During his first term, Johanns focused on direct property tax relief.
He succeeded in enacting a total of $85 million in such relief.

Johanns was a supporter of Initiative 413, amending Nebraska's constitution to limit state government spending, and adjusting tax revenue increases to the rate of inflation.
In 2002 Johanns signed legislation raising the state's cigarette tax by 50 cents per pack; from 34 to 84 cents.
Johanns proposed another 20 cents increase in cigarette taxes, saying that "I don't think you're going to get much debate that medical costs are higher when you smoke.
Cigarette and tobacco use may be a choice, but every one of us pays for its use, either with our health or our pocketbooks, or both."

Johanns led agriculture trade missions to Japan, China, Taiwan, Australia, South Korea and Brazil.
He signed legislation increasing state gasoline taxes by 1.25 cents for ethanol incentive funding, raising $1.5 million annually for Nebraska's Ethanol Production Incentive Cash Fund.
Johanns served as the chairman of Governors' Ethanol Coalition in 2001.

Johanns was known for his strong stance on vetoing bills.
In 1999 Johanns vetoed 26 bills in only five days, more than any previous governor in Nebraska history.
In 2003 Johanns vetoed the entire $5.4 billion two-year Nebraska state budget.
He said that he "could not accept a budget that raised taxes to grow government at a time when the state must cut spending," and called for a nearly 10% cut in every state government program.
Johanns vetoed legislation increasing the pay of members of the Nebraska Legislature, though the veto was overridden by the legislature; he also vetoed legislation authorizing teacher salary increases.

During the 1999 legislative session, the Nebraska Legislature passed a moratorium of executions in a 27 to 21 vote, becoming the first state in the nation to send such a proposal to the governor's desk.
The bill set bans on all executions for two years, while a study to see if the death penalty was being applied fairly in the state took place.
Though the bill prevented executions from taking place, it did not exempt the sentencing of the death penalty in new cases.
Johanns, who is a proponent of the capital punishment, vetoed the bill a week after its passage; calling the bill "poor public policy" that would "at a minimum be utilized to advance further unnecessary criminal appeals by those currently sentenced to death row in Nebraska."
The veto of the bill was condemned by the American Civil Liberties Union, the American Bar Association and Pope John Paul II.

In 1999, Johanns saw criticism from the groups People For the American Way and the American Civil Liberties Union for signing a proclamation declaring May 22, "March for Jesus Day," in honor of a fundamentalist Christian group in Nebraska.
 Critiques said that Johanns was "violating the neutrality of religions that is required of his office.
He was endorsing Christianity over all other religions, sending an impermissible message to Nebraskans of other faiths or of no faith that their beliefs are disfavored by the Government."
Johanns also endorsed "Back to the Bible Day," though he refused to issue a proclamation for Earth Religion Awareness Day, a day requested by Wicca groups.
Johanns said that "I wouldn't hesitate to sign a proclamation for the Jewish faith, Hinduism, whatever.
So long as it doesn't require me to sign something I personally don't agree with."

Johanns twice served as the chair of the National Governors Association's Committee on Economic Development and Commerce from 2000 to 2001 and from 2002 to 2003.
In July 2001, he was unanimously approved by the Board of Directors of the Export-Import Bank of the United States to serve on the banks Advisory Committee, and in 2003 served as the chairman of the Governor's Biotechnology Partnership.

Johanns succeeded Iowa Governor Tom Vilsack as chair of the Midwestern Governors Association in 2002.
During his first term, Johanns focused on direct property tax relief. He succeeded in enacting a total of $85 million in such relief.
Johanns was a supporter of Initiative 413, amending Nebraska's constitution to limit state government spending, and adjusting tax revenue increases to the rate of inflation. In 2002 Johanns signed legislation raising the state's cigarette tax by 50 cents per pack; from 34 to 84 cents. Johanns proposed another 20 cents increase in cigarette taxes, saying that "I don't think you're going to get much debate that medical costs are higher when you smoke. Cigarette and tobacco use may be a choice, but every one of us pays for its use, either with our health or our pocketbooks, or both."
Johanns led agriculture trade missions to Japan, China, Taiwan, Australia, South Korea and Brazil. He signed legislation increasing state gasoline taxes by 1.25 cents for ethanol incentive funding, raising $1.5 million annually for Nebraska's Ethanol Production Incentive Cash Fund. Johanns served as the chairman of Governors' Ethanol Coalition in 2001.
Johanns was known for his strong stance on vetoing bills. In 1999 Johanns vetoed 26 bills in only five days, more than any previous governor in Nebraska history. In 2003 Johanns vetoed the entire $5.4 billion two-year Nebraska state budget. He said that he "could not accept a budget that raised taxes to grow government at a time when the state must cut spending," and called for a nearly 10% cut in every state government program. Johanns vetoed legislation increasing the pay of members of the Nebraska Legislature, though the veto was overridden by the legislature; he also vetoed legislation authorizing teacher salary increases.
During the 1999 legislative session, the Nebraska Legislature passed a moratorium of executions in a 27 to 21 vote, becoming the first state in the nation to send such a proposal to the governor's desk. The bill set bans on all executions for two years, while a study to see if the death penalty was being applied fairly in the state took place. Though the bill prevented executions from taking place, it did not exempt the sentencing of the death penalty in new cases. Johanns, who is a proponent of the capital punishment, vetoed the bill a week after its passage; calling the bill "poor public policy" that would "at a minimum be utilized to advance further unnecessary criminal appeals by those currently sentenced to death row in Nebraska." The veto of the bill was condemned by the American Civil Liberties Union, the American Bar Association and Pope John Paul II.
In 1999, Johanns saw criticism from the groups People For the American Way and the American Civil Liberties Union for signing a proclamation declaring May 22, "March for Jesus Day," in honor of a fundamentalist Christian group in Nebraska.  Critiques said that Johanns was "violating the neutrality of religions that is required of his office. He was endorsing Christianity over all other religions, sending an impermissible message to Nebraskans of other faiths or of no faith that their beliefs are disfavored by the Government." Johanns also endorsed "Back to the Bible Day," though he refused to issue a proclamation for Earth Religion Awareness Day, a day requested by Wicca groups. Johanns said that "I wouldn't hesitate to sign a proclamation for the Jewish faith, Hinduism, whatever. So long as it doesn't require me to sign something I personally don't agree with."
Johanns twice served as the chair of the National Governors Association's Committee on Economic Development and Commerce from 2000 to 2001 and from 2002 to 2003. In July 2001, he was unanimously approved by the Board of Directors of the Export-Import Bank of the United States to serve on the banks Advisory Committee, and in 2003 served as the chairman of the Governor's Biotechnology Partnership.
Johanns succeeded Iowa Governor Tom Vilsack as chair of the Midwestern Governors Association in 2002.
Mike Johanns