Omaha taxpayers voice support for schools, equitable property taxes at town hall

The forum was organized by a group of state senators representing the Omaha and Lincoln areas after Nebraska Gov. Jim Pillen held more than two dozen town halls in other parts of the state — except in Nebraska’s two largest cities.

Omaha area residents appeared eager to make their opinions heard, filling UNO’s Thompson Alumni Center. Dozens spoke days before the Legislature begins a special session to consider property tax reform July 25.

Many spoke in opposition to Pillen’s plan unveiled last week. Pillen’s plan, in part, would cut the average property tax bill 50% by having the state take over funding of K-12 school operations, a change Pillen said would fulfill the state’s constitutional mandate to “provide for the free instruction” of children in public schools.

To pay for the takeover, which would take place over three years, Pillen proposed broadening the sales tax to cover currently exempt goods and services. The list includes some agriculture, business and manufacturing inputs, which would be taxed at 2 cents, instead of the current 5.5 cents. He also proposed to increase some miscellaneous taxes, such as those on cigarettes, and to repurpose existing property tax credit programs.

The nature of property tax reduction and state government taking over funding of public schools irked a number of people in the audience.

Fred Robertson, a retired public school educator, said people who have the means to pay more taxes should do so willingly.

“If we make decisions based on trying to get all of what we can for ourselves, we’re going to end up hurting the people who are least in power,” he said.

Marcia Anderson said the state needs a comprehensive financial plan that details how the state and its public schools will be funded. She indicated no trust in Pillen’s plan and said schools have been having to do more with less funding in recent years.

“Our schools are doing their damn best trying to educate our kids. And I am willing to spend any cent and my support for them completely,” she said.

With a similar town hall set for Lincoln at the Wick Alumni Center on the University of Nebraska-Lincoln campus from 5 p.m. to 7 p.m. on Monday, legislators said the town halls give them an opportunity to take their constituents’ feedback and concerns into account during the special legislative session that begins Thursday.

“My fellow Nebraskans are educated. They understand the issues,” said Sen. Jane Raybould of Lincoln. “They bring reason and facts with them.”

However the special session unfolds, there will be a lot of debate and compromise between the Legislature and Pillen, said Sen. Merv Riepe of Ralston.

“It’s one thing to say, ‘I’m going to reduce property taxes by 50%.’ You don’t get to just stop there. You have to come back and say, ‘OK, how are you going to backfill for the money lost,’” said Riepe. “This is the heavy lifting over here to come up with the backfill of the revenue.”