LINCOLN—Lancaster County officials are proposing a 3.6% property tax increase for the upcoming budget year, using $2 million in keno and gaming tax revenue to help limit additional tax increases. Rising employee salaries and benefits, including higher health insurance costs, have created a budget shortfall of about $1 million. County officials said using gaming-related revenue allows them to stay within the state's property tax limits and avoid deeper service cuts.

County leaders said gaming and keno funds provide an important source of property tax relief, a strategy also used by Hall County, where casino revenue helps reduce the county's property tax request each year. However, local officials cautioned that state budget pressures and efforts to reduce property taxes are making it more difficult for counties to balance their budgets while maintaining essential public services. Lancaster County is expected to hold a budget hearing in late August before adopting its final budget in early September.

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