With an eye toward improving the future for the state\u2019s middle class, Gov. Dave Heineman proposed providing tax relief, reforming the state\u2019s \u201cgood time\u201d law and rejecting the expansion of Medicaid during his State of the State address to lawmakers Jan. 15.<\/p>\n
Heineman cited the state\u2019s growing economy and high income and property taxes as his motivation to reform the current tax code. He acknowledged the interim work of the Tax Modernization Committee but said that now was the time for action.<\/p>\n
\u201cWe don\u2019t need more time to study this issue,\u201d he said. \u201cWe already know taxes are too high and high taxes are detrimental to economic growth. It\u2019s time for a straightforward conversation about property and income tax relief.\u201d<\/p>\n
Heineman proposed a 10 percent decrease in agricultural land valuations, from 75 to 65 percent. He said the state\u2019s strong agricultural economy cannot continue to exist with unreasonably high property taxes.<\/p>\n
\u201cWhen agriculture fares poorly, so does rural Nebraska,\u201d Heineman said. \u201cHowever, when agriculture succeeds, rural Nebraska and main street Nebraska flourish.\u201d<\/p>\n
The governor also proposed providing up to $500 million in tax relief over the next three years, citing the $1.2 billion currently in the state\u2019s cash reserve. He proposed lowering the top state tax income rate from its current level of 6.84 percent, saying that most middle class citizens would benefit from the decrease.<\/p>\n
The governor also cited Nebraska\u2019s \u201cgood time\u201d law as an issue requiring immediate attention. The current practice of allowing violent criminals to automatically receive good time when they enter prison is flawed and dangerous, he said.<\/p>\n
\u201cAllowing the most violent criminals to enter into our state\u2019s prison system and have their judge-imposed sentences automatically reduced \u2026is not sound public policy,\u201d he said. \u201cThe public safety of our citizens should be priority number one and that should start with violent criminals being required to earn good time.\u201d<\/p>\n
Heineman urged lawmakers to reject the proposed expansion of Medicaid, saying the costs to the state are too high and would disproportionately hurt Nebraskans.<\/p>\n
\u201cThe required parts of the new federal health care law will cost the [state] more than $200 million in state general funds over the next six years,\u201d he said. \u201cThat is $200 million in funding that could be used for education.\u201d<\/p>\n
This marks the nine-year governor\u2019s final State of the State speech to the Legislature.<\/p>\n","protected":false},"excerpt":{"rendered":"
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