Flanked by state senators, Gov. Jim Pillen signs a property tax relief package during a press conference in the Governor's Hearing Room at the Capitol on Tuesday. Hours after Nebraska lawmakers sent a feeble property tax relief package to his desk Tuesday morning, Gov.
Jim Pillen signed it into law as senators adjourned for the summer, marking a disappointing end to the special legislative session he called last month to deliver "transformational" tax reform . Surrounded by more than a dozen lawmakers who helped deliver the package to Pillen's desk after a contentious 17-day session, the governor signed the tax package that will cut various state budgets , place an inflationary cap on annual budget increases for cities and counties and pour $750 million into a property tax relief fund. Much of that relief, though, will be funded by front-loading an existing tax credit program that more than half of Nebraska's property taxpayers are already tapping — limiting the aid the plan will actually provide to many homeowners and marking a let-down for both lawmakers and Pillen, who had promised to deliver more than $2 billion in property tax cuts this year.
"In terms of how much do we celebrate, I'm not sure we should be getting our hands going across our back and slapping our backs too much," Pillen said at a news conference Tuesday afternoon, moments before he signed the tax package into law. "The people of Nebraska will be the judges." Gov.
Jim Pillen speaks during a press conference in the Governor's Hearing Room at the Capitol addressing the outcome of the special legislative session on Tuesday, Aug. 20, 2024, in Lincoln. At the same time, Pillen called the tax package "a big deal" and promised to seek additional property tax relief when lawmakers reconvene in January, calling the package he signed into law Tuesday a starting point, but indicating he did not plan to call yet another special session this year over the issue.
"We're not giving up," he said. "We're not stopping. We're not satisfied.
We've got a win. We've made progress. But we're sure as heck not satisfied.
" Pillen's remarks came hours after lawmakers voted 40-3 to send LB34 — the bill carrying the bulk of the Legislature's property tax plan — to his desk after a small group of term-limited lawmakers made a last-ditch push to broaden the bill, which senators from across the political spectrum have repeatedly cast as lackluster. The Legislature pivoted to the watered-down plan after the sweeping tax cut package championed by Pillen stalled last week in the face of fierce opposition from a bipartisan group of lawmakers over its reliance on increased sales tax revenue. Lawmakers had rejected a similar tax plan Pillen championed amid the regular legislative session, adjourning for the year April 18 without taking a final vote on Pillen's previous sales tax-based plan , sinking the proposal.
The impasse over how to fund property tax relief — conservatives broadly supported the repeal of numerous sales tax exemptions and hiking sin taxes, while progressives hoped for legalized online sports gambling and recreational marijuana, luxury taxes and a new income tax bracket — forced lawmakers to turn to the front-loaded income tax credits, the only revenue source the two camps could agree on. Lawmakers' decision to pivot to the scaled-down package , which multiple senators called "the very least we could do," was met with resistance from members of the Legislature's senior class , who have repeatedly pushed for the expansion of the tax package or for lawmakers to scrap the plan altogether and return to the drawing board. That push continued Tuesday as Sen.
Justin Wayne of Omaha moved to amend LB34 to eliminate sales taxes on household electric bills, hike taxes on alcohol and cigarettes, and repeal sales tax exemptions on services like dry cleaning, swimming pool cleaning and chartered flights. "It's important because the renter, the person on fixed income, are right now not getting any benefits from LB34," Wayne said Tuesday. "We're trying to create some balance.
" "I just feel like we need to do more," he added. His latest push for an expanded tax package fell six votes shy Tuesday as lawmakers rejected his amendment on a 19-21 vote. Some defended LB34 even as they agreed with Wayne that it did not go as far as they hoped it would when Pillen recalled the Legislature to Lincoln last month for an abnormal special session focused on property tax reform.
"I'd like to see much more done in this session, and we had some great plans to do that, and they got resoundingly shot down. And that's, unfortunately, the way that things work in here," Sen. Brad von Gillern of Elkhorn said.
Sen. Brad von Gillern of Elkhorn speaks on an amendment to LB34, Tuesday, Aug. 20, 2024, at the Nebraska Capitol.
"But don't convince yourself that we're doing nothing here today," he added. "There are parts of LB34 that will have a lasting impact on property taxpayers in Nebraska." Pillen made the same case hours later at his news conference, where he praised lawmakers for the cap they placed on local government spending, which Pillen said has been "the problem" as Nebraska's property tax receipts have climbed by $2 billion over the last decade.
The governor pinned the blamed for the special session's shortcomings on "the power of people deciding to go separate ways and not working together" as well as special interest lobbying groups that opposed various versions of Pillen's own tax plans, all of which relied on sales tax revenue. But others on Tuesday blamed Pillen and his allies in the Legislature, who devised LB1 — Pillen's initial plan that encountered broad opposition at a public hearing last month — behind closed doors this summer while the governor held a series of town halls where he asked Nebraskans to urge their senators to support his plan. Pillen used his power to beckon lawmakers to Lincoln last month to deliver property tax cuts in a move that was out of step with how Nebraska's recent governors have approached special sessions.
In his proclamation recalling lawmakers and laying out the scope of the session, Pillen excluded the Legislature from taking up income taxes as part of the session, leaving lawmakers with only one revenue stream — sales taxes — to deliver property tax relief. And once lawmakers arrived in Lincoln, Speaker John Arch only scheduled for debate the property tax package put together by the Revenue Committee, stacked with Pillen's allies , subverting the power other committees would normally have to offer proposals for debate. Speaker John Arch of La Vista smiles during a press conference addressing the outcome of the special legislative session at the Capitol on Tuesday, Aug.
20, 2024, in Lincoln. "I don't think enough people were included. There were 17 senators and all the rest of them learned what was going on through the press," Sen.
Mike Moser of Columbus said amid debate Tuesday, referring to lawmakers who were included in a working group Pillen put together to take up property tax reform. "And that's B.S.
," said Moser, a conservative who was among more than a dozen lawmakers to appear at Pillen's news conference hours later. "We should all be included in the process." Sen.
Julie Slama of Dunbar, also a conservative's who has been among the loudest critics of Pillen's property tax plan, said the session "was designed to fail and fail miserably," placing the blame "at the feet of the executive branch." Sens. John Fredrickson (left), Megan Hunt (second from left) and John Cavanaugh (far right), of Omaha, talk with Sens.
George Dungan (center) and Danielle Conrad, both of Lincoln, on Tuesday at the Capitol. Some celebrated the session's modest payoff, including Sen. Danielle Conrad of Lincoln, who was among the leading opponents to Pillen's initial tax plan, and who said "it's good to bring this bewildering and meandering special session to close.
" Pillen pushed back against such criticisms at his news conference, noting there were "way more senators involved in this whole process than any other bill." "Could we have done more? I don't know how we could have worked any harder," he said. "We did the best we could.
" Senators are reflected as they wait for Gov. Jim Pillen to sign a bill during a press conference addressing the outcome of the special legislative session at the Capitol on Tuesday, Aug. 20, 2024, in Lincoln.
Wayne and other term-limited lawmakers pushed for the Legislature to reconvene for a second leg of the special session in November, but senators instead voted Tuesday afternoon to adjourn sine die, ending lawmaking for the year. The Legislature — with more than 15 new senators who have yet to be elected — will return to Lincoln in January after Tuesday's adjournment sent the 108th Legislature home for the second time this year. "To varying degrees," Arch said, "I think we all left wanting more.
" Lincoln Birth Center closing; special session update; NU volleyball ranks No. 2. A wild horse jumps onto its back as it tries to throw off a rope held by Troy Graybill (from front) Chris Hajek, and Scott Graves as they try to saddle it during the wild horse race a during the final day of Nebraska's Big Rodeo at the Garfield County Fairgrounds on Saturday, July 27, 2024, in Burwell.
JC Brager's Sawyer Bokowski (left) fields a ball as Papillion-La Vista South's Derek Geist runs to third base during the second inning of a National division Class A Legion baseball tournament game against on Saturday, July 27, 2024, at Den Hartog Field. Nebraska Capitol groundskeepers Lexis Funk (left) and Heather Dinslage collect fallen tree branches Thursday in Lincoln. Harry Tompkin, owner of Palace Glass Co.
, hands off a piece of stained glass to Kelly Mathes (from left) as they sort through inventory on Wednesday, July 31, 2024, in Lincoln. After 43 years of creating stained glass, Harry Tompkin plans to close his shop by September. Most of the remaining pieces are rejuvenation projects or those that were planned before his decision to close.
Burwell's Keelin Swett, 12, blows a bubble with her gum while waiting in the staging area behind the chutes during the final day of Nebraska's Big Rodeo at the Garfield County Fairgrounds on Saturday, July 27, 2024, in Burwell. New teachers gather for the Lincoln Public Schools New Educator Kickoff on Monday at Southwest High School. Bob Swanson uses a chainsaw to clean up large fallen branches after a storm pummeled the city Wednesday in Lincoln.
Akroyd Darkgrove, played by Shade Ingraham (left), has popcorn thrown at him by Jacob Parman, 7, of Fargo, North Dakota, during a performance of "Phantom of Darkgrove" at the Denman and Mary Mallory Kountze Memorial Theatre at Eugene T. Mahoney State Park in July. Audience interaction is a big part of what makes the melodramas at the park special, crew members said.
The crowd is encouraged to respond vocally to musical cues throughout the play and throw popcorn at the villain. Colten Haman is dragged underneath a wild horse while attempting to saddle it in the wild horse race competition during the final day of Nebraska's Big Rodeo at the Garfield County Fairgrounds on Saturday, July 27, 2024, in Burwell. Noah Wong, 7, unzips backpacks for the assembly line to place school supplies inside it during Spreetail's annual Back(Pack) to School Event on Friday.
Nebraska Volleyball head coach John Cook poses for a photo in front of the chutes before the Grand Entry on the final day of Nebraska's Big Rodeo at the Garfield County Fairgrounds on Saturday, July 27, 2024, in Burwell. Matt Rhule (center) leads a group of participants inside to cool off during his "She's Got Game" girls football camp on Saturday, July 27, 2024, at Memorial Stadium. Nazar Durzhynskyi, 9, focuses on keeping the ball off the ground using his racket while participating in a practice drill during a tennis camp held for Ukrainian children at Woods Tennis Center on Thursday.
A Lincoln firefighter (center) works inside of a crashed bus to help free one of the drivers following a crash at the intersection of North 10th and P street on Wednesday, July 24, 2024, in Lincoln. Only one driver was injured in the crash and transported to the hospital with non-life threatening injuries. Papillon La Vista South's assistant coach Sam Palensky (center) leads the "mafia" game with players from both teams in the locker room as they wait during a weather delay at the Legion National Division championship game on Wednesday, July 31, 2024, at Den Hartog Field.
Vampire Weekend frontman Ezra Koenig brushes his hair back after finishing a song during a performance at Pinewood Bowl Theater on Tuesday, July 23, 2024, in Lincoln. Todd Heiser of Lincoln makes one of five trips of the day to drop off tree debris at a collection site at Holmes Lake Park on Monday. J.
J. Yost, assistant director of Parks and Recreation, said the debris drop-off site at Holmes Lake has been one of the busiest — and it's also one of the smallest. The city has brought equipment to all the drop-off sites to consolidate tree debris.
At Holmes Lake, workers also used a grinder to further process debris. Yost said the city is encouraging residents to use other sites, which include Seng Park (south of the ballfields); Woods Park (south lot off of J Street); Oak Lake Park (main lot off of Charleston Street); and Hofeling Enterprises, 2200 South Folsom Court. City parks sites will accept debris until Aug.
19. Wilber native David Rogers, 10 (first right) holds his cousin William Mays, 3, as they dance during the 63rd annual Wilber Czech Festival held in Downtown Wilber on Saturday, Aug. 3, 2024.
Colten Haman is dragged underneath a wild horse while attempting to saddle it in the wild horse race competition during the final day of Nebraska's Big Rodeo at the Garfield County Fairgrounds on Saturday, July 27, 2024, in Burwell. Tae'veon Coleman, 7, (left) waits to cast his line as the sun sets during a Community Lake day hosted by Big Gumdrop Outdoors at Oak Lake Park on Friday, Aug. 9, 2024, in Lincoln.
Big Gumdrop Outdoors, is ,a nonprofit created by Elijah Riley, a Lincoln native and UNL student, to help kids connect with nature and play outside. Travis Ruel and Alanna White, 9, of Lincoln, interact with Patches, a 1-year-old Catahoula dog, through the glass of her kennel at the Pieloch Pet Adoption Center on Friday. Patches has been at the shelter since June 19.
The Capital Humane Society is offering a "Full House" promotion where adoption fees for all dogs are reduced to $100 until Sunday because the shelter is nearly full. Framed through the grate of a fire pit, Olivia Dagget-Keagle, 9, blows out the fire on her blackened marshmallow during a Community Lake day hosted by Big Gumdrop Outdoors at Oak Lake Park on Friday, Aug. 9, 2024, in Lincoln.
Big Gumdrop Outdoors, is ,a nonprofit created by Elijah Riley, a Lincoln native and UNL student, to help kids connect with nature and play outside. A bicyclist rides along the Billy Wolff Trail near the Union Plaza Amphitheater on Wednesday. After 13 straight days of highs of 90 degrees or above, including 100 on Monday, a cool front brought relief to Lincoln, with a high of only 75 on Tuesday.
Wednesday's high, which reached into the upper 80s, will likely be the warmest for several days. The National Weather Service forecasts highs in the 70s to around 80 through the weekend, about 10 degrees below normal for this time of year. Jordan Jones, 6, and her brother Sincere, 7, (from left) react while riding the Super Drop ride at the Heart of America Carnival during the Lancaster County Super Fair at the Sandhills Global Event Center on Saturday, Aug.
3, 2024, in Lincoln. Nowear BMX's Sam Bussell (top right) performs a trick on his bike during a performance at the Sandhills Global Event Center on Saturday. Captured using a double exposure, state senators register their votes with red and green lights during a motion to end debate.
Fierce opposition from a bipartisan group of lawmakers to Gov. Jim Pillen's tax plan kept the Legislature from ever voting directly on the proposal on Tuesday. Scott Middle School sixth grade teacher Eric Nelson tries to catch cheeseballs on a shower cap covered in shaving cream during an end-of-the-day pep rally at Scott Middle School on Monday.
The goal was to catch as many cheeseballs with your head while they were thrown by a student partner. Nebraska's Bergen Reilly hits a ball next to teammate Andi Jackson during a team practice, Monday, Aug. 5, 2024, at the Devaney Sports Center.
Reach the writer at 402-473-7223 or [email protected] . On Twitter @andrewwegley We're always interested in hearing about news in our community.
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