I was pleased to be able to spend some time in North Platte this week, both catching up on work at the Bank and attending events. One of my duties this week was to visit with those who attended the opening of the Sheldon Statewide: Hyphen America exhibit at the Prairie Arts Center. The Sheldon Statewide exhibits have been coming to North Platte for many years and give students and members of the community the opportunity to appreciate artwork that they may never have been exposed to otherwise. Julie helped coordinate tours and docents for the North Platte exhibit for many years, so it’s a cause that is particularly close to our hearts.

We are so fortunate to have the Prairie Art Center in North Platte and to have Holly Carlini as its director. It is an amazing facility, and I have always been impressed by the wonderfully talented artists who call Legislative District 42 their home. Getting the added exposure to the unique artwork displayed by the Sheldon Museum is a special treat. You never know when or how a child may be inspired by these works of art.

A big thank you to Rhonda Seacrest for first bringing Sheldon Statewide to North Platte over 30 years ago. NebraskaLand Bank is pleased to be a long-time sponsor underwriting the exhibit.

On Friday, I participated in an event held by Senator Pete Ricketts at Sustainable Beef. Senator Ricketts touted his nine-point plan to rebuild the beef herd, which has recently been at record lows. The beef industry is critically important to Nebraska, from the cow-calf operators, feedlots, and packers to the transportation network. Rebuilding a strong domestic industry is critical to our state, and good for America.

Because of my commitments in North Platte, I was unable to attend the ServeNebraska Step Forward Awards in Lincoln. ServeNebraska is Nebraska’s Volunteer Service Commission and coordinates volunteer efforts across our state. The Governor selects Step Forward Award recipients in tribute to their significant contributions to the state through volunteerism. My Legislative Aide, Tori Richardson, attended this year’s award ceremony on my behalf to see Brooklynn DeNaeyer of Thedford, Virginia Huffman of Tryon, and Brian Grandy of North Platte receive their awards. I want to congratulate each of them and thank them for their contributions to their communities in District 42. They have set great examples for all to follow!

I closed the week out by attending the Husker Football game to watch 3 ½ quarters of great football (ha!). Win or lose, there is no place like Memorial Stadium on a Husker football Saturday. We recovered from the football game by watching the volleyball team stand tall and bring home another great victory. We now know that the top two teams in volleyball are the Husker first team and the Husker second team. Very proud of these incredible women.

As a reminder, the Banking, Commerce, and Insurance Committee will hold an interim study discussion on LR310 on Friday, October 16 at 1:00 at Mid-Plains Community College’s North Campus. I brought LR310 to get your feedback on the structure of the Nebraska Tourism Commission and whether we should consider recombining the Tourism Commission with the Nebraska Department of Economic Development (DED). I hope several tourism and hospitality industry leaders will participate and provide guidance.

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 spent most of last week in Lincoln working with staff and meeting with other members of the body to discuss new legislation for 2027 and preparing for upcoming interim studies.

I will be hosting an interim study on LR310 on October 16, regarding the organizational structure of the Nebraska Tourism Commission. Prior to 2012, the Tourism Commission was part of the Nebraska Department of Economic Development (DED). The primary reason for separating tourism from DED was to ensure that there was a statewide focus on tourism by creating a commission that had representation across the state. The commission is funded from occupation taxes collected for room rentals by hotels and motels across the state.

Last session, there was a bill introduced to combine the two entities again. I opposed the bill because I felt that the reasons for separating the two entities were still valid today. Since the bill did not advance, I then introduced LR310 to allow us to study the matter over the interim. I understand the interest in trying to combine a singular focus under one entity, but I remain skeptical that rural Nebraska will get the attention that it deserves and receives under the current structure. I scheduled the roundtable-style hearing to be held at Mid-Plains Community College to help allow more rural residents to take part in the deliberation process. Given the tremendous success of the commission under its new director, I see no reason to change course.

With the mid-term election just around the corner on November 3, we are seeing many political ads making promises and indicating they want a new direction. Many of these ads also exaggerate the financial position of the state of Nebraska. Let me be clear: the state is far from bankrupt.

Every year, the Legislature ensures that the budget is in balance based on the projections from the Nebraska Economic Forecasting Board. The Forecasting Board provides the official numbers that the Legislature is required to use when balancing the budget. This past year, the revenues were off due to the changes in federal tax policy that allowed for significant reductions in taxes owed at both the federal and state levels. As a result, tax refunds to Nebraskans were higher than expected. However, on the positive side, sales tax receipts have been running well above projections, indicating strong consumer spending which generally indicates a strong economy.

There are also several economic factors that are harder to quantify. For example, the effects of wildfires and resulting herd liquidation are hard to measure currently, but the demand for beef remains high and industry profits are still strong. Grain producers have seen production problems in the western portion of Nebraska, but generally favorable yields in the eastern portion of the state. However, the recent heavy rainfall in the eastern half of the state has created significant harvest problems that may also result in poor grain quality. Most grain producers use some form of crop insurance and due to production challenges elsewhere, price levels have risen above the cost of production. In the end, I expect results to outpace early expectations.

In 2027, the Legislature will once again balance the budget without over-depleting reserves. As I visit with my colleagues, we are very cognizant of pervasive concerns about the burden of property taxes and the need to reduce them. Many political subdivisions are raising property taxes at rates well above inflation, you can expect that steps will be taken to address this. It should also be noted that nearly half of the state budget is already devoted to property tax relief in one form or another. In each of the past three years, the Legislature has supported the Governor’s request to increase the Tier II property tax relief fund by $750 million to provide direct credits on your property tax statements. The direct property tax credits now total nearly $1.7 billion annually.

So, when politicians say they want to go in a different direction, ask what direction they want to go. Do they want to reduce your property tax credits? Or do they want to preserve those credits by raising other revenues? Personally, I support shifting more tax revenue to sales taxes. I believe we can expand the sales tax base without the need to tax agricultural and business inputs or necessities. I am also supportive of economic development efforts with proven impacts. Growing our state will continue to be key to solving our tax challenges at all levels.

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 had the privilege of being invited by Wallace substitute schoolteacher Becky Uehling to speak to her 7th-grade class on Zoom. I was so impressed by the respect the class showed and the quality of their questions. I really appreciate our local public schools’ effort to expose students to government officials and help them understand how our laws are made. The last time I spoke to a group of area students was four years ago when I was invited to visit the 4^th grade class in Thedford. They too were a great group of students who left me with an unforgettable impression of the quality of our area students.

This past week, I served on a legislative panel at the Thriving Children and Families Conference in Kearney, sponsored by First Five Nebraska. Our panel focused on the importance of childcare in growing our economy. Without available childcare providers, our workforce and job growth are reduced.

I ended the week by attending the Governor’s reception for the President of the Czech Republic and the announcement of two Executive Orders (EO) designed to help farmers and ranchers cope with the effects of high diesel fuel costs.

The first EO deals with the tax on off-road diesel fuel. To be clear, there is no tax today on fuel used for off-road use since the millions of gallons of off-road fuel do not impact our highway system. Diesel fuel used for over-the-road trucks is subject to both state and federal road tax. The state tax is collected at the point of sale and remitted to the Nebraska Department of Revenue to fund the Nebraska Department of Transportation for road construction and maintenance. The Federal tax is also collected at the point of sale and remitted to the Nebraska Department of Revenue, which remits it to the IRS. Diesel fuel used for over-the-road vehicles is clear in color, but a red dye is added to the fuel for off-road purposes to distinguish it from over-the-road fuel. Today, farmers and ranchers often keep two fuel storage tanks on their premises so they can keep off-road fuel for ag equipment separate from motor-vehicle fuel for over-the-road use.

The Governor’s EO suspends the state tax on over-the-road (clear) diesel fuel for 90 days, with the option to extend, if needed. Since this tax is collected at the point of sale, a trucker hauling an agricultural commodity who fills his semi at a fuel pump will pay the full tax, but can apply for a refund of the state tax (31.8 cents per gallon) if they keep their receipt.

However, it is the Governor’s intent to allow these individuals to also avoid paying the federal tax (24.4 cents per gallon) by using “red” off-road fuel in over-the-road trucks if they are exclusively hauling ag commodities that include grain, livestock, hay and distillers’ grains, sugar beets, and any other ag commodity. This would eliminate the need to file any refunds and would also capture the federal tax. The Department of Revenue has applied for the federal waiver to accomplish this. There have been many questions regarding this EO, and the Department of Revenue has linked additional information on its main page: https://revenue.nebraska.gov/. The State Patrol chief was also present at the press conference to confirm that their carrier enforcement officers will be flexible once the suspension period ends and over-the-road vehicles have residual color in their fuel.

The second EO modified the existing agricultural overweight limits for truck hauling grain for field to market, by allowing haulers of agricultural commodities to haul all loads up to 25% more than the current allowable weights. I would, however, caution those hauling grain to make sure their lights are working, their brakes are properly adjusted, and their tires meet specs. These orders only apply to trucks operating in Nebraska and do not allow for overweight interstate travel.

These two EOs will be a huge help to farmers and ranchers who are dealing with the challenging impact of high diesel fuel prices and the summer fires. I applaud Governor Pillen for taking this decisive action.

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, 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.