The third time was charmed for a ballot measure aimed at helping nonprofit agencies, as Nebraska voters passed Amendment 1 by a small margin.
The amendment to the state’s Constitution will make tax-exempt financing available to nonprofit organizations for construction projects, equipment purchases and other major purchases. City or county governments will be able to issue bonds on behalf of the nonprofits.
Similar ballot measures failed in 2002 and 2006. This time, the strength of support in Nebraska’s more populous counties put the measure over the top.
“We’re feeling pretty good,” said Bob Hallstrom, treasurer for the Yes on 1 campaign.
Responsibility for paying off the bonds will fall on the nonprofit groups. If the groups default, it will be the bond purchasers who lose money. The amendment specifies that no tax dollars can be used to pay off the bonds.
Similar financing partnerships with public entities have been available for years to nonprofit hospitals, private colleges, K-12 schools, public housing authorities and nonprofit projects in blighted areas of Nebraska.
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