Vote yes on Amendment 1

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Too often Nebraska communities that want to create economic development programs are discouraged by seeming inevitability that doing so would add to property taxes.

Amendment 1 on the Nov. 4 ballot is designed to give those communities other options.

It deserves to pass.

Communities have had authorization since 1990 to establish their own economic development programs. There have been some notable successes under the programs often known as “LB 840 plans.” Nebraska City used such a program to attract the Excel plant. Blair used one to draw the Cargill plant.

More can be done.

“Cities are unnecessarily handicapped in job creation,” said former Gov. Charlie Thone, who heads a statewide coalition of individuals, businesses and organizations in favor of the ballot proposal that they believe could lead to creation of more jobs.

Standing in the way is a constitutional requirement that only local revenue can be used for economic development programs. The majority of Nebraska cities are supported solely by property taxes, one of the most detested of all forms of taxation.

Amendment 1 would allow the Legislature to authorize use of other sources of funding, including private donations from individuals and foundations, state and federal funding, fees and surplus funds.

“I look at Amendment 1 as offering an option for tax relief for local property taxes,” said Hickman City Council member Doug Hanson, president of the League of Nebraska Municipalities.

Various safeguards would be retained in use of state and federal funds. The Highway Trust Fund, for example, still could be used only for streets and roads. Community Development Block Grants would still be subject to designated legal requirements.

Most importantly, approval of Amendment 1 would not diminish local control.

Before any community could set up a new economic development program, a local vote would be required. Even the communities with existing LB 840 programs would be required to ask local voters to approve the use of any additional sources of revenue.

Across the state economic development programs come in many sizes and shapes, ranging from Burwell’s ambitious construction of a professional office building now occupied by five businesses, four of whom were newly recruited, to establishment of a High Plains Compass Community website to improve retention of employees in western Nebraska.

Amendment 1 would give local communities more tools to create jobs without giving up local control. A vote for Amendment 1 is a vote in favor of giving local communities a chance to help themselves.