NEBRASKA LEGISLATURE
The official site of the Nebraska Unicameral Legislature

Sen. Dan Watermeier

Sen. Dan Watermeier

District 1

Welcome

January 6th, 2016

Thank you for visiting my website. It is an honor to represent the people of the 1st legislative district in the Nebraska Unicameral Legislature.

You’ll find my contact information on the right side of this page, as well as a list of the bills I’ve introduced this session and the committees on which I serve. Please feel free to contact me and my staff about proposed legislation or any other issues you would like to address.

Sincerely,
Sen. Dan Watermeier

Legislative Update

January 28th, 2016

The legislative session is well underway, having passed the one-fourth mark of this 60-day session. Senators have been debating controversial issues, with several bills encountering a filibuster and requiring a cloture motion before the vote to advance can be taken.

LB 471 is an important bill that didn’t require much debate and was easily advanced by senators this past week. This bill, introduced by Omaha Senator Sara Howard, will strengthen the Prescription Drug Monitoring Program in Nebraska. Currently, dispensers of prescription drugs are not required to report prescription information and patients can opt out of having their information reported. LB 471 would prohibit patients from opting out of the system and would require all dispensed prescriptions to be entered into the system, including those with cash payments. Prescribers and dispensers of prescription drugs would be able to access the system at no cost to the provider.

Narcotic overdose deaths are a significant problem. Persons addicted to prescription drugs will go from doctor to doctor to obtain prescription painkillers. Nebraska and Missouri are the only states that have not implemented an operational prescription drug monitoring program. Senator Howard disclosed documentation showing that people from 38 states have come to Nebraska to fill prescriptions for narcotic pain medications. LB 471 would close loopholes in our current program in an effort to prevent the misuse of prescription drugs.

When our current school finance formula was first developed 25 years ago, one of the goals was to have no more than 45% of the revenue financing our K-12 school districts coming from property taxes. Today, property taxes make up approximately 50% of the funding for our local school districts. Our current state aid formula is too dependent on property taxes and needs to be revised. However, as I have mentioned earlier, the Legislature is facing a $140 million shortfall. Analysts have estimated that reducing school district’s reliance on property taxes to the 45% level would require $176 million in additional state aid.

Our current state aid formula calculates the needs of a district, which are what it costs to run the school. Subtracted from this figure are the resources of the district, which is made up of primarily property tax revenue, as well as state sources, such as special education reimbursement. The difference is paid to school districts through the state aid formula as equalization aid. The number of districts that receive equalization aid has steadily decreased over the years, primarily due to the significant increase in the valuation of agricultural land. Currently, only 87 of our 245 school districts receive equalization aid. That is why I am supporting LB 883, introduced by Norfolk Senator Jim Scheer and 11 other senators. It would provide a base amount of aid to all school districts, regardless of whether they qualify for equalization aid. LB 882, a companion bill, deals with school budgeting. It limits a school district’s ability to exceed its allowable growth percentage, limits cash reserve growth and removes the ability of schools to carry forward their unused budget authority.

When looking at the revenue that funds our state government, property taxes make up about 42% of total taxes paid in Nebraska, with sales tax revenue comprising 28% and the income tax contributing 27%. I believe that the Legislature should strive to more evenly balance the revenue from our three major tax sources. Last year, we increased the funding for the Property Tax Credit program by $64 million annually. This year, there are several proposals (including LB 883) that would increase state aid to school districts, thereby lowering the burden on the property tax to fund our schools. As a member of the Appropriations Committee, I am hopeful we can continue to make progress on property tax relief, while balancing the budget.

As the Legislature debates issues of interest to Nebraskans, I encourage you to contact me with your thoughts and opinions. I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE  68509. My telephone number at the capitol is (402) 471-2733 and my email address is dwatermeier@leg.ne.gov.

Legislative Update

January 22nd, 2016

January 20 was the 10th day of the legislative session, which was the final day for bill introduction. In total, 446 bills and 8 constitutional amendments were introduced by senators and committees.

Supreme Court Chief Justice, Mike Heavican, presented his State of the Judiciary address to state senators this past week. He reviewed the work of the Office of Public Guardian, which was created by the Legislature in 2014 to improve the services provided to vulnerable adults in need of guardianships or conservatorships. He touched on the Through the Eyes of the Child Initiative, which focuses on education for judges, guardians ad litem, lawyers, HHS employees and community volunteers. The Chief Justice gave an overview of juvenile justice reform efforts, explaining that with the passage of legislation two years ago, children no longer have to become state wards to access services. He noted a significant increase in the number of children placed on probation and receiving services to reduce recidivism and likewise, a 7.6% decline in out-of-home placements in the past 6 months.

Last year, the Legislature passed LB 605, which created significant criminal justice reform. The court system is working towards implementation of the Justice Reinvestment goals outlined in the legislation. The court rules on post-release probation supervision have been adopted and locations were selected for new day and evening reporting centers. These centers average 6,000 visits from probation clients each month and provide services in every major community across the state. Every reporting center has a supervised substance abuse supervision program and Chief Justice Heavican noted that 89% of the clients released from the program in 2015 have been drug-free for at least one year and 91% are gainfully employed. The Chief Justice confirmed that they have now achieved their goal of developing problem-solving courts in each judicial district. Finally, he noted that total eFilings have increased, with the volume of electronically-filed documents in the trial courts up 30%, saving the court staff time and greatly increasing the accuracy of data entry.

Public hearings were held on three bills that I introduced this past week. The Transportation and Telecommunications Committee heard LB 732, which would allow reservists to qualify for Military Honor license plates. The way the law is currently written, only federalized reservists are eligible, which means that they had to serve on active duty that is not considered training.  I believe that these soldiers served their country, although in a time of peace, and should be eligible for the plates.

The public hearing for LB 734 was held before the Education Committee. LB 734 would allow non-resident members of the Nebraska National Guard to receive in-state tuition rates at state educational institutions. Although this proposal would only apply to a small number of student soldiers, it would make a significant difference in their cost of schooling.

LB 744 was heard before the Judiciary Committee. It deals with open adoptions. LB 744 recognizes that biological parents and adoptive parents can agree to communication and contact after the adoption of a child in private and agency adoptions, but makes it clear that the failure to comply with such agreement does not affect the legality of the adoption. The goal behind the legislation is to ensure permanency in adoptions.

Several of the bills that I introduced this year are the direct result of a constituent contact. I encourage you to continue to inform me of your opinions on legislation and suggestions for change. I can be reached at District #1, State Capitol, Lincoln, NE  68509. My telephone number at the capitol is (402) 471-2733 and my email address is dwatermeier@leg.ne.gov.

Legislative Update

January 15th, 2016

Governor Ricketts presented his State of the State Address to the Legislature this past week. He said he looks forward to working with us to bring relief to taxpayers. He urged us to prioritize property tax relief, as it is his number one priority this year. He touched on economic development and the need to grow Nebraska. He expressed his support for a proposed $26 million investment in the Community Corrections Center in Lincoln, as part of his broader efforts to help reduce recidivism. The governor reiterated his opposition to Medicaid expansion, referring to it as one of the biggest long-term risks to the budget.

Following his speech, several bills were introduced by senators, at the request of the governor. Two bills, introduced by the chair of the Revenue Committee and the chair of the Education Committee, make structural changes to how property taxes are levied on residential, commercial and agricultural property. These bills tighten current spending limits on all local governments. They also propose to tighten levy limits by removing exceptions that don’t require voter approval. Furthermore, the proposed legislation will limit the statewide aggregate increase in the class of agricultural property to 3% per year by adjusting the value of agricultural land.

As I mentioned last week, I worked with other senators on legislation that alters the school finance formula to provide property tax relief. Senator Jim Scheer of Norfolk is the primary sponsor of LB 883 and 11 senators have signed on as co-sponsors. LB 883 proposes to provide a base amount of state aid per student to school districts to offset property taxes. This aid would be phased in over four years, until it reaches $3,000 per student, regardless of whether the school qualifies for equalization aid. The bill also makes some adjustments in the state aid formula to help subsidize the cost of the base aid. Under the current formula, almost two-thirds of the school districts receive no equalization aid. The increase in the valuation of agricultural land has contributed to the disproportionate burden placed on property taxes in supporting school districts. I don’t believe that the founders of the current state aid formula envisioned this would happen and consequently, I feel that it is time to revamp the system.

Last year, I introduced LB 47, which proposes to make the question mandatory rather than optional, on the driver’s license application regarding whether to place your name on the Donor Registry. LB 47 was selected as a Speaker priority bill last year, but was not fully debated. The purpose of the bill is to increase the number of donors in Nebraska. More than 98% of Nebraskans registered as donors became registered through the application process for a driver’s license. With the question currently optional, only 55% of applicants are registered as donors. This percentage is higher in states where the question is mandatory.

LB 47 does not require applicants to become donors, but merely requires that they answer the question with “yes”, “no” or “elect not to answer”. At the public hearing, an organ recipient testified that he can accept if applicants choose not to register. However, it’s harder to accept apathy, when applicants skip over the answer. After several hours of debate, LB 47 received initial approval earlier this week.

The Unicameral Youth Legislature will be held on June 5-8, 2016 at the State Capitol. It gives students an opportunity to learn what it’s like to serve as a state senator. High School students will learn about the unique process of our unicameral system by sponsoring bills, conducting committee hearings, and debating legislation. Students learn directly from senators, staff and lobbyists, working on legislation from the previous session. All high school students are eligible and the deadline is May 15. The fee is $350, which includes lodging, meals and transportation. Scholarships are available. For more information visit NebraskaLegislature.gov/uyl.

The hearing process will begin on January 19. Senators will meet as a body in the morning and divide into committees in the afternoon. All bills are referenced to a standing committee and a hearing is held before this committee. This gives the public the opportunity to make their viewpoints known before the committee takes action on the bill. If you are interested in any of the bills that have been introduced, I encourage you to attend a public hearing. I also encourage you to contact me with your opinions on legislation that has been introduced or with any question you may have. I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE  68509. My email address is dwatermeier@leg.ne.gov and my telephone number at the capitol is (402) 471-2733.

Legislative Update

January 8th, 2016

On Wednesday, January 6, state senators convened for the short session of the Nebraska Legislature. Legislative sessions in even-numbered years last for only 60 days because it is the second year of the biennium and deals with budget adjustments. In the odd-numbered years, the Legislature meets for 90 days and sets the budget for the two-year period.

This year, however, the budget adjustments will take more time, as the Nebraska Economic Forecasting Advisory Board in late October lowered revenue projections, creating a $110 million deficit. This deficit may grow depending on the final certification of state aid to schools and adjustments in the budget for the Department of Health and Human Services.

Due to the resignation of Senator Jeremy Nordquist, senators welcomed recently appointed Nicole Fox to the Legislature, representing District #7 in Omaha. Since Senator Nordquist was the chair of the Nebraska Retirement Systems Committee, Seward Senator Mark Kolterman was elected as the new chair.

Senators began introducing legislation on the first day of session and by the third day almost 200 bills were introduced. The last day for bill introduction is January 20. I have introduced six bills so far, as well as one from the Performance Audit Committee, of which I chair. Among the bills that I have introduced, is LB 733. It requests additional funding for employees of the Department of Corrections. With the recent riot at Tecumseh State Correctional Institution, it reiterated the staff recruitment and retention problem that the state faces in some correctional facilities.

I also introduced legislation (LB 755) that seeks capital construction funds for projects at our state colleges, including the Theatre and Community Center at Peru State College. The renovation project will address needed facility improvements, in an effort to maintain PSC’s role of providing quality academic, cultural, and civic opportunities to its students and our region.

The Governor has announced one of his priorities for this year – the creation of a transportation infrastructure bank. The proposal would be funded through a cash reserve transfer and would be used to accelerate roads construction, provide matching funding to counties to expedite bridge repair, and to fund transportation projects that support industry expansion as well as attract businesses to Nebraska.

At a recent meeting with Governor Ricketts, he informed me that his number one priority is property taxes. Several senators and I have been working on legislation pertaining to the school finance system and property tax reduction. I will provide more details after the bill has been introduced.

If you are not aware of the Legislature’s website, I encourage you to check it out at NebraskaLegislature.gov. It has recently been revamped, to make it more user-friendly. It contains a wealth of information. Viewers can read the text of bills introduced, search state statutes, e-mail state senators, see the agenda for the day, read the online version of the Unicameral Update, and watch the Legislature live.

With session starting, I will be at the State Capitol daily. If you are in the Capitol, please feel free to stop by my office. My office number is Room 2000, which is located on the second floor, north side. If calling my office, I am happy to visit with you if I’m available. If I am in a meeting, my staff will be able to assist you. Tim Freburg is my administrative assistant. He answers the telephone, greets visitors, and handles my calendar. Kim Davis is my legislative aide, who works on constituent issues and legislation.

In order to effectively represent my legislative district, I welcome your input. My email address is dwatermeier@leg.ne.gov.  My address is Senator Dan Watermeier, District #1, P.O. Box 94604, State Capitol, Lincoln, NE  68509 and my telephone number is (402) 471-2733.

Legislative Update

May 29th, 2015

The One Hundred Fourth Legislature, First Session, has adjourned. I would describe this session as “different”. Although the Legislature is officially non-partisan, typically senators of one party are somewhat aligned. In the past, rural senators tend to stick together on issues. This year saw division within groups that historically band together. Because of this, there were many surprises. Conservative senators supported a gas tax increase and the repeal of the death penalty. Several issues supported by major farm organizations were either blocked or weakened.

The biennial budget, which is the primary task of the Legislature, did see unified support. As a member of the Appropriations Committee, I was happy to see funding for faculty salary enhancements at the Nebraska College of Technical Agriculture in Curtis. I have previously mentioned the budget limited the growth in spending to a historical low increase and contains an additional $64 million annually for the Property Tax Credit program.

LB 643 proposed to allow the use of marijuana for medical purposes. Since this was the first time such legislation has been introduced in Nebraska, I was surprised that it was advanced from the Judiciary Committee and given first-round approval by the Legislature. Earlier this week, the sponsor of LB 643, Senator Tommy Garrett, asked to bracket the bill after realizing he didn’t have sufficient support for passage. There were many unanswered questions on this issue, such as how the manufacturer would obtain the medical cannabis and how the Department of Health and Human Services would determine a range of recommended dosages for each qualifying medical condition. Senator Garrett referred to research conducted by the Mayo Clinic on recommended dosages for certain conditions, however their website states that there is no proven safe or effective dose for marijuana in children under 18 years of age. Senator Garrett had made it known that he introduced this bill due to the pleas from mothers of children with epilepsy. A more limited version was passed in LB 390, which created a pilot study at UNMC to allow access to low-tetrahydrocannabinol (THC) oil for patients who suffer from intractable epilepsy.

Prison reform legislation was passed in an effort to reduce overcrowding and limit recidivism within the correctional system. The legislation gives preference to alternatives to incarceration for nonviolent crimes, requires post-release supervision plans for offenders released on probation, establishes the Office of Inspector General of the Nebraska Correctional System in order to improve oversight of the department, requires a plan to reduce the use of segregation, and seeks to ensure adequate mental health care is provided to mentally ill inmates.

The death penalty has been repealed. Governor Ricketts vetoed the bill to repeal the death penalty but senators overrode his veto with just the required number of votes. I was saddened to see this happen, as I feel that the death penalty serves as a necessary tool in protecting the safety of the citizens of Nebraska. The very day the death penalty was repealed, an organization called Nebraskans for Justice was formed. This organization will explore the possibility of a citizen-driven ballot initiative to give Nebraska citizens the option of reinstating the death penalty.

Other legislation that passed will give nurse practitioners more independence, strengthen the Commercial Dog and Cat Operator Inspection Act, grant personal property tax relief, allow young immigrants participating in the federal Deferred Action for Childhood Arrivals (DACA) program to qualify for driver’s licenses, and adopt the Nebraska Agritourism Promotion Act, which encourages landowners to grant access to their farm and ranch land for recreation and tourism activities by reducing the risk of liability. Some major issues that failed to gain passage included legislation to expand Medicaid, repeal the motorcycle helmet law, lower the valuation of agricultural land, allow for a lower minimum wage for students, change habitual criminal provisions, and prohibit discrimination based upon sexual orientation and gender identity.

This past week, I met with the executive director of the Nebraska Community College Association regarding the need for Southeast Community College to provide additional services to students living in the far southeast corner of our state. I also met with the Ombudsman and several employees about staffing issues at TSCI.

I introduced a legislative resolution recognizing the contributions and service of Rodney Vandeberg and extending sympathy to his family. Rod was a tireless promoter of the Falls City area, serving as mayor and on numerous boards. He also represented District #1 on the Nebraska Highway Commission and was a key player in the launching of the Rulo bridge project.

With the completion of the legislative session, I will no longer be at the State Capitol daily and will spend most of my time back at my farm near Syracuse. However, I will be at the capitol on a weekly basis and if you cannot reach me, my staff will be able to assist you. I will be available to attend local events and encourage your invitations.

If you need information on legislation passed or on any issue pertaining to state government, I encourage you to contact my office. I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE  68509. My telephone number is (402) 471-2733 and my email address is dwatermeier@leg.ne.gov.

Legislative Update

May 21st, 2015

The Legislature voted to repeal the death penalty this past week. LB 268 was passed by the Legislature on a 32-15 vote.

Governor Ricketts issued a statement prior to the final vote, urging senators to listen to their constituents and keep Nebraska among the 32 states that have a death penalty. In his extensive travels across the state, the governor said he found overwhelming support for keeping the death penalty in Nebraska. He said that a vote to repeal the death penalty will give our state’s most heinous criminals more lenient sentences.

The governor has indicated that he will veto LB 268. If so, I would predict that Senator Chambers will file a motion to override his veto, which will likely be taken up by the Legislature next week. Thirty votes are necessary to override a veto.

The recent incident at Tecumseh State Correctional Institution emphasizes the need for the death penalty. If the death penalty is repealed, it can no longer be used as a deterrent for inmates serving life sentences, which could impact the safety of staff.

Opponents of the death penalty pointed to the high costs associated with carrying it out. They also cited religious reasons for not taking a life, the possibility of wrongful convictions, and the emotional turmoil it places on the victim’s family.

The State of Nebraska has officially administered the death penalty since 1901, when executions were moved from individual counties to the Nebraska State Penitentiary. The method of execution at that time was hanging. In 1913, Nebraska’s execution method changed to the electric chair. In 1972, the U.S. Supreme Court ruled in Furman V. Georgia that the arbitrary and inconsistent imposition of the death penalty violated the U.S. Constitution and constituted cruel and unusual punishment, resulting in a national moratorium. Nebraska and other states enacted new legislation seeking to overcome the constitutional defects and in 1976 the U.S. Supreme Court upheld the constitutionality of the revised death penalty statutes. In 2009, the Legislature changed the method of execution to lethal injection, after the Nebraska Supreme Court ruled in 2008 that the sole use of the electric chair violated the constitutional ban on cruel and unusual punishment. The State of Nebraska has carried out 23 executions, 8 by hanging and 15 by means of the electric chair, with the last occurring in 1997. Eleven men are currently on death row.

Senator Chambers has been attempting to repeal the death penalty for forty years. In 1979, the Legislature passed such legislation, but former Governor Charles Thone vetoed the bill.

The Governor signed the budget bills without a single line-item veto. Governor Ricketts said that he did not veto anything from the budget as it slowed the growth in government spending and it offered property tax relief, which were his two top priorities.

Within the budget are several items that I instigated and am appreciative of the approval from my fellow senators and the governor. Several water projects, initiated through the Nebraska Resources Development Fund (RDF) to help protect our state’s natural resources, while also producing notable recreation and economic benefits for the state, were never fully funded. The RDF was phased out with the passage of legislation in 2014 that created the Water Sustainability Fund. In fulfilling the state’s obligation, these projects will now be fully funded through a combination of General Funds and funding from the new Water Sustainability Fund.

Court Appointed Special Advocate (CASA) volunteers are trained citizens who are appointed by a judge to speak in court for the safety and well-being of abused and neglected children. There are 22 CASA programs serving 38 counties in Nebraska. It has been shown that children with a CASA volunteer are more likely to find safe, permanent homes, are more likely to be adopted, are half as likely to re-enter foster care and are substantially less likely to spend time in long-term foster care. I was able to obtain a stable source of state funding for this program.

I introduced legislation to increase the funding for the Property Tax Credit program by $60 million annually. The Governor also included this increase in his budget proposal. The final biennial budget contains an additional $64 million annually in direct property tax relief for taxpayers, which is shown as a credit on annual tax statements.

Along with a dozen other senators, I visited the Tecumseh State Correctional Institution this past Sunday. We wanted to show our support for the staff at TSCI and commend them for their dedicated service during the recent riot at the facility. I also joined Governor Ricketts and Scott Frakes, the director of the Department of Corrections, as they toured the facility mid-week. The Governor has pledged to seek solutions to staffing problems at TSCI, including high turnover and job vacancy rates, stagnant salaries and mandatory overtime.

As we enter our last days of this legislative session, I encourage you to continue to contact me with your thoughts and opinions. I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE  68509. My email address is dwatermeier@leg.ne.gov and my telephone number is (402) 471-2733.

Legislative Update

May 15th, 2015

It’s been a busy week in the Unicameral. The Legislature overrode the Governor’s veto of the gas tax with no votes to spare. Consequently, the gas tax will increase by six cents over a four-year period beginning in January. We discussed LB 586, which would prohibit discrimination based upon sexual orientation and gender identity, for several hours before it was pulled from the agenda at the sponsor’s request.

The Legislature gave first-round approval to LB 623, which authorizes driver’s licenses for certain children of undocumented immigrants, and to LB 643, the bill allowing medical marijuana. We gave second-round approval to the prison reform bills, which took on more significance after the incident at Tecumseh State Correctional Institution (TSCI). The budget bills were given final approval this past week by the Legislature. The Governor now has the ability to line-item veto specific appropriations from these bills, after which the Appropriations Committee will meet to decide which vetoes, if any, to recommend be overridden.

LB 623 would make individuals who can demonstrate lawful status for a period of time by the federal government under the Deferred Action for Childhood Arrivals (DACA) program eligible for driver’s licenses. Nebraska is the only state that denies driver’s licenses to these children that have been given legal protection by the President. Nebraska’s policy denying the licenses was put in place by former Governor Dave Heineman. A similar law in Arizona was ruled unconstitutional last year and a lawsuit is currently pending in Nebraska. After 8 hours of debate and a successful cloture motion, LB 623 was advanced on a 37-8-4 vote.

LB 643, the Medical Cannabis Act, was amended by Judiciary Committee amendments prior to advancing from the first stage of debate on a 27-12-10 vote. The committee amendments are fashioned after a similar law adopted in Minnesota, which is seen as one of the strictest laws among the 23 states that allow for medical marijuana.

The Department of Health and Human Services Division of Public Health would create a registry of patients that would be permitted to obtain medical cannabis, if diagnosed with a qualifying medical condition by a health care practitioner. The qualifying medical conditions listed in the bill include cancer, HIV, seizures, multiple sclerosis, and terminal illness. Severe or chronic pain does not qualify on its own, but must be associated with one of the listed conditions. Medical marijuana could be used as a liquid or oil, as a pill, or in a vaporized form of the liquid or oil. Smoking of marijuana would not be permitted under LB 643.

I am concerned for the staff at TSCI. I was aware of the use of mandatory overtime at the institution prior to the incident last week. Mandatory overtime can lead to safety issues, as well as job discontent. High turnover in staff results in less experienced employees. The newly appointed director of the Department of Corrections has indicated that he will conduct a study on staffing this summer and I have asked to be kept updated.

I am also concerned with the costs from the TSCI incident that will fall on Johnson County due to the death of two inmates and the charges that will be filed on other inmates. I introduced a bill earlier this year to transfer the financial responsibility for the costs of an autopsy, grand jury payments and witness compensation from the counties to the State of Nebraska when an incarcerated inmate dies while serving a sentence in a state correctional institution. Although the bill advanced from the Government, Military and Veterans Affairs Committee, it has stalled on General File. I am hopeful that something can be done to help the county with these “state” expenses.

During the last two weeks of this legislative session, I still encourage your input. I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE  68509. My email address is dwatermeier@leg.ne.gov and my telephone number is (402) 471-2733.

Legislative Update

May 7th, 2015

The Legislature has 13 days left in this legislative session, with the 90th legislative day set for June 5. This past week, senators gave the budget bills second-round approval. The budget is now ready for Final Reading.

As I mentioned last week, the Nebraska Economic Forecasting Advisory Board increased their projections for the next biennium by $9.7 million. The Appropriations Committee recommended the dedication of $8 million of the projected increase to the Property Tax Credit program. With the added $4 million each year, bringing the increase in the program to $64 million annually, taxpayers will see a total of $204 million per year in direct property tax relief. This credit is reflected on annual property tax statements. The Legislature approved the committee’s recommendation, prior to advancing the budget bills.

There were several other changes to the budget that were recommended by the Appropriations Committee and approved by the entire Legislature during Select File debate. Appropriations were updated for the multi-year project to replace the heating, ventilating, and air conditioning system at the State Capitol, based on continued planning and a better estimate of costs. A geothermal system has been identified as the preferred option, instead of contracting with the University of Nebraska for chilled water. Although it will cost more initially, it is expected to be more energy efficient in future years.

Funding was added to the budget for the Nebraska Developing Youth Talent Initiative. This initiative requires the Department of Economic Development to fund two pilot programs that are targeted to businesses in the manufacturing and technology sectors for two years. Grants would be provided to private sector for-profit entities, one of which must be in a rural area. This initiative will develop an industry-led partnership with schools to assist in specific career learning opportunities in manufacturing and technology sectors.

The Legislature gave first-round approval to a bill that was prioritized by the Revenue Committee. LB 259 would exempt from property tax the first $10,000 of valuation of depreciable tangible personal property in each tax district in which a personal property tax return is required to be filed. Although this wasn’t as comprehensive of a tax relief plan as some senators had hoped, it is estimated that it will provide for an average decrease of $162 in the personal property tax bills for business owners, farmers and other taxpayers.

The Legislature gave LB 610 final approval this past week on a 26-15 vote, with eight senators not voting. LB 610 proposes to increase the gas tax by a total of six cents over a four-year period. Revenue from the gas tax, which has remained flat over the past 20 years, has not kept up with the cost of road construction. The increased revenue is to be divided between the state Department of Roads, counties and cities, to be used for necessary road and bridge projects. Since the Governor has vetoed LB 610, the Legislature will need to override his veto if the tax increase is to take effect. Thirty votes are required on a motion to override, which is four more votes than given on final reading. I voted against LB 610, as I would prefer an increase in the current amount of sales tax dedicated to roads over a gas tax increase.

We have been working through the lunch hour and into the evening in an attempt to debate every priority bill. If you have any comments on the legislation that is still before us, I encourage you to contact me. I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE  68509. My email address is dwatermeier@leg.ne.gov and my telephone number is (402) 471-2733.

Legislative Update

May 1st, 2015

The budget bills, as proposed by the Appropriations Committee, were debated by the Legislature this past week and were given first-round approval. The budget bills consist of 8 bills, including the mainline budget bill that appropriates funds for state government expenses, legislation to appropriate funds for capital construction, to provide for fund transfers, including those from the Cash Reserve, to provide for deficit appropriations, and legislation to appropriate funds for the salaries of the Legislature, constitutional officers and the Supreme Court judges.

General Fund appropriations total $4.26 billion in fiscal year 2015-16 and $4.37 billion in fiscal year 2016-17. This translates to a 3.8% spending increase in the first year of the biennium and a 2.4% increase in the second year, for an average 3.1% increase over the two-year period. This represents the third lowest spending growth in the last 30 years, with the lowest spending increases occurring during the recession.

Almost $49 million is available, above the required minimum 3% reserve, after funding the budget bills. This amount will be used to fund bills that are currently going through the legislative process.

The General Fund appropriations are divided into four categories. Agency Operations, which includes the University of Nebraska and State Colleges, the Department of Health and Human Services, the Department of Correctional Services, and the courts, as well as more than 40 other state agencies, represents 35.5% of the budget. State Aid to Individuals, amounts to 31.6% of the budget, and includes funding for Medicaid and other public assistance, Developmental Disabilities aid, and Behavior Health aid. State Aid to Local Governments, amounting to 32.3%, includes funding for state aid to school districts, special education, aid to community colleges and homestead exemptions. The final category, Capitol Construction, makes up just 0.6% of the budget.

Appropriations Committee members made a conscious decision to keep the Cash Reserve Fund balance at approximately 16% of General Fund expenditures. The Cash Reserve Fund is used to provide protection against forecast errors and to provide for supplemental funds during a recessionary period, which proved necessary during recent years. The Appropriations Committee did approve transfers from the cash reserve fund for four “one-time” projects, including funding for a child welfare system fine from the federal government, a court ordered settlement to Kansas relating to the Nebraska Republican River Compact, $25 million for the construction of the Global Center for Advanced Interprofessional Learning at UNMC, and $8 million for a grant program to contract for reduced-fee and charitable oral health services and for oral health workforce development with the Creighton University School of Dentistry. After senators questioned the funding that was directed at Creighton University, the language was amended so that the funding could also be utilized by the University of Nebraska Medical Center College of Dentistry.

The $60 million in increased annual funding to the Property Tax Credit program remained intact in the budget. This allows for a credit equal to $93.33 per $100,000 of valuation for property owners, up from $65.33 in the current year.

The Nebraska Economic Forecast Advisory Board also met this past week. Because it was predicted that board members might reduce their revenue projections for the next biennium, the Appropriations Committee was prepared to begin meeting immediately to discuss potential reductions in our budget recommendations. However, the Board did not alter the forecast significantly and actually increased it by approximately $9.7 million over the next biennium.

If you have any comments on the budget bills that are going through the legislative process, I encourage you to contact me. I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE  68509. My telephone number is (402) 471-2733 and my email address is dwatermeier@leg.ne.gov.

Sen. Dan Watermeier

District 1
Room #2000
P.O. Box 94604
Lincoln, NE 68509
Phone: (402) 471-2733
Email: dwatermeier@leg.ne.gov
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