GOP Tax Plan could affect PBA bond subsidies
Funding for Lincoln’s Pinnacle Bank Arena could potentially be jeopardized by the GOP tax plan.
On Tuesday, the West Haymarket Joint Public Agency – created by the city and UNL to oversee the west Haymarket, including PBA – asked the federal government to protect bond subsidies the city uses to finance the arena.
“I think you know without receiving these subsidies it would put the JPA in a severe financial situation,” city finance director Brandon Kauffman, who also serves as the JPA’s treasurer, said.
The JPA says it’s set to receive $3.6 million in subsidies on what’s called the Build America Bond on Pinnacle Bank Arena next year.
While the tax plan still has to undergo several checks and balances before being implemented, the JPA wants to be proactive in making sure the money that funds the arena isn’t lost.
"That’s something that we are going to have to look at as we move forward in this process,” Kauffman said. “We’ll know more in the future on what the financial impact is and what the JPA would have to do in the future."
Even if the tax plan is passed, Congress could override the automatic cuts with 60 votes in the Senate.
In a statement to Channel 8 Eyewitness News regarding the proposal, Congressman Jeff Fortenberry said:
"At its core, this tax bill is an attempt to make things much simpler by giving more money back to hardworking men and women, reviving small business momentum on Main Street, and returning to the Made in America label. Many provisions are eliminated to achieve these goals, but there will be ongoing debate."
The JPA said it isn’t drawing up plans in case the federal subsidies stop just yet.
President Trump has said he wants the final tax plan to be finalized by the end of the year.