Nebraska law changes cut expected Good Life District revenue; Grand Island staff to amend local ordinance

Members of the Grand Island City Council spent more than an hour on June 10 discussing LB 707, a recent act of the Nebraska Legislature that changes the funding formula and several definitions governing the city’s Good Life District economic-development program.

"I'm here to provide you an update on a recent act of the Nebraska legislature called LB 707," City staff member Carrie Fisk told the council, beginning the presentation. Fisk said the law will shift the 2.75 percentage-point sales tax that had been captured locally into state collections, with the state returning up to $5,000,000 annually to the city from existing businesses in the district and splitting sales tax from new businesses with the state.

The change reduces the predictable revenue the city had expected. Fisk said program revenue had been projected at roughly $7.5 million before the legislative change; under LB 707 the reliable, existing-business share will be capped at $5 million. The law also creates detailed definitions for what counts as a "new" or…