How to keep tabs on local governments and how to pay for schools were main topics discussed in the Nebraska Legislature Wednesday.
Wednesday marked the second round of debate on Speaker John Arch’s proposal to create a new legislative oversight division to house the inspectors general, who oversees the state’s prison and child welfare systems. But much of the discussion centered on oversight of local governments — ranging from cities and towns to public power districts. Sen. Eliot Bostar said more scrutiny is needed.
“We do not have adequate oversight over all of the levels of government, over all of the governmental bodies, over all of the political subdivisions in the state of Nebraska. We learn of problems, challenges that occur, often through the media or in some cases through our state auditor,” he said.
Bostar cited the Nebraska Public Power District’s purchase of land near Hallam, in southeast Nebraska, reported by the Flatwater Free Press.
“The Nebraska Public Power District made the decision to purchase land, 202 acres of farmland, from their own executives for $5 million that was five times the assessed value and two times the appraised value of the land. That $5 million of public funds went to two executives, one the chief Ethics Officer of NPPD, and the other, the individual responsible for the purchasing of land for NPPD. Was that corrupt? I don’t know. Is it a problem? Yes,” he said.
Sen. Tom Brandt said there were other factors at play in the price NPPD paid for the land, where it wants to expand existing generating capacity.
“That whole area has just been platted for about 2400 acres of solar, and these individuals that own this ground were offered $30,000 an acre. And they denied that — they did not want a solar farm on that farm ground. NPPD bought it for $25,000 an acre… I don’t feel that the taxpayers of the state were taken advantage of. I do think it was a bad look,” he said.
And Brandt questioned the cost of Bostar’s proposal, which anticipated hiring only one person to oversee local political subdivisions.
“So, the city of Omaha, the city of Alvo — this one individual would take care of all 500 towns and villages across the state, all the ESUs, all the NRDs, all the public power districts. That’s quite a lot,” he said.
Arch thanked Bostar for raising the issue, but said his proposal had not had a public hearing, so should not be attached to the bill. Senators voted 22-7 against Bostar’s proposal, then gave second-round approval to the legislative oversight proposal on a voice vote.
Senators then turned to the question of how Nebraska pays for its public schools. Sen. Jana Hughes is lead sponsor of a proposal to create a School Financing Review Commission to recommend changes to the system. She said she wants answers to how much should come from local property taxes, and how much from the state, as was discussed in last year’s special legislative session.
“What is the state’s piece of supporting public schools? I think it was thrown out, ‘Oh, well, the state will pay for all of public schools.’ And there was a huge outcry on that of local control, etc. So locals want some skin in the game, if you will, but they say they don’t want all of it,” she said.
Sen. George Dungan supported the idea of a commission. But he pointed to a basic question that has bedeviled previous efforts to reduce property taxes by substituting sales and/or income taxes.
“The question is, what’s the pay-for? And we tend to differ, I think, a little bit on the pay-for with regards to who and how does that burden fall on taxpayers? Who is going to be picking up a bigger part of that tab? And certainly, how are we going to balance that tax structure?” he asked.
That could well be the subject of much future discussion, as senators gave the bill second-round approval on a voice vote.
More from the Unicameral:
Legislature advances bill banning some consumable hemp products, taxing others
Legislature upholds Pillen’s veto of bedbug bill
Senators question Pillen’s appointments for Medical Cannabis Commission
Lower minimum wage revived, but may wait until next year
Legislative oversight proposal gets first-round approval
Nebraska Legislature fails to advance medical marijuana regulations
Raising other taxes to lower property taxes falls short
Senators fail to override governor’s veto on expanding SNAP benefits for felons
Legislature passes budget despite critics’ warnings
Pillen vetoes bill expanding SNAP benefits for felons, override attempt likely
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