Understanding the history of a place is important in evaluating steps to move forward, and some of the modern-day advantages in Nebraska can be traced back to programs like the Homestead Act of the 1860s.
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That was the message from Professor Timothy J. Nelson, author of The Injustice of Place: Uncovering the Legacy of Poverty in America and keynote presenter at OpenSky’s recent Fall Policy Symposium.
The Homestead Act, Nelson said, was a mechanism for distributing wealth equally. In studying the history of disadvantaged areas of the country mapped by researchers, Nelson and his fellow researchers noted decades of resource extraction, corruption and a resulting unequal distribution of wealth.
In further evaluating the team’s measure of poverty, health data and upward mobility at the county level across the U.S., Nelson noted the importance of investment in basic services and amenities for citizens through programs that get money to the right place.
The Child Tax Credit, which was expanded by the federal government in 2021, was one way to do that, Nelson said. Child poverty was cut in half, a dramatic gain that was lost when the expanded Child Tax Credit was allowed to expire.
Meanwhile, 14 states have stepped in to provide Child Tax Credits as investments in children and critical tools to help families. A proposal to add Nebraska to the list was estimated to reach 478,000 children, or about 81% of all kids in the state.
Solutions in Assessing Nebraska’s Property Tax
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As new solutions to Nebraska’s perennial property tax debate are being considered, policymakers should attempt to keep it simple and maintain transparency.
Panelists discussing property taxes in Nebraska pointed out how capping increases in valuation can lead to an unfair tax burden. Catherine Lang, the state’s former Property Tax Administrator, pointed out the implications of a 3% cap when applied to separate owners of property in the same taxing district, one living in an area of 8% annual valuation increases and the other in an area of slower growth. With a cap, one property owner benefits more than another.
Panelists discussed how circuit-breakers, programs where tax refunds are given to individuals and families whose property tax liability is a larger percentage of their annual income, are more effective in targeting tax relief to those who need it most than current property tax credit programs in place in Nebraska.
Equity and Sustainability of Fines and Fees as a Revenue Source
As tax rates decrease and the revenues available to fund services decline, policymakers have turned to fines and fees as a source of additional revenue. Fines and fees rose in Kansas, for example, after deep tax cuts a decade ago.
Panelists discussed how fines and fees are distributed across all residents, with Desmond Bryant-White characterizing fines and fees in the criminal justice system as a tax on mistakes that someone has made.
Policymakers should ask if revenue from fines and fees is being used efficiently, panelists said, or if resources should be redirected to programs aimed at helping to connect people with jobs or mental health services.
Engaging New Americans in Solving Workforce Challenges
Demographic shifts in Nebraska point to a declining workforce, presenting a significant challenge to growing the state’s economy.
Panelists discussed how New Americans could help to fill the void and reviewed policy solutions that would make the state more welcoming and inclusive to foreign-born parents seeking to provide for their families.
Other states have evaluated barriers for New Americans in the workforce through work of a task force, said Victoria Francis. Panelists also discussed the importance of child care, licensing, worker training programs and affordable housing in attracting New Americans and maximizing their contributions.