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.

I spent much of last week in Lincoln discussing interim study schedules and meeting with colleagues regarding priority legislation for the next session. On Thursday, the Governor invited me to be a part of a housing affordability panel held at Creighton University, where we were joined by U.S. Secretary of Housing and Urban Development (HUD), Scott Turner, to discuss ways to help solve the affordability problem.

Affordable housing is one of the greatest impediments to growing our rural population (and our tax base). In North Platte, significant growth in housing projects began once they started using Tax Increment Financing (TIF) to help offset some of the upfront costs of developing lots and driving down the ultimate sales price or rental costs. With TIF, the developer funds the TIF bond, pays the increased taxes on improvements they build to repay the bonds, and takes all the risk on the bond repayment. No existing taxes are removed from the tax rolls, and the tax revenues from building materials and construction jobs go to the local economy. This has proven to be a huge benefit to growing the permanent tax base and providing affordable housing for the workforce.

New housing benefits the whole housing market. As new houses are built, more existing houses also go on the market, allowing more affordable housing in the mix. The price inflation of new housing has been greater than that of existing housing, which creates the need for incentives for new housing. In the end, it is all about keeping the final cost of new housing in line with the incomes in the area. It was a great panel and a unique setting to help the HUD Secretary hear firsthand the housing challenges facing rural America. These contacts and touch points are invaluable.

I then started my Memorial Day weekend by celebrating the life of Tom Witt in Thedford. Among Tom’s many accomplishments was his service in the Air Force, where he earned the National Defense Service Medal, Presidential Unit Citation, Good Conduct Medal, and Marksmanship Medal. Tom’s military service included several moves for his young family, including a station in Germany. It was a good reminder of the sacrifices our military men and women make to protect the freedoms we hold dear. His spirit of service lived on after his time in the military, and I know Tom will be dearly missed by his family, friends, and community.

Although many of us associate Memorial Day with the start of summer and as a welcome long weekend, it is vital that we also remember the true purpose of Memorial Day – honoring those who have died while serving in our military. I don’t really know where to begin when it comes to honoring our veterans, especially those who make the ultimate sacrifice. There are many high-risk professions – law enforcement, firefighters, and corrections workers certainly among them – but there is something about veterans that has always gotten my attention.

In the Legislature, I try to do all I can to help our veterans. Maintaining and expanding the homestead exemption is one way to lower housing costs for veterans. The Homestead Exemption reduces the property tax bill for recipients, but counties are fully reimbursed by the State for the local costs. Finding room in the budget to do more has been difficult, but it is high on the list of priorities. Today, the cost to the State for all homestead exemptions is nearly $150 million annually. Our first priority goes to veterans who have survived but now live with disabilities. They are a constant reminder to us of the sacrifices veterans make.

As we fire up our barbeques and spend time with our families, let us also remember the reason for the holiday and take a few moments to give thanks to those who lost their lives fighting for our freedom. There is no way we can adequately show our thanks. But we do our best to do what 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.

I first want to say THANK YOU for all the support in the primary election. I try to review every bill in the Legislature through the lens of what is best for District 42 and its residents. I recall supporting Democratic and Republican bills based on their impact on my constituents. In fact, I even voted against the Governor’s veto of a bill brought by Senator Roundtree because I had committed to him early on that I would support it. Whenever I see him, he reminds me of how much it meant to him that I remained committed to my word even when the Governor was opposed. I have always believed that keeping your word is fundamental to building relationships and getting things done. If you compromise your integrity, what do you have left? I make it a point to never “trade” a vote. I focus my efforts on selling the merits of my bills rather than brokering trades. I also refuse to vote for bad bills.

As I talk with my constituents, I continue to hear one consistent message: property taxes are too high. I have responded by working with other Senators to limit how much political subdivisions can increase their tax asks (product of value x levy) and have asked them to cut their spending to the extent they can. However, I also hear from political subdivisions that they don’t appreciate “unfunded mandates” issued by the Legislature. For that reason, I always watch for bills that, if passed, would result in an unfunded mandate.

This year, Senator Wordekemper introduced LB400, a bill he introduced on behalf of the Nebraska Professional Fire Fighters Association to change the rules governing workers’ compensation insurance. Workers’ Compensation insurance is designed to compensate workers who are injured on the job and unable to work as a result. Most people have viewed this as physical injuries. The professional firefighters have filed and received compensation for cancer-related claims under workers’ compensation. However, like other workers’ comp claims, you must prove that the injury occurred as a result of your job duties.

As someone who has been fighting cancer (metastatic melanoma), I am sympathetic to the costs, emotional toll, and time commitment that cancer treatments take. My cancer was likely caused by sun exposure as far back as when I was a kid working on the farm. The doctors asked about my family history, but never about my occupation.

LB400 suggested that, since firefighters have a slightly higher incidence of cancer, they should not need to prove that their cancer was caused by the job. Instead, the bill would have required their employer to prove that their cancer was NOT caused by the job. Logic would suggest that, regardless of the cause, any firefighter who is diagnosed with cancer after performing the job for five or more years, or within five years after retirement, would automatically claim the job was the cause.

My nephew is a full-time paid firefighter in Lincoln and a full-time farmer. Given his exposure to ag chemicals, diesel fumes, and sunlight, he could be at a higher risk for cancer. Yet, in any cancer-related workers’ compensation claim that he filed, it would be presumed that his cancer was due to his firefighting duties under LB400 – despite his other risk factors. This would greatly increase the claim risks for municipalities and rural volunteer fire districts, as well as the cost of administering claims. In turn, this would greatly increase their insurance premiums or self-insurance costs, which are paid for with your property taxes. This creates a classic unfunded mandate. As a result, I led the filibuster to prevent this change in the law.

Over the years, I have consistently demonstrated my support for firefighters, both paid and volunteer. Our first responders are vital and put their lives on the line to protect people and property. Appropriate benefits are important for recruiting and retaining first responders, and it’s the job of elected officials to strike a balance between those benefits and the burden on the local taxpayer. Local departments can always make their own deals, but I don’t believe that the state should create an unfunded mandate to force this change in the law on our local political subdivisions.

Many bills that come before the Legislature seem to offer compassionate solutions to various problems, but they are generally not as simple as they may appear. For example, as chair of the Banking, Commerce, and Insurance Committee, we see bills every year that require insurance companies to pay for certain types of treatments or pharmaceuticals. I generally have opposed these bills because they increase costs for all premium payors and reduce competition among health plans and insurers. As they say, “there is no such thing as a free lunch.” The question is rarely as easy as whether we care about a program or policy; it is about the cost and whether it’s appropriate to require the cost to be paid in state law. These are not easy decisions, but they are part of the job.

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.

I wrote an article a couple weeks ago regarding the need for local political subdivisions to focus on their spending if you want you to keep your property taxes in check. Some of the feedback I have gotten since that time suggests I may need to walk through how our property taxes are determined.

I have said many times that the state does not assess property tax. That ended in 1967 when the voters banned the state from charging a property tax. To replace the revenue previously collected by the state from property taxes, the Legislature created the state sales tax. Despite not being able to assess a property tax, the state does have the power to decide which local entities have property taxing authority. The largest assessors of property taxes are public schools, counties, and cities, with school districts being the largest recipient of these taxes. Your property tax bill depends on where you live. School districts cross county lines and city lines, so property taxes vary accordingly. The total tax assessed value of all the properties located within the boundaries of a political subdivision are added together to determine the total “tax base.”

When it comes to determining your property tax bill, each political subdivision must first set its budget. Once the budget is set, the tax base is divided into the budget to determine “mill levy.” Therefore, the mill levy multiplied by the tax assessed value of your property is your tax amount. Your total individual property tax bill is the sum of each taxing authority’s tax request when applied to your property. Bottomline: the assessed tax value is only one of the components to determine your tax bill.

I also receive a lot of complaints about property tax values increasing even though no improvements have been made to the property. Keep in mind that values go up with inflation and are reflective of changes in the market. Values should go up along with cost to build or replace. If you go through periods of high inflation and strong demand, values will go up well above inflation. That is one reason you buy property.

In my opinion, our tax system in Nebraska relies too much on property taxes. I have long believed that sales taxes need to play a larger role in funding our tax system. Too many urban senators don’t share that belief. Relying on any one major source of revenue is not the answer to fixing our tax system. Every tax source has its critics. Those who oppose sales tax argue that it is a regressive tax that disproportionately impacts the poor and push back even when you avoid taxing necessities like food and medical expenses. I have long held that food, medicine, and business inputs should not be taxed. Everything else should be on the table.

I also believe that cities and counties should fund themselves with local taxes, but schools should be largely funded by the state since our state Constitution requires the state to provide every student with K-12 education. However, there need to be limits on how that funding is spent. That is where the rub comes in, particularly since schools are governed by local school boards. Where and how much taxpayer money should we spend when they are putting students first? It is easy to forget about or deprioritize the burden on the taxpayer when we are talking about the needs of our kids.

As I’ve described before, the Legislature has made many strides in reducing your property tax bills, including increasing funding for K-12 education, fully funding community colleges, and dedicating significant spending to property tax credits. We have also capped most property tax spending by cities and counties. Unfortunately, the cost of doing business for political subdivisions continues to increase, even for those who are very conservative in their budgeting. Conversely, voters are unwilling to give up many of the services funded by property taxes. Conservative spending is a challenge for local elected officials and state leadership alike.

I have lost count of those who have reached out to me with property tax concerns. This is a problem that cannot be ignored. I will continue to work with my colleagues on the Revenue Committee and in the Legislature to find ways to reduce property taxes, likely by continuing to attempt to redistribute our revenue streams more evenly among the different kinds of taxes. It is not an easy problem to solve, and it will take creativity, compromise, and political willpower.

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 (May 2-3) was the National Fallen Firefighters Memorial Weekend, when our nation honors the brave volunteer and career firefighters who have sacrificed their lives in the line of duty. We give special reverence to those we have lost over the past year.

Last weekend has special meaning this year because of the brave men and women who have dedicated significant time and resources to fighting fires in our own backyards. The last couple of months have highlighted the importance of our local volunteer fire departments, which fought multiple wildfires spreading at unprecedented rates, consuming thousands of acres of grass and anything in their path. It is hard to fully understand the commitment our volunteers give to protect our lives and property. Words cannot express our appreciation. But please accept our sincere THANK YOU!

May 1 also marked the beginning of National Beef Month. On Thursday, U.S. Senator Pete Ricketts introduced a resolution to designate May 2026 as Beef Month in America. Senator Deb Fischer cosponsored the resolution, along with Senators from Kansas, Oklahoma, Missouri, and Minnesota.

“Nebraska is the beef state. Last year, we led the nation with over $1.75 billion in beef exports. We lead the nation in commercial cattle slaughter with over 6 million head. And we have the top three beef-producing counties in the nation,” said Senator Ricketts. “Nebraska’s ranchers are the best in the world. They’ve shown it this year in response to this spring’s devastating fires across the state. I am confident they will rebuild and I’m grateful to honor them in the month of May.”

I echo Senator Ricketts’ remarks. The Nebraska Sandhills are a national treasure and are maintained because of the sustainable practices employed every day by Nebraska’s professional ranchers. Their management practices ensure that the Sandhills will last forever while producing the world’s best beef. I am so grateful to have a significant portion of the Sandhills in my District, and the opportunity to represent some of the finest people in the state. They embody our Nebraska traits of hard work and family values.

In closing my article this week, I want to recognize the value of our local newspapers throughout District 42. Print media has been under significant pressure over the past few years as an increasing number of readers are getting their news from social media (the source of all truth (NOT)). Meanwhile, the cost of delivery and materials has increased. But if we truly want to get accurate local news along with pictures of our youth and significant events, newspapers need to be in the mix.

Newspapers don’t develop content on their own. It takes publishers, editors, and local reporters to bring it all together. At the most recent state newspaper awards, many were won by local professionals. Todd VonKampen with the North Platte Telegraph won first place for his investigative report on the Perkins County Canal project. Marcia Hora with Creative Printers, who publishes the Thomas County and Logan County papers, was recognized for over 50 years with the papers. The North Platte Bulletin also won several awards, including some§ for its founder and regular reporter, George Lauby. Each of these individuals works tirelessly to facilitate local news and discourse. I hope we can find ways to continue supporting local reporting, including those who pursue new ventures, as George did with the Bulletin. It is clear our lives would be less fulfilled without them.

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.

With the legislative session over, it’s time to turn our attention to the election and the agenda for next year. Since my election in 2022, I have served on the Banking, Commerce, and Insurance Committee and, for the last two years, as its chairman. One of the high points for me during this time was the passage of LB1087, a bill I sponsored that allowed Nebraska hospitals to access nearly $1 billion for Medicaid reimbursements. The timing of this funding was a lifeline to many rural hospitals that were contemplating closure. I appreciate the Governor’s support, who agreed to participate in the program because it had no strings attached. I also appreciate the support of my colleagues in the Legislature who voted for the bill, and Congressman Mike Flood, who helped us with the federal red tape to get the program approved by CMS just prior to the passage of LB1 at the federal level. The program would have been in jeopardy if the timing were different. I can tell you firsthand that rural health care is critically important. Attracting and retaining workers and retirees to our area depends on access to quality health care.

One of the most important issues facing all Nebraskans continues to be the unsustainable rise in property taxes. To address this issue, we need to understand who sets your property taxes and, from there, focus on solutions. Keep in mind that the state has no authority to charge property taxes. State tax revenues primarily come from sales taxes and income taxes. Counties are allowed to charge property taxes and receive inheritance taxes. Cities charge property taxes and can charge a sales tax up to 2% with voter approval. Public schools charge property taxes and lead all other taxing authorities to account for over 50% of your property tax bill. A variety of other political subdivisions also have the authority to assess property taxes and do so at a lower rate. For this reason, it is important to pay attention to what candidates for school board, city council, county commissioner, and other local entities say about their focus on protecting the property taxpayer.

As elected officials, we are asked to balance providing for our constituents’ needs with the obligation to limit taxes. I have often been asked what I am doing to lower property taxes. First, I remind those who ask that the Legislature has no direct impact on your property taxes, but can take steps to reduce them or at least reduce the rate of the increase. During my time in the Legislature, we have taken operating expenses for community colleges off the property tax rolls by absorbing that expense by the state. Today, that accounts for nearly $300 million in reduced property tax expenses.

The Legislature has also increased the amount of the Tier II property tax credit that appears on your property tax statement each year. In total, the state has now offset nearly $1.7 billion in property taxes from these credits. And of course, the state provides funding for public schools through the TEEOSA formula. This includes providing all public schools with $1,500 dollars per student (“foundation aid”), in addition to any other subsidies that might be available to a district under the formula. Despite a significant funding commitment by the state to property tax relief, locally assessed property taxes continue to rise and place significant burdens on many taxpayers.

Given the state’s own budget battles, there is limited capacity to provide additional property tax relief in the current fiscal environment. As a result, the only tool available to the state is to cap the taxes that local political subdivisions can levy. The challenge will always be finding the right limits. It is challenging to legislate for every situation, and there is a significant difference between the needs of urban and rural communities. For example, the Omaha Public School District has 53,000 students while the McPherson Public School District has 53 students. The cost per pupil is over $45,000 per student for McPherson, while the OPS cost per student is around $11,000. But the mill levy in the McPherson County School District is significantly lower than in surrounding school districts because of the limited services required and the district’s land value. With so many levers that can be pulled, it is very hard to set up a fair statewide system that accounts for all variables when funding local services.

The answer to the property tax challenge really lies with making well-thought-out strategic cost reductions. Controlling overhead and limiting administrative costs are the first places to look for public schools. Teacher salaries and teaching staff are likely the last place to look. For local governments, it is important to determine which services are truly essential and to find the most cost-effective way to provide them. Conservative budgeting and spending are imperative to keep property taxes low. It will be imperative for money-conscious taxpayers to know who they are electing for every race in the upcoming election cycle.

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 Friday marked the 60^th and final day of the 109^th Legislature. Generally, Day 60 is reserved for ceremonial activities that include an address by the Governor and the Speaker, plus farewell comments from the departing Senators in the second year of the biennium. However, the Governor decided to veto five bills, so bill sponsors had to consider whether to file a motion to override. Ultimately, override motions were filed for four of the five bills, but the Legislature voted to uphold the vetoes on all four bills.

Some criticized upholding the vetoes given that all of the bills made it through three rounds of debate and in some cases passed on Final Reading unanimously. One bill even appeared on the consent calendar. However, it’s worth nothing that, for most bills, the bulk of debate takes place in committee and during General File debate unless there are amendments filed on Select File. Final Reading tends to only draw significant debate if the bill was already controversial.

This year, the Legislature ultimately agreed with the concerns raised by the Governor in his veto letters for each of the bills. For some, there were suggestions that only portions of the bill were problematic, so I would expect they will be resurrected in a modified form next year. And for the maternity/paternity leave bill, the Governor said his administration would make an administrative change to enact some of the provisions in the bill.

We will be losing 13 Senators after this year, including Speaker John Arch and Appropriations Committee Chair Rob Clements. We are losing most of the Senators to term limits, although a couple have decided not to seek re-election. I remain convinced that allowing Senators to serve three four-year terms, instead of just two, would bring more stability to the Legislature. Not only would it allow us to keep more seasoned leaders, but it would also promote more institutional knowledge among both staff and Senators.

I certainly started the session with some trepidation and skepticism about how productive it would be. However, in the end, I was satisfied with our ability to take a $631 million projected deficit and reduce it to a $6 million projected surplus while keeping our income tax decreases in place and maintaining the funding for the Perkins County Canal and the new state prison. We were also able to increase the property tax credit to a total of $1.6 billion per year. This was possible by reducing cash funds and making structural changes in state spending. Going forward, state spending is projected to increase by 2.5% per year, but we will need to continue to pursue greater savings if revenues fail to grow at a faster pace in order to balance the budget.

Like in business, the state budget is an estimate of spending based on estimated revenue. The Legislature relies on the most recent revenue estimates from the Nebraska Economic Forecasting Board available at the time. The Department of Revenue then reports the actual revenue receipts each month and compares them to the forecasting estimate. For March, state revenues were $78 million under the forecast; when paired with the $6 million surplus in the budget, we are currently operating with a $72 million “deficit.” However, keep in mind that the revenues are actual revenues as opposed to accruals.

The amount of receipts and tax renewals often fluctuates month-to-month, particularly this time of year when individuals are filing their taxes, and payments and refunds may not be processed at the same time. With that said, if the timing of expenditures is different than forecasts, the net revenues will fall behind. This year, most taxpayers are filing their income tax returns earlier because they are getting refunds. If you are not getting a refund, but instead paying tax, you will likely not file until April. As a result, refunds in the month of March are likely higher than forecast due to early filing, and tax revenues are lower because they are not coming in until the month of April. If so, the revenue shortfall will likely change positively in the next month or two. We will know more as the year goes on, just as we did in 2025. Either way, we will begin a new biennium budget process when we reconvene in 2027.

It is a privilege to represent you in the Nebraska Legislature. I look forward to hearing from you regarding issues that are important to you as we begin the interim. Please continue to reach out at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov.

Last Friday marked Day 59 of the 60-day session. We will return this Friday for Day 60. Since all the Final Reading bills were completed this past Friday, the only business remaining on Day 60 will be any veto overrides, a few congratulatory resolutions, closing remarks from the Governor, departing remarks from term–limited Senators, and closing remarks from Speaker Arch.

I am very pleased that, although many Senator’s priority bills did not get scheduled, I was able to pass every bill I wanted to move this session. The last two bills were passed on Friday.LB525, my ag data privacy bill, passed with all 49 senators voting in favor. LB838, one of the Banking Committee’s priority bills, passed with 46 yes votes.

I was also pleased that LB1187, the brand bill, passed with my amendment AM3037 as amended with AM3068. Although the original LB1187 was a bill adjusting fee caps, it was replaced by my “white copy” amendment and the subsequent AM3068,which simply made technical adjustments. For those who want to review the final bill, visit the Legislature’s website at nebraskalegislature.gov, look up LB1187, and read the Final Reading copy. It is the final bill. The final vote was 39 in favor, 9 opposed, and 1 present not voting. Senator Hardin filed a conflict of interest statement to be able to vote PNV.

Although the brand bill is not perfect, I am confident that this issue is now in the rear-view mirror and will not be back anytime soon. The final version expanded the Brand Committee from five members to seven, to now include a representative that owns or operates a feedyard located inside the brand inspection area and one who owns or operates a sale barn located within the brand inspection area. There will be one representative from each of four districts across the state based on the approximate cattle population. The fifth district will be represented by someone outside the brand area. The reason for this fifth district is because the brand laws allow brand inspectors to search throughout the whole state to find lost or stolen cattle. Each of the four other area representatives must live within the district and be primarily engaged in raising cattle. The Governor will appoint the members, who are then confirmed by the Legislature. Two other ex officio members are the Secretary of State and the Director of the Department of Agriculture. The board will elect a chair and vice chair and appoint an Executive Director.

I am hopeful that, going forward, the Brand Committee will self-govern and that any future changes to the brand law will result from a request from the Committee, should it need any statutorychanges. There is a huge divide within the cattle industry. There is significant mistrust between the Brand Committee and the feed yards they audit. One of the Committee’s highest priorities going forward is to restore that trust. I believe the Brand Committee has already taken steps to change its procedures to begin that process, but nothing happens overnight. The Brand Committee has a very difficult job; I hope everyone can work together going forward to make the changes succeed.

Agriculture is Nebraska’s largest industry, and cattle production is the largest part. There are many challenges facing producers today that go far beyond brand. The low cow numbers, the closure of the Tyson processing plant in Lexington, and fires have all impacted the industry. One thing I am sure of is that we will get through this, even if it’s challenging. Having the brand issue settled will help.

It continues to be a privilege to represent you in the Nebraska Legislature. I look forward to hearing from you regarding issues that are important to you, particularly as I’m able to be in the District more over the interim. I can also be reached at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov.