One of the measures that will appear on the November 5 ballot is a referendum to repeal LB1402, otherwise known as Nebraska’s school choice bill. A vote to repeal on Measure 435 would effectively end the school choice program started by LB1402. Because all families must pay property taxes to their local public school district, I believe parents should be given the opportunity to choose where to send their children to school. Therefore, I support voting to retain Measure 435.

The education lobby has been hammering the airwaves and the Internet with commercials that are designed to garner support to repeal the new school choice law in Nebraska, but these advertisements are very misleading. Therefore, I would like to begin by exposing the three most misleading statements that are being spread about Nebraska’s school choice law.

The organization Support Our Schools Nebraska is currently running advertisements which say that LB1402 “shifts money from public schools to private schools” and that monies appropriated to pay for private schools “could force cuts to public schools to pay for it.” These statements simply are not true. These statements are false because public school districts are funded by local property tax dollars, not through the State’s General Fund. Property taxes are paid to the county, not to the State. In order for these statements to be true, the primary source of funding for public school districts would have to be the same as the source of funding for educational scholarships, and they are not the same. To the contrary, LB1402 appropriates $10 million per year from the State’s General Fund to the State Treasurer for the purpose of providing educational scholarships to students attending private schools. As long as public schools continue to receive their funding locally, and not from the State, there is no direct connection between funding for public schools and funding for educational scholarships.

Support Our Schools Nebraska also misleads the public by insinuating that LB1402 provides no oversight over monies paid to private schools. The advertisement says, “The voucher bill spends $100 million on private schools over ten years with no accountability or oversight of our tax dollars.” That statement is false because LB1402 does not spend any money on private schools; instead, the money is given to students in the form of scholarship grants. In other words, the program funds students rather than schools, which is the way it ought to be.

Finally, Support Our Schools Nebraska makes use of fear mongering tactics in order to scare voters into voting to repeal Measure 435. For example, Support Our Schools Nebraska is currently running an advertisement which says that Nebraska’s school choice program will cause Nebraska’s public schools to have “larger class sizes, fewer resources, less teacher pay, and higher property taxes.” Support Our Schools Nebraska ties their argument once again to how the school choice program receives its funding. The fact of the matter is that Support Our Schools Nebraska cannot validate any of their disastrous predictions about public education in Nebraska without first admitting that there is no connection whatsoever between how the school choice program is funded versus how public schools are funded. There is no way for their disastrous predictions to come true because the school choice program receives its money from the State and never intrudes on local funding for the public schools.

As you can see, the organization Support Our Schools Nebraska has not dealt forthrightly with voters concerning Measure 435. Educators love to brag about how well public education is doing in Nebraska. For example, you may have heard recently about how Nebraska’s students have out-performed their peers in other states on the ACT exam. While that statement is technically true, Nebraska’s ACT scores have been consistently falling over the years. For instance, when I first became a Nebraska State Senator eight years ago, the average ACT score in Nebraska was 21.5. This year’s average was only 19.1! So, rather than taking money away from students who want to attend a private school and better their education, shouldn’t we be holding our public schools accountable for failing Nebraska’s students? Nebraska needs school choice. On November 5, please vote to retain Measure 435.

Two ballot measures will appear on the November 5 ballot which concern the subject of abortion. Initiative 439 is known as the “Right to Abortion Initiative,” and would amend the Nebraska State Constitution, establishing abortion as a right up to the point of “fetal viability”. On the other side of the abortion issue is Initiative 434, also known as the “Protect Women and Children Initiative.” Initiative 434 would amend the Nebraska State Constitution to protect unborn children from abortions after the first trimester of pregnancy, except in cases of medical emergencies, rape and incest. Initiative 434 closely mirrors what State Senators did in 2023 when they passed LB574, which I voted for and continue to support.

Earlier this year a third ballot measure failed to get enough signatures to be placed on the November 5 ballot. That ballot initiative would have amended the Nebraska State Constitution to define a preborn child as a person at each stage of development within the womb; thus, making all abortions illegal. While I agree in principle that an unborn child is a person and that abortion is not a God-given right, I don’t believe the moral pulse of Nebraska is ready to pass such sweeping legislation. The fact that the ballot initiative failed to get enough signatures to appear on the November 5 ballot validates this point.

Overall Nebraska continues to be a Pro-Life state, and that is why we need to pass Initiative 434, the Protect Women and Children Initiative, and put some much-needed limitations on abortions. The language of Initiative 434 has been so carefully worded so as not to prevent the Legislature from passing further restrictions on abortions in the future, but allowing Initiative 439 to pass most certainly would! Because the language of Initiative 439 is so strong and would amend the Nebraska State Constitution by making abortion a fundamental right, it would make it nearly impossible for State Senators in the future to ever put restrictions of any kind on abortions.

This is important when you stop and consider the statistical facts about abortions. For example, 86 percent of all abortions are performed because the unborn child was considered to be an inconvenience. Inconvenience is simply a poor and inexcusable reason to take the life of an innocent child. Moreover, abortions of babies that are conceived in rape represent less than half of one percent, while abortions performed because of incest represent 1/100th of one percent of all abortions. Nationally, almost 900,000 abortions are performed each and every year, so putting the State Legislature in a position where State Senators can no longer debate these issues or consider putting any kind of restrictions whatsoever on abortions is just bad policy and runs counter to common-sense.

Initiative 434, the Protect Women and Children Initiative, is a good fit for Nebraska. While anti-abortion absolutists will continue to complain that Initiative 434 does not prohibit abortions during the first trimester of pregnancy, it would forbid abortions after the 12th week of pregnancy and prevent abortion from becoming a basic right in Nebraska. While the abortion rights activists will continue to complain that Initiative 434 takes away a woman’s and her physician’s decision-making ability in deciding to end a pregnancy, it would allow for a woman and her doctor to make that decision during the first trimester of pregnancy and it would permit State Senators to continue to debate these issues in the Unicameral Legislature in the future. Therefore, Initiative 434 represents the best common-sense solution for Nebraska as well as the best measure to vote for on this year’s ballot. I sincerely hope you will consider voting for Initiative 434 and against Initiative 439.

Back in January I introduced LB 1169, which was a bill to turn the Nebraska State Historical Society into a state code agency. The Nebraska State Historical Society had drifted far away from its original purpose and was engaging in practices which lacked accountability, especially in regards to the institution’s finances. Turning them into a state code agency allowed the Governor to appoint the director and greatly increased their level of accountability.

I made LB 1169 my personal priority bill this year and it passed in the Legislature. After the Governor signed the bill into law on April 16, 2024, the search began for a new executive interim director to run the agency. The natural and obvious choice for the position was Cindy Drake. Drake was the former librarian for the Nebraska State Historical Society, who had been unjustly fired from her position after serving the institution for 45 years. Gov. Pillen appointed Drake to the position on July 24, saying that she was the right person to fill the role.

Cindy Drake has already done a remarkable job of cleaning up the agency in the two short months that she has served as the executive interim director. Besides changing the name of the agency back to its original name (the name had been changed to History Nebraska), Drake has made several other positive changes to the agency and today I would like to highlight what some of those changes are.

First, Drake has been working closely with the Nebraska Department of Administrative Services and the Budget Office to restore financial accountability to the Nebraska State Historical Society. Drake is greatly improving the efficiency and accountability of the agency’s use of taxpayer’s dollars. For example, the agency is now relying upon its own staff to prepare the history of Nebraska instead of using out-of-state consulting firms to do the work. In short, those employed by the agency are now doing what they were originally hired to do.

Drake is leading the agency to restore its main exhibits in the Nebraska History Museum, which is located in Lincoln. These exhibits tell the comprehensive history of Nebraska from ancient times up to the 20th Century, and include important historical sites in Western Nebraska such as Fort Robinson and Chimney Rock. One of Drake’s goals is to create more interaction between the agency and local residents to better tell the story and to better promote the history of these important historical sites.

Drake has been leading the Nebraska State Historical Society to renew its partnership with the Nebraska State Historical Society Foundation, which has been in existence for the past 82 years. In 2023 the former director of History Nebraska, Trevor Jones, had been charged with felony theft by deception for transferring $269,926 to the History Nebraska Foundation, a separate foundation which he had helped to create. Under Drake’s leadership the Nebraska State Historical Society will work in tandem with the Nebraska State Historical Society Foundation to better fund and work on mutual historical activities which will better serve residents throughout the whole State of Nebraska.

Finally, Drake has restored the visiting hours for the library. The library is the home for the Archives Research Room, which houses the largest collection of Nebraska historical research materials. Previously, the library had been open to the public only one day each week. Now, the library, which is located at 1500 R Street in Lincoln, will be open weekdays from 9:00 a.m. – 4:30 p.m., except on Tuesdays.

As you can see, there are many positive changes that are now occurring at the Nebraska State Historical Society. These improvements are happening because of LB 1169. Cindy Drake is doing an excellent job restoring accountability, integrity, and faith in our state’s most important institution for preserving our heritage and history.

Last week, Sen. Machaela Cavanaugh of Omaha, sent a letter to Sen. Ray Aguilar, chair of the Legislature’s Executive Board, asking State Senators to rethink the legality and constitutionality of LB574, otherwise known as the “Let Them Grow Act”. LB574 put restrictions on physicians administering gender altering drugs and procedures on individuals under the age of 19. LB574 narrowly passed in the Legislature, and Sen. Cavanaugh had filibustered every bill leading up to the final vote on LB574 in order to stall its passage.

Sen. Cavanaugh’s letter to the Executive Board is designed to press the issue of how many sexes actually exist and to force the State Legislature to grapple with the issue of legalizing gender rights. For example, she cited the Civil Rights Act of 1964, appealed to the Bill of Rights contained in the Nebraska State Constitution, especially Article I, Section 3 which protects any person from being deprived of their right to liberty, and the Declaration of Independence which guarantees to every citizen the right to pursue happiness.

One of the fundamental problems with Sen. Cavanaugh’s mission to protect gender rights is that it is based upon very recent and flimsy science. While it is not my intention today to argue for the science of a two sex only human anatomy, it is my intention to challenge Sen. Cavanaugh’s progressive scientific worldview. For example, earlier this summer, the American College of Pediatricians released a declaration which calls upon those in medical profession to “follow the science” and to “immediately stop the promotion of social affirmation, puberty blockers, cross-sex hormones and surgeries for children and adolescents who experience distress over their biological sex.” Their statement is important because it shows that there simply is no consensus in the medical field regarding these kinds of treatments for children.

Medical science sometimes advances faster than ethics. As Dr. Ian Malcom once said about the scientists who were creating dinosaurs in the movie Jurassic Park, they “…were so preoccupied with whether or not they could that they didn’t stop to think if they should.” Dr. Malcom’s word of caution rings just as true for humans as it is for dinosaurs. Performing gender altering procedures on minors is just as much a moral decision as it is a scientific one.

In her letter to the Executive Board, Sen. Cavanaugh referred to these gender altering procedures as “necessary healthcare” without any qualification. To be sure, gender altering procedures are not necessary for sustaining life, and non-life-threatening healthcare procedures have never been considered a fundamental human right in American jurisprudence. At best, gender altering procedures would fall under the category of elective procedures, and elective procedures do not qualify as basic rights. If elective procedures were to constitute a necessary healthcare right, then what would that imply about such things as breast augmentations, liposuction, and nose jobs for underage straight individuals?

The fact of the matter is that many laws are created and are enforced which restrict what people can do to their own bodies. For example, the State of Nebraska has laws on the books which prohibit suicide, drunk driving, and public nudity, just to name a few. We prohibit such activities despite the fact that the argument is sometimes made on a purely personal level that suicide, drunk driving, and public nudity might contribute to an individual’s personal pursuit of happiness. We prohibit these kinds of activities because they can potentially do irreparable harm to the individual and that they transgress what is good for society as a whole.

So, I submit that making gender altering procedures available to minors is not good for Nebraska. Legalizing gender altering procedures for minors is immoral because minors are not yet mature enough to make these kinds of irreparable, life-changing decisions for themselves and that allowing minors to make these kinds of irreversible decisions transgresses what is good for society as a whole.

Last Thursday an Interim Study was conducted at the Capitol in Lincoln on LR357. According to Sen. Rick Holdcroft of Bellevue, the sponsor of the legislation, the purpose of the study was “to determine to what extent, if any, there is a necessity to bolster election security in the State of Nebraska.” To be sure, Nebraskans need to have confidence that their elections are secure and that the vote counting process accurately reflects the will of the people.

The two recent assassination attempts on the life of former president, Donald J. Trump, have settled the question once and for all as to whether individuals exist who are trying to interfere in our elections. Taking the life of a presidential candidate represents the most extreme form of election interference, and anyone who is so brazen to overtly attempt the assassination of the former president of the United States certainly does not lack the audacity to try to interfere covertly with the results of an election or to tamper with our vote counting machines.

The Interim Study focused on several potential problems with election security. The first problem arose during the days of the coronavirus outbreak. COVID-19 affected the elections of 2020 and 2022 by significantly increasing the number of early voting and mail-in ballots across the State. More than 50 percent of voters in Douglas County, for example, now vote early or by mail. The increase of early voting and voting by mail has increased the potential for voter fraud by illegally stuffing the ballot box.

Voting with a photo ID is also troublesome. Ever since voters passed Initiative 432 in 2022, which requires voters to show a photo ID when voting, validating mail-in ballots and ballots placed in drop boxes has become an issue. While state law currently requires voters to show a photo ID when they register to vote and to record their driver’s license number on their early voting or mail-in ballot, this process skirts the requirement to show a photo ID at the actual time of voting and opens the door for anyone who illicitly obtains driver’s license numbers to cast mail-in ballots for other registered voters.

Another problem relates to the advancement of election software and tabulating machines. For example, a skilled hacker might want to cheat in the election by changing the data contained in voter rolls stored by the software and counted in the tabulating machines. Because this data eventually gets stored onto a military grade thumb drive before it gets sent to the Nebraska Secretary of State to be certified, the possibility for interference exists at this point in the process. For example, a fraudster would merely have to replace the military grade thumb drive with one of his own in order to change the outcome of an election.

Finally, the potential for election fraud exists with the ballot counting machines themselves. While the Election Systems & Software (ES&S) ballot counting machines used in Nebraska never come with modems already installed, the worry is that one could be secretly installed shortly before an election, giving online access to nefarious groups or even to foreign agents. Because the ES&S contract forbids the Nebraska Secretary of State from opening up the machines and inspecting them for himself without authorized personnel being present from ES&S, this has caused suspicion about the use of such ballot counting machines. However, both Wayne Bena, the Assistant Secretary of State, and Chris Wlaschin of ES&S, agreed at the public hearing that such an inspection could be arranged.

I share these things with you today, not to cause anxiety about our elections, but to show you how the Legislature has been taking positive steps forward to protect the integrity of our elections. Last year I had introduced two bills that would have solved these problems, LB 228 and LB230, but neither bill advanced out of the Government, Military, and Veterans Affairs Committee. When it comes to elections, the time to act is before we have a problem.

This week I want to continue my explanation of LB 34 and what it means to you as a property tax payer. Three lawmakers, Sen. Steve Halloran (LD33), Sen. Justin Wayne (LD13), and myself did a press release last week, alerting members of the public to the fact that taxpayers will not be able to claim their property tax credit for their 2023 property taxes paid. That press release got the attention of the members of the Legislature’s Revenue Committee and the Nebraska Department of Revenue, who are now trying to protect the State’s so-called money. Therefore, I will explain exactly what LB34 will do to taxpayers who paid their property taxes for 2023 in the calendar year of 2024.

To start, let’s assume for the moment that your tax credit for the property taxes you paid in 2023 amounts to $1000. In that case, the property tax credit that you would ordinarily claim on your 2024 income tax return would be $1,000. Because you would file that income tax return at the end of the two-year cycle, which occurs in the year 2025, you then should be eligible to receive a total credit of $2000 – That is, $1,000 for your 2023 taxes and another $1000 for your 2024 taxes.

So, what’s the problem? After the passage of LB 34, you will no longer be able to collect the $1000 credit for your 2023 property taxes. Instead, you will now get a $1000 credit that you won’t have to file to collect on your income taxes for your 2024 property taxes. After the two-year property tax cycle, under LB 34, you will have received only a $1000 total credit. You will never see the $1,000 credit owed to you for your 2023 property taxes. It’s now gone. It has disappeared into thin air.

The language of LB 34 means that you have forever lost the opportunity to collect the credit of $1000 owed to you for your 2023 property taxes. Therefore, you have personally funded your own property tax relief for 2024 with the credit you should have received for your 2023 property taxes.

The Governor’s Office, the Nebraska Department of Revenue, and the Legislature’s Revenue Committee want you to believe that you are being held harmless because you will be receiving a $1000 credit frontloaded for your 24 taxes, but nothing could be further from the truth. As you see from this example, you have lost the $1,000 that you should have received for your 2023 property taxes. In other words, this is a retroactive property tax increase for the property taxes you paid for 2023.

It is now known that the members of the Legislature’s Revenue Committee, the Legislature’s Budget Office, and several other State Senators knew this before the vote was ever taken on LB 34. They knew beforehand that the bill was going to remove your opportunity to collect your credit for your 2023 property taxes. Now they are spending a significant amount of time trying to convince you that you did not lose anything simply because you will receive a nice credit on your 24 property taxes. it is quite obvious now that the old saying rings true that “Figures don’t lie, but liars figure.”

Over the past four years, those who have been eligible to claim their property tax credit but who never did so, constitute a significant percentage of the population of the state. 45 percent of the money that was appropriated for the credit was never claimed because, for whatever reason, those taxpayers never filed the necessary paperwork to get the credit. That total amount is just over $700 million. If those people would have filed for the credit, the state would’ve had to give away that $700 million in the form of credits to those taxpayers, so the State’s revenue has increased over the last four years by $700 million because those people never claimed their credits. So, the question now must be asked: Who does the money belong to? You guessed it. It’s the people’s money. The State of Nebraska does not really have any money, because everything it has comes from the taxpayer.

Another issue that LB 34 has created for those who pay quarterly estimates on their income taxes is that they may find themselves short.  This is so because they have been paying their estimates considering the reduction by the credits of the property taxes that went to the schools in the past years.  The good news is that the Revenue Department said they will not fine people for under-funding their payments.

Please contact the Governor’s Office and your State Senator and tell them that they must fix this issue before we all file our income taxes next spring.

Press Release
September 9, 2024

We three State Senators, Steve Erdman (LD47), Steve Halloran (LD33), and Justin Wayne (LD13) have important information to report about the tax relief bill that was passed during the special session. LB 34 contains important language that will affect the 2023 property tax credit that taxpayers are entitled to receive on their 2024 income tax return. Because the language of the bill put an end to the rebate beginning January 1, 2024, taxpayers will not be able to claim the 30 percent property tax rebate that is owed them on their 2024 income tax return.

LB34 pulls a slight-of-hand tactic on property owners. The bill front loads the 30 percent property tax credit that goes to the schools so that it becomes automatic. In the future taxpayers won’t have to claim it as a credit on their state income tax return, and that part of the bill is good. However, the bill also eliminates the property tax credit for the year 2023, and that’s the bad news, which in turn makes it a property tax increase for 2023.

The State of Nebraska needs to rectify this problem. For example, if the credit on a person’s 2023 property tax statement is worth $1,000, then in 2025 he or she should receive the $1,000 owed him from the credit plus an additional $1,000 for his 2024 property taxes which have now been front loaded for a total of $2,000. Instead, that individual will only receive the $1,000 which has been front loaded onto his 2024 property taxes.

There are two ways that the State Legislature can fix this problem. The first way would be to allow taxpayers to claim the credit for their 2023 property taxes when they file their 2024 income tax returns. The second way would be to double the front-loaded credit that property owners will receive in 2025. Last year $565 million dollars was credited to property owners in the form of the property tax credit. Consequently, the State of Nebraska is holding approximately $700 million of money belonging to the taxpayers who never filed for the credit and they have no intention of ever returning it to the taxpayers. Whose money is it?

As you may recall, I have written about the not-so-special legislative session in some of my recent articles. For the past week I have been researching the implementation of LB 34, the so-called property tax relief bill that was passed during the special session of the Legislature in August. As I have read and reread that legislation, it has become apparent to me that the legislature, including me, missed an important piece about how that bill would be implemented.

The special session started with the Governor’s proposal, which was LB1. I spent the better part of a day reading the 144 pages of that bill, making notes, and jotting down questions that I had about it. My work turned out to be a waste of time because before LB1 advanced to the floor it was changed with a completely new bill, LB9.

My staff and I were busy trying to understand the ramifications of LB9, which was 120 pages long, when it was suddenly withdrawn and replaced with yet another bill, LB34. LB 34 became the bill that would finally pass in the Legislature and make your property tax relief dollars go directly to the schools, so you would not have to claim the 30 percent credit any more on your income tax return.

When LB 34 was being debated on the floor of the Legislature, I failed to catch some very important language in the bill, which removed the opportunity for taxpayers to collect their 30 percent property tax rebate for the taxes they paid to the public schools for the year 2023. According to the language of the bill, property tax credits will no longer be available as of January 1, 2024.

Whether property owners paid their 2023 property taxes personally or through their escrow accounts in 2024, does not matter, because neither one will be able to collect the 30 percent property tax credit allotted to them for the year 2023.

The loss of those property tax credits will result in the State retaining the credit in the State’s general fund. Last year those property tax credits added up to $565 million. The State of Nebraska will now keep those property tax credits from 2023 and use that $565 million to fund the reduction in property taxes planned for 2024. So, those paying property taxes are funding their property tax relief for 2024 with their lost credit from 2023.

When I inquired about how the State of Nebraska intends to make up for these lost property tax credits from 2023, the response I received was not very convincing. The State wants the public to believe that the reduction in property taxes that will take place next year for the tax year of 2024 somehow makes up for the loss of the property tax credit that taxpayers were denied for their 2023 property taxes.

I spent several hours with the budget office trying to explain to them how the property tax credit for 2023 will be forever lost. They were not convinced. Because the State plans to keep the $565 million owed to the taxpayers from their 2023 property taxes, the taxpayers, unbeknownst to them, will be funding their own property tax reduction for 2024.

I regret that I did not catch this mistake before LB34 was passed in the Legislature during the special session. Nevertheless, when you file your income taxes next spring, be prepared, because you will not be able to claim the same 30 percent property tax credit that you have received in the past. So, your taxes for 2023 will be much higher than they were in 2022.

Removing the tax credit for 2023 amounts to a retroactive property tax increase. The State is increasing each person’s taxes in 2023 in order to give them a property tax decrease in 2024. There are only two ways to make the taxpayer whole again: The State could allow each taxpayer to claim the credit for their 2023 property taxes when they file their income tax return in 2025, or the State could double the discount in property taxes for 2024 to make up for the credit loss in 2023.

The goal of the not-so-special session was supposed to be about increasing property tax relief, not taking property tax relief away from those who were already getting it and giving it to those who weren’t.

Because the Nebraska State Legislature failed to pass any kind of meaningful and significant property tax relief during the special session, and because Nebraska now ranks as the second worst state in the nation for mortgage delinquencies, today I would like to inform the public about a significant development in the courts which now affects those with delinquent property tax liens.

According to Nebraska State Statute 77-1801, the properties of those with delinquent property tax bills can be sold or auctioned off to the highest bidder every year on the first Monday in March after the taxes become delinquent. Once the properties are sold and the back taxes are paid, the new owner of the property gets to keep the remainder of the equity in the home. Some have called this home equity theft and it has become a nightmare scenario for many elderly residents, the sick, and those who lose a job.

Such was the case for Kevin L. Fair of Scotts Bluff County. When Kevin’s wife, Sandra Nieveen, was diagnosed with multiple sclerosis, her condition required round-the-clock care. The Fairs couldn’t afford to hire anyone, so Kevin chose to quit his job and become his wife’s primary caregiver. The couple now had to live solely off of their Social Security checks. However, when their property tax statement came in, Kevin could not find a way to pay the $588 he owed to the County of Scotts Bluff.

In 2015 Continental Resources purchased the Fair’s tax debt and satisfied the tax debt to the county. Then, in 2018 the company sent Kevin a bill totaling $5,268 in overdue taxes, penalties, interest, and fees along with a notice to settle the debt within 90 days, otherwise, their $60,000 house would be sold to pay the debt. Naturally, Kevin couldn’t pay such an exorbitant amount of money, so he took it to court, where he lost in both the state court and in the Nebraska Supreme Court in 2022.

A similar situation had happened to Geraldine Tyler, who lived in Hennepin County, Minnesota. After her tax debt was sold, the tab on her original $2,300 tax statement ballooned to $15,000 after adding penalties, interest, and fees. However, when she sued Hennepin County, her case went all the way up to the U.S. Supreme Court, who ruled in her favor last year.

The U.S. Supreme Court ruled that the Takings Clause of the Fifth Amendment applies to these kinds of cases. Specifically, the Takings Clause of the Fifth Amendment states that “private property [shall not] be taken for public use, without just compensation.” The nation’s highest court ruled that Hennepin County “could not use the toehold of the tax debt to confiscate more property than was due.” Commenting on the case, Chief Justice, John Roberts said, “The taxpayer must render unto Caesar what is Caesar’s, but no more.” This decision is good news for homeowners who are struggling to pay their property taxes.

The U.S. Supreme Court directed those states with similar cases to revisit them. So, the Nebraska Supreme Court had to revisit and reverse their decision in the case of Continental Resources v. Kevin L. Fair. This time the Nebraska Supreme Court decided that Kevin Fair was entitled to the excess equity in his home; otherwise, the decision would constitute a violation of the Takings Clause of the Fifth Amendment.

I share this information with you today because I expect the property tax situation in Nebraska to grow much worse before it ever gets any better. Nebraskans need to know how to protect themselves against home equity theft, especially when the government allows it. No one ever has the right to take the excess equity that you have put into your home.

The not-so-special-session of the Legislature ended on Tuesday, August 20. Sen. Loren Lippincott of Central City described the mood of the session by writing: “Unfortunately, the biggest scarcity seems to be the political courage to do what is right on behalf of the people.” Sen. Lippincott’s statement profoundly described exactly what happened during the special session of the Legislature, which ended without passing any kind of meaningful or significant property tax relief.

What the Legislature passed was not very original or new. It took 17 days for the Legislature to adopt a resolution which I had previously introduced as an amendment to another bill back in April. The reason I introduced that amendment was to help those who were not claiming their property tax credit on their income tax return. Back in April my amendment had received 23 votes, but it needed 25 to pass. Four months later and after 17 days of the most unorganized and confusing session I have ever been involved in, we passed the same amendment with 40 votes.

I knew back in April that passing that amendment would not stop property taxes from increasing. What the Legislature passed during the special session through LB34 amounts to nothing more than a slight decrease in the amount of the increase that taxpayers will see on their future property tax statements. While the amendment will help the 45 percent of property owners who have not been filing the necessary paperwork to get the property tax credit on their income tax returns, the credit itself has been available ever since LB1107 passed back in the year 2020, so it does not really count as property tax relief.

In addition to front loading the property tax credit already made available to the taxpayers since 2020, LB34 also placed a cap on local units of government. The cap applies to their budgets. The cap will restrict increases to zero or the inflation rate, whichever is higher; however, the cap may be overridden whenever there is a threat to public safety or by a vote of the people during the month of May in odd numbered years.

One issue that a lot of people don’t understand is how their property taxes pay for many requirements that the State has placed on local units of government. From time to time the State Legislature passes bills that force counties, cities, and schools to pay for things that the state does not pay for. These kinds of bills are called “unfunded mandates”. Unfunded mandates cost property owners hundreds of millions of dollars every year in the form of higher property taxes. Unfortunately, State Senators often do not take into consideration how these unfunded mandates will affect the taxpayers when it comes time to vote on the bill.

I was part of the working group that the Governor selected to work on property tax relief earlier this year. That group met seven times during the early summer months. It has been said that this committee almost unanimously agreed with the plan that the Governor introduced. Nothing could be further from the truth. There was never a time when a vote was taken, nor were the members of the working group ever asked if they agreed with the plan. There was no method for determining any kind of consensus. What the Governor came up with was his own personal plan. The Governor had been advised not to call for a special session until he had 33 votes to pass his plan in the Legislature. He ignored that advice and has now discovered the hard way that there are three separate coequal branches of government.

The Governor has the authority to call for a special session of the Legislature, but he has no authority to keep State Senators there. Earlier this spring the Governor had stated that he would continue to call for special sessions, even if it took until Christmas to get meaningful property tax relief. Now he is saying that unless he has the votes, he won’t call the State Senators back to the Capitol. Gov. Pillen stated many times that his goal was to deliver a 50 percent reduction in property taxes. The bill passed by the Legislature is only a three percent reduction and now he is calling that a great first step. In the final analysis, what the Legislature passed amounts to nothing more than a decrease in the amount of the increase.