Sen. Storer discusses possibility of Valentine churches being taxed for day cares in weekly column

BY: SENATOR TANYA STORER

Valentine is stepping up to solve a problem that many rural communities face: a shortage of childcare. Families, local leaders, and churches are working together to fill the gap, showing what is possible when a community takes action. This issue directly impacts families, employers, and the ability of communities to grow. When parents cannot find reliable childcare, it limits workforce participation and puts added strain on already stretched rural economies.

What stands out in Valentine is how the community responded. Local partners worked together to create practical solutions, including opening childcare spaces in church basements that were brought up to code using state and local funding. While the daycare providers operating in those spaces are for profit businesses, the churches themselves are nonprofit entities and have structured these arrangements to cover costs rather than generate income. However, the county assessor raised concerns that the portions of these properties being used for childcare should be subject to property taxes, citing state statute related to the use of tax exempt property for financial gain. The Cherry County Board of Commissioners ultimately voted to maintain the tax exempt status, but this is likely going to be challenged in front of the state TERC board. When communities step up to solve community problems, they should not be met with conflicting interpretations of law and unnecessary barriers. If expanding childcare is a priority, the process to do so must be workable at both the state and local levels. I will continue to monitor this situation, and if needed, address it with a legislative fix next year.

The state budget faced a historic moment this week when it did not advance from General File, failing on a 19-10 cloture vote and falling well short of the 33 votes needed to end debate. While budget bills have occasionally stalled in previous sessions, this vote is notable for the strength of opposition within the majority party. The bill’s failure to advance illustrates the challenge of competing priorities and the compromises necessary to balance the needs in the budget process.

The core of the stalemate centers around the $3.5 million gap funding for students who were awarded scholarships under LB1402 in 2024. Members have debated a one-time appropriation, as recommended by the Governor's budget, of $3.5 million for the Opportunity Scholarship program, which provides support for K–12 students who are at or above 185% of the national poverty level, to continue to attend a private school. The

funds serve as a temporary bridge for students whose previously state-funded scholarships end before the federal K–12 tax credit program begins in 2027. Some view this as a “school choice” bill, but in reality it is simply short term bridge funding for qualifying students, to prevent a year’s disruption in their education. Some of the concerns raised are about using public dollars to fund private schools, and highlighted that this concept was rejected by Nebraska voters. Another component of the budget which is at risk is the continuation of the child care subsidy program for low income families. One thing is certain and that is that at least 33 members of the body are going to have come to a reasonable compromise in order to move the state budget forward, which is indeed one of the Legislature’s primary priorities.

Finally, as communities continue to recover from recent fires, efforts at both the state and federal levels remain ongoing to provide the necessary resources needed. Strong communities depend on practical solutions and policies that work, and Nebraskans are stepping up to meet that challenge.

Respectfully,

Senator Tanya Storer