Governor Pillen signed three monumental pieces of legislation this week. The first bill, LB 753 – The Opportunity Scholarship Act – “commits $50 million in tax credits for scholarships to kids across Nebraska with priority for scholarships going to kids who live in poverty, foster care, experience bullying, harassment, or other victimizing behaviors, or have a parent or guardian who is serving in the military.” The second set of bills, LB243 and LB754, “establish a 3 percent annual cap on how much school districts can increase property tax requests, with some exceptions” and “reduce the top individual and business income tax rates to 3.99% by tax year 2027” among other things.
Up until the signing of LB 753, Nebraska was one of two states in the country that failed to offer any form of school choice to parents. The establishment of school choice represents a tremendous step in the right direction for Nebraska. Nebraskan parents who lack the means to send their children to parochial and private schools will finally be given a say as to the kind of education that their child receives.
Moreover, it is worth noting that school choice provides parents with the ammunition they need to fight back against corrupt teachers’ unions that extract ever greater shares of funds from public coffers and reduce the quality of education. At, the bill signing, LB 753’s principal sponsor – Senator Lou Ann Linehan – said that many students’ “lives will be changed thanks to the freedom to attend a school that best fits their needs.”
Rather than rest on his laurels, Governor Pillen wasted no time in continuing to make Nebraska history. A day after signing LB 753, Governor Pillen signed a set of tax cuts – LB754 and 243. The main aspects of these bills are that they “establish a 3 percent annual cap on how much school districts can increase property tax requests” and “reduce the top individual and business income tax rates to 3.99% by tax year 2027”, in addition to providing “full tax exemption for Social Security benefits a year early in 2024.”
These reforms will serve to provide the Cornhusker state’s seniors, workers, and homeowners with billions of dollars worth of tax relief at a time when they need it most. Sen. Lou Ann Linehan who, in addition to sponsoring LB753, introduced LB754, echoed such sentiments when she stated that “every time we have a big tax cut package, everybody wins – whether you are paying income, business, or property taxes.” Sen. Tom Briese, who introduced LB243, affirmed that “the bottom line is [that these bills] are going to put more dollars into everyday Nebraskans’ pockets.”
The effects of these tax reforms will be to enhance Nebraska’s economic competitiveness and allow for greater economic growth as firms and higher income earners begin relocating to the state. Furthermore, the establishment of a 3% annual cap on how much school districts can increase property tax requests will serve as a boon to home ownership and encourage a greater number of families fleeing blue states like New York and California to relocate to Nebraska.
When all is said and done, this past week has perhaps been one of the most legislatively consequential in Nebraska’s history. The pathbreaking leadership showcased by Governor Pillen and state legislators when it comes to school choice and tax reform will make Nebraska an even better place to live and raise a family.