According to the legislative rules, the Appropriations Committee must place appropriations bills on General File by the 70th day in a 90-day session or the Legislature reverts to the Governor’s budget proposal. The budget bills were reported to the floor on May 1, which was the 70th day, and must be passed by the 80th legislative day, which falls on May 20.
The Appropriations Committee has proposed a budget of $3.8 billion the first year and $4 billion the second year of the biennium. This represents a 5.5% growth in the first year and a 4.8% growth in the second year, for an average of 5.2%. The primary differences between the Governor’s budget proposal, with an average increase of 4.9%, was that the committee recommended a higher level of state aid funding for K-12 schools and appropriated additional contributions to the defined benefit retirement plans for school employees, due to a projected actuarial shortfall.
At the end of the 2012 legislative session, a $619.4 million shortfall from the required minimum 3% reserve was projected for the 2013-2015 biennium. Since that time, the projected shortfall has switched to a positive $50 million, due to higher revenue forecasts by the Nebraska Economic Forecasting Advisory Board and lower spending projections, including proposed alterations to the state aid formula for K-12 schools. This means that approximately $50 million is available for new legislative proposals.
The cash reserve fund is projected to have a balance of $625 million at the end of the next biennium. This is the fund that allowed the state to recover from the recent recession without major damage to programs and services or the necessity of a tax increase.
The budget is broken up into 3 major parts. Approximately 34% of the budget is dedicated to the funding of agency operations. This includes funding for the University, State Colleges, the Department of Health and Human Services, the Department of Corrections, the State Patrol, the court system, and dozens of other agencies. Another 32% is for state aid to individuals, which includes funding for persons qualifying for Medicaid, child welfare, public assistance, and those with developmental disabilities. The last 34% of the budget is devoted to state aid to local governments, which includes school districts, special education, community colleges, and funding for the homestead exemption.
The Legislature gave first-round approval this past week to LB 93, which allows for the notation of the word “veteran” on a driver’s license or a state identification card. In order to implement this voluntary privilege, the Department of Veterans Affairs would create a registry to determine eligibility for use by the Department of Motor Vehicles. The intent is to make it more convenient for persons to identify themselves as veterans, as they must now show their discharge papers, which are cumbersome to carry and contain confidential information.
As advanced from the Transportation and Telecommunications Committee, LB 93 also proposed to create the Military Honor license plate. Unfortunately, Senator Ernie Chambers pledged to fight this provision, so due to time constraints in the remaining days of this legislative session, the proposal was amended out of the bill and will be taken up next year.
Senators gave second-round approval to LB 517, which would create a Water Funding Task Force. The task force would be charged with the development of a 20-year strategic plan for water sustainability. They are to present the recommended plan, along with a funding proposal, in time for the Legislature to discuss it during the 2014 legislative session.
As the Legislature discusses the budget and other bills of interest, I welcome your input. I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE 68509. My e-mail address is email@example.com and my telephone number at the Capitol is (402) 471-2733.