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Pillen budget proposal would bury all 'good life’ districts, but lawmaker holds out hope for a fix  • Nebraska Examiner

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Pillen budget proposal would bury all 'good life’ districts, but lawmaker holds out hope for a fix  • Nebraska Examiner


LINCOLN —  All of Nebraska’s “good life” districts appear to be in a precarious spot — not just the embattled one in Gretna — as Gov. Jim Pillen’s proposed budget seeks to deny $5 million a year set aside for the new state incentive that had been committed for multiple years to boost the buildout of those destination sites.

Gov. Jim Pillen gives his annual State of the State speech, which spelled out his strategy to cut state spending. Jan. 15, 2025. (Zach Wendling/Nebraska Examiner)

Pillen’s recently revealed biennial budget package targets “Good Life Transformational Projects” as one of about 50 programs and incentives the Legislature and governor approved over the past five years but that Pillen now proposes cutting. It’s part of his strategy to address a projected two-year $432 million state budget shortfall.

Specific to the good life districts, the governor wants to reject roughly $5 million annually in incentives budgeted through 2029, for a revenue savings of about $20 million in four years. The plan notes that the benefit was to stretch longer, for up to 30 years — derived from a now-controversial cut in the state sales tax rate within the district boundaries.

Here’s how the incentive works: Under the 2023 Good Life Transformational Projects Act, championed by then-State Sen. Lou Ann Linehan of Omaha, the state sales tax within up to five “good life” districts is to be slashed in half, from 5.5% to 2.75%. The idea was that the difference would be redirected to help develop unique, entertainment and shopping districts that ultimately and over time would rake in more tourists and money for the state.

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Controversy swirls

Controversy has swirled around the incentive — mostly as it relates to the largest and highest-profile district — in Gretna. The state approved that district based on an application by Nebraska Crossing owner Rod Yates and last April cut the sales tax within the district’s city limits.

Rod Yates at Nebraska Crossing. (Cindy Gonzalez/Nebraska Examiner)

But Gretna officials and Yates deadlocked over terms for his multibillion dollar mega sports-themed vision. Without an actual project or mechanism in place to recapture the vacated portion of the tax, an average of $300,000 a month in sales tax revenue has been lost. As of November, more than $2.2 million was forfeited, according to an update from the Nebraska Department of Revenue.

The governor told reporters at a budget briefing last week that he regrets signing into law certain funding incentives, including the good life districts, and he sees now as the time to “reverse” the course. 

State Sen. Brad von Gillern, who has replaced Linehan as chair of the Legislature’s Revenue Committee, said that he has not seen the bill language reflecting the governor’s request. But he said that, as described in the proposed budget, the entire good life district concept would end.

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State Sen. Brad von Gillern of Elkhorn. (Zach Wendling/Nebraska Examiner)

The Omaha senator prefers less drastic measures. He said he is working with a group of state senators on revised legislation that would “preserve the program in a more workable way.”

Besides Gretna, the Nebraska Department of Economic Development has approved formation of good life districts in Grand Island, Bellevue and Omaha. All are in various early stages, with Gretna the last to hold a local election (on Jan. 14) that was required under a 2024 revision to the good life law. Voter approval was needed to tap into the state incentive to help private development.

There is no denying, von Gillern said, that state officials have not been pleased with certain aspects of the law, including that state tax revenue went uncollected in Gretna without even benefiting a project. 

Yates persists

Linehan, the sponsor of the original legislation, also has publicly denounced how the law has played out — not only in Gretna, she told the Nebraska Examiner, although that is where her fury was focused.

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In her recent criticism, Linehan said the 2024 revisions to the legislation also opened the door for cities to use the incentive in a way she believes lawmakers did not intend, for projects less spectacular than one-of-a-kind. She said that the state did not give up revenue for cities to use the public incentive on non-extraordinary ventures.

State Sen. Lou Ann Linehan of Elkhorn. Aug. 13, 2024. (Zach Wendling/Nebraska Examiner)

“Shame on me,” she told the Nebraska Examiner previously. “But something is very wrong here.”

Yates, meanwhile, asked the DED on Jan. 13 to terminate his district application. He said he now is seeking someone to push alternative legislation that would help his vision materialize. He said he has amassed partners ready to build arenas and other components and has not given up.

Yates said he has continued to talk with representatives of the Pillen administration. The governor and K.C. Belitz, DED director, had been involved early on in Yates’ vision, at one point traveling to New York to help the former Husker split end’s effort to woo a pro hockey team to Nebraska and the Gretna good life district.

Von Gillern told the Examiner that said he does not plan to introduce separate legislation to catapult that mega project and did not know of any such bills in the pipeline. 

State officials said Jan. 13 that they would seek information from Gretna officials to determine if the approved Gretna project and district remain viable. The 2,000-acre district’s boundaries include and surround the Nebraska Crossing campus near Interstate 80 and Highway 31, between Nebraska’s two largest cities, Omaha and Lincoln.

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Gretna sees district surviving

DED said it has the authority to terminate the good life district if it determines the approved project is no longer viable and if termination is in the best interests of the state economy.

Gretna’s Mayor Mike Evans has said they would present evidence to the state that the district should continue, even without Yates’ participation. He said multiple developers within the district are capable of delivering a transformative project. 

Gretna officials have said they wanted to work with Yates, but he was not willing to budge on what they believed were legal and financial risks for taxpayers. They said his demands involved possible use of  eminent domain, as Yates owned only a slice of the property within the district.

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Here is a vision of sports fields, housing and more within the Grand Island Veterans Village good life district led by Woodsonia Real Estate.  Woodsonia also owns property in the Gretna good life district and is interested in developing a transformational project there as well. (Courtesy of Woodsonia)

GET THE MORNING HEADLINES.

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Nebraska softball coaching staff finalized with a contract extension

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Nebraska softball coaching staff finalized with a contract extension


Nebraska softball finalized its coaching staff on Wednesday. Head coach Rhonda Revelle signed an extension that runs through the 2031 season. The program also finalized several previously announced coaching changes.

Revelle earned the extension after leading Nebraska to one of its best seasons in history, bringing the team back to the Women’s College World Series for the first time since 2013. The Huskers totaled a school-record 52 wins in Revelle’s 34th season as Nebraska’s head coach, helping solidify her as the winningest coach in Nebraska athletics history.

“As we said when we had the privilege of naming the field at Bowlin Stadium in her honor, Rhonda Revelle is Nebraska Softball. Rhonda is not only a great leader of our softball program, but she is a world-class individual who elevates our entire athletic department in many ways. The trajectory of our program is at an all-time high coming off a record-breaking season and we are excited for the years ahead under the leadership of Rhonda and her outstanding staff.”

Revelle also re-worked the responsibilities of her coaching staff, elevating existing staff members and bringing in a slew of former players as assistants. This comes following the retirement of long-time assistant Lori Sippel in June. 

Diane Miller has been elevated to associate head coach, and Mandie Nocita was promoted to assistant coach. Olivia Ferrell and Jordy Frahm also join the staff and will serve as assistant coaches. Hannah Coor and Hannah Camenzind have been added as graduate assistants. Lauren Camenzind will be a graduate manager for the Huskers.

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Contact/Follow us @CornhuskersWire on X (formerly Twitter) and like our page on Facebook to follow ongoing coverage of Nebraska news, notes and opinions.





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Gov. Jim Pillen calls for budget cuts, hiring freeze in new memo

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Gov. Jim Pillen calls for budget cuts, hiring freeze in new memo


Nebraska Gov. Jim Pillen on Wednesday announced measures to further cut state spending, including a cut in state agency spending and a hiring freeze on most positions.

Pillen said in a news release that the measures are necessary after the state paid out $307 million more in state tax refunds than anticipated in fiscal year 2026, which ended June 30. Tax receipts have come in below projections in March, April and May, leading to a current expected deficit of $172 million.

That’s after lawmakers closed a $646 million budget hole in their most recent legislative session.

The governor has previously sought to cut spending to provide more property tax relief to Nebraska residents and had called for additional cuts during the current fiscal year.

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“I am pleased with the progress we have made, but I’m not satisfied,” Pillen said in a news release.

Accompanying the release was a memo Pillen sent to state agencies, boards and commissions in which he called on them to “exercise additional fiscal restraint.”

Among the measures outlined in the memo:

  • A freeze on creating any new positions or filling any vacancies without approval from the state budget office. The freeze does not apply to law enforcement or corrections positions.
  • A 5% reduction in budgets for all state agencies.
  • All agencies, boards and commissions must provide monthly cash flow projections.
  • Agency leaders are directed to “concentrate” on eliminating redundant processes, services regulation and aid programs.
  • Agency leaders are directed to reduce their agencies’ physical footprint and “consolidate teams and services.”

All state entities are required to submit their plans for reducing spending by the end of the month.

The memo also said agencies should “prepare for downward adjustments to appropriations” not only in the current fiscal year but also in the 2028 and 2029 fiscal years.



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Supreme Court will hear Nebraska’s fight over access to Colorado’s South Platte River

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Supreme Court will hear Nebraska’s fight over access to Colorado’s South Platte River


The U.S. Supreme Court has agreed to hear Nebraska’s lawsuit against Colorado over a proposed canal that would take water out of the South Platte River in Colorado and send it to a reservoir in Nebraska.

Nebraska claims Colorado is deliberately obstructing efforts to build the ditch, known as the Perkins Canal, even though everyone agrees Nebraska has the right to do so. The canal is necessary, Nebraska says, because Colorado isn’t sending enough water into Nebraska.

The Perkins Canal would divert water from the South Platte River near Ovid to a storage site somewhere in Nebraska. The South Platte River Compact, ratified by both states and Congress in 1923, requires Colorado to guarantee a flow in the river of 120 cubic feet per second at a water gauge near the state line during the irrigation season. The compact also authorizes Nebraska to build the canal and grants the right to use the power of eminent domain to acquire land on which to build it. Initial work was done on the canal more than a century ago, but the project was abandoned as unfeasible.

Nebraska resurrected the idea in late 2021, citing fears that urban development along Colorado’s Interstate 25 corridor and plans to expand water storage were causing Colorado to violate the terms of the 1923 compact. 

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The idea that Nebraska might actually build the canal has water users in the lower reaches of the river worried that doing so would disrupt the water augmentation process that underpins much of the crop irrigation along the South Platte, especially between Fort Morgan and the Colorado-Nebraska state line. It is designed to help Colorado meet the terms of the 1923 compact. 

Colorado land owners have resisted Nebraska’s efforts to buy land in the Julesburg area so the canal can be built. Colorado Attorney General Phil Weiser and Gov. Jared Polis, while recognizing Nebraska’s right to build the canal, have nevertheless sworn to do all they can to protect Coloradans’ property and water rights. Seeing such rhetoric as subverting Nebraska’s right to build, Nebraska sued Colorado in the Supreme Court in July 2025, alleging that Colorado is obstructing Nebraska’s efforts to go ahead with the Perkins project. Nebraska also attacked Colorado’s water augmentation system, saying it doesn’t work.

To understand augmentation, it’s important to know that Colorado operates on the prior appropriation doctrine, meaning the oldest (senior) water right holders get their water first. During dry periods, senior users may place a “call” on a stream, forcing junior users to stop taking water to ensure the senior rights are fulfilled. When someone pumps water out of a river basin, it eventually pulls water out of nearby streams and rivers, which can illegally shortchange senior surface-right holders. In that case, the junior wells would have to be shut down until senior rights were satisfied

To avoid such shutdowns, called “curtailment,” Colorado devised a system called augmentation in which the water that is pumped during the irrigation season must be replaced during the winter months so it flows back through the aquifer into the river in the following irrigation season. Some augmentation is done simply by buying water rights from upstream users, increasing the amount of water in the river. The system is highly complex and requires detailed accounting of river flows.

In a prepared statement issued last week, after the high court agreed to hear the case, Colorado Attorney General Phil Weiser said Colorado is in compliance with the compact.

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The court’s decision, he wrote, “merely opens the door for Nebraska to bring its claims against Colorado. Nebraska’s burden to prove those claims is incredibly high and we will vigorously defend Colorado’s full entitlements under the compact.”

Perkins Canal needed because Colorado is harming Nebraska

But Nebraska officials insist water augmentation isn’t doing what it was supposed to do. In its 55-page complaint to the U.S. Supreme Court, Nebraska calls the augmentation system illegal and a violation of the river compact.

“Colorado’s water administration system, including its augmentation plans, have harmed and will continue to harm Nebraska,” the lawsuit reads. “For example, many augmentation projects … allow junior well owners to pump water out of priority during the irrigation season, provided they pump or divert additional water during the non-irrigation season and apply it to recharge ponds. This method assumes that water will percolate back into the water table and make its way to the South Platte River in time to make whole downstream senior users.”

Kent Miller is general manager of the Twin Platte Natural Resources District, which includes most of the South Platte River in Nebraska. He’s said he’s watched the river since 1972 and is skeptical that augmentation even works.

“Those plans have not been working, and I base that on the fact that the Western Irrigation District rarely receives what it’s supposed to receive,” Miller said. 

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In May, U.S. Solicitor General John Sauer filed an amicus brief with the high court recommending that the court allow the suit to go ahead, but with conditions. 

In its lawsuit, Nebraska addresses augmentation because of its complexity and insists that any mechanism Colorado uses to comply with the compact should be simple. In his amicus brief, Sauer recommended tossing the argument.

“Nebraska reads Article VIII (of the compact) as mandating that compliance mechanisms be ‘simple,’ and it alleges that Colorado has violated that requirement,” Sauer wrote. “But Article VIII imposes no such requirement; it merely authorizes Colorado officials to enforce the Compact without action by the Colorado legislature. Because Nebraska’s Article VIII claim is facially meritless, it should not be permitted to proceed further.”

Sauer further recommended disallowing arguments that Colorado is obstructing Nebraska’s efforts to build the canal, saying Nebraska offers no evidence of such obstruction.

In signaling its acceptance of the lawsuit on Monday, the Supreme Court said it wants to hear all of Nebraska’s complaints and let the justices judge for themselves whether parts of it lack merit. Colorado originally had 30 days to respond to the court’s action but, on July 2, requested a 60-day extension.

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