Pillen considering state funding to eliminate K-12 property tax

Pillen considering state funding to eliminate K-12 property tax
Governor Jim Pillen (courtesy NPM)
June 25th, 2024 | Scott Miller

‘Not one iota’ of property taxes to pay for K-12 education: That’s Governor Jim Pillen’s overall goal as he works on gaining support for a property tax relief plan and related special session.

Pillen discussed the issue during Monday’s Statewide Call-in Show, saying the proposal that is slowly coming together would take a three-pronged approach.

He said the Nebraska Constitution is clear that it’s the state’s job to educate kids, so the state should provide the requisite K-12 funding. “Depending on the county it’ll vary, but most people’s homes, 60% of their of their property tax is for K-12 education,” said Pillen. “(If) the state funds K-12 education, that property tax goes to zero. And, the beauty is, it’s just like community college (state funding). It strengthens our schools.”

Pillen his plan would pay for the funding by broadening the sales tax, as well as set hard caps on spending.

The Governor said not only would the plan make the state more competitive with surrounding states by eliminating that portion of the property tax, it would also help simplify preparation of school district budgets.

Pillen cited a recent conversation with an Omaha-area superintendent in which that school official was “putting forth a (proposed) one-and-a-half percent budget increase, a nominal increase. And now, because the TEEOSA formula is so upside-down, they’re $11.5 million short in the formula, so they have to raise property taxes,” Pillen said. “It’s crazy, It’s driving educators crazy, and it’s driving property tax folks crazier yet. This plan will solve all that.”

He says he’ll call for a special session sometime between July 26th and August 15th, due in part to an extended overseas trade mission scheduled for July.

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