LINCOLN- Gov. Jim Pillen’s plan to use excess cash reserves to “jump-start” his property tax relief proposal got a rough reception during a state legislative hearing. A long line of representatives of wildlife, hunting, banking, retail, grocers, recycling and affordable housing groups spoke against two bills in the governor’s plan for “transformational” property tax relief.

Officials with natural resources and rural water projects, as well as the state’s major chambers of commerce also voiced opposition. And while Secretary of State Bob Evnen testified “neutral,” he also raised concern about parts of the proposal. Some called the plan to sweep $274 million out of state agency reserve funds for the plan a “bait and switch” because it would use money that was dedicated for programs like litter reduction, workforce training and affordable housing and not tax relief.

But representatives of the Pillen administration said that agency cash funds had become “overbloated” and that agencies can afford to give up the funds. Some contracts might have to be cancelled or postponed, they said, but contracts include language to allow that if money is short. The agencies will still have $2.49 billion in reserve funds, the Pillen administration has said, even after the $274 million “sweep” of those funds.

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