OWH: Omaha hires lobbyist to fight Tom White's bill to end the double tax

Paul Hammel, Omaha World-Herald
February 23, 2010

LINCOLN -- Omaha Mayor Jim Suttle has hired one of the state's most powerful lobbyists to help him defeat a controversial tax exemption bill.

Lobbyist Walt Radcliffe of Lincoln submitted papers Tuesday indicating that the city will pay him $5,000 a week, not to exceed $50,000 for the 2010 session.

Radcliffe's target: Omaha State Sen. Tom White's bill that would provide a sales tax break, estimated at $325 million over 20 years, for Omaha-area residents.

The tax break would come on the fees they'll be paying to finance a $2.6 billion upgrade of the city's sewer, water and natural gas lines.

Suttle has argued that without that sales tax revenue, the city may be forced to raise property taxes.

White, who is a fellow Democrat and is running for Congress in Omaha's 2nd District, has said that it's wrong for the state and city to assess sales taxes on what is an unfunded federal mandate that forces the expensive sewer project on Omahans.

Suttle's office did not immediately return phone calls seeking a comment. But White, when reached by phone, said he "didn't care how many high-priced, high-powered Lincoln lobbyist the mayor hired with taxpayer dollars."

White added that he thought Omaha was "in a budget crisis" that precluded hiring additional lobbyists.
Lobbyist Jack Cheloha, who is hired by the Omaha City Council, has worked against passage of White's proposal, Legislative Bill 952.

By city rules, the mayor cannot spend more than $20,000 without city council approval, but it was immediately unclear if the $5,000-a-week arrangement gets around that requirement.

LB 952, White's priority bill, may come up for first-round debate later this week in the Nebraska Legislature.

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