TEACHER MINIMUM PAY

The petitions being circulated say:

Establish a statewide minimum base salary for certificated public school teachers.

The details of how the statute would be written are included here.

Explanation:

Base Pay for Teachers 

Advocates for All Nebraskans, the same group which proposed the property tax and valuation petitions that we covered last month, is also attempting to tackle the property tax problem from another angle. One of the biggest drivers of property tax is schools, which are largely funded locally. A large percentage of property tax goes to fund schools—especially teacher salaries—and beyond that, it is not uncommon for school districts to request voters to raise property taxes to meet some need for new construction or programs. 

But what if the state took on the responsibility of providing more funding, taking much of the burden off local government entities? That is what this initiative, titled Base Pay for Teachers, proposes. First, it would require a base salary of $50,000 for every certified public school teacher, regardless of experience, tenure, field, or any other factor, with the base salary to rise as Nebraska state tax receipts rise. Local school districts could use their own funds to pay their teachers more for experience or other factors, but the State would provide this base salary. The second part of this initiative would require the State to provide block grant funding for each district, with the details to be worked out by the legislature, considering at a minimum the base salary and student enrollment.  

The hope, then, is that local governmental entities would not feel compelled to collect as much property tax. And if the other two petitions by this group both make it onto the ballot and are approved by voters, it would be crucial to reduce this load, because local governments’ ability to collect property tax would be cut into at least half. Reducing income has consequences. If the state does not take on part of the burden, local governments would have to find other ways to tax, and hope these could be approved by voters; or cut costs by reducing services.  

This petition, then, would perform two basic functions – reduce the load of local governments to make it possible for them to reduce property taxes on their own; and, if the other petitions are passed, lifting a financial responsibility from them so they can cope with the lower revenue.  

Why is it titled “Base Pay for Teachers,” then? Well, it intends to address problems for teachers as well. Two leaders of Advocates for All Nebraskans, Eric Underwood and Kirk Penner, are concerned that Nebraska will lose teachers to Iowa, as Nebraska’s entry level teachers do not get paid as much as Iowa’s (Iowa has a base salary of $47,500 for new teachers, and a base of $60,000 for those with 12+ years of experience). Underwood stated that new Nebraska teachers are paid in “the lower range of $40,000.” Underwood and Penner believe that this could be a way to help address Nebraska’s teacher shortages, while providing financial stability for schools and letting local governments focus on how to enhance their schools as they see fit. 

The idea of mandating base salaries for teachers is not unique to Nebraska. Thirty states already do it. However, Nebraska State Education Association president Tim Royers does not believe the plan is feasible. He explains that in other states who have raised base pay, overall pay for teachers has gone down. Raising the base rates for new teachers can make it difficult to maintain the raises given to more experienced teachers. In addition, salaries of other school employees could also be cut. Consider the nurses, librarians, paras, therapists, and academic counselors who are also paid out of the school funds, but are not covered with this base pay. Overall, he states, “The math doesn’t work.” 

As with the other two petitions from Advocates for All Nebraskans, this is a change in tax policy which will have ramifications that the state legislature and local governments will have to address. Other taxes may be increased, and/or services may be cut. When considering whether to sign or not to sign this petition, it is important to be aware that this proposal is not only about supporting Nebraska’s teachers, but also about the overall tax balance between state and local governments; and between property, income, and sales taxes. Voters’ personal situations, local communities, and schools, as well as their personal beliefs about the balance between the responsibilities of individuals and governments, can all be considered in deciding whether to sign or not to sign “Base Pay for Teachers.” 

 

SPORTS BETTING - 2 petitions

One petition being circulated says:

Amend the Nebraska Constitution to state that laws may be enacted allowing sports wagers to be placed within the State of Nebraska through an Internet-based platform offered by an authorized gaming operator.

The details of how the amendment would be written are included here.

The other states:

Enact a statute allowing sports wagers to be placed within the State of Nebraska through Internet-based platforms offered by an authorized gaming operator, or its contracted platform provider, and regulate such sports wagers.

The details of how the statute would be written are included here.

Explanation

We skip ahead to two petitions filed in January and approved for circulation in February, as they also deal with property tax relief—though, in this case, property tax relief is the carrot on a stick. The true aim of the petition is to legalize online sports betting. Some, including Governor Pillen, who are against gambling still support this proposal because of its potential to reduce property taxes without causing large, disruptive changes in tax structure. 

The two petitions are a constitutional amendment to allow online sports betting, and a legislative framework to regulate and tax online sports betting. Because Nebraska has a single-subject rule for petitions (no petition can have more than one subject), the constitutional amendment and the proposed legislation are presented as two petitions. The ballot question committee behind the petition is Tax Relief Nebraska; however, Tax Relief Nebraska is basically a coalition of Nebraska’s casinos. Much of the financing behind Tax Relief Nebraska is supplied by DraftKings and FanDuel, two of the biggest sports betting platforms. Out of $2.6 million raised by Tax Relief Nebraska in 2026, $2.2 million was donated by DraftKings and FanDuel. WarHorse Casino, with its facilities across the state, is also behind the petitions and has already made deals with several platforms in anticipation of the legalization of online sports betting.  

Legislators have tried and failed to legalize online sports betting in Nebraska, with the explicit goal of using the funds to address Nebraska’s high property taxes. One attempt would have designated 90% of the estimated $32 million tax revenue for property tax relief. A major argument for legalization is that Nebraskans already do online sports betting by a variety of means—VOIPs, the black market, or going across state lines (which gives other states the tax revenue). Others oppose mobile gambling, citing the danger of gambling addiction, which is increased by the 24/7 immediate access provided by phones. Tom Osborne has also made the argument that allowing online betting on college sports will increase pressure on athletes. So legislative efforts have not succeeded – hence the current push to voters.  

Nebraska’s constitution already allows some types of gambling and lays out how the money is to be spent. 

• The first $500,000 goes to the Compulsive Gamblers Assistance Fund. 

• Of the remaining money: 

• 44.5% goes to the Nebraska Environmental Trust Fund. 

• 44.5% goes to education “as the Legislature may direct.” 

• 10% goes to the Nebraska State Fair Board (or the General Fund if the State Fair stops operating). 

• The final 1% also goes to the Compulsive Gamblers Assistance Fund. 

The Constitutional Amendment would add online sports betting as an allowable option under this amendment. The additional tax revenue, then, would increase the “pot” of funds designated for education. Since education is the biggest expense currently being covered by property taxes, the theory is that this extra money will reduce the need for property taxes. So, if $32 million were brought in, $13.9 million would go to education under the plan being proposed. 

A Nebraska legislature report did the math to see how much relief could be provided. In that report, a casino representative provided a slightly different estimate that Nebraska was losing $30 million to other states. The answer? If Nebraska captured that revenue and applied all of it to relieve property tax, it would account for less than 1% (based on 2023 numbers, when Nebraska brought in $5.3 billion in property tax). The report also showed that online sports betting profits tend to increase rapidly year-over-year, though more in some states than others, so these numbers may or may not reflect the revenues that Nebraska could receive in the future. 

The legislative petition, called Property Tax Credit Fund Increase From Online Sports Wagering also fits into the structure that Nebraska currently has in place to regulate gambling, mandating among other things that online sports betting will be provided by platforms through (or belonging to) licensed “authorized gaming operators” in Nebraska, by users placing bets within Nebraska’s borders. The legislation focuses on questions such as who will be allowed to provide the wagering, and where and how. Other than ensuring that the bets are made in Nebraska through Nebraska-licensed operators (which means that the tax revenue will go to Nebraska), no mention is made of property tax.  

In other words, under estimates based on 2023 tax numbers, if these two petitions pass, Nebraska stands to reduce property taxes by less than half of 1%, if the legislature decides that the funding devoted to education should be applied in such a way as to assist property taxpayers. How they would legislate, and how much online sports wagering might increase, are unknown. While the numbers do not look impressive now, it may be that future growth in online sports wagering would provide more relief than it appears. Voters considering whether to sign or not to sign can weigh their concerns about property tax, their personal beliefs about gambling, the potential societal effects, and the potential financial benefit. 

 

Blog research and writing by Vickie Hecker. Vickie is a state employee, but her postings on this site do not speak for the views of the state, its customers, clients, suppliers, or employees. Any links to state sites are provided for informational purposes only.