State Bill of the Month — July 2024: Nebraska LB 29

Sponsor: State Senator Jen Day (NE-49)

LB 29:

This bill, introduced by Nebraska State Sen. Jen Day (NE-49), would sell the state-owned plane used by Gov. Jim Pillen and his staff. Profits from the sale would be placed into the General Fund to help offset the revenue losses of the prospective property tax relief package. It would also be used to cover special session costs.

The plane, valued at around $3.6 million, is a luxury that the state should seek to eliminate as a good faith first measure before addressing state spending in other areas. Gov. Pillen’s current property tax relief plan also would cut $200 million from the Department of Health and Human Services programs.

According to bill sponsor Sen. Day:

“If we’re going to be cutting funds that contribute to the welfare of foster children, we should certainly first be looking at eliminating luxuries, like a state plane that costs millions of dollars.”

Background:

On July 24, 2024, Gov. Pillen called a special session to fix the state’s property tax crisis. To reduce the property tax burden on Nebraska citizens, the state must modify other existing tax policy, or reduce spending. Funding ideas for the proposal includes implementing a tax on advertising services for companies with gross ad revenue exceeding $1 billion at 7.5%, increasing various “sin” taxes, while eliminating more than 100 exemptions for sales and use taxes.

Reducing property taxes will allow Nebraska taxpayers to keep more of their hard earned money. However, policy makers should seek to eliminate luxurious and wasteful spending from the state budget before adding other point-of-sale taxes to cover that revenue. Gov. Pillen and his staff should seek to reduce state spending before they seek to add any new taxes or reduce tax exemptions within the Cornhusker State. It is easier to cut state spending for unnecessary and expensive luxuries. It is also much more beneficial for the taxpayers of Nebraska.

It is for these reasons, among others, that TPA is pleased to make LB 29, as introduced by State Sen. Jen Day (NE-49), its Bill of the Month for July 2024.