Revenue Committee
March 19, 2025
Committee Chair: Sen. Senator Mike Jacobson (Vice Chair) | Bills Heard: 4 | Full Transcript (PDF)
LB650: Discretionary spending cuts to balance budget
Introduced by: Sen. Brad von Gillern (on behalf of Governor Pillen) | Testimony: 2 proponents, 11 opponents, 1 neutral | Read bill text (PDF)
Governor's budget-cutting bill faces fierce opposition from business, agriculture, and development communities. LB650 would eliminate or reduce $88 million in tax incentives and exemptions using a "last in, first out" approach to help balance a projected $292 million budget deficit. But opponents warned the cuts could jeopardize two of the largest investments in state history—a $6.5 billion sustainable aviation fuel project and a $7.5 billion biopolypropylene plant—while undermining projects already underway.
Why it matters: The bill pits fiscal responsibility against economic development. Cutting incentives saves money now but could cost the state far more in lost investment, jobs, and tax revenue later. Projects like Tranquility Park in Omaha and Bellevue's water park have already committed private dollars based on state promises.
What they're saying: - Proponents: "Property taxes are in crisis—up 1,864% since 1967. We need to balance the budget and fund relief," said State Budget Administrator Neil Sullivan. Farm Bureau offered conditional support if property tax relief is delivered. - Opponents: "These programs create meaningful interest in Nebraska and give opportunity for new manufacturing," said Lucas Froeschl of Falls City EDGE. Shortline railroads save the state $21.5 million annually in pavement damage, testified Justin Bentaas. Patrick Mulhall warned his $5 million Tranquility Commons investment would be wasted if turnback tax is repealed.
By the numbers: 2 proponents, 11 opponents, 1 neutral testifier. Online: 1 proponent letter, 69 opponent letters, 1 neutral.
What's next: No vote was taken. Senator von Gillern indicated additional amendments are being developed to address concerns about bioeconomy programs, shortline railroads, and projects already underway. The committee will continue conversations with stakeholders.
Committee sentiment: Supportive: Sen. Dave Murman Skeptical: Sen. George Dungan, Sen. Teresa Ibach, Sen. Mike Jacobson
Sentiment estimated from questions and comments — not stated positions.
LB707: Good Life Districts clarifications and guardrails
Introduced by: Sen. Brad von Gillern | Testimony: 2 proponents, 1 opponents, 2 neutral | Read bill text (PDF)
Good Life Districts bill aims to fix flaws in transformational development program while protecting ongoing projects. LB707 with AM615 adds guardrails to the Good Life Districts program, addressing confusion over tax collection, developer conflicts, and financial viability. The bill has strong support from Kearney and Grand Island applicants but faces opposition from Bellevue, which invested $40 million under existing law.
Why it matters: Good Life Districts are designed to attract mega-developments that generate massive tax revenue for the state. But the original law had gaps that created legal uncertainty and allowed tax-exempt entities to be approved—undermining the program's core purpose. Clarifications are needed, but changes to existing projects could cost cities millions.
What they're saying: - Proponents: "This project is shovel-ready. We could start in 30 days," said Paul Younes of Younes Hospitality, describing Kearney's $100M+ campus. Brenda Jensen, Kearney's city manager, noted the project has strong citizen support and requested a deadline for DED approvals to avoid further delays. - Opponents: "The city invested $40 million in good faith," said Bellevue Mayor Rusty Hike, warning that AM615 changes would increase project costs by $2M+ and create a potential $12 million clawback hit to taxpayers.
By the numbers: 2 proponents, 1 opponent, 2 neutral testifiers. Online: 0 proponent letters, 8 opponent letters, 0 neutral.
What's next: No vote was taken. Senator von Gillern indicated additional amendments are being developed to address clawback language, subdeveloper provisions, and bonding concerns. Attorney General Hilgers presented an agreed-upon framework from Gretna stakeholders that may be incorporated into a committee amendment.
Committee sentiment: Supportive: Sen. Mike Jacobson Unclear: Sen. Eliot Bostar
Sentiment estimated from questions and comments — not stated positions.
LB510: Good Life Districts procedures for withdrawn applications
Introduced by: Sen. Rick Holdcroft | Testimony: 1 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Narrow procedural bill for Good Life Districts withdrawn in favor of broader fix. LB510 was introduced to address a procedural gap created when Gretna's primary good life district applicant withdrew on January 14, leaving no clear process for handling such withdrawals. But Senator Holdcroft recommended the committee advance the broader LB707 instead and hold LB510 in committee for potential future use.
Why it matters: The withdrawal exposed a gap in the Good Life Districts statute. While LB510 would fix that specific issue, LB707 addresses multiple problems with the program and has broader stakeholder support.
What they're saying: Korby Gilbertson of Gretna thanked the senators for their dedication to resolving the district issues.
By the numbers: 1 proponent letter, 1 opponent letter submitted online.
What's next: No vote was taken. Senator Holdcroft waived his close and recommended the committee hold LB510 in committee, potentially using it as a vehicle for future improvements to good life statutes.
Committee sentiment: Unclear: Sen. Rick Holdcroft
Sentiment estimated from questions and comments — not stated positions.
LB157: Child Tax Credit Act
Introduced by: Sen. Danielle Conrad | Testimony: 1 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Child tax credit bill advances with strong evidence base but faces fiscal headwinds. LB157 would create a refundable state income tax credit of up to $1,000 per child age 6 or younger, benefiting nearly 100,000 Nebraska families. The bill is the third time Senator Conrad has introduced it and comes as 16 states have adopted similar programs.
Why it matters: Child tax credits have proven track record of lifting families out of poverty and improving long-term outcomes for children. But the bill faces an uphill battle given the state's current budget constraints and focus on property tax relief.
What they're saying: "State-level child tax credits are an evidence-based way to support families with young children," said Joey Adler Ruane of OpenSky Policy Institute. He noted that families receiving the credit would spend additional income on necessities like rent, food, and school activities, and that children receiving monetary support show better nutrition, higher graduation rates, and higher earnings into adulthood.
By the numbers: 98,500 Nebraska families would benefit, including 154,500 children (35% of all kids in state). Average income of families receiving credit: $57,600. Online comments: 42 proponents, 1 opponent, 0 neutral.
What's next: No vote was taken. Senator Dungan read Senator Conrad's opening and waived the close. The bill had no testifiers in opposition or neutral capacity.
Committee sentiment: Unclear: Sen. Eliot Bostar
Sentiment estimated from questions and comments — not stated positions.
Session Notes
Committee Chair: Senator Mike Jacobson (Vice Chair, as full chair was not present). Committee members present: Sen. Tony Sorrentino (LD 39), Sen. Eliot Bostar (LD 29), Sen. Dave Murman (LD 38), Sen. George Dungan (LD 26), Sen. Teresa Ibach (LD 44). Pages: Kym Dykstra (UNL sophomore, poli-sci major from Blair) and Lauren (ag econ major from Aurora, Colorado). Committee Clerk: Linda Schmidt. The hearing was held on a day with severe weather (blizzard conditions mentioned multiple times), which prevented some testifiers from attending. Senator Conrad was unable to attend LB157 hearing; Senator Dungan read her opening statement on her behalf. A five-minute recess was taken between LB707/LB510 and LB157 hearings. Senator Holdcroft waived his close on LB510, recommending the committee hold it in committee and advance LB707 instead. Senator Dungan waived the close on LB157.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.