As we moved into the three-day weekend, we completed the first eight days of the 60-day session. The first part of last week was devoted to bill introduction, with Thursday dedicated to rules debate. Friday was simply a check-in day due to the snowstorm in Lincoln, so we simply called the session to order and took an hour or so to introduce bills prior to adjourning until Tuesday morning, January 16, at 10:00 a.m. As of Friday morning, 354 new bills were introduced with two more days of bill introduction left, and 21 priority bills have been designated. Three of those priority bills were Speaker priorities. I also was notified that three of my bills have been scheduled for hearings the week of January 22. I also have confirmation that LB31 will get a committee vote. I am confident that I have the votes to get it out of committee and onto the floor. Given the early priority status, I expect to get it heard on the floor for the first round of General File debate early in the session.

The Speaker has made it clear that he wants to finish up the rules debate by the end of the day on Friday, January 19 (Day 12). Floor debate will begin the week of January 22, with morning debate followed by afternoon committee hearings. For those who have been watching the Legislature, you likely have noticed that we have what I can best describe as a “Friendly Filibuster” going on with the proposed rule changes. The minority in the body do not want the more controversial rules to pass, so they are slow-walking the rules that are simply technical in nature, so time will run out before we get to the more substantive rule changes. Since a rules debate cannot be stopped with a cloture vote, it is hard to change the rules unless there is nearly unanimous agreement. Any rule perceived to reduce minority rights will likely not get unanimous agreement.

When we speak of minority rights, we are not just speaking of the ratio of Democrats to Republicans. Speaker Arch made a very important floor speech last week when he mentioned that the protection of minority rights could also extend to rural vs. urban and other divisions of the body because of issues that create differences of opinion. We got a dose of that last week when many were vocal about opposing the Governor’s intent to support a sales tax rate increase to provide more property tax relief through direct property tax rebates. It was clear that many conservatives did not want to support the plan to shift taxes from one form, perceiving it as a tax increase. I support the Governor’s goal to either expand the sales tax base and/or increase the rate to create funding to increase the existing property tax credit. In this case, many living in larger cities believe that the cities collect a much higher percentage of sales taxes, yet rural Nebraska would benefit more from a direct property tax credit if it were distributed equally. The moral of this story is to remind yourself that if the state ever gets control of all funding sources, the distribution to rural Nebraska would be severely reduced. Being in the minority can be a problem if that happens.

I also want to address LR276, introduced this past week by Senator Ibach, which I agreed to co-sponsor along with Senator Brewer. The legislative resolution urges Congress to change the current boundary lines that divide the Central Standard Time Zone and Mountain Standard Time Zone by moving it west to the Colorado/Nebraska state lines and then north from there to line up with the western state boundaries of North and South Dakota. The intent of the change would be to help counties and school districts in southwest Nebraska be in the same time zone. However, it also would solve a problem that many residents in Hooker County have experienced with their television feed. Many residents in Mullen have asked me to find a way to allow those who live in Mullen to receive the TV news feed from North Platte’s KNOP as opposed to a Denver news affiliate. Residents in Mullen use services in North Platte and want to see news and advertising from North Platte, not Denver. News feeds are determined by the Nielsen ratings group, who use time zones to determine your TV station feed. Although this resolution is nonbinding, if passed, it would encourage Congress to consider this request if other states affected would do the same. Senator Ibach and I have both heard from constituents for and against this change. I would encourage you to reach out to us with your opinion on this bill. I should note that this bill is not a Daylight Savings Time bill. That is a separate issue that could also be taken up with this issue.

As we start to get into the substance of the session, I believe it would be a mistake to assume that it will be filled with filibusters. That does not mean that we will not see filibusters along the way, but there are far too many in the minority who want their bills passed this year. This is certainly the case for those who are term-limited. There is much we can agree on, and I think that we will see several bills passed this year with strong bipartisan support.

I look forward to continuing to hear from you regarding issues that are important to you. It is a privilege to serve as your State Senator, and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or by calling my legislative office at 402-471-2729.

The second session of the 108^th Legislature began last Wednesday, January 3. The first three days of the 60-day session are in the books! Our first order of business was to elect Sen. Ray Aguilar to serve as Chair of the Executive Board following Tom Briese’s resignation to take the post of our State Treasurer. Sen. John Lowe was elected to replace Sen. Aguilar as Vice Chair, and I was honored to be selected by my caucus to serve as the additional Third Congressional District Representative. As promised, I also named LB31 (Two-Person Crew) as my personal priority bill on Day One. In fact, it was the first priority designation to be read into the record this session.

Although the session will go fast, I am very focused on getting my proposed legislation across the finish line this year. I have introduced seven new bills so far, and intend to introduce a few more bills before the end of bill introduction on January 17. I spent much of the interim working on new and pending legislation so that I could get to the bill drafters early. As you may have guessed, the bill drafters are very busy now and it is likely any new ideas may not get drafted into legislation before the deadline to file passes. I continue to get ideas sent to me by constituents and, although it may be too late to draft a new bill, there may be opportunities to amend other bills to include issues raised depending upon the subject matter. So please continue to keep me informed about your concerns, but understand that getting an additional standalone bill introduced this year is unlikely.

In addition to passing LB31, I will focus on getting LB32, the Medigap bill, passed. After several meetings with the health insurance industry and the supporters of the bill, I have drafted an amendment that I believe is the best compromise to ensure that the bill can pass while keeping Medicare supplement premiums affordable for those already enrolled in these plans. There will certainly be those who disagree with the compromise, but I believe that several hundred Nebraskans will now have coverage that will likely keep many of them out of bankruptcy and allow them to have the care they need. This is one of the best parts of serving as your State Senator.

The other major bill I introduced this session is LB853, which affects the Homestead Exemption. After meeting with Lincoln County Assessor Julie Stenger this summer, I decided to make this legislation a priority to help both our elderly and our Veterans stay in their homes. Julie, like many county assessors across Nebraska, take their jobs seriously and in some cases find existing rules inconsistent with the objectives of the law. Julie shared with me an anonymous situation where a widow living in a modest home on Lake Maloney has lost her homestead exemption because the value of the land has risen so much over the past two years (due to market demand for lake lots) that she no longer meets the home value limitation. Meanwhile, she lives on social security, and her home is valued well under $100,000 when the lot is not included. I also have heard of far too many Veterans who are less than 100% disabled and unable to qualify for this exemption. After working with the Governor’s property tax working group this past summer, I have concluded that a change needs to be made in this exemption to better carry out the original intent of the law.

Today, you can qualify for a homestead exemption if you are over the age of 65, fall below a certain income level, and have a home that does not exceed a certain maximum value. You also qualify if you are a Veteran who is 100% disabled. LB853 raised the maximum income level and the maximum home value for those over the age of 65. It also makes provisions for Veterans who are disabled at something less than 100%. The bill, if adopted would allow Veterans to qualify for a homestead exemption equal to their percentage of disability (i.e., a 50% disabled Veteran would have their property taxes cut in half). It is important to keep in mind that a homestead exemption allows for a qualified homeowner to avoid paying local property taxes, but the local political subdivisions are fully reimbursed by the State. Therefore, other property taxpayers are unaffected.

Although property taxes are only assessed by local political subdivisions, the State can play a role in reducing the net cost of your taxes in four ways. First, the State can provide direct credits to each taxpayer through a property tax credit, allow for a homestead exemption, increase funding to local public schools to offset their property tax ask, or cap the amount a political subdivision can tax. At this point in time, the State is using each of these methods to help reduce local property taxes. I can assure you that the Governor and the Legislature is working to adjust each of these methods to find the right balance to reduce the property tax burden. I will discuss this further in future articles.

I look forward to continuing to hear from you regarding issues that are important to you. It is a privilege to serve as your State Senator and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or by calling my legislative office at 402-471-2729.

Thank you for visiting my website. It is an honor to represent the people of the 42nd legislative district in the Nebraska Unicameral Legislature.

You’ll find my contact information on the right side of this page, as well as a list of the bills I’ve introduced this session and the committees on which I serve. Please feel free to contact me and my staff about proposed legislation or any other issues you would like to address.

Sincerely,
Sen. Mike Jacobson

This week marks the beginning of the second half of the 108^th Legislative session, which officially begins on Wednesday, January 3. The first few days are reserved for bill introduction, as well as the Rules Committee’s consideration of proposed rule changes. We will begin all-day rules debate on January 10, continuing through the following Friday if necessary.

I plan to introduce most of my bills on Day One and immediately begin working the committee chairs to secure early hearings, with the goal of getting them to the floor quickly. As promised, my staff delivered my priority designation of LB31 (Two-Person Crew bill) to the Speaker last week. I have gotten back from the health insurance industry the final draft of the amendments to LB32 Medi-gap so I can get the amendment approved by the Banking, Commerce, and Insurance Committee and sent to the floor.

As many of you may recall, after the ballot initiative passed allowing gambling in the state, the Legislature passed language regulating casino operations. State law allowed the Gaming and Racing Commission to approve casino operations at the existing race track facilities but did not allow them to approve any new race track construction until a study was completed examining the new sites’ impact on racing and gaming in the state. The study was to be completed no later than January 1, 2025.

As of this time last year, the study had not yet been started and several in the Legislature wanted to pressure the Commission to keep moving forward. As a result, I introduced a bill to allow the Commission to approve additional sites west of the 100^th Meridian without the need to wait for the study to be completed. Since all the existing racetrack facilities were in the eastern third of the state, I saw no reason that western Nebraska should continue to be deprived of the economic benefit of a racing and gaming facility.

Although I have made it clear in the past that I am not a gambler (unless you include farming and banking as gambling), since gambling is here in the state, our part of the state should be allowed to enjoy the economic benefits of the tax revenue if we were going to be saddled with the negative effects of gambling in our communities. At that time, both North Platte and Ogallala had operators interested in locating a racetrack and casino in their respective communities. Ogallala still has an operator ready to move forward, but the interest in a North Platte site has cooled. They purchased land, but have not moved forward at this time with a proposal to apply for a license.

Meanwhile, the Racing and Gaming Commission has completed their study, and the results of that study were released last week. I must say that the results were confusing, to say the least. According to the results, the number one location identified to be granted a license was Bellevue, and the primary sites out west that were identified were Kimball, Gering, and McCook. North Platte and Ogallala were lower on the list.

The Racing and Gaming Commission only needed to have the study completed to move forward but had no requirements to follow the recommendations of the study. I can assure you that there will be a major pushback by the legacy tracks against Bellevue adding a facility. I can also assure you that North Platte and Ogallala would be seen as more attractive than the other towns mentioned. In the end, however, the next steps will come from the Racing and Gaming Commission and not the Legislature.

I am looking forward to the beginning of the session and will plan to keep you updated each week regarding legislative activities. I also plan to reinstate my weekly call in with the North Platte Chamber and Development Corporation. This call is open to anyone in District 42, and you can join in person or on the phone; the day and time are still to be determined.

I look forward to continuing to hear from you regarding issues that are important to you. It is a privilege to serve as your State Senator and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or by calling my legislative office at 402-471-2729.

Since this will be my last column of 2023, I want to start by expressing my appreciation for all the support I have gotten throughout the year. This job has become an enormous time commitment, but I am truly honored to serve as your State Senator. I take this job very seriously and will never forget that I am here to serve all the constituents in District 42. Your ongoing input continues to keep me focused on the issues that are important to you.

As you know, the 2024 session begins on January 3 and is scheduled to end on April 18. However, we will only be in session for 60 of those days. The Speaker has allocated only 47 days for actual bill debate, and 24 of those will be morning bill debate and afternoon committee hearings. This leaves a very limited amount of time to take a bill from start to finish if the bill is newly introduced in this session. Because of the limited time to move bills, I have pared back the number of bills I plan to introduce and will focus my time on getting each bill on a path to passage.

At this point, I have six bills that carried over from the last session. LB148 is no longer needed since it dealt with allowing the western part of the state the opportunity to proceed with a racing and gaming application without waiting for the economic impact studies to be completed. Both are now scheduled to be completed very soon. LB628 makes technical changes to professional limited liability companies. This bill made it to the final reading (the last round of debate) last session, but due to the constant filibusters, we ran out of time to get it passed. I fully expect it to be passed early in the session since it is still on final reading.

LB149 would rebase the rates paid to providers of mental health services under the medical assistance program, and I believe will be incorporated into an appropriations bill. LB69 is a bill that would require life insurers to notify a third party upon request should a life insurance policy be at risk of lapsing due to nonpayment of premium. This bill has strong industry objections and may struggle this session. I shared last week that LB32, my Medigap bill, has taken much of my time this past summer to craft a compromise amendment that the health insurers can agree to. It is my intent to get it added to the committee priority bill this year. Finally, LB31, which requires two-person crews in all trains and light engines, will be my priority bill and my primary focus.

I currently have seven other bills I plan to introduce early in the 2024 session. They deal with several issues important to residents of District 42. The first bill makes technical changes to existing law to restore grants for preparing low-income rural housing projects in the third Congressional District. North Platte would receive $1 million of the $10 million of ARPA funds included in this program.

I also will be introducing a bill that makes needed changes to the Homestead Exemption for the property of disabled Veterans and taxpayers over the age of 65. The bill would allow disabled Veterans to receive a homestead exemption equal to their percentage of disability. It would also raise both the maximum income and the maximum home value to allow those over the age of 65 making less than the average state household income to be eligible if their home value does not exceed 3 ½ times the average home value in the county of $300,000, whichever is greater.

I also will introduce legislation at the request of the Farm Bureau to provide coverage for ag producers who have limited options for health insurance. In addition to this, I will be sponsoring a bill requested by the Nebraska Hospital Association that increases the federal dollars coming to Nebraska for the Medicaid program. This should not only increase funding to rural hospitals but also reduce the State of Nebraska’s Medicaid costs.

I also will be working with Senator Eliot Bostar and Senator Tom Brewer to introduce a bill that makes needed changes to the county veterans service fund allocations to allow for veterans who did not serve during a time of conflict to be eligible for needed assistance.

This is an ambitious agenda, but I am optimistic that I can get many of these initiatives across the finish line if we can keep the session moving.

I look forward to continuing to hear from you regarding issues that are important to you. It is a privilege to serve as your State Senator, and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or by calling my legislative office at 402-471-2729.

With the session just a couple of weeks away, I want to update you on a couple of topics I intend to work on this year.

First, I met with the health insurance providers late last week regarding LB32 (MediGap) and we agreed on amendment language to move this bill ahead. Medigap laws require health insurance providers who offer Medicare supplement plans to make those plans available to those who are handicapped and under age 65. As a rule, I don’t like government mandates on businesses. However, in this case, I believe the industry would not voluntarily offer this coverage.

One concern is the premium increases that may be felt by plan participants from adding handicapped individuals under age 65 to their pool. Remember, those who would avail themselves of this coverage would only be doing so because they are currently handicapped and need coverage now, as opposed to those who take insurance to prepare for future needs. To address premium increases, the industry wanted to place these insureds into a separate risk pool. However, this would have likely priced these individuals out of coverage altogether, making the requirement moot. In the end, we agreed handicapped individuals under age 65 would be eligible to participate in existing pools, but could be required to pay up to 150% of the regular premium cost. I think this will be a reasonable price point, and is certainly lower than the 300% sought by the industry’s actuarial experts.

The amendment will also include a carve-out for those who suffer from end-stage renal disease (ESRD) since ESRD patients are eligible for Medicare Advantage plans and receive additional subsidies from Medicare that help offset the additional costs for ESRD treatments. However, I have been critical of Medicare Advantage policies since many providers no longer accept their coverage, and will be keeping a close eye on how far Medicare Advantage participants have to travel for treatment, particularly if they are rural ESRD patients. I hope the private sector will participate in fair and reasonable negotiations so the government doesn’t have to become an intermediary between providers and insurers.

Although there may be some special interests who are still unhappy with LB32, I have listened to all parties and believe that this agreement is the best option to get a deal done and provide hundreds of handicapped residents in the state with the health insurance coverage they need.

I also plan to introduce a bill this session that brings state policy in line with federal laws relating to payments of durable medical devices. Some Nebraska providers are accepting Medicaid reimbursements and then “back-billing” the patient for the difference between the full list price and the reduced Medicaid price. This is prohibited by Medicare but not addressed by our state’s Medicaid laws. I intend to end this practice to protect unsuspected patients who need these devices.

Finally, I’ll mention again that I plan to designate LB31 (Two-Person Crew) as my personal priority bill and will be working to get the Transportation and Telecommunications Committee to move this bill to the floor as soon as possible. Since the Speaker has made it clear that none of the priority bills from the last session will keep their priority status, the faster you get your priority bill to the floor, the sooner you can get it moving through the process.

Next week, I plan to give you an overview of all the bills I intend to introduce in the 2024 session. It will be a short session, so I have had to pare back my list to ensure that I can give every bill a good chance to make it across the finish line. Any bills that are not passed will need to be reintroduced in 2025 and start from the beginning of the legislative process.

In closing, Julie and I want to wish everyone a very blessed and Merry Christmas! This is a season when we all need to prioritize spending quality time with family and friends and truly appreciate that the very special gift that God has given us all!

I look forward to continuing to hear from you regarding issues that are important to you. It is a privilege to serve as your State Senator and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or by calling my legislative office at 402-471-2729.

This week, I want to begin my article by congratulating the North Platte Area Chamber & Development Corporation for selecting White River Soy Processing to develop a soy processing plant inside the newly created Inland Port of the Plains near Hershey. This project and Sustainable Beef are projected to have a total of over $2.3 billion in economic impact on the region. These opportunities will impact virtually everyone living in District 42, creating job opportunities in addition to positively impacting commodity prices in this area. Projects like these only happen because of the full commitment of everyone working together to get them across the finish line.

In other news, last week, the Legislature met for its annual Legislative Council Meeting. The meeting is used to issues facing the Legislature in the coming session. This year, Speaker John Arch began laying out some of the operational issues we experienced last year (other than the filibuster issues) that need to be resolved.

We also heard from Senator Tom Brandt, who chaired the interim study dealing with technology in the Capitol. As many of you know, the Capitol is a historic building that must not be structurally modified from its original design. This makes updating technology more difficult to accomplish. Nonetheless, we intend to improve the Wi-Fi inside the building and complete several other technology requests by Senators and the public. The interim study report outlined ways to increase the visibility of those in the speaking queue during floor debate, improve audio/visual systems in hearing rooms, and implement a possible countdown clock to allow Senators a better way to know how much time is remaining during any floor debate.

The Speaker also reported on LR179, an interim study focused on better public participation in a representative form of government, including easier ways to solicit public input on legislation even during years when large numbers of bills are introduced. Given the number of controversial bills introduced this past session, some of the hearings ran all afternoon and into the evening. In a couple of cases, several individuals who planned to testify in person were unable to because time ran out. I believe the recommendations in this report will help bring more uniformity between committees so that the public can have a more consistent process to work through when giving their input.

We then spent time discussing possible rule changes proposed by the Speaker. These rule changes fell into three categories: technical corrections, codifying precedent, and process improvements. As a general rule, the members of the Legislature who were present for the meeting were generally supportive of the changes to technical rules and codifying precedent, but there was much debate over the other proposed rule changes.

The Speaker also outlined his proposed calendar for the upcoming session. Since a rules debate cannot be stopped through our current cloture rules, it makes changing controversial rules difficult if any members choose to filibuster any one proposed rule change. In 2017, the Legislature spent nearly one-third of the session attempting to make rule changes. Because of this, the Speaker has proposed scheduling all-day floor debate to take place on all proposed rule changes during Day 6 through Day 12. Any rule changes that have not passed by the end of Day 12 will fail to move forward, and the schedule will return to morning debate on other bills and afternoon committee hearings through February 29. We will then move to all-day floor debate beginning on March 4.

Since this session will be a short 60-day session, Day 59 is scheduled to fall on April 11. This session will go fast, so having a clear path for each bill will be important. Any bills that fail to pass by Day 60, will be indefinitely postponed automatically. That is why I am carefully considering what bills I introduce in this session and which bills to push forward.

I look forward to continuing to hear from you regarding issues that are important to you. It is a privilege to serve as your State Senator, and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or 402-471-2729.

This week, Senators will be convening at the University of Nebraska Innovation Campus for the annual Legislative Council meeting. This meeting will be the first gathering of the entire legislature since the session adjourned on June 1. The primary purpose of the meeting is to let the Speaker address his agenda for the coming session and to allow members of the Legislature to discuss issues they may have before the session begins on January 3, 2024. The meeting is intended to be informational and allow for a more private social setting for members to get reacquainted.

One of the items on the agenda will likely be to discuss some of the rule changes proposed by Senator Erdman, who serves as chair of the Rules Committee. I appreciate the time Senator Erdman has spent developing these potential rule changes and look forward to working with him and the rest of my colleagues through the process. Although the details of the rule changes are significant, I will outline the major rule changes proposed and the impact that these changes could have.

The first proposed rule change would deal with motions for cloture. A motion for cloture is a motion to end debate and proceed to a vote on the pending item before the body. It requires 33 votes to pass, and may only be brought after “full and fair” debate. Currently, motions and amendments are taken in the order in which they are offered, and prior amendments and motions must be resolved before the next can be considered. Moreover, no amendments can be offered once a cloture motion is passed. The proposed change would make it possible for the introducer of the bill under debate to file amendments that move forward in the queue and to prevent meaningful amendments from being blocked by the opposition to prohibit improvements to the bill that gain support for the modified measure. The proposed change, if adopted, would also allow for a cloture motion to be offered without waiting for a specified number of hours of debate to occur first. These would be welcome changes to our rules.

Another proposed rule change would address the rules for “dilatory” motions and amendments. The rule book currently addresses dilatory rules but does not sufficiently address how to recognize and deal with a motion that is intended to simply waste time. The proposed rule would require the Speaker to agree that a motion is worthy of debate before the motion or amendment can be filed with the Clerk. Introducing non-substantive motions and amendments is a common filibuster tactic. A Senator who introduces a motion or amendment is given 10 minutes to open on the proposal, may speak three times for five minutes, and is then allowed a 5-minute close. In short, you could waste 30 minutes for each motion or amendment you introduce, even if no one else participates in the debate. The rule change would still allow for filibustering with substantive motions and amendments while eliminating time-wasting tactics.

Another proposed rule that caught my attention is a proposal to close executive sessions to the press. Currently, all committee hearings are open to the public, and every bill introduced is guaranteed a hearing. However, after all the “public” hearings are completed, the committee chair will call executive sessions to allow committee members to debate the various bills and vote on bills they wish to advance to General File. Currently, only the committee members and the press are allowed to attend these meetings. Many believe that if no other Senators are allowed to attend these meetings, the press should also be excluded. This would allow committee members to be more candid and confidentially debate bills before their committee. Members would certainly be allowed to discuss the issues raised in the closed session after the meeting, but there would be no press in the room during the debate.

Since these proposed rules have been distributed to all the Senators, I expect that there will be some interesting discussions at the Legislative Council meeting later this week.

I look forward to continuing to hear from you regarding issues that are important to you. It is a privilege to serve as your State Senator, and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or by calling my legislative office at 402-471-2729.

Last week, I attended the fifth meeting of the Governor’s property tax working group. At each meeting, the group makes more progress in reaching a consensus on a plan to bring to the legislative floor in the next session. I continue to be impressed with the determination that the Governor demonstrates to control expenses and reduce taxes. Everyone around the table knows this is a huge priority, and we must develop a solution that reduces property taxes while keeping our tax system as fair as possible. 

I am still convinced that the best way to improve our tax equity is to have property tax, income tax, and sales taxes each generate equal amounts of tax revenue. As I have mentioned in the past, property taxes (prior to applying the income tax credit) generate approximately $5 billion annually. All these dollars are collected and retained by local political subdivisions. Income taxes generate approximately $4 billion at the present time. All these proceeds go to the state. Sales taxes generate approximately $2.3 billion annually for the state coffers due to the state’s 5.5% sales tax rate. Local political subdivisions can add a “local option” sales tax of up to 1.5% that they can then retain locally to help offset property tax collections. 

You can see from these numbers that property taxes account for more than one-third of the tax collections from these revenue sources. If the state were to increase the state portion of the sales tax by increasing the rate, eliminating exemptions, or a combination of the two, the state would then be able to direct more dollars to property tax rebates to lower further the net cost of local property taxes collected. It seems to me that we would need approximately $1 billion to achieve this result. In the end, property taxes could be reduced by as much as 25% from their current levels, and local political subdivisions would still retain their local tax collections. 

Some promoted two petition initiatives that would change the Nebraska Constitution to eliminate all forms of taxation except a consumption tax or excise taxes on all new goods and services. The petition language is both very broad and very restrictive. The petitions contain no language regarding how the new tax scheme would be implemented but clearly state that only groceries would be exempt. They leave broad implementation discretion to the Legislature, yet tie the Legislature’s hands when it comes to allowing for exemptions for ag equipment, and many other items that are currently exempt.

In the end, I believe that there are three questions everyone should ask themselves prior to signing these petitions. First, who would be paying more in taxes? The promoters cannot provide that information, yet logic holds that we cannot all save on our tax bill and still produce enough revenue to fund the state and local budget demands. Second, what assurances do those who live in rural Nebraska have that they will continue to receive the funding necessary to support our local political subdivisions? If all tax collections go through the State, then someone in Lincoln will be charged with redistributing the funds throughout Nebraska, essentially eliminating local control over taxing and spending.

And finally, can the petition language be realistically implemented? The two ballot initiatives are simply one-line initiatives and call for implementation by January 1, 2026. The details of how the tax would work would need to be developed by the Legislature, and implementation bills introduced in the past have never advanced beyond the first round of debate and often have not even gotten out of committee. Therefore, you can expect strenuous debate and substantial changes from those bills if the initiatives were to be adopted by the voters. Moreover, the Legislature would need to pass implementing language and the structure for such a tax in 2025, and that is likely to take many months. This would mean businesses will have a very limited time to update their systems to allow the collection of the new tax, so limited it may be physically impossible. 

It might also be important to note that only 16 of the 49 state Senators reside in the Third Congressional District. Although there are some rural Senators in the First Congressional District, urban-focused Lincoln and Omaha Senators could control the debate and the final votes. If the funding falls short over the years, what parts of the state would likely suffer? There is real merit to having local control over your property taxes that stay in your local taxing authority. 

In the end, no matter how we fund our local political subdivisions, if we cannot get a handle on controlling expenses, we will not be able to sustain the funding necessary to fund our budgets fully. Since property taxes are only assessed locally, it begins with our locally elected boards to hold the line on spending. We do it in business and must do the same thing in government. 

I look forward to continuing to hear from you regarding issues that are important to you. It is a privilege to serve as your State Senator, and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or by calling my legislative office at 402-471-2729.

Growing up on a farm, I had the opportunity to learn what it was like to be a part of making things grow. Whether it was growing crops or raising hogs and cattle, I always found satisfaction in being a part of the process and experiencing a sense of accomplishment when everything came together. Although I played a role, I always knew that many other people and external factors played a huge role as well. Some things were obvious (getting timely rains), and other factors were more subtle and maybe included others working with me to get the desired outcome. This carried over for me when it came to growing a business and helping to grow a community. You play a role, but it takes a team, some risks, and some blessings along the way. It is for that reason that I always appreciate those who work behind the scenes to move our communities forward.

This past week, the North Platte area lost one of those leaders, Andy Olson. Andy played a huge role in not only growing a very successful agricultural enterprise but also making a huge impact on the economic development of our region. And he did all of this with very little fanfare. He and Bob Lundeen were two individuals who quietly worked behind the scenes to make a major influence on our area’s economy. Unfortunately, we lost both of them this year. They will be truly missed. Fortunately, like most great leaders, they had a strong group of leaders behind them who would not only continue their own endeavors but also continue leading development for the region. Their impacts were felt and appreciated, and my prayers continue to go out to their families and friends.

I was able to spend some time in Lincoln over the past couple of weeks, including meeting with Speaker John Arch to discuss his plans for the coming legislative session. I have enjoyed watching the Speaker operate and have great respect for his management style. He is a very principled individual who has good instincts for what needs to be done and how to make it happen. I am very confident that we will have a very productive session beginning in January because of the work he is doing now to plan for what’s ahead.

Although many state Senators have seen each other at various events and legislative hearings, we will have our first official gathering on December 7 and 8 when we meet for the annual Legislative Council. This is an event where all Senators get together for some socializing and early planning for the 2024 Session, which begins on the first Wednesday of January. This will also be a good first look at pending issues we will likely face in the next session and get a good feel for individual Senators’ priorities.

As many of you know, Governor Pillen appointed Senator Tom Briese to fill the State Treasurer position vacated by John Murante. As a Senator, Briese chaired the Executive Board and served on the Revenue and Education Committees. He was not eligible to seek re-election in 2024 due to term limits. There were many applicants for the position, but in the end, Governor Pillen appointed Fred Meyer to serve as District 41’s new Senator. Julie and I were at the UNL at the same time Fred attended, and we have been members of Ag Builders of Nebraska for several years since then. Fred’s business and agricultural background as a farmer and cattleman will be a great addition to the Legislature, and I look forward to working with him!

Please continue to keep me apprised of issues that are important to you. It is a privilege to serve as your State Senator, and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or by calling my legislative office at 402-471-2729.