Nebraska
Income tax cuts will be protected during Nebraska property tax relief discussions, governor says • Nebraska Examiner
COLUMBUS, Nebraska — The funding route for Gov. Jim Pillen’s property tax reforms ideas will likely continue to focus on sales and “sin” taxes, and he says that “income tax won’t be touched.”
At various town halls around the state, Pillen has asserted that his solution to reducing property taxes lies in a broad sales tax base, which critics have said could raise taxes on poorer Nebraskans. Unlike in the spring, the governor has focused more recently on eliminating certain sales tax exemptions and increasing sin taxes. But he is no longer talking about raising the sales tax rate from 5.5 cents per dollar.
“We have to be competitive [with] income tax, and then we have to get competitive property tax,” Pillen told reporters Wednesday.
‘Keep that massive win’
Last year, lawmakers approved a long-sought reduction in the state’s income tax rates that will lower the top rates to 3.99% by 2027.
Pillen is now pushing ahead with his stated goal that by the end of 2024 — his second year as governor — the state will have eliminated or shifted a total of 40% of the state’s tax burden away from property taxes. That’s about $2 billion, with about half still to go to meet Pillen’s goal.
In an in-house podcast this week, Jim Vokal, CEO of the Omaha-based think tank Platte Institute, joined senior policy adviser Michael Lucci for the Platte Institute in calling to guard the income tax changes — which Lucci called “the best tax reform of any state in 2023.”
The Platte Institute duo said the state should follow through with that plan unless “some extreme event” comes up that can’t be foreseen.
“Keep that massive win,” Lucci said. “Lock that down and then let’s all work together going forward to figure out what to do on the property tax.”
Future local, state spending
The podcast came in conjunction with the Platte Institute releasing its own property tax reform report, which offers some recommendations that echo those of Pillen.
One calls for hard caps on local spending increases, which Vokal told the Nebraska Examiner will “stop the bleeding” associated with annual property valuation increases.
Valuations rose $32 billion in 2023, the largest single-year increase in state history, while nearly $300 million more in property taxes were collected across the state. In most cases, when valuations go up, more taxes are collected unless local tax rates go down.
Lucci said that elected officials should have to vote any time property tax rates could go up by $1 or more and that they should ask for a vote of the people for larger tax increases over a “hard cap,” such as an increase higher than the rate of inflation.
“That is the ultimate form of local control,” Lucci said on the podcast. “Soft cap for the first dollar raise, hard cap for dollars raised on whatever threshold folks think is reasonable.”
‘Full range of arrows in the quiver’
But Pillen’s desire to look only at sales taxes for his solution to an identified crisis could make his efforts more difficult, according to Rebecca Firestone, executive director of the OpenSky Policy Institute.
She said the reduced revenues resulting from the income tax cuts would be a “major complication” for a governor who wants to solve an identified crisis but not “look at the full range of arrows in the quiver of state tax policy.”
Firestone said the most recent estimates she’s seen from the phased down income tax rates will lead to about $1 billion in reduced state revenue in 2027.
If paused, it could mean about $600 million for Pillen to work with for his ideas, which include the state taking over K-12 school funding.
“They made a lot of spending commitments in 2023,” Firestone said of lawmakers, pointing to a new state prison, a $1 billion Education Future Fund and the Perkins County Canal. “If some of those spending commitments were put back on the table, it could potentially free up revenues.”
Firestone said “sin” taxes, such as those on cigarettes, vaping products and alcohol, have shown public health successes when taxes are increased. However, they aren’t the best for general sources of revenue that could be needed for Pillen’s ideas.
Questions around school funding
Many future ramifications need to be considered for Pillen’s “bold plan” for the state to take over the property tax portion of K-12 funding, Vokal said. Among those questions is how to balance the loss of local control and engagement for the state’s 244 school districts.
“I’m not saying that we can’t get there or we shouldn’t go that direction or necessarily support components of it, but you got to figure out how you’re going to allocate the funding [and] if there’s going to be spending oversight,” PIllen said.
Vokal and Lucci joined Pillen in calling for a more level sales tax system between goods and services, but Vokal cautioned that business or agricultural inputs should be off the table.
He said Pillen’s suggestion to remove exemptions on certain inputs and tax them at a lower rate per purchase, such as at 2 cents per dollar, still complicates the policy.
“If you’re going to fund education, broadening the base is fine, and it’s prudent, but you’ve got to have a consistent tax code,” Vokal said.
Firestone said school funding needs to include conversations about student achievement, too.
A different spending future

Firestone added it’s hard to analyze Pillen’s newest ideas without any formal proposals or ideas, “although we are at the ready and tracking this very closely,” but she said the latest tax measure that did not pass in the spring has some clues.
“We’re not seeing any proposals for revenue raisers that are substantially different in their nature at this point,” Firestone said, adding it’s hard to determine who would ultimately benefit.
Pillen told reporters Wednesday that taxpayers likely wouldn’t see impacts of his ideas until the start of 2025, as many budgets for the next fiscal year are already in progress.
Still, Vokal said local political subdivisions need to plan ahead.
“They’ve got to understand that we are looking to a different future,” Vokal said. “And that future is reining in spending, and it sounds like, potentially, the state taking over education and controlling that spending.”
Nebraska
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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Nebraska
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.
“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.
Nebraska
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.
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.
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.
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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