Nebraska
What is the cost of government and what should it be? • Nebraska Examiner
Tax policy is not a thrilling topic at the barbecue, but the taxes we pay are perennial subjects of conversation in Nebraska. As recipients of the property tax, we (counties, municipalities and schools) are as sensitive as anyone to the issue.
With a special session called explicitly for property taxes, we offer our perspective on how to approach them. We do not claim that doing any one thing in particular will “fix” property taxes, but we can offer general guidelines to inform policy discussions. Determining a proper tax structure boils down to how we collectively answer four basic questions:
- What does government need to pay for?
- How much is needed?
- Who do we want to pay for it?
- How do you want them to pay?
Years ago, these questions were answered in a way that led to our current tax structure. They are worth revisiting now.
What does government need to pay for?
Let’s first distinguish between “needs” and “wants,” which is difficult. Gov. Jim Pillen has suggested that not everything government pays for is a need, and we applaud his effort to “clean out the closets” by removing various state unfunded mandates on local governments.
Political subdivisions are creatures of the state. Their “needs” are largely determined by state statutes. The Legislature has assigned to counties the duties of roads, bridges, law enforcement, jails, courts, elections, and the collection of certain taxes and fees. Municipalities are responsible for community and economic development; providing public safety, including law enforcement, fire protection and EMS; public transportation infrastructure such as streets, roads and bridges; safe drinking water; wastewater treatment; solid waste management; libraries, parks and recreation centers; and other quality of life services. The schools have the duty to provide free instruction for children between the ages of 5 and 21 in the common schools of our state. This requires teachers, para-educators, bus drivers, coaches, administrators, janitors and other workers.
How much is needed?
Counties, municipalities and schools have an annual public budgeting process. Counties are required to publish one- and six-year plans on what the highway superintendent will do with roads and bridges. Law enforcement needs are mandated by state statute and oversight agencies such as the Crime Commission. The jails are given basic requirements by the state. Elections are overseen by the secretary of state.
Schools have numerous mandates from the state government, federal government and courts. These rarely come with the necessary funding.
Municipalities also face increasing costs and budgetary challenges due to unfunded mandates imposed by state and federal laws, regulations and court decisions, ranging from additional training requirements to preparation of reports and documents to be filed with the state or federal government.
A crucial point is that the cost of government has risen independent of CPI. Goods government pays for – gravel, asphalt, law enforcement vehicles and equipment, road graders, etc. – are not purchased at Walmart or off Amazon. Governments seek bids from a limited pool of vendors, and individual municipalities, counties and school districts do not always have the purchasing power to drive prices down.
Who do we want to pay?
As a state, we have determined local taxpayers should pay for items of a local nature. Traditionally, those have been considered (for counties): roads, bridges, law enforcement, jails, courts, tax collection and elections. For schools, it has been classroom teachers and facilities. For cities and villages, local taxpayers pay for municipal employees’ salaries; municipal facilities and equipment relating to law enforcement, fire protection, streets and roads; safe and plentiful drinking water; wastewater treatment; solid waste management; libraries; and parks and recreation centers.
These all have a mix of local and statewide impact. Roads and bridges, for instance, are critical segments of our state’s network of highways and byways. Law enforcement, courts, and the jails are all geared toward the prosecution and defense of state laws. Elections are for local, statewide and federal races.
High-quality public education gives every child the skills needed to compete and thrive in the 21st century.
How do we want them to pay?
The three main sources of revenue are property, income and sales taxes. Income taxes should relate to a citizen’s ability to pay but can fluctuate from one year to the next. Areas with less income would be unable to pay for basic needs.
Sales taxes relate to a person’s willingness to pay, which is a measure of the ability to pay, but also trap more sparsely populated areas in a loop of increasingly diminished infrastructure. Property taxes are generally stable and relate to the value of real property, but not necessarily to an owner’s ability to pay.
Nebraska has consistently chosen property tax as a major funding source for local governments due to its stability. However, we are not limited to just the property tax. Other states have adopted a tax structure which diverts sales and income taxes to the communities in which they were raised.
That said, we have experienced that when the state experiences economic downturns, state aid to local government can and will be sharply reduced or eliminated. If this were pursued, we advocate for placing local funding guarantees in the Constitution.
Conclusion
We do not advocate for any particular position or policy regarding how taxes should be governed. Instead, we advocate for a thoughtful approach to what government should be responsible for. Then it is the obligation of the Legislature to determine how to raise the revenues necessary to have government perform its assigned duties. In fact, raising “the necessary revenues of the state and its political subdivisions” has been in our Constitution for over 100 years.
Schools, counties, and municipalities are the primary recipients of the property tax, and these taxes are spent on the basic infrastructure and essential services to Nebraskans that allow our communities to grow. Our organizations support taking pressure off property owners with additional state property tax relief, so long as our communities and services to citizens aren’t negatively impacted.
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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