Nebraska agricultural and business groups decry SCC’s proposed property tax increase

LINCOLN, Neb. (KLKN) — A group of business and agricultural organizations came together this week in opposition to Southeast Community College’s proposal to increase property taxes.

The coalition includes the Lincoln Chamber of Commerce, Lincoln Independent Business Association, Nebraska Cattlemen and Nebraska Farm Bureau.

The group voiced its concerns on the levy rate increase that will be considered by SCC later this month.  

“People are getting hit hard by property taxes,” said Bud Synhorst, CEO of the Lincoln Independent Business Association. “Even when a political subdivision leaves their levy the same, when a valuation goes up, you’re paying more.” 

SCC said the increase will establish a base line for its future funding after the passage of Legislative Bill 243.

That bill changes how community colleges are funded. It takes away most of their levying authority.

In 2024-25, the revenue generated through property taxes will be replaced by state funding.

The amount of money they get will be based on the revenue they collected in 2023-24.

“According to the bill, this is the one chance that community colleges get to set their base lines,” SCC President Paul Illich said.

Opponents take issue with that reasoning.

“They don’t need that money today,” Synhorst said. “They’re taking about $20 million that they don’t need in their current budget.” 

Right now, the general fund levy rate is 7.37 cents per $100 valuation. 

SCC’s initial plan was to raise it to the maximum 9.25 cents per $100 of valuation. 

It then lowered that to 8.5 cents for the 2023-24 school year.

SCC noted that taxpayers could receive a 100% credit on property taxes paid to community colleges.

“We have to be thinking about our employers, our students our community,” Illich said. “So, we want to set it right now.”