Omaha leaders react to Pillen’s new property tax reform plan

Omaha leaders react to Pillen’s new property tax reform plan

Omaha-area leaders overseeing the funding for city councils, county boards and other agencies are now reviewing the potential fallout from the hard caps included in Gov. Jim Pillen’s new property tax reform plan. Mayors, city councils, county boards are trying to understand how this will affect public safety, city jobs, and streets.In Omaha next week, Mayor Jean Stothert is scheduled to deliver her 2025 budget.”The plan … still does not provide enough specific information to anticipate how significantly the city budget and the services we are obligated to provide could be impacted. It certainly won’t be the only plan the legislature will consider,” Stothert said in a statement.READ MORE: Nebraska Gov. Jim Pillen unveils his property tax reform plan ahead of special sessionStothert said the city receives 20.59% of the property owner’s total tax bill, which is about approximately $226 million in 2024. The majority of that is spent on police and fire protection and roads.The mayor also cited her history of reducing Omaha’s property tax levy and said she plans to recommend another one next week. “I certainly support property tax reform,” Stothert said.” However, I am concerned about the lack of thought, analysis or discussion with local governments as these potentially damaging plans and the unintended consequences are being considered.”Click here to see how much you could save if Nebraska’s new property tax reform package passesLa Vista Mayor Doug Kindig was one of the first to speak out, saying the situation leaves city leaders confused.”Helter skelter,” he said. “It seems like the governor’s proposing a new tax plan almost weekly. And we’re trying to keep up if it’s a good plan and not hurt our city too much. But the target seems to be all over the place.”Kindig told KETV he’s talking with local state senators ahead of next week’s special session.He said there would need to be cuts, perhaps of employees, like those who clear snow off the roads, and of “amenities.””If you don’t allow us to provide amenities and to make our city nice,” he said, “and a cap will directly affect that, in the long run the youth are gonna move…I’d kinda like them to stay out of my business and let’s work together and get this done.”READ MORE: How much would a special session cost for Nebraska lawmakers this summer?Others across the state signed a letter of opposition with the nonprofit group League of Nebraska Municipalities opposing the cap of zero percent or consumer price index. They added it would compromise the ability of a municipality to meet its obligations to keep municipalities safe, provide needed infrastructure, programs, and services for citizens while limiting growth and economic development efforts.”How do you provide services for citizens? It’s simply untenable. I’ve said at legislative hearings that agriculture is the primary economic driver. So are universities. So are municipalities. That’s where most people live around the state,” L. Lynn Rex, executive director of League of Nebraska Municipalities, said.The Platte Institute also weighed in.”We hope that as the plan moves through the legislature, alternatives to taxing business and agricultural inputs — like machinery and energy will be considered,” The Platte Institute said. Roger Garcia, Chair of the Douglas County Commissioners, told KETV, ” with 0% caps, we would definitely run into issues of addressing the needs that we need to do at the local level.”He said there are things the state requires that aren’t funded by the state. He added some unavoidable increases don’t fall into the inflation or growth exceptions on the 0% cap. “For example the labor market has changed so substantially,” he said.Omaha Public Schools Board President Spencer Head said not enough information was shared on the plan on Thursday.”The devil’s in the details,” he said. “Going into the special session, we’re going to be looking at what those details are and how that’s going to work. Obviously … I would love to have a lower property tax bill.”With school district levies being gradually ended under the proposed plan, he wonders if OPS might be forced to give up programs smaller districts don’t offer.”We would absolutely hate to see happen,” he said.Westside Schools said in a statement: “Westside Community Schools is committed to providing an environment that fosters excellence in education for all students and staff while remaining cognizant of the reliance on our community’s property tax dollars. Due to an increase in funding from the state, the 2024 budget is bringing fewer property tax dollars than the 2023 budget and tax request. In totality, since 2019-20, the property tax dollar request from Westside Community Schools has had less than a 1% annual increase.”Click here for the latest headlines from KETV NewsWatch 7

Omaha-area leaders overseeing the funding for city councils, county boards and other agencies are now reviewing the potential fallout from the hard caps included in Gov. Jim Pillen’s new property tax reform plan.

Mayors, city councils, county boards are trying to understand how this will affect public safety, city jobs, and streets.

In Omaha next week, Mayor Jean Stothert is scheduled to deliver her 2025 budget.

“The plan … still does not provide enough specific information to anticipate how significantly the city budget and the services we are obligated to provide could be impacted. It certainly won’t be the only plan the legislature will consider,” Stothert said in a statement.

READ MORE: Nebraska Gov. Jim Pillen unveils his property tax reform plan ahead of special session

Stothert said the city receives 20.59% of the property owner’s total tax bill, which is about approximately $226 million in 2024. The majority of that is spent on police and fire protection and roads.

The mayor also cited her history of reducing Omaha’s property tax levy and said she plans to recommend another one next week.

“I certainly support property tax reform,” Stothert said.” However, I am concerned about the lack of thought, analysis or discussion with local governments as these potentially damaging plans and the unintended consequences are being considered.”

Click here to see how much you could save if Nebraska’s new property tax reform package passes

La Vista Mayor Doug Kindig was one of the first to speak out, saying the situation leaves city leaders confused.

“Helter skelter,” he said. “It seems like the governor’s proposing a new tax plan almost weekly. And we’re trying to keep up if it’s a good plan and not hurt our city too much. But the target seems to be all over the place.”

Kindig told KETV he’s talking with local state senators ahead of next week’s special session.

He said there would need to be cuts, perhaps of employees, like those who clear snow off the roads, and of “amenities.”

“If you don’t allow us to provide amenities and to make our city nice,” he said, “and a cap will directly affect that, in the long run the youth are gonna move…I’d kinda like them to stay out of my business and let’s work together and get this done.”

READ MORE: How much would a special session cost for Nebraska lawmakers this summer?

Others across the state signed a letter of opposition with the nonprofit group League of Nebraska Municipalities opposing the cap of zero percent or consumer price index. They added it would compromise the ability of a municipality to meet its obligations to keep municipalities safe, provide needed infrastructure, programs, and services for citizens while limiting growth and economic development efforts.

“How do you provide services for citizens? It’s simply untenable. I’ve said at legislative hearings that agriculture is the primary economic driver. So are universities. So are municipalities. That’s where most people live around the state,” L. Lynn Rex, executive director of League of Nebraska Municipalities, said.

The Platte Institute also weighed in.

“We hope that as the plan moves through the legislature, alternatives to taxing business and agricultural inputs — like machinery and energy will be considered,” The Platte Institute said.

Roger Garcia, Chair of the Douglas County Commissioners, told KETV, ” with 0% caps, we would definitely run into issues of addressing the needs that we need to do at the local level.”

He said there are things the state requires that aren’t funded by the state. He added some unavoidable increases don’t fall into the inflation or growth exceptions on the 0% cap. “For example the labor market has changed so substantially,” he said.

Omaha Public Schools Board President Spencer Head said not enough information was shared on the plan on Thursday.

“The devil’s in the details,” he said. “Going into the special session, we’re going to be looking at what those details are and how that’s going to work. Obviously … I would love to have a lower property tax bill.”

With school district levies being gradually ended under the proposed plan, he wonders if OPS might be forced to give up programs smaller districts don’t offer.

“We would absolutely hate to see happen,” he said.

Westside Schools said in a statement: “Westside Community Schools is committed to providing an environment that fosters excellence in education for all students and staff while remaining cognizant of the reliance on our community’s property tax dollars. Due to an increase in funding from the state, the 2024 budget is bringing fewer property tax dollars than the 2023 budget and tax request. In totality, since 2019-20, the property tax dollar request from Westside Community Schools has had less than a 1% annual increase.”

Click here for the latest headlines from KETV NewsWatch 7

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