LINCOLN- Nebraska Governor Jim Pillen's method of reforming property taxes could stem from the state absorbing all funding for K-12 schools rather than using local property taxes to pay for a portion. He said on Monday that his property tax reform plan will in fact include a request for lawmakers to take on all of K-12 funding. Right now, about 60% of locally collected property taxes go to the schools.

“Our goal of our plan is to not have property tax fund one iota of K-12 education. Zero,” Pillen said. This change would mimic legislation from 2023 when the state took on community college funding. Nebraskans paid the most in property taxes last year with income and sales tax following, which Pillen believes is the opposite of how it should be.

Pillen stated that most school board members do not have financial backgrounds and Nebraska has a confusing formula for funding schools, resulting in the lack of funding prior to 2023. Along with the shift in public school funding to the state, Pillen aims to eliminate some sales tax exemptions. He recognizes the work that needs to be done, repeatedly touting the dates starting in late July when he intends to hold a special session.

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