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About The daily Nebraskan. ([Lincoln, Neb.) 1901-current | View Entire Issue (March 1, 1999)
Johanns, Legislature spar over tax-relief bill Governor’s proposal would create property-tax rebates By Brian Carlson Staff writer Gov. Mike Johanns stepped into the hot seat ^tjthe Legislature’s Revenue Committee on Friday, defending his proposal for direct property tax rebates as die simplest and most effective way to provide property tax relief. Several committee members and opponents of LB881, however, ques tioned the plan’s sustainability and effect on school financing. Johanns’ proposal would create a trust fund into which excess state rev enues would flow, providing funding for rebate checks to be mailed directly to taxpayers. Johanns estimated tax payers would receive a check worth about 11 percent of their property tax bill in the program’s first year. Johanns applauded the Legislature for increasing the state’s share of school financing in recent years. The state now pays roughly half of K-12 school expenses, and Johanns said this should continue. “But where I have to question, what I can’t defend, is in die area of property tax relief,” he said. While increased state aid to schools is “the right thing to do,” he said, it has not provided property tax relief to the extent that had been hoped. Under LB1114, passed in 1996, the state capped school districts’ property tax levies at $ 1.10 per $ 100 evaluation,’ to be dropped to $1 in 2001. This was an attempt to reduce property taxes, and it was followed by a $110 million infusion of state aid to schools in 1997 to compensate for schools’ lost proper ty tax revenues. Johanns said each additional dollar of state aid had resulted in roughly 40 cents of property tax relief. The Omaha Public Schools, for example, received an additional $23 million in state aid, but district residents saw their property taxes fall about $6.2 million. Johanns said the state should keep the levy limit at $1.10, canceling the scheduled drop to $ 1. That proposal is contained in separate legislation spon sored by Sen. Pam Brown of Omaha. The combination of continued state aid to schools, retention of the $1.10 levy lid and passage of LB881 would break the link between state aid to schools and property tax relief, result ing in nearly dollar-for-dollar relief, Johanns said. 1 Property tax relief, he said, would depend only on the willingness of the Legislature and governor to restrict spending. Sen. Stan Schellpeper of Stanton, however, said he worried the plan could hurt property tax relief efforts. Keeping die higher levy limit would mean higher property tax bills, and property tax rebates would not be affordable if the state’s revenues dipped - for example, if the economy turned sour. “People could get hit twice,” he said. Sen. Bob Wickersham of Harrison, the committee chairman, said Johanns’ proposal-did not represent sound eco nomic policy. In the event of an economic down turn - the precise time when property tax relief would be most needed - prop erty tax rebates would not be affordable because of lower state revenues, he said. In that case, he said, property tax I rebates could be paid for only by cut ting important state services. “It seems to me we put ourselves at a considerable amount of risk in that particular situation,” he said. Lowering property tax levies, Wickersham said, was more likely to provide sustained, long-term relief. “Why substitute an absolute cer tainty of lower taxes for a good chance taxes won’t be lower?” he said. Wickersham and Sen. Ron Raikes of Lincoln both said state aid to schools was designed not only to provide prop erty tax relief, but to promote equality in financial resources for all school dis tricts. They questioned how Johanns’ plan would promote equalization. “I’m not saying we should repeal the formula,” Johanns said. “I really do not believe LB881 abandons the efforts the Unicameral has been putting into place.” Bryce Neidig of the Nebraska Farm Bureau Federation testified in support of LB881, saying it would pro « Why substitute an absolute certainty of lower taxes for a good chance taxes won’t be lower? ” Sen. Bob Wickersham vide more efficient property tax relief. “There is no question that in the near term, LB881 will provide more property tax relief than we are now get ting,” he said. Robert J. Halstrom, a lobbyist for the Nebraska Bankers Association, said the organization opposed a mere tax shift from property taxes to income, sales and other taxes. “We do not believe that state aid to education and property tax relief are issues that need to be forever inter twined,” he said. But Jim Griess, executive director of the Nebraska State Education Association, said Nebraskans had shown firm support for property tax relief, even if higher income and sales taxes were a tradeoff. “The fact is, Nebraskans want a shift from property tax to sales tax and other sources,” he said. “And contrary to what many people say, shift is not a four-letter word. “In fact, shift happens all the time. The question is, which way will it go?” LB881 would “replace and dis place” LB1114, Griess said, jeopardiz ing certain property tax relief in an attempt to provide property tax rebates that may not be affordable. “There is no guarantee of property tax relief in this plan,” he said. Linda Poole, president of the Millard School Board, said the district was worried LB881 would put on hold future state aid that would promote quality education. She added that because property tax rebates would be considered per sonal income, Nebraska taxpayers N would lose about 17 percent of their rebate in income taxes. Parking Problems? Need a Place to Park? Park by Park by Day Month $2.00 $25 Don't Fight for Parking Enter at 8th & S Streets, 1 block west of Memorial Stadium National Garages, Gold's Galleria, Suite 120 • 474-2274 ~ BEC1UMESL .__jn change your Ufa in an instant, Perhaps you mold like to canstdar tha pnsrihitity of crsaiing an adoption pin for yonr child. Onr csss workers on answer yonr | questions cnnfiriimtiHlly. B you would Uln to visit with os, pleoss aD today. ddfezfejune 4600Why feat 8* S14 • LtaMB 68S10 (402) 483-7878* 800-580^754 ■IHHBHHnHnnnnnl Read and earn UNL credit at your pace this summer Add hours to your schedule while you: ■ Take course work with you to summer destinations. ■ Study at home at your own pace. Check it out March 10: ■ Meet instructors March 10 at the Summer Reading Course Program Meeting. Location: Clifford Hardin Nebraska Center for Continuing Education, 33rd and Holdrege streets. ■ Choose horn 30 undergraduate courses in 12 departments. Read the Wednesday, March 3, Daily Nebraskan for a full listing of courses, instructors and alternate meeting times. Call for your Reading Course catalog: _ _, . 472-1392 Nebraska uwir»mMTToywp»*nui-uwcoLW Division of Continuing Studtes Department of Part-Time Student Services B^B In and Degree Options opportunity teautfon. Charron named RHA secretary From staff reports The Residence Hall Association Senate passed by acclamation the appointment of Anna Charron to become RHA secretary Sunday night The appointment came as a surprise to some members because the senate declined to approve Charron’s appoint ment three weeks ago. A majority of the senate then supported a different candi date, former RHA Senator Matt Knobbe, to become secretary. Before the senators voted on the appointment, Knobbe addressed them to vote for Charron, a sophomore engj- I neering major. He said although he was the better candidate, it wouldn’t be fair to Charron for the senate to vote down her appointment again. Charron, who succeeds Jill Beran, thanked Knobbe after his address. “This is a very honorable thing to do,” she said. Knobbe said he decided to support Charron after he had talked with RHA President Shane Perkins before the sen ate meeting. Perkins said Knobbe was qualified to become secretary, but that Charron was the best candidate. • 9 ^MDS Harris / Together, We're Making uves Better 621 Rose Street, Lincoln www.mdsharris.com/rcrt/recruit.htm '