Heineman's "Property Tax Relief" Targets Ted Turner For Biggest Benefits

The Omaha World-Herald finally publishes some of the criticism of the 2007 Nebraska Legislature's Heineman-approved package for property tax relief, 5 months after robbing voters of the debate they honestly deserved.

State tax officials notified counties Friday to trim their 2007 property tax bills by $83.22 for every $100,000 of real estate subject to taxation.

Instead of sending more money to local governments to spend, the Legislature and Gov. Dave Heineman decided this year to use $105 million in state funds to pay part of Nebraskans' 2007 property tax bills....

State Sen. Tom White of Omaha said the program spreads the dollars too thinly. He also said the plan pays out sales- and income-tax revenue to people who pay little or no sales and income taxes in Nebraska. "It's lousy economics," White said. "Far too much money is going out of state. Ted Turner, as the biggest private property owner in the state, is going to make out like a bandit."

The media mogul and CNN founder has about 425,000 acres - about 625 square miles - in multiple counties. He also is the nation's largest landowner, with some 2 million acres in seven states. White said the $105 million - had it been limited to Nebraska homeowners - could have resulted in $250 going toward their property tax bills.

During the legislative session, White called for a $500 income tax credit for homeowners - but his measure stalled when other lawmakers wanted to make sure farmers and commercial property owners got a share of any reduction.

State Sen. Chris Langemeier of Schuyler said the Legislature settled on the fairest approach. "It seems fair to tax everybody in the state, yet some of the ideas to give money back would have excluded certain groups," he said.

I'm sure a billionaire like Ted Turner appreciates Langemeier and Heineman looking out for his interests rather than those of the working people who actually live, work, and raise their families in Nebraska.

The true measure of a tax cut or the politicians who support them is less a question of how much than who benefits. It should come as little surprise, then, that Nebraska's destructive legacy of one party Republican domination would work to Ted Turner's favor over the common Cornhusker fan's.  In 2007, Heineman promised "middle class tax relief." Now, we see what he meant - forsaking his obligation to the people of Nebraska to help Ted Turner recoup past alimony payments to Jane Fonda.  Heineman and Langemeier may find this "the fairest approach," but it amounts to a tax giveaway to Nebraska's wealthiest landowners with the least actual need for assistance. It is sad to think that's where so many of our politicians' priorities lie rather than with the homeowners who invest not just their money but their lives in Nebraska's future.

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State Senator Mick Mines Resigns

If we really want to see more progressive voices in the Nebraska Unicameral, Legislative District 18 - running from Blair to Northwest Omaha - just became a prime pick-up opportunity in November 2008 after the resignation of State Sen. Mick Mines only one year into his second term.

As Eric reports, Mines will be leaving office to set-up shop with his own lobbying firm. It seems he couldn't wait any longer to cash-in like former Speaker Kermit Brashear on all the fat lobbying contracts and legislative inexperience that abound in the post-term limits environment.

Of course, District 18 voters should be annoyed - perhaps even outraged - that Mines would abandon their interests to exercise his legislative influence in the name of corporate profits. Every voter across the state, though, should heed the warnings of this situation, which so well illustrates the dangerous expansion in corporate influence that has consumed Nebraska politics under the reigns of Gov. Dave Heineman and his predecessor, Mike Johanns.

Heineman will appoint Mines' successor for the 2008 legislative session. The example Heineman set with the appointment of Tony Fulton in November 2006 suggests he will look for a long-time partisan ideologue who can be counted on to serve his corporate agenda.

If that again proves to be the case, this is a district ripe for change where we must give the people the chance to break Heineman's lock-grip on the legislature, restoring much-needed balance to our state's democracy.

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The Hidden Numbers Behind Heineman's Corporate Welfare

Following up on Gov. Dave Heineman's celebrating the success of the Nebraska Advantage Act, it was suggested to me by a reader that we whip out our trusty NNN Calculator and take a closer look at the actual numbers.  The press release from Heineman's own office reads: The Nebraska Advantage was designed to encourage new capital investment and job creation in communities throughout the state. The program took effect on Jan. 1, 2006. By the end of July, 116 applications had been received from businesses expecting to invest a potential $4.06 billion in the state and create more than 10,400 new jobs during the next several years. Gov. Heineman adds: "We knew one of the most powerful issues for our state and for the young people attending our colleges and universities was to create good quality jobs right here in Nebraska. The Nebraska Advantage is creating real jobs and real results for Nebraska." But, remember that whole part about the program being "more popular" and, thus, "more expensive" to the state - perhaps more than double original estimates (which the Associated Press reported but the Omaha World-Herald neglected entirely): OWH: Richard Baier, the state's economic development director, said he does not know how much the business incentive tax credits equal, but he estimated them at about 12 percent to 15 percent of the value of investments made. AP: The total value of the tax breaks for the businesses that have applied through the end of last month could hover around $600 million. The $600 million in tax breaks falls squarely in line with Baier's 12-15% estimate of the $4 billion in potential investment Heineman's credited to Nebraska Advantage. But, let's not forget about all those "good quality jobs" Heineman promises as the true cornerstone of the entire program - "more than 10,400 new jobs during the next several years." Well, this is where the NNN Calculator comes in handy: Cost: $600 million Benefit: 10,400 jobs Total tax credits per job created = $57,692.30 It's funny how that number never found its way into Heineman's press release, nor the media reports that followed. Of course, there are ancillary benefits to our communities if this program actually encourages $4 billion in capital investments, but - as a tool for job creation - it's plain to see that Heineman's Nebraska Advantage appears to be nothing more than an instrument for corporations to take advantage of Nebraska taxpayers. Under this program, the state is handing out $57,692.30 in tax credits for every job that's supposedly being created.  And, I would love to know how many of these potential jobs will pay an annual wage that comes anywhere even close to that amount. You can bet that it's not many. Heineman is reporting numbers like these and hailing them as a success???? Is he crazy? Or, maybe Heineman just knows he can afford to be so shameless and deceptive because the Nebraska press will publish his spin without subjecting the facts to even the most basic level of scrutiny. The people of Nebraska need to see these numbers for themselves. Seem a little funny, don't they? Seem a little stupid and short-sighted, wouldn't you say? Unless Nebraska taxpayers are so soundly in favor of corporate welfare - handing out $57,692.30 to create a $30,000 per year job - Heineman should have some serious explaining to do. But, who will ask the questions? Who will demand the answers? Will you?

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Dave Heineman: "Corporate Welfare Works for Nebraska"

No, that isn't a direct quote, but it's certainly the gist of Gov. Heineman's announcement on Monday that the Nebraska Advantage tax incentive program is a stunning success. In fact, it's so successful that it appears likely to cost the state more than double the program's original estimates - already somewhere in the ballpark of $600 million in lost revenue. The Associated Press reports: Businesses tapping the state's tax break program designed to create jobs could invest more than $4 billion over the next several years and create about 10,400 jobs....   The figures, touted Monday by Gov. Dave Heineman, represent the cumulative investment and job growth plans of businesses that have filed 116 applications for tax breaks through the end of July....   The program thus far has been more popular, and could be more expensive, than officials predicted. They had estimated that once fully operational in 2014, the tax break bill would provide an estimated $200 million a year in breaks to qualifying companies.   But the actual cost of providing the breaks under the new system, called Nebraska Advantage, could be more than double.   The total value of the tax breaks for the businesses that have applied through the end of last month could hover around $600 million. And the total payout from the state could exceed $500 million for applications from last year alone. There are a lot of questions and little evidence to support how well these sorts of tax incentive programs actually work for economic development and job creation. Nebraska Advantage does contain some reporting and assessment requirements by which we might gather some measure of its ultimate costs and benefits, but there's never any knowing which investment was actually spurred by the program and which would have occurred regardless. In the latter cases, these incentives can hardly be understood as anything but government funding of the private sector - in other words, corporate welfare. I don't say that to demonize the program - only to call it what it is. Honestly, this might be the best thing the state of Nebraska has ever done. Or, it might be one of its worst boondoggles. The real problem is that - with Gov. Heineman - it's hard to see how we can trust our state government to do the thorough investigation and research into Nebraska Advantage to see that it's actually working to Nebraska's advantage rather than serving as a tool for corporations to take advantage of Nebraska's taxpayers. The potential for oversight doesn't do a whole lot of good when those doing the overseeing are more interested in political victories than honest results. After a decade of mostly the same people running the show - with the legislature bending to Heineman's will so completely in the 2007 session - there just aren't enough independent voices in state government who can be trusted to serve with integrity and maintain accountability. When we're talking about a program that hands-out hundreds of millions of dollars to corporations, that lack of accountability is very, very dangerous. In fact, it's probably a recipe for disaster.

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