LINCOLN - A multi-day filibuster has blocked a bill that would have imposed new taxing limitations on K-12 schools. On a 28-21 vote, Legislative Bill 986 fell five votes short of halting the filibuster Tuesday and allowing a vote to advance the proposal from first-round debate.

The bill, entitled the "School District Property Tax Limitation Act," sought to prohibit school districts from increasing property taxes by no more than 2.5%, or inflation; whichever is greater. LB986 would have allowed those limits to be exceeded with a vote of 75% of a school board's members of 60% of registered voters at an election.

State Sen. Tom Briese said this is a way to ensure property tax credits provided by the Nebraska Legislature translate into reductions in local property taxes, not just slowing increases. To emphasize the importance of the bill for Nebraska homeowners, Sen. Briese marked the bill as his priority. A legislative attempt to impose more fiscal caps on K-12 school districts has now failed for two years in a row. Briese was frustrated by the education lobby being unwilling to find a middle ground.

“Our failure to act really tees it up for folks who want to put a cap proposal on the ballot,” he said.

Sen. Matt Hansen of Lincoln led the opposition to the bill. Their main argument against it was the new cap would hurt large and growing school districts like those in Lincoln and Bennington. Others who opposed the bill said school spending has not been irresponsible and that local school boards are best suited to determine local budgets. Hansen said he is normally willing to seek compromises, but LB 986 was “just flat-out bad policy.”

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