Lincoln council debates $165,000-a-year tax-prep contract to help low-income filers

Councilman Weber presented a proposal to appropriate $165,000 from general fund reserves in each of fiscal years 2026 and 2027 — $330,000 total — to the Urban Development Department to contract with community partners to assist underserved residents in preparing federal and state income tax returns.

Weber emphasized the local economic benefit and return on investment of the program, saying, "I believe this proposal is good for Lincoln taxpayers." He told colleagues the funding would help keep refunds in the local economy, boost sales tax revenue and support local businesses.

Councilwoman Washington asked several procedural and programmatic questions, including whether Lincoln VITA would be a likely partner. Weber described Lincoln VITA and its administration: "Lincoln VITA is a program through the Tax Credit Alliance of Nebraska, which is ran through the Center for Children's Family and the Law, which is under the umbrella of the, university, but, again, not it has never been funded through the university." Washington pressed for clarity on partners and administration.

Councilman Duda objected to the city using general-fund dollars for federal and state tax returns, arguing local tax dollars should instead go to core city services. He told colleagues, "I don't feel that any city council has a role in assisting, in a federal or state income tax return." Duda also questioned some of the program figures cited during earlier testimony and said he preferred the city prioritize roads, parks, public safety and utilities.

Weber and supporters countered that failing to fund the program could forfeit larger sums in federal and state refunds to which residents are entitled and that the investment stabilizes a program that delivers considerable community benefit. The item was discussed but not voted on; the council scheduled a final vote on remaining budget proposals for Monday, Aug. 17 at 1 p.m.