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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 email@example.com and my telephone number is (402) 471-2733.