August 26, 2003

LINCOLN, Neb. — A strong majority of rural residents oppose reducing state aid for elementary and high school education while nearly half oppose budget cuts for higher education, according to the latest Nebraska Rural Poll.

Well over half of the 3,087 people who responded said they favored increasing some specific taxes to fund state aid for K-12 and higher education, said John Allen, the University of Nebraska-Lincoln rural sociologist who heads the poll. The scientific survey was mailed in March to 6,500 randomly selected households in the 87 rural counties defined as rural at that time.

"These results seem to reflect the values and beliefs of rural Nebraska that we've seen in our earlier polls," Allen said. "Education, especially local K-12 education, is a high priority for rural Nebraskans."

Each year, the poll includes a few questions on pressing public policy issues. Because of the state's budget crisis, organizers asked about taxation. Specifically, the poll asked whether and how respondents would support K-12 education, higher education and public assistance given the revenue shortfall.

Results show 68 percent of respondents oppose decreasing state aid to schools; 15 percent favor it and 17 percent have no opinion, the Institute of Agriculture and Natural Resources researcher said.

To fund state school aid, 65 percent of respondents favor increasing corporate income tax rates, 63 percent favor boosting cigarette and alcohol taxes and 61 percent would legalize gambling with revenues targeted for state aid.

More than half of respondents opposed increasing state income tax rates or local property taxes to fund school aid. Respondents were more evenly split on increasing state sales tax rates – 48 percent against vs. 41 percent in favor – and increasing the number of services subject to sales tax – 44 percent opposed vs. 41 percent in favor.

The poll found 49 percent of rural Nebraskans oppose cutting the budget for community colleges, state colleges and universities while 27 percent support these cuts and 24 percent have no opinion. To avoid higher education cuts, more than 60 percent of respondents favor boosting corporate income and cigarette and alcohol taxes; 58 percent back legalized gambling with revenues targeted for higher education. More than half of respondents opposed increasing state income taxes or the state sales tax rate and 47 percent opposed increasing the number of services subject to sales tax to support higher education.

"Rural Nebraskans are acutely aware that we have to make tough choices," Allen said.

"They don't want to pay more taxes but they don't want to see these major institutions seriously hurt," he said. "This data suggest that they are willing to see increases in some specific taxes that are earmarked, especially for K-12."

Rural Nebraskans' views were split on whether to decrease spending on public aid, such as medical assistance and helping low-income families with children.

Thirty-nine percent of respondents opposed decreasing public aid budgets, 35 percent supported such cuts and 26 percent had no opinion. Again, over half supported funding public aid with corporate, cigarette and alcohol taxes and legalized gambling earmarked for public aid. Additionally, 57 percent supported charging public aid clients co-payments for assistance.

The poll also asked respondents about expanding sales taxes to more goods and services. More than half of respondents favored taxing limousine services, dating services, pet grooming, interior design consulting, horse boarding and training, and golf and tennis lessons.

Only 12 percent of respondents favored a sales tax on food while just 17 percent supported sales tax on auto repairs.

"They're willing to accept some additional sale taxes but not on life's basic necessities like food or a car," he said. "They're looking to tax what they consider nonessentials."

While more than half of all respondents favored legalized gambling to help fund state aid, higher education and public aid, support was especially strong among young people. For example, 73 percent of people under age 40 support legalized gambling with revenues targeted to state aid while 52 percent of people 65 and older support this approach.

The Nebraska Rural Poll is the largest annual survey of rural Nebraskans' views on quality of life and policy issues. This year's response rate was 48 percent. The margin of error is plus or minus 3 percent.

Complete poll results are available online at Nebraska Rural Poll.

The annual poll is conducted by the university's Center for Applied Rural Innovation with funding from the Partnership for Rural Nebraska and IANR's Cooperative Extension Division and Agricultural Research Division.

8/26/03-VM

Contacts:

Becky Vogt
Center for Applied Rural Innovation
Nebraska Rural Poll Project Manager
(402) 329-4821

John C. Allen - Ph.D.
Center for Applied Rural Innovation
Director
(402) 472-1772

Vicki Miller
Research Communications Coordinator
(402) 472-3813

Department:
Center for Applied Rural Innovation