OpenSky’s Renee Fry: Nebraska lawmakers face “huge” issues

OpenSky’s Renee Fry: Nebraska lawmakers face “huge” issues

OpenSky’s Renee Fry said on KGFW (1340 AM) in Kearney today that Nebraska lawmakers face “huge” issues in prison reform, health and human services, the state budget and property taxes in the upcoming session.

She said there is “no magic bullet to change state’s tax system, but is hoping for a “comprehensive discussion” of the issue by lawmakers.

Fry told KGFW that “we have great concerns” over calls to tap state’s rainy day fund, which will be about $770 million – just at the minimum recommended reserve of 16.7 percent.

Fry said that property taxes are easily the top concern for Nebraskans and that the state should examine using a local income tax component to help pay for K-12 schools and reduce property taxes.

A recent study by OpenSky said Nebraska’s K-12 schools are more reliant on local sources of revenue than schools in any other state in the nation.

She said reducing ag-land valuations for tax purposes from 75 percent to 65 percent will not help rural landowners uniformly.

From 1999 to 2013, agricultural land in Nebraska saw a 193 percent increase in value for tax purposes, while commercial property saw an increase of 111 percent and residential property saw an increase of 104 percent.

This squeezes farmers and ranchers the most because increases in the value of their land do not necessarily translate into boosts in their income.

Lawmakers will begin the session Jan. 7 with 18 new lawmakers (out of 49) and a new Republican governor in Pete Ricketts.