Governor calls for tax reform, economic investment

Gov. Jim Pillen highlighted proposals to invest in workforce development, reform the state’s tax system and increase government efficiency in his State of the State address Jan. 15.

The governor touted several proposals intended to attract and retain talent and grow the state’s economy, including a “Grow the Good Life” incentive to provide a decade-long 10% tax cut to businesses who bring new, high-paying careers to Nebraska.

“Growing Nebraska’s workforce is critical … and we must support the businesses that recruit new Nebraskans to come here to set down roots,” Pillen said. “We have to compete to win.”

Pillen also called on legislators to make changes to the state’s “broken” tax system by broadening the sales tax base in order to shift the revenue burden away from property owners.

He said tax reform, in combination with passing his budget adjustment proposal that cuts government spending and increases efficiency, would solve the state’s $471 million shortfall — which he called “a make-believe budget crisis.”

“This Legislature has the opportunity to lead reform efforts and join me in [passing] a budget that delivers lasting and transformative tax relief to Nebraskans,” he said.

The governor also encouraged lawmakers to support legislation to remove diversity, equity and inclusion programs and critical race theory from the university system. Pillen said doing so would align state institutions of higher learning with “Nebraska values” while also attracting students.

“We must … ensure that Nebraska’s public institutions of higher education remain places of hard research, learning and academic success,” he said.

Finally, Pillen encouraged favorable consideration of several pending legislative measures, including a proposed constitutional amendment to return Nebraska’s allocation of Electoral College votes to a winner-take-all system.

“I look forward to working alongside you … to do the work of our state this session,” he said.