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SOS and the Dirty Dozen
The Truth About How the Initiative 423 Supporters Have Conducted Their Campaign

Lincoln - Throughout this campaign season, Initiative 423 proponents have spread misinformation, half-truths, fabrications and insults in an effort to convince Nebraskans to vote for their ill-conceived proposal. In fact, SOS Nebraska's allegations are rarely grounded in facts. Examples of fact and fiction on the campaign on Initiative 423:

Fiction No. 1:
In an Oct. 30 debate on KRVN Radio, Nabity alleged that Nebraskans Against 423 hired out-of-staters to "block" the petition signature-gathering process. Nabity also called one of those "blockers" a "thug."

Fact:
Nebraskans Against 423 did NOT import ANY out-of-staters to educate voters in the petition process. The young man Nabity called a "thug" is a soft-spoken University of Nebraska-Lincoln student who was assaulted by SOS petition circulator Joseph Carter Jr. After his arrest, police found that Carter, a Miami native, served 10 years of a 25-year sentence in a Florida prison for second-degree murder.


Fiction No 2:
Nabity and Groene continue to say "tax spenders" are behind the opposition to Initiative 423.

Fact:

Dozens of statewide organizations, from the Nebraska Farm Bureau, to the Nebraska Realtors, to the Nebraska State Chamber for Commerce and Industry, Catholic Charities and AARP-Nebraska oppose Initiative 423. More than 90 organizations representing more than 400,000 Nebraskans are opposed to 423.


Fiction No. 3:
Nabity and Groene have repeatedly used a Tax Foundation report to claim that Nebraska has the sixth-highest tax burden in the nation.

Fact:
The Tax Foundation numbers are based on projections, not actual data. Using actual, per capita taxation, the U.S. Census Bureau placed Nebraska's 2005 state tax burden at 24th among all states. Ironically, the Tax Foundation shows that Nebraska's combined local, federal and state per capita tax burden is lower than Colorado under TABOR, that state's Initiative 423 clone.


Fiction No. 4:
Groene and Nabity repeatedly make the claim that noted Nebraska economist and Creighton University Professor Ernie Goss favors Initiative 423.

Fact:
Goss, in a letter to the Omaha World-Herald dated Oct. 5, wrote, "I have never argued for passage of Initiative 423." Even so, as of Nov. 3, the headline on the SOS Nebraska web site still claims that "Ernie Goss Expresses Support for SOS."


Fiction No. 5:
I-423 proponents claim that the initiative will "control" property taxes. I-423 proponents said Creighton's Ernie Goss was their "expert" to substantiate their claims.

Fact:
Goss has said he does not believe that 423 would control property taxes. In addition, there is no question that property taxes will increase if 423 passes. About one-third of the state budget is "aid to local governments," most of which goes to offset the need for property taxes to fund K-12 education. To make up for the shortfall, localities would have to raise property taxes, increase fees or sharply cut services.


Fiction No. 6:
Organizations opposing Initiative 423 told public officials how to avoid complying with public information requests from Groene.

Fact:
Organizations opposing Initiative 423 worked closely with the Nebraska Accountability and Disclosure Commission and the Attorney General's office to help public officials properly comply with numerous and extensive public information requests from Groene. Groene and other supporters of Initiative 423 wasted thousands of taxpayer dollars when they had their Wisconsin lawyers fax six lengthy, public records requests to harass and intimidate public officials in Nebraska, as they have done in many other states.


Fiction No. 7:
In a news release, Groene and Nabity allege that Colorado Gov. Bill Owens is a supporter of TABOR, the 423-clone that was suspended by Colorado voters last fall.

Fact:
Just a year ago, Owens led the charge to suspend TABOR. In a television commercial, Owens said Colorado "is in trouble" because of TABOR and urged voters to suspend the 423-clone.


Fiction No. 8:
In an Oct. 31 news release, six weeks after the fact, Mike Groene still falsely claims that radio commercials aired by Nebraskans Against 423 were pulled off the air because they contained false statements.

Fact:
Proponents of 423 tried to bully Nebraska broadcasters by threatening legal action against their FCC licenses if they didn't pull ads against 423. Stations were provided substantiation of the facts in the ads and the stations aired the ads.

Ironically, SOS Nebraska did not dispute the radio ads' assertion that their pay-for-signatures campaign drew convicted criminals into the state, including at least one convicted murderer.


Fiction No 9:
Initiative 423 dictates no cuts in spending for local or state programs.

Fact:
More than 90 state organizations and several policy papers agree that cuts will come with 423's passage. It's a matter of physics: If one portion of the state budget (Medicaid, for instance) grows at a rate faster than is allowed under 423, other portions of the budget (state aid to local government) must show corresponding cuts. Medicaid has grown by 8 to 10 percent per year in recent years, well above the rate that would be allowed by 423.


Fiction No. 10:
Nabity claims members of the anti-423 coalition have not supported any kind of spending reform or limitations on state government.

Fact:
The Nebraska Health Care Association (NHCA) and the Assisted Living Association actively participate in the State's Medicaid Reform process. The NHCA Board of Directors supports state initiatives to develop a "continuum of care" concept, which will save hundreds of millions of dollars in the Medicaid program. Payment for nursing home services is the largest expenditure in the Medicaid Program and the NHCA is assisting reform of the program.

Nebraska farm groups like the Farm Bureau and the Farmer's Union, pushed for and supported legislation last session that lowered the property tax rate on ag land to 75 percent of assessed valuation, saving Nebraska taxpayers $10 million. Also, a number of coalition members supported the expanded Homestead Exemption, saving taxpayers $7 million in property taxes and the earned income tax exemption, saving taxpayers another $10 million.


Fiction No. 11:
In an Oct. 24 news release, Nabity accused state senators of "mismanaging the budget."

Fact:
State senators work diligently to balance the state budget every year and, Nebraska's Constitution requires a balanced budget - the state cannot go into debt.

This past Legislative session, led by Gov. Dave Heineman, state senators passed LBB968 that reduced state income and sales taxes by nearly $100 million per year.


Fiction No. 12:
The League of Nebraska Municipalities used taxpayer dollars to oppose I-423.

Fact:

The League of Nebraska Municipalities has never used taxpayer dollars to support or oppose any ballot question. The League of Nebraska Municipalities uses funds from its entrepreneurial activities.