Two Nebraska counties flip to gaming and keno income to assist scale back property tax will increase

With a 3.6% property tax improve incoming for Lancaster County, native officers are taking a look at two different income streams to assist cowl extra prices: keno income and gaming tax funds.

Lancaster County’s salaries and advantages are going up by about $4.7 million in comparison with final 12 months, which is leaving a couple of $1 million shortfall. Other authorities our bodies are additionally grappling with worker medical health insurance will increase. The State of Nebraska’s worker union said earlier this 12 months that state workers will see a 15% improve in insurance coverage premiums. And Cherry County commissioners struggled this summer season to shore up its funds to cope with rising worker medical health insurance prices.

To offset the wage and advantages improve, Lancaster County is looking for a 2% allowable property tax improve and a 1.6% property tax improve as a result of prior 12 months development – amounting to a couple of $3.6 million improve in property taxes.

And as an alternative of going past the two% allowable improve – which might end result within the notorious pink post cards – the county board and funds workplace are taking a look at keno and gaming tax to select up the remainder of the tab.

The county will use $1.2 million from its keno fund and $800,000 from gaming tax.

Money from Nebraska’s gaming tax is split up amongst 5 teams. The largest chunk – 70% – goes towards the state’s property tax money fund. 2.5% goes to Nebraska’s common fund, and one other 2.5% goes to a fund that gives sources to assist compulsive gamblers.

The final 25% is break up evenly between counties and cities the place the casinos are situated.

“We use the gaming tax and the keno money to really buy down what we need for property tax requests, so the lid that is set up allows for 2% plus growth,” Dennis Meyer, Lancaster County’s funds and monetary officer, mentioned. “That’s what we’re living within. Keno and gaming just help us offset it so that drastic reductions and cuts don’t have to take place.”

With gaming tax and keno income mixed, the county will allocate round $2 million to assist preserve that property tax ask at 3.6%.

At a county board workers assembly Thursday, commissioners mentioned the property tax improve and the shortfall.

“We not only have a responsibility to keep costs low; we have a responsibility to provide services, and it’s tough,” Commissioner Rick Vest mentioned.

And Lancaster isn’t the one county utilizing gaming to assist present some reduction.

Hall County is residence to the Grand Island Casino and Resort, which introduced in over $1.36 million in 2025 to the county. The board commonly makes use of these {dollars} towards property tax reduction, based on Kim Dugan, the Hall County board assistant.

Ron Peterson, the Hall County Board of Commissioners chair, mentioned each greenback quantity that they’ll generate from different sources reduces the quantity they must ask for. Historically, Petersen mentioned the board makes use of the quantity of income generated prior to now 12 months.

“We then took that exact number and used it to reduce the amount that we have to ask for property tax,” Peterson mentioned.

But with pressure from the state degree due its funds deficit and Gov. Jim Pillen’s give attention to decreasing property taxes, Peterson mentioned that’s making it more durable for the county to maintain up.

“It’s real easy to say that you want to reduce property tax, but at the state level, when they do things that put pressure on our budget, that puts us in an unenviable position of deciding whether we need to provide a service or whether we need to reduce property tax,” Peterson mentioned.

Peterson added that competing with different municipalities for hiring additionally provides strain once they take a look at their funds.

“I’ll call out the governor a little bit. You know, he’s pushed dramatically the state income tax rate down. At the same time, the state is short of money, so they want us to cut property tax,” Peterson mentioned. “But they’re taking money out of a lot of funds that are one-time situations that won’t be there next year to pull out money to balance their budget.”

Other counties which have gaming tax income don’t allocate these funds towards gaming. In Platte County, a county consultant advised Nebraska Public Media News the county prior to now has used the funds for main tasks resembling street paving.

Lancaster County is transferring ahead with its funds, with a listening to scheduled for late August and adoption anticipated in early September.