A trial with millions of dollars and compliance with the Republican River compact at stake was scheduled to begin in Lancaster County District Court. A ruling in the high-stakes case was not expected soon by Lancaster County District Judge Paul Merritt, but one is possible. Property owners along the river sued the state, arguing that property taxes they must pay to buy water to send to Kansas are unconstitutional. A state law passed last year allowed natural resources districts in the river basin to set property taxes. The property owners argue the property taxes are for a state purpose -- getting into compliance with the Republican River compact Nebraska has struggled to meet -- and cite an article in the state constitution that says the state "shall be prohibited from levying a property tax for state purposes."

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