Jim Pillen presents the State of the State address

Plans for tax cuts and education funding

Nebraska Governor Jim Pillen delivered the State of the State address in the Lincoln capitol building on January 25. Comparable to the national State of the Union address, the State of the State is an annual speech where the governor addresses the state legislature and sets out their objectives while in office. Pillen used the opportunity to expand upon his budget and present a vision for Nebraska’s trajectory.

Pillen spoke about his plan to reduce taxes saying, “We all agree — we are taxed way too much. Our tax policy chases our kids and grandparents out of the state. We can’t grow Nebraska that way.” He supports a bill that would lower property taxes by limiting year-over-year tax collection by schools to a 3% increase in revenue per year. He also wants to accelerate tax cuts introduced by Ricketts' administration that affect individual and corporate tax rates.

Pillen restated his plan to increase education funding. His plan will increase public education funding by over $2 billion over the next six years.

Nebraska’s current annual budget is around $4.5 billion. Pillen’s two-year budget would increase spending and rely on Nebraska’s current cash reserve of $1 billion. Pillen’s plan has similarities to former governor Pete Ricketts’, a large supporter of Pillen’s candidacy.

The proposed budget would give the Nebraska Department of Correctional Services a $29 million increase that is meant to address issues with staff shortages. The budget also included a plan to increase funding to build the unfinished 1894 Perkins canal. The canal will divert water from the South Platte River to Perkins County for agriculture, municipal drinking water and power generation.

Responses to Pillen’s address were mixed. State Senator Robert Clements of Elmwood, who has recently taken leadership of the Appropriations Committee said he agreed with Pillen’s proposals and that they fall within the budget. State Sen. Loren Lippincott of Central City, a member of the Appropriations Committee, agreed with the plan, citing its balance with resources and important issues like property tax relief. State Senators Tom Briese and Lou Ann Linehan praised the budget for being tight enough to allow historical tax cuts.

Senators Carol Blood and Tony Vargas raised concerns over a lack of attention to health care access and affordability. A joint statement from ten Nebraska health organizations said that the budget proposal ignores the crisis facing Nebraska health care and human service providers and jeopardizes the care of rural Nebraskans.

By: Aubrey Benton