GRAND ISLAND — Think about the positive news emerging from the Cornhusker State.

Nebraska has been ranked the third-best state by U.S. News and World Report, including No. 3 for fiscal stability.

Nebraska also recently boasted one of the nation’s best economies, with a real GDP growth rate of 5.2% in 2023.

And Grand Island’s ranking as one the top U.S. metro areas for economic indicators and economic strength has made statewide headlines.

But Nebraska also faces obstacles that threaten future growth, talent attraction, and job creation. One of those is the tax burden, which is one of the 15 worst in the U.S. according to WalletHub.

Nebraska’s Tax Structure

To reduce Nebraska’s overall tax burden, we must first understand our tax structure.

We often hear about the “three-legged stool,” but Nebraska’s tax system is actually two-tiered. The state collects income and sales taxes, while local government — mostly school districts, counties, and cities — imposes property taxes (and a small sales tax rate, in many cases).

Unable to control local spending, the Legislature for many years now has opted to redistribute state taxpayer dollars in the form of a complex property tax credit, hoping this would lower the local tax load. Meanwhile, the overall tax burden has gone unchecked.

State Vs. Local Taxes

The use of state taxpayer dollars to subsidize the local tax burden may not be the wisest approach. Here’s why:

• State income taxes, both personal and corporate — in addition to state sales taxes — took in roughly $7.1 billion in 2023. That is up 76% from 2015, just eight years earlier.

• Local property taxes took in about $5.3 billion in 2023, up 39% over the same eight-year period. Remember, agricultural land is assessed at 75% of market value, rather than the 100% valuation imposed on other real property.

We are left with a $1.5 billion-plus imbalance between the major local and state tax bills.

This is why the chamber of commerce community — including the Grand Island Chamber — opposes plans to hike the state sales tax rate, or impose a 7.5% advertising tax on small business, or tax business inputs. These actions would put Nebraska businesses at a disadvantage nationally, while also failing to address the overall tax load.

Tax Relief Tenets

As state and local leaders continue to examine our tax structure, two principles must remain front and center:

1. Taxes are a direct result of government spending. Gov. Jim Pillen has noted that even during a period of deflation, many government entities authorized annual spending increases of 5% or 6%. Meanwhile, Nebraska is fourth in the U.S. for the total number of government employees per capita.

2. Tax shifts are not tax relief. Time and again, we have seen that the use of state funds to subsidize local tax bills does not lower Nebraska’s overall tax burden. These tax swaps do, however, distort transparency.
The Grand Island Chamber’s public policy agenda offers these recommendations:

– Explore consolidation of local government functions;
– Ensure Nebraska receives its share of federal dollars; and
– End unfunded government mandates. (Around 22% of county costs come from unfunded mandates, according to Gov. Pillen.)

Finally, Nebraska must steer clear of the proposed EPIC tax plan, which would inflict an estimated 22% consumption tax rate on businesses and consumers. The GI Chamber opposes EPIC because it’s anti-growth and would likely decimate our economy.

State and local officials need to work in concert to devise a more thoughtful tax system, allowing individuals and businesses to keep more of their own money. The chamber community stands ready to help achieve this critical mission.

Ben Lennander has been selected to serve as the University of Nebraska-Lincoln’s interim assistant vice chancellor for human resources.

The appointment, which will begin on June 3, was announced by Mike Zeleny, vice chancellor for Business and Finance. Lennander, who has served as director of payroll operations, replaces Steve Beck, who is leaving the university for another professional opportunity.

After graduating from Iowa State University with an accounting degree in 2001, Lennander moved to Lincoln to start a small business. He joined UNL in 2008, bringing an entrepreneurial spirit to each role held. During his tenure in Business and Finance, Lennander spent four years implementing standardized business processes and shared services for HR and finance. In that role, his team completed more than 100 process improvement projects. In the last year, he has served as director of payroll.

Lennander is passionate about coaching and is a mentor for the Staff Mentorship Program run by UNL’s Organizational Development unit. One of the things he enjoys most about leadership is exploring the strengths of his team members and guiding them to leverage those strengths for efficiency, growth, and success.

Beck was hired in April 2022 after a national search and brought years of experience in guiding progressive human resources programs in the healthcare and manufacturing industries. Beck was also a former University of Nebraska–Lincoln employee, having started his career more than 25 years ago as a senior human resources facilitator with Human Resources, then as an HR manager within Athletics.

“I am grateful to Ben for stepping up into this significant leadership role,” Zeleny said. “I’d also like to thank Steve for his leadership and service over many years to our university.”

The university’s assistant vice chancellor for human resources provides executive leadership for the institution’s human resource operations and organization. The position is responsible for ensuring compliance with human resource laws and regulations and identifying and recommending remedies for HR risk mitigation. The position works collaboratively with other human resources leaders in the NU system and will play an important role in the design and implementation of NU’s new enterprise HR system, Success Factors. Following that implementation, a search will likely be launched to select the permanent assistant vice chancellor for human resources.

OMAHA — Rising demand for food assistance across the 93 counties it serves has pushed the Food Bank for the Heartland to extraordinary measures, including leasing refrigerated trailers to store food in the parking lot.

Volunteers and semitrailer truck drivers that visit the Omaha-based nonprofit often jam the road leading into its current headquarters.

Meanwhile, increased food costs and an end to many pandemic-era government assistance programs have created “disruption” that officials said they’ve not seen in the food bank’s 42-year history.

To help meet growing needs, the food bank on Sunday publicly announced a $37 million plan to build a new office and warehouse complex at a larger, 12-acre campus at the northeast corner of 84th and L Streets in Omaha. 

40% larger 

Representatives were joined by Omaha Mayor Jean Stothert in publicly unveiling renderings and other details of the 105,000-square-foot facility, which is about 40% larger than the current home.

Parking stalls will nearly double in number, for a new total of about 170 spots at the new base that for more than a half-century had been home to a car dealership.

“Our project is going to transform 84th and L,” said CEO and president Brian Barks. “It’s going to transform the way we do business and the way we are able to serve the community — with an emphasis on healthy foods.”

While planning began in 2020, the nonprofit’s governing board chose to delay the building and relocation announcement until it secured 60% of the $27 million it hopes to raise in philanthropic donations, Barks said.  About $10 million is to come internally and from the sale of the existing building at 10525 J St.

The nonprofit continues to seek community contributions for the capital campaign. 

Demolition and construction work is to kick off this summer, according to a project timeline, and the projected move-in is in 2026.

Food bank officials say the milestone comes as Nebraskans’ demand for food assistance grows.

Paul Maass, CEO of Scoular, said his involvement with the food bank has shown him that a lack of healthy food is widespread.

“For many, hunger is a hidden issue,” he told the dozens of supporters gathered Sunday under a large tent on the future food bank grounds. “But it is happening all around us, every moment of every day. I learned this is not an urban, rural or suburban problem. Hunger is a problem everywhere.”

26.7 million pounds of food last year

With a reach of 78,000 square miles across 77 Nebraska counties and 16 western Iowa counties, the food bank works with 555 network partners to distribute food items to those in need.

Last year, the network distributed more than 26.7 million pounds of food.

According to the organization’s projections, it will serve 600,548 households this fiscal year. That’s up from nearly 572,000 households a year earlier and about 313,000 five years ago.

Looking at demand from an individual standpoint, the food bank foresees serving 1.62 million persons this fiscal year, up from 1.52 million during the year prior and 843,000 in 2019.

Shedding light on demand, Barks said that Nebraskans have faced increased hardship since the government shutdown in December 2018. 

Historic floods followed in March 2019, displacing thousands of people, including some who continue to rebuild. 

COVID-19 led to an 89% increase in the number of meals distributed by the food bank. People who lost jobs during the pandemic tapped savings and amassed debt.

“Inflation and the lingering effects of pandemic continue to make hunger a daily reality throughout our communities,” the food bank said in its capital campaign statement. “With skyrocketing food prices, too many of our neighbors are forced to make impossible choices among items needed to survive and thrive — such as paying for food, medicine, utilities, or childcare.”  

Pandemic highlight

The agency noted a highlight of its response to the pandemic. During that time, the food bank developed a small USDA-certified “Clean Room,” which accepts and processes bulk donations of nutrient-rich proteins.

Representatives said that the program has been successful, but building it took space away from the Volunteer Center.

The new facility is to include a larger Clean Room to process proteins.

Among other features: 

• Increased storage capacity for cold and frozen food items; separate areas for loading and unloading operations.

• Increased space for volunteer groups and for staff collaboration.
• Easy access to main roads and the Interstate system.

Records show the sprawling corner property sold to the Food Bank for $7.1 million. 

H&H Chevrolet, which reportedly had been at the site since 1968, moved last year to a larger area at the Steel Ridge development in Sarpy County.

Barks said the food bank visited multiple sites and considered other options, including renovation. He said clearing the 84th and L Streets site and building anew was more economical.

He said if people knew how the staff has managed to increase output in the current facility, they’d be even more impressed. He called the level of demand “unforeseen.”

“It has been an arduous journey,” Barks said. “To get to this point is everything from a relief to joy to thrill all wrapped into one.”