Lower property taxes prioritized by governor

With an emphasis on growth and innovation, Gov. Pete Ricketts proposed providing property tax relief, creating new and better-paying jobs, easing regulatory burdens and increasing educational opportunities in his State of the State Address to lawmakers Jan. 22.

Ricketts said he relied on his private sector background when crafting the state budget, which would restrict spending growth to 3 percent over the biennium, down from 6.5 percent during the previous biennium. This savings, combined with the state’s annual 5 percent revenue growth rate, Ricketts said, would help taxpayers afford more goods and services, further growing the state’s economy.

“I promised the people of Nebraska I would put my business experience to work for the state. To that end, I worked to develop a budget — a blueprint that slows the growth of spending, provides for property tax relief, has room to make improvements in critical areas like corrections and [Health and Human Services] and also funds the essential services of state government,” he said.

The governor emphasized the importance of retaining young Nebraskans and bringing in new people as the impetus for property tax relief. His budget proposal includes a transfer of $60 million each year to the property tax credit relief fund — an increase of nearly 43 percent.

“There is one consistent message I have heard in every corner of the state: property taxes are too high,” Ricketts said. “This property tax relief will help all Nebraskans — homeowners, small business owners and our farmers and ranchers.”

Ricketts also proposed a 10 percent decrease in agricultural land valuations from 75 to 65 percent, phased in over two years. He said the state’s high property taxes are simply not sustainable for those working in the agricultural sector.

“We did not get to be a high tax state overnight,” he said. “We won’t get taxes down overnight either. But together, we can take important steps toward providing tax relief.”

The governor urged lawmakers to be mindful of the state’s most vulnerable citizens when crafting the state’s budget.

“It is easy to view a government budget as a collection of numbers in rows and columns next to agencies and programs,” he said, “but behind the numbers are people’s lives.”

Ricketts called for “transformational leaders” to head state agencies, including the state Department of Correctional Services and the state Department of Health and Human Services. He said he is seeking a culture change among state agencies that will give “voice to the voiceless.”

“The people who need our help do not fit neatly into the silos we have created,” Ricketts said. “We need a system that cares for the entire person, helps them reach their full potential and if possible helps them live a life free of public assistance.”

The governor’s other proposals included a decrease in federal overregulation, a call on President Barack Obama to approve the Keystone XL pipeline, the elimination of state income tax for members of the armed forces and a career vocational training pilot program.

“We are united in our desire to make Nebraska a better place for our communities and for our children and grandchildren,” he said. “Our ancestors made sacrifices for future generations, for the greater good of Nebraska. And so we too will focus on the future.”