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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

I spent much of last week working in Lincoln, but I made a special trip back to North Platte on Friday morning to take part in the “Recognition Coin” presentation for area Korean War veterans. This event is one of seven being hosted throughout the state, in addition to an upcoming special ceremony hosted by Governor Pillen and the Nebraska Department of Veterans Affairs on July 24 at the State Capitol to recognize Nebraska’s Korean War veterans.

It was truly an honor to speak to this group, whose members are among our oldest living veterans. In my remarks, I noted how grateful all Americans should be for the service of our nation’s veterans and for the sacrifices they have made so we can live in this amazing country. Despite ongoing social media posts from various celebrities and democratic socialists who say they plan to leave the United States, many ultimately do not once they realize there is no better country on earth. It was touching to see the honorees salute and place their hands over their hearts when the colors were presented, and the contrast in perspectives was hard to miss from those who choose to disrespect the flag.

I often point out that veterans are among my highest priorities as I represent my constituents, and I have an even deeper respect for those who are disabled as a result of their service in the armed forces. They carry a daily reminder of the price they paid to protect our freedoms, and I wish more of us shared that same appreciation. Thank you, veterans! It is also noteworthy that Nebraska is the only state to have produced and awarded these coins to our brave Korean War veterans. I expect this tribute to be just the beginning. Thank you, Governor Pillen, for remembering our veterans and continuing the tradition you began of honoring them while they can be present for these presentations.

I was saddened to hear of the sudden passing of U.S. Senator Lindsey Graham. Whatever you think of his politics, he spent over two decades serving the state of South Carolina. Public service is never easy, and he certainly made his mark on U.S. governance. It is disheartening to see some of the rhetoric online in response to news of his passing. As we head into November, I hope everyone will be thoughtful in how they take in and respond to political discourse.

Many of you know that I am a frequent critic of social media and the outrageous statements made by those who post and the responses to their posts. I guess some people’s mothers did not tell them the famous saying, “If you don’t have anything nice to say, then don’t say anything at all.” That doesn’t mean we can’t disagree with each other, but rather that we should be mindful of how we make our arguments and criticisms. Yes, there are big issues that often divide us, but there are also a lot of things where people of different political parties can find agreement. And, by and large, most elected officials are doing what they believe is in the best interests of their constituents and communities. Just remember that there are real people on the other end of your posts.

On a more personal note, I want to provide an update on my health. I am happy to report that I had a PET scan last week that showed that the cancer was no longer present. I will remain on my oral medication in the hopes that it will prevent any recurrence, but I am feeling great and remain optimistic that God will continue to bless me. All the prayers from everyone have paid off. During the past eight months, Julie and I celebrated our 50^th wedding anniversary, welcomed the birth of our first grandson, Dennis Michael (Tripp) Vaggalis, and now, I have reason to believe I will have many years left to enjoy everyone in my life. I am truly blessed.

In closing, I want everyone to note that my legislative email will change as of this Tuesday. The new address is mike.jacobson@leg.ne.gov. I look forward to your continued contact. You can also continue to reach me via phone at 402-471-2729.

Last week, the United States Supreme Court announced it will hear Nebraska’s case against Colorado for failing to honor the terms of the 1923 South Platte River Compact. The case centers on Colorado’s failure to restrict junior water users whose use affects the water that should flow to Nebraska. We all know how important water is, not only for our agricultural producers but also for our communities.

It is also important to remember that Nebraska and Colorado entered the Compact because, before the agreement, Nebraska could call for water down the South Platte River at any time. The compact was a compromise. However, Colorado has not upheld its end of the agreement. I sympathize with the Colorado farmers affected by this issue, but I am also concerned about Nebraskans who have been harmed because the agreement has not been honored.

I appreciate the work that Attorney General Hilgers and his staff have done to get us to this point. Mike is a great AG and has earned my respect from the time I first met him when he was serving as the Speaker of the Legislature. I am confident that we will be well represented as this case moves forward.

It is expected that this litigation could take several years. In the meantime, Nebraska must remain committed to building the Perkins County Canal and vigorously defend our water entitlements under the Compact. I have always been hopeful that there could be some kind of settlement that allows both states to avoid litigation costs, but time will tell once this case is decided.

The Supreme Court has also issued several opinions over the last few weeks, including upholding laws in West Virginia and Idaho that restrict men from participating in women’s sports. Signatures have been submitted to a ballot initiative in Nebraska along a similar vein. I hope that Nebraskans get an opportunity to weigh in on this issue and it is ultimately passed. So many have fought to create opportunities for women to participate in sports. In my mind, these measures are not about discriminating against men or transgender individuals; it is about protecting the ability of women and girls to compete in a fair environment.

I also read this week that Nebraska’s teen unemployment rate has tripled since the voter-approved minimum wage law took effect. As you may recall, the ballot initiative raised the minimum wage to $15.00 per hour beginning January 1, 2026. As passed, the law did not include an exception for workers under age 16. However, the Legislature later modified the initiative, with the required two-thirds majority vote, to allow employers to pay 14- and 15-year-olds a reduced wage of $13.50 per hour.

The Legislature’s change recognized that younger teens are limited in what jobs they can perform. For example, they cannot legally drive for work, lift items weighing more than 50 pounds, work late hours, or perform certain hazardous jobs. Because of these restrictions, younger workers may be less attractive to employers. When they must be paid the same wage as older workers who are not subject to the same limits, employers may be less likely to hire them.

All of these factors have made it harder for young people to get a first job and begin developing a strong work ethic. I believe minimum wage requirements should be carefully considered before they are imposed. Good intentions can still lead to unintended consequences when they meet reality. Even with the minimum wage change made by the Legislature, the challenges younger workers face in finding employment may need further attention.

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.

Last week, I received several questions about a bill the Governor signed in Blair. I was unable to attend the signing ceremony because I was tied up with Nebraskaland Days activities, but I wanted to explain what the bill does.

The bill signed was LB1114, which included my bill, LB1130, the Community Improvement District Act. LB1130 gives cities and villages a new, locally controlled tool to help finance public infrastructure, including streets, sidewalks, sewer, water, utilities, grading, and other improvements needed to encourage housing development.

One of the biggest challenges facing communities across Nebraska is housing. Employers are recruiting workers, young families are buying their first homes, and many communities want to grow but are constrained by the high cost of development. Before a new home can be built, infrastructure must be in place. Those costs are often paid up-front by the builder and then passed along in the final price of the lot or home.

LB1130 will help address that problem by allowing property owners within a defined area to voluntarily form a Community Improvement District (CID). A CID allows infrastructure costs to be financed over time by property owners, rather than requiring all those costs to be paid up front. This can reduce the initial development cost and support the responsible growth of new housing stock.

It is important to note that this is not a government spending program. LB1130 does not use funds from the state or political subdivision. Instead, a bond is issued and marketed to cover the initial improvement costs, and additional taxes are collected from those who benefit from the improvements to repay the bond.

Notably, a CID also cannot be imposed on a neighborhood. A majority of property owners in the proposed district must first support the idea through a petition. There must then be notice and a public hearing, and the city council or village board must approve the district by ordinance. Local elected officials retain control at each major step.

Once created, the CID is governed by a board of local property owners elected from within the district. It must also comply with open meetings laws, budgeting requirements, and audit requirements. In other words, this is a public, accountable process with local oversight.

The Governor’s signing of LB1114 took place at the future site of the Bear Creek housing development in Blair, which plans to use this new tool to build 137 new homes. That project is a good example of how LB1130 can help reduce up-front development costs and make homes more attainable. It is one of over a dozen projects planned statewide and now in progress.

LB1130 will not solve every housing challenge overnight, but it’s another tool in the toolbox. Infrastructure costs are among the largest barriers to new development, and this bill gives communities another tool to address that barrier while keeping decisions local.

It continues to be my privilege to represent District 42 as your state Senator. It is a responsibility that I don’t take lightly, and your input on policies and problems is always welcome. I can be reached at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov.

It’s that time of year again! This last week was consumed by Nebraskaland Days activities. Nebraskaland Days is the State’s official statewide celebration and began in Lincoln in 1965. It moved to North Platte in 1968 to tie the celebration with Buffalo Bill Cody. The rodeo and related activities have been held in North Platte (and legislative District 42) since that time.

I was honored to join the North Platte Mayor in selecting my favorite quilt at the annual quilt show. Little did I know how difficult it would be to select just one favorite quilt out of 82 entries! I landed on an antique quilt that reminded me of a quilt handed down to my wife from her grandmother. Nothing like a meticulously hand stitched quilt. They are true works of art!

On Thursday morning, I had the privilege to be the keynote speaker at the Mayor’s prayer breakfast. It was a unique opportunity to help people better understand who I am, and the impact that God has had in my life. I made a comment to the group about how much I have learned about my life by reading social media, from total strangers who have never met me. Joking aside, my message was focused on how grateful I am for God’s influence in my life and how appreciative I am that he led me from a very meager beginning to where I am today. I am so blessed to have been associated with so many great people who helped me achieve my dreams. To God the glory.

Thursday night, we joined Great Plains Health for their platinum sponsor night and the rodeo focusing on cancer research, also known as “Tough Enough To Wear Pink” night. We are very fortunate to have such a quality medical facility located here. The hospital provides much-needed services to the whole west central Nebraska region. State-of-the-art cancer, cardiac, orthopedic, and neurological services are key areas that the hospital specializes in. They also support area hospitals who provide emergency services to residents living in the region. Health care will continue to be a priority need if we want to recruit and retain residents in western Nebraska.

On Friday night, we were invited to join the Governor and first lady Suzanne Pillen on Pioneer Seeds’ platinum night. Thank you VJ Brosius for the hospitality. Great food and great company!

We participated in the annual Nebraskaland Days parade on Saturday, driving our vintage 1968 Camaro convertible. I always wanted to own one of these and all of the wonderful parades in District 42 was the perfect excuse when I finally found one a few years ago. We really enjoy seeing the excitement of the kids that attend the parades and it is great way to connect with constituents.   I must say, this year’s parade must have been the coldest of any of the previous Nebraskaland Days parades. I can’t say we missed the heat! Following the parade, I made certain to attend the Disabled American Veterans BBQ at the North Platte Legion Club. This group of people has my highest respect and are all American heroes.

I want to thank the Nebraskaland Days Board of Directors and the Rodeo Committee for all the work they put in to bring this incredible event in North Platte each year. I can’t think of any other volunteer groups that work as hard as they do. The two weeks of festivities have a huge economic impact on our region and provide entertainment for all ages. I look forward to the concert series this week.

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 was dominated by discussions about data centers. Many are lining up to oppose them, and some are calling for a total ban on building any new data centers. Fortunately, these decisions will be made locally by planning commissions and county boards. However, I feel that I can share some facts that will help answer some of the questions that people are asking.

I want to revisit local property taxes and how to reduce them. If your property value is rising, your neighbors’ values likely are as well. State law requires all classes of real estate to be assessed consistently. Together, these individual values make up the property tax base for each taxing authority. For example, Lincoln County’s total property tax base is $6,634,736,498. Last year, total levies for all of the taxing authorities were $96,292,575, resulting in an average levy rate of 1.4513. If the tax base were larger, the levy rate would be lower.

Your individual property tax can be reduced if the tax assessment from the county is reduced, or if the tax value base is increased.

If a $1.5 billion data center were added to the tax base, the base would increase, causing the levy rate to fall if the budget remains the same. That would result in a reduction in your individual property tax bill. The data center would also bring sales tax revenue for building materials, equipment, and other products. If it were within city limits, that sales tax would include the collection of the local option sales tax. Keep in mind that electricity is subject to sales tax, so if a large electricity user (like a data center), there is significant sales tax paid to the state and, if within city limits, to the municipality.

Sales tax also impacts your property taxes. For example, North Platte has a local sales tax. With the growth of retail stores such as Menards, Hobby Lobby, and mall stores, the city has experienced significant growth in local option sales tax, which has allowed it to reduce the portion of its budget funded by property taxes and, in turn, lower its property tax levy rate.

Kearney is another example. Within Kearney’s city limits is a sizable cryptocurrency miner. A cryptocurrency miner uses computers to solve mathematical equations to earn cryptocurrency (typically Bitcoin). The cryptocurrency mine in Kearney uses as much power as the entire city does when operating at full capacity. The city collects millions in sales taxes, which have significantly reduced its property tax bill.

Understanding the economic benefit, we are right to evaluate any proposed project within the context of the local community. Not every project will be the right fit for every place. There is a wide range of potential impacts from a data center or crypto mining operation, from noise to power needs to water usage. Some projects use huge amounts of water and create a lot of waste. Others are air-cooled or use less water within a closed-loop system. Some are quieter than others, and some may come with a significant energy generation investment that could increase the capacity for more houses or industries in the region.

In the end, any large development will require approvals from many entities at both the state and local levels. Impacts on water quality and quantity are overseen by the local natural resources district and the Nebraska Department of Water, Energy, and Environment. The Power Review Board – and likely the local public power district – will also be involved. Not to mention the zoning and conditional use approvals from the planning commission and county board. All of the pieces have to fall into place for a project to move forward.

I have confidence in our local officials to make good decisions based on the best information available to them. That includes input from the public. But I encourage you to learn the facts about proposed projects, rather than just opposing because they fall into a specific category. There are usually pros and cons, and often steps that can be taken to mitigate any negative impacts. Our local elected officials have a responsibility to balance the rights of various property owners and must also consider economic benefits.

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 weekend, I attended the Cattlemen’s Ball that was held at the Howard and Linda Benjamin ranch north of Cozad this year. This event is held annually to raise funds for cancer research. It is a great event for a great cause; this year was no exception.

On Saturday, the Governor was on hand for a formal signing ceremony of my priority bill this year, LB525, the Agricultural Data Privacy Act. The event was held at the Scott McPheeter farm south of Gothenburg. I introduced this bill at the request of the Governor, and it is the first of its kind in the nation. The bill is designed to protect a producer’s raw data from being used without express written consent. As advances in AI and other technologies continue, this legislation should serve as a safeguard against exploitation of our farmers and ranchers.

Last week was the week when many of you received your new property valuation notices. Once again, many of you saw increases in your property value even if you made no improvements to your property. This is not surprising given the demand for housing and the ongoing inflation of pricing associated with new housing. As a result, existing housing prices are going up due to supply and demand. It is rare that realtors sell a home for less than the tax assessed value.

I know that many of you expect your property tax bill to increase at the same rate as the increase in your assessed value. Given the legislative changes that went into effect this past year, your city and county taxes should rise at a slower pace due to caps on “revenue” increases regardless of value increases. Unfortunately, we are still trying to solve the public-school funding model and place adequate limits on public school tax increases (which makes up the highest portion of your tax bill). I am hoping to work together with my colleagues on the Revenue Committee next year on a plan to move K-12 education funding to the state. I have been meeting with the major parties who influence tax policy to get them on board.

The challenge state lawmakers face in lowering property taxes is that they are set at the local level. Your locally elected boards develop the budgets for each taxing authority. If you want your property taxes to be lower, they need to either spend less, or we need to increase the property tax base. The property tax base is the cumulative total of all the property taxes in each taxing authority. If a new industry is brought to the area, we can increase the base very quickly. Sometimes this means being open to allowing these industries to be located here. That is not always easy.

I understand the concerns that people may have about various opportunities to grow our local economy. I would urge everyone to look for unbiased, factual information, as opposed to reading the latest concerns on social media and accepting them as fact. One of the greatest challenges going forward will be demand for electrical power. This is a significant challenge because permitting and building new electrical power is expensive and takes significant time to buildout. Meanwhile, new industries wanting to be located here want to move faster. This has always been a challenge when it comes to economic development.

Last year, we passed LB1261, which allowed private investment in power generation to take the pressure off NPPD and other public power districts to overbuild and increase rate payer costs. The bill would protect private investment in electrical power generation while also making certain that public power is still the power supplier. It also creates opportunities for public power to purchase excess private power at wholesale cost. I see this bill as a major step forward to helping bridge the gap in our energy capacity as larger power users enter the market.

I also believe that we have safeguards in place to protect our natural resources. Our industries and economies will continue to evolve. We need to be prepared to respond to opportunity and balance growth with appropriate protections. In the end, economic development is the best way to lower our property tax burden, and we should try to be open when we can.

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.

Last week, I was invited to speak at the state convention of the Nebraska Professional Fire Fighters Association, which represents paid firefighters across the state. I think it is safe to say that we were not on the same page this year when it came to LB400, which I have discussed in prior articles. LB400 would have created a presumption that any cancer diagnosis was duty-related for the purpose of workers’ compensation, which had the potential to create a significant property tax burden for Nebraskans – either from an uptick in claims paid out or from the cost of trying to refute the presumption.

Although several warned me not to attend the convention, I have never avoided the opportunity to address groups with whom I have disagreed in an effort to bridge gaps. We had a very spirited discussion, and I believe we made some good strides to better understand our differences. We have agreed to continue to meet between now and the next session to find a path forward.

I said to the group last Friday, “Veterans will always be my highest priority, but my respect for law enforcement, firefighters, and first responders is right there as well.” In addition to professional, paid firefighters, Nebraska is also fortunate to have an incredible number of “volunteer” firefighters. These are our neighbors who truly volunteer their time, putting themselves in harm’s way to protect property and lives. Some even pay the expenses of training and serving.

A first responder, paid or volunteer, is a special individual, and I am grateful for their service. I fully support protecting all our first responders and providing fair benefits for them and their families. It is also my duty to ensure that the taxpayer does not get stuck with expenses that are not their responsibility. I am open to updating our current benefit provisions in statute if there is a compromise that strikes an appropriate balance with the burden on taxpayers. Likewise, a statutory change is not needed for municipalities to make changes to their employment policies with firefighters. Municipal officials are also accountable to the voters, and I hope folks are paying attention to how cities, counties, and other political subdivisions are spending their tax dollars.

There are many issues that come before the Legislature on a regular basis that are not easily solved. I remain focused on finding the right path forward that balances the interests of all constituency groups, including taxpayers. These issues are solved by sitting down and discussing our differences.

This week, I plan to attend the Cattlemen’s Ball near Cozad on Friday. Saturday is the official signing of my priority bill, LB525, which enacted the Agricultural Data Privacy Act. Scott McPheeter is generously opening up his farm near Gothenburg for the signing on Saturday morning. The Governor will be on hand to do the official signing, and his support for this bill has been very strong from the beginning. His staff spent many hours working with my staff to refine the bill’s details. I also want to thank the Farm Bureau, Nebraska Corn Growers Association, Farmers Union, Iowa-Nebraska Equipment Dealers Association, Nebraska Cooperative Council, and others for continuing to workshop this bill over the last two years.

LB525 is a first-of-its-kind bill. I hope it provides a good foundation for protecting producer data. Unlike consumer data, agricultural data often becomes co-mingled with other data as it moves through the supply chain. For example, a cow-calf operation collects data on its calves, but so does the feeder, the packer, and the retailer. Similarly, a farmer might collect data on a field and its harvest, but some of that data may also go to the seed company, and even more data is created when it is sold or stored at the co-op. Protecting ag data is vital, but also complicated. I think we found the right starting point in LB525, and I am certain there will be more changes to come.

It continues to be my privilege to represent District 42 as your state Senator. It is a responsibility that I don’t take lightly, and your input on policies and problems is always welcome. I can be reached at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov.