White Letter to Suttle

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SENATOR TOM WHITE COMMITTEES District 8 2517 North 55th Street Omaha, Nebraska 68104 Legislative Address: State Capitol PO Box 94604 Lincoln, Nebraska 68509-4604 (402) 471 -2722 (office) (402) 479-0908 (fax) [email protected]

Business and Labor Revenue llrban Affairs Executive Board Committee on Committees Reference

January 21,2010 Mayor Jim Suttle City of Omaha 1819 Farnam Street, Suite 300 Omaha, NE 68183-0300 Dear Mayor Suttle, Thank you for the letter expressing your opposition to LB 952. I have no intention of abandoning the bipartisan effort to help metro-area ratepayers affected by the sales tax levied by the state and the city on an unfunded federal mandate. If not repealed, the sales tax on the sewer separation and infrastructure replacement fees w d have a damaging effect on the metro-area economy. It will levy hundreds of d o n s of dollars in new taxes on families and businesses already l i t hard by these tough economic times and siphon money out of the local economy to the state coffers. This w d stifle economic recovery and make it even more difficult for businesses to create jobs and f a d e s to balance their checkbooks. Addtionally, if the city must raise revenue, this is the among the worst methods it could employ because the great majority of the money taken from the citizetls of Omaha would go to state treasury in Lmcoln. Plugging gaps in the state and city budget by using a windfall that results from taxing an unfunded federal mandate is not responsible nor is it fair to f a d e s and businesses already burdened by high taxes. Contrary to your assertion, nothing in LB 952 would require a property tax increase unless you have already planned to use the sales tax windfall to pay for increased city government spetldng. Now, more than ever, state and local governments must learn to do more with less. At the state level, we have dealt with our economic challenges by freezing management pap, findng responsible cuts, and prioritized planning, innovation, and transparency. Tax increases have been and remain off of the table.

January 21,2010 Mayor Jim Suttle Page Two Finding ways to help the metro area deal with the immense costs of the sewer separation project has been a priority of mine for my entire term in the Legislature. Your chef of staff and the City of Omaha's lobbyist were both aware that several senators were interested in worlung with me on this effort. At no point were we under the impression that you or anyone in your administration supported these efforts. At no time dld I or any member of my staff indcate that t h s bill was supported by your administration. Thank you again for stating your opposition to repeahg the sales tax on this unfunded federal mandate. As always, your courtesy is appreciated. ,"*'

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