawsuit has been filed after the assignment. Litigation costs, such as internal administrative work, attorney fees, and court costs, are expended by the insurer on top of the claim reimbursements, all of which impact premiums.

I look forward to the workshops and the viewpoints of the various interested parties that have been willing to participate. Any constructive ideas offered may result in a bill being introduced next session.

In closing, I thought I would share an update on my health. I am happy to report that I am now walking with a cane and should soon be able to walk completely on my own. I am so grateful for all the prayers and the caregivers who assisted in my recovery. I will be eternally grateful.

I want you to know that I remain focused on how best to serve you and the issues important to you. I am currently splitting my time between my legislative office, attending hearings, and various meetings. The rest of my time involves attending activities in the District.

As always, I want my constituents to know your input is important to me and I will do all I can to make a difference. Please continue to reach out to me at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov.

I have received many questions this week regarding LB1087 (The Hospital Quality Assurance and Access Assessment Act), which I introduced in 2024. Although I have gotten the credit for passing this bill by the Governor and the Nebraska Hospital Association (NHA), I always remind people that it takes 25 votes to pass any bill, and there are countless hours spent behind the scenes developing the language to pass any comprehensive bill. This federal program has been in place for many years, but it has never had good traction in the Nebraska Legislature. First, the hospitals needed to all agree to collectively support the bill, since they are all required to contribute a portion of their net Medicaid revenues. These revenues are then matched 2.19 times by the federal government once the state program is approved by the Center for Medicare and Medicaid Services (CMS). The second obstacle was getting past prior hesitations from Governors and Legislatures to accept more federal funds.

The NHA came to me late in the summer of 2023 to ask me to carry the bill. They knew that I served on the Great Plains Health Board and had a good understanding of healthcare. They also felt that I could better explain the bill on the floor and get it through the process. By accessing these funds, we take pressure off the state to fund additional Medicaid provider rates. Some of the 41 states already using this program are using it to totally fund their Medicaid needs. In our case, we project receiving up to $1 billion in federal funding to augment the hospitals’ contributions. The state would also keep up to $150 million in fees from these proceeds.

Passing the bill meant getting the Governor, the hospitals, and the Legislature on board to support the bill. After discussions with the Governor, he was solidly in support. The NHA rallied its members, and 31 Senators agreed to co-sponsor the bill, with Senator Armendariz agreeing to designate the bill as her personal priority. In the end, the bill passed 45-0-1.

Following the passage, the state submitted a State Plan Amendment outlining implementation and waited for approval by CMS. That plan was developed and submitted to CMS last year prior to the election, but due to changes in the agency after the election, the process virtually stopped prior to the appointment and confirmation of a new HHS Secretary. We were very fortunate to get final approval just prior to passage of the Big Beautiful Bill, so we were grandfathered into the program. I want to thank Congressman Mike Flood for his work in making this happen. Also, the steadfast commitment of Governor Pillen to supporting the bill from beginning to end!

The first round of payments was made to Nebraska hospitals in late August. Several rural hospitals will remain open because of this bill. I am glad I could play a role in getting it done.

This year, I was asked by the Nebraska Medical Association (NMA) to introduce LB527 (Medicaid Assess and Quality Act). This bill is similar to LB1087, but increases federal Medicaid funding for doctors and non-hospital and non-behavioral health providers. The program matches Managed Care Organization (MCO) health insurance premiums that are paid into the program. This involves fewer dollars but brings federal funds to Nebraska to better compensate providers for providing medical services to Medicaid recipients.

Access to affordable healthcare, whether primary care providers, hospitals, or specialty services, must be a priority for Nebraska, particularly if we want to attract and retain residents in rural Nebraska.

It has been a pleasure serving as your State Senator. I enjoy the challenge and will continue to do my best to serve the interests of District 42. Please continue to reach out to me about issues that are important to you at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov.

Julie and I enjoyed driving our 1968 Camaro in the annual Hershey Fall Festival parade. It was great seeing so many friends who attended the parade and the delicious prime rib feed following. I continue to be impressed with the organizers as to how they come together each year as they organize multi-day events to bring people to the village to gather and celebrate Hershey’s heritage. The same can be said for all the small villages in the District that do the same. Well done!

Since the announcement of the merger between the Union Pacific and the Norfolk Southern Railroad, there have been many rumors regarding the workforce here in North Platte. I did have the opportunity to hear from UP this past week regarding the accuracy of the news coverage and what it means for the North Platte area. As union negotiations continue, these issues will become clearer, but nothing has been agreed to at this time and may not be soon. I appreciate the efforts to keep these jobs in North Platte and hope that will be the outcome of the negotiations. In the meantime, it is important we support efforts to make North Platte a more attractive place for people to live, which will pay dividends in the future. If those living in larger cities are to choose to live here, they want to have modern housing to choose from, good retail opportunities, recreational opportunities, and competitive taxes.

North Platte is in a different place than it used to be just a few years ago. We are growing our housing stock, have a new recreational facility under construction without raising property taxes. We are also growing our population as Sustainable Beef opens its doors and begins processing. Improvements at the District 177 mall are continuing, and sales tax revenues are growing. Since the City charges a Local Option Sales Tax, the city sales tax revenues are growing, which has contributed to a direct reduction in their property tax ask three years in a row. That’s how it is supposed to work!

Taking pressure off property taxes involves growing our tax base so we can collect fewer taxes from more taxpayers. Shifting tax collections from property taxes to sales and income taxes is huge. Growing our population brings more shoppers and more retail sales. More retail sales bring more retailers and more jobs. Economic development efforts are important, and they don’t happen by accident. That is why I am so proud of all our political subdivisions who are working hard to make the right investments and right focus to create a climate that encourages growth.

The State is also doing its part to lower local property taxes. I hope that many of you have noticed that the Legislature’s decision to take over funding of Community College operating expenses has kicked in, and are no longer listed on your property tax statement. This seems to be one of the best-kept secrets at a time when many are told we are doing nothing to reduce property taxes. This is in addition to property tax credit programs that reduce the overall tax burden, as well as foundation aid and other state funding that now make up more of school budgets. We are not done, but we are continuing to look for ways to find relief at a time when resources are limited.

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 mjacobson@leg.ne.gov.

This past week, Julie and I were able to attend the Governor’s Ag and Economic Development Summit in Kearney. It had record attendance, and lots of valuable information was shared. Included in the program was a panel discussion with the Governor and several of his cabinet members discussing how they intend to cut spending and improve service delivery. This is a subject, of course, that defies logic, but can be done. The underlying focus falls on technology improvements and better systems.

When I was knocking on doors back in 2022, I stopped to talk to a gentleman who invited me in to sit down and hear his story. He had a developmentally disabled child who was living at the former Beatrice home run by DHHS. His son later passed away as his care was inconsistent at best. This man then made it his mission to fix the system. At the time, there was a long waiting list to get into the system. The list never seemed to get shorter. Today, under the leadership of DHHS Director Corsi and Governor Pillen, the waiting list no longer exists. Everyone on it has been placed. Focusing on better communications and outcomes helped this to occur.

During my time as Vice Chair of the Legislature’s Performance Audit Committee, we asked why the wait time was so long to get background checks back for those wishing to become daycare employees. The delays were preventing daycare centers from hiring qualified people because the background check was too time-consuming. Many found other jobs in the meantime. The time from start to finish was up to 45 days. We found that if you applied through the State Patrol web site, the check was completed within a day, but their computer system did not communicate with the DHHS system, so they had to email or fax results to DHHS who then printed out the information, put it in an inbox for someone to later reinput the information into another system. With process improvements, the system is now well under 10 days start to finish.

Technology improvements are essential to improving efficiency. Within DHHS alone there are various computer programs written in several computer languages that don’t talk to each other. Many agency platforms also run from servers that need people to maintain them, including third-party contractors who are not afraid to charge for their services. Some of these contracts were not even necessary but were still maintained. Getting on a common software and using a cloud-based platform will greatly improve cost and efficiency. It will also improve outcomes.

We learned that 37% of DHHS employees already qualify for retirement. Many will need to be replaced with new employees who have the necessary technology background and can learn from the seasoned employees who remain. Hopefully, efficiencies will lead to fewer employees who can meet the demand with the right tools.

Like in business, we need to change with the times if we want to lower costs while improving outcomes.

We are also building a new state penitentiary, which I believe will be safer and more efficient than the old one. Lincoln County found efficiencies when it built the state-of-the-art jail, and I expect the state experience will be the same. Our goal is to house more prisoners in a safer environment with fewer staff at a lower cost. We need to find savings in all levels of Government while providing essential services that the public expects. We are on that path.

It has been a pleasure serving as your State Senator. I have enjoyed the challenge and will continue to do my best to serve the interests of District 42. Please continue to reach out to me at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov about issues that are important to you.

I hesitated to write this article, but I thought the message was timely. During my time in the Legislature, my focus has been to try to represent the issues important to the residents of District 42, regardless of political affiliation. Certainly, there are many issues that fall along party lines, and I never made it a secret that I am a conservative Republican. However, there are far more issues that impact everyone, notwithstanding political ideology, than those that are partisan.

I have been truly impressed with the demeanor of the lion’s share of the emails and calls I have received from District 42. They are respectful communications that are helpful for me to see. I get many emails from other parts of the state (Omaha and Lincoln) that are not always that way. I hope that my articles are informative and let you know what I am thinking about issues and outline why I take the positions that I do. I then rely on MY constituents to react. Communication is how we solve problems and work out differences.

I have been watching all the civil discord that has been taking place since the Presidential election and feel the heat is getting turned up as time goes on. Many people are not communicating with each other, but instead either talking (or shouting) past each other or only to those who agree with their own viewpoint. Do those shouting realize that no one is listening at that point? To be clear, this occurs on both sides of the political spectrum.

I believe that this discord reached a new low during the recent town hall meeting held by Congressman Flood in Lincoln. Three minutes into the meeting, he could not get a word in without getting shouted down, with many hurling four-letter words. What were the protestors wanting to accomplish? Whatever it was, it didn’t work. He came across as the adult in the room, and those screaming were seen as unhinged protestors trying simply to disrupt the event for those who wanted to hear the issues and get their questions answered. This was a very bad look. That is one of the reasons that I am so proud of MY constituents who care just as deeply about issues important to them and have respectfully reached out to me to express their concerns. It’s this attitude and approach that allows us to have a civil exchange of ideas. THANK YOU! It does not go unnoticed.

To underscore this point, I had two constituents reach out to me this week to express their concerns about issues. Both were registered Democrats who made good points that I will keep in mind if bills to address these issues make it onto the floor. They also ended their calls asking about my health and wishing me luck in my re-election campaign. This does not happen everywhere in the state. We live in a very special place.

In closing this week, I want to recognize the passing of my good friend and co-host of “Mugs in the Morning,” Rick Windham. I still find it hard to believe he is gone. Rick was a true outdoorsman who forgot more about hunting, fishing, guns, and camping than most people know. He was also a master at using a Dutch oven. And Rick was a great teacher who was dedicated to getting young people involved in outdoor activities. Rick’s personality and sense of humor were infectious, and he was simply a great human being. Rest in peace, my friend.

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 mjacobson@leg.ne.gov.

As many of you know, I grew up on a rented farm in Clay County, Nebraska, with seven brothers and sisters. We knew what it was like to make do with less. We really had no choice. We also learned that hard work was a way to make money and buy the items that you needed. The connection of hard work and paying for what you need makes you appreciate what you had that much more. We were fortunate that we lived on a farm, so we could raise chickens to grow our own eggs, and mom would occasionally put an old laying hen in the pressure cooker for delicious chicken noodle soup or creamed chicken over home-grown mashed potatoes. We also enjoyed French toast, pancakes, fried potatoes, and, occasionally, we would have a hog butchered to diversify the meat options.

We would clearly have qualified for SNAP (then food stamps) and bulk commodities, but my parents were not willing to accept government support. Of course, we also had no health insurance, dental coverage, and other modern-day safety nets. It is for that reason that I have been slow to embrace so many of the bills that ask taxpayers to fund programs that support such programs.

I know that times have changed over the years, and with the changing times, I have grown to understand that society has changed as well. Single- or no-parent households, addiction problems, and generational poverty all have contributed to more dependence on the government to provide families with the basics. There are also fewer people living on farms and ranches. But the question remains, where do you draw the line and how many taxpayer dollars should be spent on these programs?

I do want to make it clear that I fully understand that there are children truly in need due to food insecurity, and healthcare needs should be provided for. But I also know that we must guard against those who take advantage of the system along the way and have guardrails in place to protect the taxpayer.

Much of next session will center around how to strategically cut agency budgets. While our priority will be to cut waste and improve efficiencies to provide comparable levels of service for less cost, we may also need to make decisions about whether certain programs continue – either at all or at the current level. The Governor is targeting a reduction in state spending of $500 million annually. Spending at the state level must be held in check, just as legislators are asking locally elected officials to do the same. Ask any grain farmer today how they are dealing with lower grain prices. They could give many of us a tutorial on how to find efficiencies and lower costs.

The theme you will be hearing from some in the body will be that conservatives are placing tax cuts for the “wealthy” ahead of kids. The fact is, we are helping to make Nebraska more competitive with other states to attract and retain businesses and other taxpayers (wealthy or not) to our state. By growing our economy and increasing job opportunities, we can broaden the tax base and, in turn, reduce the tax burden on citizens. It is easy to target people who are successful, but they pay for the social programs that we have today. They are also often significant contributors to local non-profits that provide critical services in Nebraska communities. Keeping businesses and high-paid employees here, along with everyone else, is critical to growing our state. We must be competitive.

Since the pandemic, our spending on social safety nets has grown exponentially. They must be trimmed back and controlled going forward. Starting a program and growing it is easy, and cutting back is hard. We must find a way to find the right balance.

In closing, I want to update you on my health situation. I am doing physical therapy three days a week in Lincoln and making great progress. I will be walking unassisted very soon. Julie and I plan to participate in the Hershey parade Saturday the 23rd and have been able to spend more time in the District as my mobility improves. We love the opportunity to visit one-on-one with constituents and hope to see you in Hershey!

It is a pleasure serving as your State Senator. I enjoy the challenge and will continue to do my best to serve the interests of District 42. You can reach me at mjacobson@leg.ne.gov or 402-471-2729.

Although the Legislature has adjourned the 2025 session, Senators are already hard at work crafting bills for January, setting up interim studies, and attending conferences and meetings throughout their districts. We need to keep in mind that any bill that was not passed into law or indefinitely postponed will carry over to the 2026, the second session in the biennium. That, combined with it being a shorter session, usually means fewer new bills are offered in the second session.

I introduced three interim study resolutions this session. The first is a study to follow up on an issue that Governor Pillen asked me to study related to ag data privacy. Farmer and ranchers have an expectation that their data is secure and controlled by them to the extent possible. Today, many components of ag operations use equipment with some type of data connection that stores the output. Tractors and other equipment can be controlled remotely as well. Although we are always susceptible to cyberattacks, our data can also be collected and sold through third parties. This includes collecting our inputs and outputs, as well as genetic and other data collected from livestock EID tags and other remote devices. The right to sell or otherwise use this data should be controlled by the producer to the extent possible. My goal is to use the interim study to better understand all of the nuances and details of the ag data processes so we can improve the bill I introduced last session and move it forward in 2026.

The second interim study deals with the ongoing study of pharmacy benefit managers (PBMs) and the drug supply chain more generally. The Legislature has had legislation related to PBMs introduced for several years, and passed the Pharmacy Benefit Manager Licensure and Regulation Act in 2022. This year, I was pleased that I could work with my colleagues who introduced PBM legislation to bring all of the stakeholders together to implement other reasonable restrictions and protections that should improve the outlook for Nebraska pharmacies without unduly increasing drug benefit costs for insurers and, therefore, consumers. This interim study is designed to continue the discussion, including helping committee members to unwind the complicated drug supply chain. Many solutions are reserved for the federal level, but there may be more we can do in the state legislature to increase transparency and balance stakeholder interests.

Finally, the third interim study will examine factors affecting the rising cost of home insurance and explore ways to address premium increases and the availability of property insurance coverage. Access to affordable and workforce housing is a huge challenge facing most Nebraska communities. The cost of home ownership, which includes affordable insurance and property taxes, is a major barrier to accessing new and existing housing. Adequate insurance can also impact individuals’ ability to obtain financing, which can inhibit redevelopment or improvement of older or dilapidated homes. And, of course, increasing costs affect current homeowners as well.

One of the highest contributors to high property insurance is the claims resulting from roof losses. Wind and hail losses in Nebraska run higher than in any surrounding state. In addition to the high losses, many of these storms are widespread with many losses happening at once. When this happens, out-of-state companies often rush into an area and get assignments of losses from unsuspecting homeowners. Unfortunately, these assignments include giving them the right to sue the insurance company on your behalf, which they routinely do. In the end, they fix your roof, but they sue the insurer for losses that were never incurred. The insurance company ultimately settles the case, and the costs rise, resulting in higher premiums. Keep in mind that these are out-of-state or big-city companies as opposed to our local roofers, who will be here before the storm and will be here after to do any follow-up work and honor any warranties.

Additionally, the cost of reinsurance has skyrocketed as major storms around the country have caused massive losses during and after the pandemic. They continue to rebuild their reserves during this time as well. It is important to remember that your local agent is doing all they can to keep you insured at the best rate possible, but they have limited options today. I look forward to hearing from insurers, insurance agents, contractors, realtors, and others about the status of Nebraska’s property insurance system and consider ways we can improve this situation.

There is much to do this summer to prepare for the upcoming session. Keep sending any ideas you may have my way. I can be reached at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov. It is a pleasure serving as your State Senator. I enjoy the challenge and will continue to do my best to serve the interests of District 42.

As our country celebrates 249 years of existence, one common question still exists: What is a fair amount for citizens to pay in taxes, and how should the tax burden be distributed? We all agree we’d like to pay less in taxes, but reducing individuals’ tax burdens while still funding essential services and making investments to grow our economy is not as simple as it sounds. Many people have their own ideas of how to reduce taxes, but getting 33 state Senators – or a majority of those in Congress – to agree is a tall task.

Before proposing solutions, it is beneficial to understand how the current system operates. In Nebraska, the State funds its operations primarily from a 5.5% state sales tax and income taxes. These funds are collected statewide and help pay for all government agencies, state-owned roads, aid to public education, and other programs deemed beneficial to the state. Some agencies also collect fees and penalties that are used for State expenses. All the state revenue is currently fully appropriated.

Counties rely on property taxes, fees, and inheritance taxes to fund their needs. Counties collect local property taxes and distribute the funds to the local taxing entities, including the counties themselves. This ensures local dollars go towards local services that benefit those paying the property taxes. County responsibilities include maintaining and building roads, overseeing county law enforcement and emergency responses, and managing the county court system. Each county has an elected board, either comprised of commissioners or supervisors. This board also serves as the Board of Equalization in each county.

Municipalities, including cities and villages of all sizes, are also governed by a locally elected board with local control. In addition to property taxes and fees, municipalities can also collect a local option sales tax for additional revenue. The local option sales tax must be approved by the local voters. In the case of North Platte, its local option sales tax revenues have grown significantly over the past few years, which has helped to lower its property tax ask. Shifting the cost of maintaining city services from property tax payers to consumers allows for a lower cost of living for locals and takes advantage of tourism and travelers visiting the city.

There are a number of other entities that have tax-collecting authority, from rural fire districts to ag societies, from natural resource districts to educational service units. Community colleges used to be included on that list, but the state recently took over 100% of community college funding at the state level. By far, local public schools account for the largest portion of property tax collections.

The biggest challenge we face as lawmakers is how to fairly distribute state aid to schools and, in turn, how to fairly put limits on school spending. It is clear that we have runaway spending in many school districts, but there is also a wide variety in the needs of those districts across the state. Some of the smallest schools actually have a sizeable tax base because of the rural nature of the district. Conversely, urban schools often have more students with special needs or extra educational needs, such as students for whom English is a second language. Rural districts tend to have fewer of these types of students, but that, in turn, requires a disproportionate use of extra resources for the special students they have.

Over the last several years, the Legislature, in partnership with Governor Pillen and then-Governor Ricketts, has made significant financial investments in local public education. These investments were designed to address the slow shift to more reliance on property taxes in the last several decades, caused by unfunded mandates, rising costs per pupil, and state aid that didn’t keep up with increased costs. Over time, the TEEOSA formula has also been modified to shift more state equalization aid to larger metro-area schools. Even with more direct funding to small schools and direct property tax credits, school property taxes continue to rise in most districts as enrollment changes, the mix of special needs students shifts, and overhead expenses increase.

The solution to lowering school spending is unlikely to be one-size-fits-all. For some districts, it might be sharing administration with a neighboring district or combining sports programs. For others, it might mean taking advantage of virtual learning. It could mean reducing long-term costs by performing deferred maintenance or upgrading school properties. It is vital that school districts pursue conservative spending policies if we want to reduce property taxes. It will also be critical for school districts to communicate with state officials about what restrictions are workable. I remain open to suggestions that can be a part of the solution to a long-term, sustainable tax scheme.

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 mjacobson@leg.ne.gov.