As lawmakers debate LB 1165, the Grow the Good Life Act, the focus is simple: help Nebraska compete for jobs and workers.
The bill would update the state’s current incentive program under the ImagiNE Nebraska Act by increasing wage and investment credits for qualifying businesses. It also adds a bonus credit for jobs filled by people who move to Nebraska, creates a relocation grant program and strengthens tools aimed at keeping and attracting company headquarters. Supporters say the goal is to bring more high-paying primary jobs to the state and encourage existing businesses to grow here rather than elsewhere.
Mike Cassling, chairman of the Aksarben Board of Governors, has been one of the bill’s strongest supporters. He said concerns about Nebraska’s economic growth intensified after Aksarben commissioned a study nine months ago examining Douglas, Sarpy and Lancaster counties.
“Data showed very scary — not growing at all in jobs or wages,” Cassling said.
After releasing that report, Cassling said, critics questioned whether the problem was limited to Nebraska’s three largest counties.
“A bunch of people came back and asked, well what about the rest of the state,” he said. “So, we redid it and really looked at all 93 counties and saw the same result — that Nebraska is not growing in wages or jobs — which is a significant problem.”
The long-term consequences, he argues, are serious.
“We’re going to continue to have deficits because we’re not growing the 24-to-34-year-old workforce and we’re losing them to other states,” Cassling said.
LB 1165 seeks to address that stagnation by targeting primary jobs.
“What LB 1165 does is give incentives for businesses, whether they’re in state currently or moving in from out of state, for bringing in high-paying, primary jobs,” Cassling said. “Primary jobs pay about $70,000 or higher. The importance of primary jobs is they are the ones that ultimately bring in secondary jobs.”
Those secondary jobs — from retail and hospitality to construction and professional services — follow population growth and increased household spending.
“This bill is a great bill that will incentivize current businesses in Nebraska to grow and tell people around the country that we’re open for business and we want you here,” he said.
Cassling argues Nebraska is competing in an increasingly aggressive environment.
“The truth is everyone around us has incentives to get employers and employees to move to their state — and they’re all growing,” he said.
He points to nearby metros as examples.
“Over the past five years, if Omaha would have grown at the rate of Des Moines, Iowa – Omaha and Lincoln both – it would have resulted in $700 million to the bottom line of the state,” Cassling said.
Without growth, he warns, the fiscal pressure will intensify.
“If we do nothing, we’ll continue to lose and we’ll continue to not have the money in revenues for the state to keep doing what we need to do for Medicaid and those populations in need,” he said. “On the other hand, if we grow, we will have money to support all Nebraskans.”
He also points to the ripple effects when primary employers leave.
“We can’t afford another Lexington,” Cassling said. “The recent loss of 3,200 primary jobs in Lexington is projected to result in approximately 4,500 total jobs lost when you account for both primary and secondary employment. That’s devastating not only to Lexington, but to the state. We have to stop this. We have to start growing in all 93 counties. I think this bill is a huge step to start doing that.”
A key feature of LB 1165, supporters note, is that the incentives are performance based.
“We’re paying this after the jobs are here,” Cassling said. “This isn’t on a promise. This is guaranteed — those people are here, they’re making their wages, maybe with a spouse and kids, they’re all here and impacting the state.”
If the measure passes, Cassling envisions Nebraska growing at rates comparable to its regional competitors.
“If this bill passes, looking ahead, we’re growing at a rate of Des Moines, Iowa or Sioux Falls, S.D. or most likely even faster,” he said. “I believe Omaha has so many more amenities to bring people here than Sioux Falls or Des Moines.”
For Cassling, the choice before lawmakers is straightforward.
“Call your senator and encourage them to support this,” he said.
Photo by Brad Williams
