Erdman Campaigns Tax Reform

A plan designed to fund the Nebraska government from three sources has turned upside down with property taxes supplying the majority of revenue, according to District 47 State Sen. Steve Erdman.

Sen. Erdman was in Sidney Wednesday visiting with local constituents as part of a tour of Western Nebraska. He told those in attendance the state’s tax structure is the top priority.

He said property tax and its impact on individuals and ag producers continues to be an issue.

“We have been talking about property tax for 40 years,” he said.

He said he worked with a committee to research the best proposal for a new property tax structure. His hope was for a constitutional amendment that would get the attention of the Legislature.

“The state today has 27 days of revenue,” he said. “We’re living paycheck to paycheck.”

He added Nebraska is doing what parents tell their children not to do.

“The governor says ‘I’ve decreased the amount of the increase.’ That is still an increase,” Erdman said.

He said the State of Nebraska needs to decide what will it fund, and what will it cut. He said until legislators address expenses in such a manner, they won’t balance the budget.

He added that the state is driven by agriculture, and the property tax structure needs to be designed to support agriculture, not push it away.

“We cannot continue to do the things we do and rely on property taxes,” he said.

Erdman said the 2019 legislative session will have budget battles because of the Medicaid expansion okayed by voters.

“The budget is going to be a tremendous fight,” he said. “They (legislators) have to figure out a way to fund Medicaid expansion.”

Erdman said every state that has expanded Medicare has struggled with covering the cost. He said it is going to end up cost the state more than anticipated.

“We can’t continue to do this, so it is going to be a fight on the Floor,” he said.

Another point he addressed is the University of Nebraska-Lincoln seeking a 3 percent pay increase.

“That is going to be a fight,” he said.

He added agencies are not always finding ways to continue with less funding because they are not expected to.

Erdman said helping people do what they cannot do for themselves is what makes his job satisfying.

“Helping people do what they can’t do on their own is a rewarding part of this job,” he said.

He added the job of State Senator is “the most demanding job I’ve ever signed up for.”

In the comment period, Cheyenne County Sheriff-elect Adam Frerichs asked how the Legislature is viewing legalizing marijuana. Erdman in his perspective, there is no chance. He said Interstate 80 and the Panhandle area of Nebraska “suffers greatly” because of marijuana. Cheyenne County Attorney Paul Schaub said arrests were once for possibly a few pounds of marijuana possession. That average has increased to hundreds of pounds, he said.

Sidney City Councilman Wendall Gaston said Colorado spends $4.32 cents on marijuana-related programs per $1 of tax revenue generated.

Erdman went on to talk about the impact on county jails, noting that rarely is a person jailed for a county or city offense, yet the State does not compensate county jails for expenses related to State offenses.

“The State balances the budget on the backs of the taxpayers,” he said. “It is not right.”