The Legislature would have been constitutionally prohibited from using state revenue surpluses to adopt the measures it passed to target income tax relief to modest income working families and self employed Nebraskans. Gone would be increases in state aid to education that allowed a reduction in some of the nation's highest property taxes, the real tax problem in Nebraska. Levy caps are projected to reduce property taxes by 12 percent next year, and more as they are lowered in 2000. While imperfect, these policies have begun a sorely needed reduction in Nebraska's excessive reliance on property taxes. If the lid passes, that excess will be locked in placed.
Proponents argue that the solution lies in school consolidation and spending cuts.
Clearly, restraint and judgment must be exercised in school spending. But there are limits on how much spending can be cut without damaging educational quality. Nebraska currently ranks 33rd among the 50 states in spending on elementary and secondary education, while compiling one of the nation's best records in graduation rates, college entrance exam scores and college enrollments. Sixteen of the 17 states that spend less perform more poorly. It is misleading to promise significant property tax relief based on spending cuts, without also acknowledging the risk to educational quality.