Revenue Committee
February 13, 2025
Committee Chair: Sen. Brad von Gillern | Bills Heard: 3 | Full Transcript (PDF)
LB692: School District Property Tax Limitation Act Amendment
Introduced by: Sen. Dave Murman | Testimony: 1 proponents, 5 opponents, 0 neutral | Read bill text (PDF)
School districts oppose bill tightening property tax growth cap, citing premature timing and math problems. LB692 would close a loophole in Nebraska's 2023 school funding cap by preventing districts from carrying forward unused tax authority to inflate their revenue base. But opponents—representing 99% of Nebraska schools—say the current 3% cap is already working, with 2024 property tax growth hitting just 2.7%, the smallest increase since 2018.
Why it matters: The state has poured over $1 billion into schools in recent years, yet property taxes keep rising. Lawmakers want assurance that new state dollars translate to tax relief. But schools argue they need flexibility to manage multi-year budgets as state aid fluctuates and valuations swing wildly.
What they're saying: - Proponents: "The cap generally works but is in need of tweaks," said State Treasurer Tom Briese's representative. Districts are voting to exceed authority they don't need, then building that unused authority into next year's base—defeating the cap's purpose. - Opponents: "The math behind this bill simply does not work," testified Lincoln Public Schools' finance officer. Boards would have to vote for overrides every year forever. "It takes a couple of years for this to get baked in," said school board association rep Colby Coash, noting the system is already showing results.
By the numbers: 2024 school property tax growth: 2.7%. Average school spending growth over 12 years: 2.78%. State spending growth: 2.89%.
What's next: No vote was taken. Sen. Murman said he's willing to work with anyone to improve the bill. The committee will likely consider amendments addressing equalized districts and state aid changes before any advancement.
Committee sentiment: Supportive: Sen. Mike Jacobson Skeptical: Sen. Kathleen Kauth Unclear: Sen. Tony Sorrentino
Sentiment estimated from questions and comments — not stated positions.
LB355: Department of Economic Development Census Data Update
Introduced by: Sen. Bob Andersen | Testimony: 1 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
DED seeks statutory authority to use updated census data after 2020 Census stopped collecting key metrics. LB355 is a technical cleanup bill allowing the Department of Economic Development to substitute American Community Survey data for decennial census information that's no longer available. The change affects how the state distributes aid to eight regional economic development districts.
Why it matters: Federal census methodology changed after 2000. Income, employment, and poverty data—once collected via the long-form census—now come only from the American Community Survey. DED has already used alternative data sources for FY23-24 distributions but needs statutory cover to continue.
What they're saying: - Proponent: "We need good data to make good decisions," said DED Director K.C. Belitz. The bill simply gives flexibility to find population data elsewhere when decennial census reports don't include it.
What's next: No vote was taken. The bill had 2 proponent letters and 1 opponent letter submitted online. Committee Chair von Gillern joked about the acronyms (EDDs, ACS, DED) but indicated support for advancing the bill.
LB384: Truth in Taxation Attendance Requirement
Introduced by: Sen. Tanya Storer | Testimony: 5 proponents, 6 opponents, 0 neutral | Read bill text (PDF)
Bill requiring elected officials to attend property tax hearings faces pushback over timing and practicality. LB384 would mandate that a majority of governing board members attend joint public hearings when their entity seeks to exceed the allowable growth rate. Proponents say decision-makers should face taxpayers directly; opponents argue the real problem is that hearings occur too late in the budget process to matter.
Why it matters: Nebraska's 2021 Truth in Taxation law created pink postcard notifications and joint hearings to increase transparency. But some entities send staff instead of elected officials, and hearings happen in mid-September—after most budgets are already set. The debate reflects tension between accountability and practicality.
What they're saying: - Proponents: "Those with real decision-making power should be present," said Lincoln Independent Business Association's Carter Thiele. Taxpayers deserve to address the people voting on their taxes, not administrators. - Opponents: "The timing is the real problem," testified school board and municipal leaders. Budget hearings held earlier allow actual changes; joint hearings are theater. Madison County example: 72 elected officials could attend one hearing, making it unwieldy.
By the numbers: 8 proponent letters, 2 opponent letters, 1 neutral letter submitted online.
What's next: No vote was taken. Sen. Storer closed by defending the bill as reasonable—asking elected officials to attend one meeting is not burdensome. Mayor Kindig offered to compromise. The committee will likely consider amendments addressing timing and practical concerns, possibly in coordination with LB683, which would move hearing notices to property tax statements.
Committee sentiment: Supportive: Sen. Mike Jacobson, Sen. Kathleen Kauth, Sen. Bostar
Sentiment estimated from questions and comments — not stated positions.
Session Notes
Committee Chair von Gillern opened with procedural instructions on testifier sheets, light system (3 minutes green, 1 minute yellow, red to wrap up), and note that written position statements must be submitted by 8 a.m. via nebraskalegislature.gov. Committee members introduced: Sen. Tony Sorrentino (LD 39), Sen. Mike Jacobson (LD 42), Sen. Dave Murman (LD 38), Sen. George Dungan (LD 26), Sen. Kathleen Kauth (LD 31). Legal counsel Sovida Tran and Charles Hamilton, committee clerk Linda Schmidt, and pages Lauren Nittler and Jessica Vihstadt also introduced. The hearing covered three bills: LB692 (school property tax cap amendment), LB355 (DED census data cleanup), and LB384 (Truth in Taxation attendance requirement). No votes were taken on any bills during this hearing.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.