JournalStar.com

Who's funding lid movement?

By NANCY HICKS / Lincoln Journal Star
Sunday, Aug 13, 2006 - 12:13:19 am CDT
A coalition of state associations, including many dependent on state tax dollars, spent more than $200,000 in two months trying to convince Nebraskans not to sign state spending lid petitions. 

The biggest donors to the anti-spending lid coalition are the state teachers union, the League of Municipalities — representing city governments — and the Highway Improvement political action committee, which represents private companies that build and maintain streets and highways under contracts with government.

Most coalition members are people who directly profit from tax dollars, said Mike Groene of North Platte, a leader in the petition drive.

“Our opponents are protecting their income and their future increases,” he said.

But members of this coalition, called Nebraskans for the Good Life, believe a rigid lid on state spending would hurt services.

Leaders of these groups say they are protecting citizens’ interests in maintaining good streets, education and state and local services.

“Obviously good streets and roads are important to Nebraska, in terms of economic development and our quality of life,” said Curt Beck, who heads the Highway Improvement PAC that gave $25,000 to the coalition.

“We believe that this (spending lid petition campaign) would create a loss of funding and substantially affect the maintenance and construction of highways and roads,” said Beck.

The spending lid in Colorado has been a proven failure, said Karen Kilgarin of the Nebraska Education Association, the state teachers union and biggest donor to the anti-lid coalition.

“Everything from education, economic development, health care, roads — they have all suffered under TABOR in Colorado,” she said referring to the spending lid there.

 “It didn't work,” Kilgarin said, pointing out that Colorado voters recently agreed to suspend the strict lid for five years.

 “There is no reason for Nebraska to go down that same path.”

The coalition, which reported spending more than $90,000 on radio and TV advertising this summer, was unsuccessful in stopping the lid campaign from collecting signatures.

Secretary of State John Gale said Friday the proposed constitutional amendment will be on the November ballot because supporters collected enough signatures.

So the anti-lid coalition will raise even more money to convince voters to reject it in November.

It will be an ongoing educational campaign to make people aware of the problems with the lid, said Lynn Marienau, communications director for the League of Municipalities.

There’s an echo across states with spending lid petition drives. Manhattan real estate investor Howard Rich and his libertarian buddies are paying for much of the lid campaigns in many states, based on research by the Oregonian newspaper and others. They’ve spent about $1.7 million in Nebraska on two petition drives and more than $9 million nationwide.

And in each state, a coalition that generally includes the teachers union, other public employee unions or organizations representing public employees, local government associations, hospital associations and sometimes chambers of commerce are funding the opposition.

American Association of Retired Persons is among the anti-lid coalition members in each state. In Nebraska, the national AARP donated $20,000 and a representative of the Nebraska chapter has been an anti-led spokesperson.

Although the group does not get state tax dollars, it is interested in protecting services, particularly for senior citizens, AARP leaders say.

In Nebraska, tax dollars pay for Medicaid and the homestead exemption, said Mark Intermill of AARP Nebraska. Medicaid pays nursing home bills for low-income seniors. The homestead exemption reduces property taxes for lower income seniors and uses state tax money to reimburse local governments for the property tax loss.

“There are consequences to setting an arbitrary spending lid,” Intermill said.

“A rigid lid on spending is not in the self-interest of families and older people,” said Jud Dolphin, director of AARP Maine, where a state and local spending cap will be on the ballot.

“The folks promoting this are on the libertarian and radical side,” he said.

On the anti-lid side there are such groups as Defend Michigan, Defend Oregon, Defend Montana, Protect Missouri’s Future, Protect Nevada’s Future, and Partners to Protect Missouri’s Future.

And on the pro-lid side there’s Stop OverSpending Nebraska, SOS Michigan, SOS Montana and SOS Oklahoma. 

Reach Nancy Hicks at 473-7250 or nhicks@journalstar.com.

Spending limit proposal

* State spending could increase by the consumer price index plus population growth under a proposed constitutional amendment.  

* A petition drive to get the amendment on the November ballot was successful.

The donors

The pro-lid committee has been supported by a national group called Americans For Limited Government.

Here’s who donated to the anti-lid coalition, Nebraskans for the Good Life:

Education: 

* Nebraska State Education Association PAC: $82,510.

* National Education Association: $20,000.

* Nebraska Association of School Boards: $5,000.

* Nebraska Council of School Administrators: $10,000.

Other government groups

* League of Nebraska Municipalities: $59,056.

* Nebraska Association of County Officials: $1,500.

Unions or employee groups

* AFSCME, Washington, D.C. (public employee union): $5,000.

* Nebraska State AFL-CIO: $5000

* NAPE/AFSCME, Lincoln, (public employee union): $1,000

* Nebraska Professional Firefighters: $1,000.

Other groups

* Highway Improvement PAC (Nebraska): $25,000.

* AARP-Washington, D.C.: $10,000 

* Center for Rural Affairs: $7,500

* Nebraska Hospital Association: $2,500.

* Nebraska Library Association: $300.