Business-ag coalition forms to oppose spending lid

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By NANCY HICKS / Lincoln Journal Star

A second coalition, representing business and agricultural groups, has formed to oppose Initiative 423, the state spending lid proposal on the November ballot.

The new coalition’s co-chairs represent three major statewide organizations: The Nebraska Chamber of Commerce, the Nebraska Farm Bureau and the Nebraska Realtors Association.

The proposed spending lid amendment would limit spending increases each year to inflation plus population growth.

The small business and taxpayers represented by the coalition believe in spending restraint, said Barry Kennedy of Lincoln, president of the Nebraska chamber.

But the spending controls should not be locked into the constitution, he said.

The business groups say they want a curb on government spending but haven’t offered any solution, said Mike Groene of North Platte, a spokesman for the lid supporters.

Their lobbyists are in Lincoln getting tax breaks for themselves, he said, pointing to business tax incentives and a valuation change that gives ag land a lower value.

“That helps them but doesn’t help the overall tax picture. We have to look at the big picture,” he said.

The two coalitions opposing the lid have similar names. The business group calls itself Nebraska Taxpayers against 423. A coalition representing many groups whose members use tax funds is called Nebraskans Against 423.

The two anti-lid coalitions include 75 organizations representing more than 400,000 members.

Members of both coalitions believe one likely result of the proposed spending lid would be increased property taxes, said Rob Robertson of Roca, a vice president with the Nebraska Farm Bureau.

Lid opponents also formed two separate groups to fight a tax lid amendment in 1998, Groene said.

“It’s the same MO this time,” he said.

Groups on both sides have raised more than $1.7 million, according to required reports to the state.

Lid supporters, organized as Stop OverSpending Nebraska, spent more than $700,000 to collect voter signatures needed to get the issue on the ballot.

Two groups — SOS and another pro-lid group formed by Omaha businessman Dave Nabity — also have reported spending about about $273,000 on the educational campaign so far.

Almost all the money raised by the two pro-lid groups has come from two groups with ties to Howard Rich, a wealthy New York real estate investor. The two groups, Americans for Limited Government and Fund for Democracy, also have helped pay for spending lid petition drives in other states.

Nebraskans Against 423, which began work this summer, reported raising more than $672,000 from its member organizations and individuals.

The biggest donors have been the League of Nebraska Municipalities (representing cities), $115,575; the Nebraska State Education Association, $119,616; and national AARP, $122,184.

The coalition has spent more than $662,000, primarily on an educational campaign.

The anti-lid coalition has been airing television ads for several weeks.

The pro-lid ads began Wednesday and will air for several weeks, Groene said.

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