By GRANT SCHULTE-Associated Press
LINCOLN, Neb. (AP) - The latest attempt to lower property taxes in Nebraska faced an uncertain future Wednesday as lawmakers squabbled over whether it would hurt K-12 public schools that rely heavily on the revenue.
Lawmakers debated the measure for nearly three hours but failed to reach a vote before they adjourned for the day.
A leading supporter, Sen. Lou Ann Linehan, of Omaha, said she believes she has enough votes to pass the complex bill but cautioned that lawmakers need more time to discuss and understand everything it does.
She said she expects intense lobbying of lawmakers from school districts that oppose the bill and from farm, business and taxpayer advocates who want to see it pass. Lawmakers will resume debate Thursday morning.
"There's going to be a lot of arm-twisting between now and 9 a.m. tomorrow," Linehan said.
Gov. Pete Ricketts has said he generally supports the bill and clashed publicly with school lobbyists who are fighting it. The Republican governor recently referred to Nebraska's public schools as "government schools," echoing a line from President Donald Trump's State of the Union in which the president criticized "failing government schools."
The Nebraska bill seeks to lower local property taxes by boosting state aid for public K-12 schools and redistributing it so that smaller, rural schools get a larger share. All districts would see an increase because the total amount of aid would rise by about $520 million over three years. But school officials have said they don't trust lawmakers to maintain state funding in tight budget years.
The bill would also reduce the percentage of home, business and agricultural land value that schools are allowed to tax. After a three-year phase-in, schools would only be allowed to tax 87% of the value of homes and businesses, down from the current 100%. They'd only be able to tax 55% of the value of farm and ranch land, down from 75% currently. Property owners, as a result, would pay taxes on a smaller portion of their property's value.
It would also tighten limits on school spending growth and their taxing power, drawing objections from many districts. New levy caps would allow schools to collect the same amount of money they received in the previous year, plus inflation and the value of any new homes or businesses. Overriding the levy would require voter approval.
Senators offered mixed reviews of the proposal. Some argued that it would hold K-12 public schools accountable while shifting more of the cost onto the state and off of local property taxpayers.
"It would be irresponsible of us to inject hundreds of millions of additional state dollars into K-12 education and not try to ensure that the money goes toward property tax relief," said Sen. Tom Briese, an Albion farmer.
But Sen. Sue Crawford, of Bellevue, said she still has concerns that the bill could shortchange schools over the long term.
"I don't believe we're there yet," she said.
Sen. Steve Lathrop, of Omaha, said he'd like to see a measure that's offers "sustainable, realistic property tax relief," but he doesn't see the current bill achieving that goal.
"The fact that everyone wants property tax relief doesn't make this the right vehicle to accomplish it," he said.
Sen. Ernie Chambers, of Omaha, was more blunt: "This bill is not going anywhere," he said.