As part of his budget, Mayor Chris Beutler announced a new economic stimulus idea last week. The stimulus would provide about $1,000 to residents who are beginning new home construction, but not everyone is sold on the idea.
Some say it's a good idea while others have written in to the city council calling it the "worst idea ever." The mayor wants to use some $600,000 in left over storm-water bond interest to boost the local home construction industry. Not everyone thinks his plan would work.
"We've got to be able to respond to economic opportunities," Beutler said.
The idea is simple: Beutler wants to use leftover interest from a storm-water bond to help boost the local housing economy by offering a $1,000 incentive to build a new home. The implementation could get tricky.
Not everyone agrees with the mayor's plan to fill in these new lots. The city council has received many e-mails from angry citizens, some who say the funds can be better used elsewhere, others are calling it the worst idea they've ever heard.
Economist Eric Thompson said the mayor's idea is sound, and should provide a little help, but fears the amount of rebate won't spur enough change to get the market back on track.
"The smaller the size of the incentive, the more it goes to people who were going to purchase home anyway, versus people who will make purchase because of incentive," said Eric Thompson, UNL Bureau of Business Research.
Thompson isn't alone in his concern. Several council members are also unsure if the proposal will do what it's intended to do.
"My initial reaction? I thought it was a good idea, but the more I've been thinking about it, I have a variety of questions and concerns about the money," said John Spatz, Lincoln City Council.
"I guarantee if you're looking for new house, you can negotiate a thousand off. Will another thousand help? I don't know. We need to find out if get bang for buck, if we don't we have to question it," Spatz said.
"$1,000 is not a big enough incentive to move people into a new house this summer. That $600,000 might be better spent somewhere else on budget," said Ken Svoboda, Lincoln City Council.
Beutler doesn't want to use this money on the budget. He said it would perpetuate an old problem and the city shouldn't rely on one time funds for regular use. He said these types of funds should go for the future.
Thompson said the stimulus could help, but won't solve the problem and says the city may be better off looking at long term solutions like lowering property taxes to spur growth.
The mayor is set to expand on his proposal soon.