$218 million

In its report to the Tax Rate Review Committee, the Legislative Fiscal Office noted that taxpayers claimed $380 million of the $598 million in LB 1107 property tax credits authorized for tax year 2022. Had any of the unclaimed $218 million, or the $190 million left from prior years, been claimed on state tax returns, it would have offset the slim margin by which state tax receipts in FY 2022-23 exceeded the prior fiscal year. In tax year 2023, the refundable income tax credit available for property taxes paid to K-12 schools and community colleges will grow to $661 million.

$0

California does not levy taxes on lottery winnings, so the state will collect nothing in tax revenue from the $1 billion winning Powerball ticket purchased in Las Angeles this week. Federal taxes will start at a mandatory withholding of 24%.

In Nebraska, lottery winners are taxed and a portion of all scratch and lotto tickets sold is distributed to the Nebraska Education Improvement Fund, Nebraska Environmental Trust Fund, the Nebraska State Fair and Compulsive Gamblers Assistance Fund. The Nebraska Lottery’s most recent quarterly distribution totaled $12.6 million.

16,974

Since the state began reviewing Medicaid eligibility this spring, 16,974 Nebraskans lost their health care coverage. That total represents 22% of those 77,329 Medicaid recipients reviewed in the initial months of the year-long effort known as unwinding. When the unwind began, 393,000 people – about 1 in 5 Nebraskans – were enrolled in Medicaid.

As the review continues, it’s important that Nebraskans make sure their information on file with the Department of Health and Human Services is up to date and watch for messages. Of those whose coverage was terminated, nearly half were removed for procedural reasons such as failing to provide necessary information.

$160 million

A $24.3 billion school aid package passed by lawmakers in Michigan this year includes $160 million to provide free breakfast and lunch to all K-12 students. At least six other states – California, Colorado, Minnesota, Maine, New Mexico and Vermont – provide free school meals to all students regardless of income.

$1.83 million

Voters in the Heartland School District in south-central Nebraska must approve a levy override by a supermajority vote (60% or more) in order for previously approved facility improvements to be completed. For Heartland, the issue is the revenue cap imposed on school districts this year which lawmakers said would guarantee that additional state funding to K-12 education go to property tax relief. The cap set Heartland’s tax authority at $3.99 million. District leaders say they need an additional $1.83 million to complete facility improvements and maintain operations to educate the district’s students.

As in Heartland’s case, the revenue cap in LB 243 removes much of the flexibility for local elected school board members to respond to unique situations such as ongoing construction.

Oct. 24

Save the date for OpenSky’s 2023 Fall Policy Symposium on Tuesday, Oct. 24, in Lincoln. Program details and registration information will be announced in the coming months.