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Income tax cuts will be protected during Nebraska property tax relief discussions, governor says • Nebraska Examiner

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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.

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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. 

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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.

Jim Vokal, CEO of the Platte Institute (Courtesy of the Platte Institute)

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.

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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.

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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.

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Firestone said school funding needs to include conversations about student achievement, too.

A different spending future

Rebecca Firestone, executive director of OpenSky Policy Institute. (Courtesy of OpenSky)

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.”

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In a first for Nebraska, federal judge awards attorney’s fees to immigrant who was detained without bond hearing

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In a first for Nebraska, federal judge awards attorney’s fees to immigrant who was detained without bond hearing


For the first time, a federal judge in Nebraska has awarded court costs and attorney’s fees to an immigrant who prevailed in a lawsuit challenging his detention without bond.

Senior U.S. District Court Judge John Gerrard, an appointee of former President Barack Obama, issued the ruling on Tuesday and awarded $1,535.23 to Edgar Eduardo Cadillo Salazar. Gerrard had previously ruled that Salazar’s detention at the Cass County Jail without bond was unconstitutional and ordered the government to provide him with a bond hearing or release him from custody.

Under the federal Equal Access to Justice Act, individuals and businesses that prevail in civil lawsuits against the federal government can file a motion to hold the government liable for attorney’s fees and court costs. Judges can order the government to cover those costs unless they find that the government’s position was “substantially justified,” or if “special circumstances make an award unjust.”

Before last summer, when the Department of Homeland Security revised its longstanding interpretation of statute, only immigrants who were encountered at the border or other ports of entry were subject to mandatory detention. Immigrants encountered after residing in the U.S. were typically subject to discretionary detention and eligible for a bond hearing.

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The new interpretation has led to detention without bond for tens of thousands of immigrants who would have previously been eligible to bond out – and it’s led to an endless stream of wrongful detention lawsuits in Nebraska and around the country. A Reuters investigation found that federal courts have ruled against the mandatory detention policy more than 4,400 times.

In Gerrard’s order granting Salazar’s request for attorney’s fees, he said the government’s position that all undocumented immigrants are ineligible for bond hearings was not substantially justified.

“This ‘new understanding’ of a decades-old statute has resulted in the government detaining hundreds of thousands of nonviolent individuals, often without due process or other constitutional protections,” Gerrard wrote. “It has also sparked thousands of lawsuits where courts have ordered release of those wrongfully detained, for which neither immigration courts nor the Department of Justice have seemed prepared.”

He continued: “The government has not provided any justification, let alone a substantial one, for its radical departure from the historical treatment of noncitizens who entered the United States without inspection. Its arguments rely purely on statutory interpretation; the government apparently expects it can transform an entire area of administrative law because it unilaterally decided that, for thirty years, everyone was wrong about what a statute meant.”

Salazar was later denied bond by an immigration judge and remains in custody, according to his attorney, Alexander Smith.

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Two similar motions were denied last month by U.S. District Court Judge Susan Bazis, an appointee of former President Joe Biden. In both cases, Bazis had ruled in favor of the detained immigrants, and they were later released on bond per her orders. But in her opinions denying attorney’s fees under the EAJA, she found that the government’s position on mandatory detention was “substantially justified.”

“The Court cannot say that the Federal Respondents’ pre-litigation decision to treat [the respondent] as being subject to mandatory detention, while not ultimately correct in this Court’s view, lacked a reasonable basis in law or fact,” Bazis wrote in a footnote of her opinions.

The issue of mandatory detention is currently under consideration by the 8th Circuit Court of Appeals, which covers Nebraska and other Midwest states. In oral arguments last month, the appellate court’s conservative judges appeared friendly to the mandatory detention policy.



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‘Best we’ve played all year.’ Trent Perry scores 20 points as UCLA routs No. 9 Nebraska

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‘Best we’ve played all year.’ Trent Perry scores 20 points as UCLA routs No. 9 Nebraska


The UCLA men’s basketball team made Senior Night one to savor Tuesday, dominating No. 9 Nebraska 72-52 at Pauley Pavilion for its 20th victory of the season and third over a top-10 ranked opponent.

The Bruins improved to 20-10 overall and 12-7 in the Big Ten with one regular season game remaining, Saturday at crosstown rival USC.

Trent Perry scored 20 points, Eric Dailey Jr. had 14 and three players — Tyler Bilodeau, Skyy Clark and Xavier Booker — each added eight points.

“Nebraska’s got a great team,” UCLA coach Mick Cronin said. “This is the best we’ve played all year — they brought out the best in us. We went from our worst defensive effort to our best. They outhustle everyone they play, but not us. Tonight we were great, but I love the way they play. If we had their attitude we’d have their record.”

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Eric Freeny had four points, five rebounds and three steals in 18 minutes for UCLA, which got 26 points in the paint and 17 second-chance points.

“Effort is what it takes to win in March,” Freeny said. “It was our last home game. Coach keeps on pushing me to be better everyday.”

Sam Hoiberg had 12 points to lead Nebraska, but Pryce Sandfort, who began the game leading the conference in three-pointers made per game, was held to nine points.

“Sandford has been unbelievable so to hold him to nine points is amazing,” Cronin said. “Brandon Williams was the unsung hero.”

Williams had six points and three rebounds in 12 minutes off the bench.

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The Bruins were in control from the opening tip-off and never trailed the Cornhuskers (25-5, 14-5). UCLA improved to 10-3 in all-time against Nebraska and the win greatly strengthened its resume for the NCAA tournament as the Bruins also beat then-No. 4 Purdue 69-67 on Jan. 20 and then-No. 10 Illinois 95-94 in overtime on Feb. 21 on Donovan Dent’s layup with one second left.

“We have to take attitude we came with tonight, bottle it up and take it on the road,” Dailey Jr. said. “We’ve got so much left. The season’s not over… we’re only as good as our last game. It’s all about how you respond. I love the fight that we played with tonight.”

This is the fifth time in Cronin’s seven seasons that the Bruins have won 20 or more games. They are 17-1 at home (their only loss in overtime to Indiana on Jan. 31).

“Since I’ve been here we don’t lose much at home.” Cronin said.

UCLA went ahead by 15 points, 37-22, on Perry’s three-pointer with 2:41 left and led 37-24 at intermission. The Bruins shot 50% from the field in the first half (15 for 30) while Nebraska was only 31% (nine for 29).

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The Bruins increased their advantage to 18 points on Dailey’s dunk less than five minutes into the second half and the visitors got no closer than nine the rest of the way.

Prior to pregame introductions the Bruins honored seniors Bilodeau, Dent and Clark; fifth-year player Jamar Brown; redshirt seniors Steven Jamerson II, Jack Seidler and Anthony Peoples Jr; and redshirt junior Evan Manjikian. In a media timeout, midway through the first half, former coach Jim Harrick (who led UCLA to its 11th national championship in 1995) was honored and got a loud ovation.

“I’m happy for our seniors, I didn’t want them to lose their last game at Pauley,” said Perry, who reversed a subpar performance at Minnesota, where he was 0-for-7 from the field with one rebound and one assist in 26 minutes. “I had to come out here tonight and bounce back for my team. I play for something bigger than myself and I’m fortunate to have the type of guys I do around me.”

UCLA guard Skyy Clark looks to pass while under pressure from Nebraska guard Sam Hoiberg and forward Berke Buyuktuncel in the second half.

(William Liang / Associated Press)

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Over the last four games, Dent has 46 assists and just two turnovers.

Bilodeau has scored in double figures in 26 of 28 games played, totaling 20 points or more nine times.

Dailey moved to within five points of reaching the 1,000-career point milestone.

UCLA has now made at least one three-pointer in 887 of 888 games dating to February 2000.

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“We had one practice this week, that’s it,” Cronin said. “We watched film, had a heart-to-heart talk and a shoot around today but that’s it.”



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4.1-magnitude earthquake hits south-central Nebraska

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4.1-magnitude earthquake hits south-central Nebraska


People across Nebraska and Kansas reported feeling an earthquake Sunday afternoon.

According to the U.S. Geological Survey, a quake measuring 4.1 on the Richter Scale struck around 1 p.m. about 3 miles east of the Webster County village of Cowles, which is in south-central Nebraska near the Kansas border.

A quake of that magnitude is considered “light” and not likely to cause damage.

But the USGS received dozens of reports from people who said they felt the quake, some as far away as Omaha and Manhattan, Kansas. Numerous people took to social media to report feeling the quake.

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Two aftershocks of 2.6 magnitude later occurred near the original quake site, one about 90 minutes after the initial quake and one later Sunday night.

Earthquakes are relatively rare in Nebraska, but the state does usually record one or two minor ones per year. The last time Nebraska recorded a quake of a magnitude 4 or above was in December 2023, also in Webster County.



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