A comprehensive package of bills will overhaul the state’s child welfare system. The Nebraska Children’s Commission will be created and an inspector general for child welfare will be hired. A strategic plan will be developed and additional reporting requirements will be implemented. Statewide standards for foster care reimbursement rates will be developed and compensation to foster parents will be increased. Caseloads will be reduced, bringing them in line with national standards.

Although not as extensive as the Governor proposed, a slimmer version of the income tax proposal was still passed by the Legislature, calling for a reduction in the bottom three income tax rates and for an expansion of the tax brackets. Additionally, tax incentives were approved for several high-tech projects, as companies are considering Kearney and the Omaha area for two large data centers. A sales tax exemption was authorized for an ag-related company that produces biochips.

The Legislature appropriated $50 million for a University of Nebraska Medical Center cancer research tower in Omaha, $15 million for a nursing and allied health project at UNK and bond authority to build a $50 million new Veterinary Diagnostic Center at UNL. I was extremely pleased that $7.5 million was appropriated to help fund renovations in the Oak Bowl at Peru State College.

During the final day of the session, the Legislature voted to override the governor’s veto of LB 357, which will allow cities to increase their maximum local option sales tax by one-half percent, following a public vote. The motion offered on LB 357 prevailed without a vote to spare, as senators voted 30-17 to override the governor’s veto. The Legislature also voted to override the Governor’s veto of LB 599 with a vote of 30-16. This bill dealt with the controversial issue of whether women who are in our country illegally should receive taxpayer-funded prenatal care.

Attempts to override the governor’s veto of LB 806, authorizing wagering on historic horse races, and LB 1020, creating a state grant program to school districts for the establishment of school-based health centers, both fell short of the necessary thirty votes. The motion to override the veto of LB 806 received 29 votes, just one vote short, although 3 votes more than the bill received on Final Reading. The motion to override the veto of LB 1020 fell 3 votes short of the necessary 30 votes.

Earlier this month, the Legislature voted to override the Governor’s line-item veto of LB 1072. This portion of the bill appropriated $2.5 million to pay fifty claims submitted by subcontractors of the Boys and Girls Home, stemming from the unsuccessful attempt at privatization of the child welfare system by the Department of Health and Human Services.

The nine senators, including myself, affected by term limits were recognized prior to adjournment. Due to the many hours that senators put in during a legislative session, very close friendships are developed. I will miss my colleagues but am thankful for being given the chance to serve with them in representing the State of Nebraska.

As Appropriations chairman for the past 6 years, I had the opportunity to thoroughly learn the complex process used when setting the state’s budget for a two-year period. I was proud to be part of the Legislature that overcame one of the worst recessions without having to raise taxes.

I am humbled and honored that you, as residents of the first district, elected me to represent you as your state senator in the Nebraska Legislature. Although it was not possible to please every constituent on every issue, I welcomed your input and listened to what you had to say, while holding firm to the values and beliefs that I ran on. I have met so many wonderful people in the district and have learned a great deal from you. The past eight years has been an extremely valuable experience and for that I thank you.

Even though the legislative session has ended and I will be home in Elk Creek the majority of the time, I will still be in my State Capitol office on a regular basis. If you need assistance with state issues, I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE 68509. My e-mail address is lheidemann@leg.ne.gov and my office telephone number is (402) 471-2733.

Earlier this week, Governor Heineman announced that he had vetoed LB 806, which authorizes wagering on historic horse races. In his veto message, the governor questioned the bill’s constitutionality, as to whether this type of wagering would fall under the exception granted in the Nebraska Constitution to the general prohibition against gambling. This exception permits betting on the results of horse races, but has always been construed to apply to live horse racing.

LB 806 was passed on a 26-18 vote. Since thirty votes are required to override a Governor’s veto, proponents will have to gain a vote from at least four senators in order to be successful.

Governor Heineman has also threatened to veto LB 357 and LB 599. LB 357, which would allow the maximum local option sales tax to increase by one-half percent, was passed by the Legislature last week on a 30-15 vote, just meeting the number of votes necessary to override a veto.

The current sales tax imposed by the state is five and one-half percent. Cities can levy an additional one-half, one, or one and one-half percent in local option sales taxes. Under LB 357, cities would be allowed to increase their local option sales tax to one and three-quarters percent or to two percent. A press conference was held earlier this past week with many communities attending in support of LB 357. Currently, approximately 194 of 530 communities have taken advantage of their authority to levy a local option sales tax.

Although LB 357 would require a public vote prior to increasing the local option sales tax, it still could be considered a sales tax increase. The Legislature has worked very hard during the recent recession to prevent an increase in taxes. The repeated budget cuts were difficult to make. This year, the Legislature was able to pass legislation that reduces income taxes. To pass a tax increase could be considered counter-productive. Additionally, the passage of this bill would remove an option that may be needed by the Legislature in the future, if budget cuts become too severe to balance the budget, as a sales tax rate of eight percent is generally considered to be too high to remain competitive with surrounding states.

LB 599, the other bill that the governor has indicated that he will veto, deals with the controversial issue of whether women that are in the country illegally should have access to prenatal care under the Medicaid program. This bill has become even more controversial in the last several days, as the Governor, Nebraska Right to Life, the Nebraska Republican Party, and other organizations have all made their positions known. The Legislature passed LB 599 this past week on a 31-15 vote.

Next week, during our final day of this legislative session, the Legislature will take up any motions to override, as well as finish up our legislative business. Even as the session winds down, I still appreciate your input. 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 e-mail address is lheidemann@leg.ne.gov.

Earlier, the Nebraska State Claims Board denied payments to the subcontractors. The State argued that the subcontractors contracted with Boys and Girls Home and not the state, and therefore the state wasn’t liable. In recommending denial of the claims, the Board agreed that HHS had met its obligations to the main contractor.

In the Governor’s veto message, he objected to the Legislature’s attempt to make the taxpayers responsible for debts incurred by a private organization. He also claimed that such payment would violate the Nebraska Constitution. The governor compared this payment with reimbursement of creditors of the failed Commonwealth Savings Company in 1990. In this case, the Nebraska Supreme Court ruled that no moral obligation to pay these creditors existed and that the bill’s appropriation amounted to unconstitutional special legislation. When the Legislature in 1993 sought reimbursement via the state claims process, the Nebraska Supreme Court again ruled the Legislature’s action to be unconstitutional special legislation.

Senator Steve Lathrop, the chair of the Business and Labor Committee, offered a motion to override the Governor’s line-item veto in LB 1072. Senator Lathrop argued that the state has a legal duty to pay for the care of state wards. Providers received only thirty-five cents on the dollar for services provided under an agreement worked out by state officials after Boys and Girls Home ended their contract with HHS in the fall of 2010. Senator Lathrop pointed out that the contract with Boys and Girls Home was flawed, underfunded, and not properly managed.

Thirty-one senators voted in support of overriding the Governor’s line-item veto, twelve senators voted against the motion and six senators did not vote. Thirty votes are necessary to override a Governor’s veto.

LB 599 was debated by the Legislature at two different stages of debate this past week. This bill deals with the controversial issue of whether women that are in the country illegally should have access to prenatal care under the Medicaid program. Previously, the status of the unborn child, not the mother, was used to determine eligibility. A couple years ago, it was determined that this practice was in violation of federal rules and prenatal coverage was dropped for these women. LB 599 would require the Department of Health and Human Services to implement a separate program under the Children’s Health Insurance Program for unborn children of mothers that are ineligible for coverage under Medicaid.

Proponents argue that it is cost-effective to provide prenatal services to these mothers. Lack of prenatal care can lead to increased risk of birth defects, low birth weight and delayed mental development, causing increased costs in the long term, as these children become U.S. citizens when born here. Some senators saw it as a pro-life issue.

Opponents felt that it was more than a pro-life issue, because it rewards those that are here illegally with health care benefits. Furthermore, none of our neighboring states provide taxpayer-funded benefits to illegals, which could encourage more illegal aliens to locate in our state. The Governor informed senators of his strong opposition to the use of taxpayer funds for illegal individuals.

LB 599 received first-round approval on a 30-16 vote and second-round approval on a 29-16 vote. Thirty votes will be necessary to override a promised Governor’s veto.

As we enter the last week of the legislative session, I still encourage your input. I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE 68509. My e-mail address is lheidemann@leg.ne.gov and my telephone number is (402) 471-2733.

The budget bills were given final approval by the Legislature this past week. The Governor now has five days (not counting Sunday) to decide whether to sign the bills in their entirety or to line-item veto portions of the bills.

LB 970, which contains the pared down version of the Governor’s proposal for income tax cuts, was given second-round approval this past week and is now ready for Final Reading. Discussion again focused on whether the state could afford the loss of revenue in the following biennium.

During this past week, the Legislature discussed whether voters should be required to show a photo ID at the polling place. As introduced, LB 239 would require the presentation of government-issued photo identification in order to vote. As amended by Government, Military, and Veterans Affairs Committee amendments, the Secretary of State was required to inform local election commissioners as to the number of people in their counties that are registered to vote but do not have driver’s licenses or state ID cards. The county election commissioners would then mail an acknowledgment of registration to every registered voter who did not have a state ID, which could be used for identification purposes at the polling place. Voters without IDs or acknowledgment cards would be given provisional ballots that would not be counted until their voter registration was verified.

Proponents of the bill stressed that it will protect the integrity and reliability of elections. They did not feel that the requirements of the bill were unreasonable and gave common examples where IDs are required, such as to board an airplane or to write a check. Opponents, however, felt that it could create a hardship for some voters, such as the elderly, minorities and the poor. They also questioned the need for the bill as they did not view Nebraska as having a problem with voter fraud.

After more than eight hours of debate, Senator Charlie Janssen of Fremont, the sponsor of LB 239, offered a motion to invoke cloture. Thirty-three votes are required on a cloture vote, which immediately ceases debate, allowing for a vote on the pending amendment and then on the advancement of the bill. However, Senator Janssen’s motion fell three votes short on a 30-16 vote. If a motion for cloture is unsuccessful, the bill is immediately pulled from the agenda and will not be discussed again.

The Legislature gave final approval to Legislative Resolution 40CA, which proposes to place the right to hunt, fish and harvest wildlife in the Nebraska Constitution. Supporters of this constitutional amendment felt that it was important to protect Nebraskan’s right to hunt, fish and trap, in light of actions taken by national animal rights groups that have worked to ban the hunting of different species of animals and birds in other states. This issue now goes on the November 2012 general election ballot, thereby allowing Nebraska voters to have the final say on whether to amend our state’s constitution.

The Legislature also gave final approval to a bill that I introduced to update and consolidate statutes pertaining to county hospitals. LB 995 attempts to place county hospitals on a level competitive playing field with peer hospitals, thereby helping to ensure continued access to care for those Nebraskans who rely upon county hospitals for their health services.

Again, I encourage you to contact me with your thoughts and suggestions on legislation that is before the Legislature. 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 e-mail address is lheidemann@leg.ne.gov.

After advancement of the budget bills, the Legislature began debating LB 970, introduced by the Revenue chair, Senator Abbie Cornett, on behalf of the governor. As introduced, LB 970 proposed to reduce individual income tax rates, broaden tax brackets, reduce the top corporate income tax rate and repeal the county inheritance tax. For the remaining year of the 2011-13 biennium and both years of the 2013-15 biennium, the governor’s proposal was estimated to reduce revenue for the state by $326.6 million. Additionally, counties would have lost approximately $43 million in annual revenue with the elimination of the inheritance tax.

Due to much controversy over whether the state could afford to offer tax cuts in light of the projected revenue shortfall of $461 million at the end of the next biennium, the Revenue Committee advanced LB 970 with committee amendments that attempted to lessen the fiscal impact of the governor’s plan. The committee amendments struck the elimination of the inheritance tax, which was strongly opposed by the counties, and the corporate income tax rate reduction. Remaining in the proposal was a gradual income tax reduction, reducing the fiscal impact over the three-year period from $326.6 million to $148.2 million.

Although every senator would like to decrease taxes, as chair of the Appropriations Committee, I questioned the sustainability of the governor’s proposal as introduced, as well as the version amended by the Revenue Committee amendments. Therefore, I worked with the Governor and other senators on a compromise amendment, which reduces the three-year fiscal impact to $97.2 million and targets the tax cuts to those most in need – the lower and middle income taxpayers. The top tax rate is not reduced under the compromise agreement. Initially, the bottom three tax rates would be reduced and the following year the brackets would be expanded. After the compromise amendment was adopted, LB 970 was given first-round approval on a 36-6 vote.

The projected shortfall for the 2013-15 biennium is based on predicted increases in appropriations that will most likely be curtailed during the budget debate next year. If the revenue forecast does not rebound as predicted, the Legislature would have the option next year of revising the income tax reductions by eliminating the second portion of the proposal, which broadens the tax brackets, before it would take effect.

Bills affecting both the corn and the wheat check-off were given initial approval by the Legislature this past week. As originally introduced, LB 1057 would have set the excise tax for corn at one-half cent per bushel, but would have allowed the Nebraska Corn Board to increase the rate up to one cent per bushel after holding a series of public meetings. The current corn check-off is four-tenths cent per bushel. The committee amendments strike the option to increase the corn check-off up to one cent per bushel.

LB 905 proposes to change the method used to assess the excise tax on wheat. Current law provides for a per-bushel assessment of one and one-fourth cents. As introduced, the assessment would have been five-tenths of one percent of the net market value of wheat sold. The Wheat Board could have increased the rate to seventy-five hundredths percent of net market value after holding a public hearing. Committee amendments lower the assessment rate to four-tenths of a percent of net market value, but give the Wheat Board the authority to make future adjustments in the rate up to five-tenths percent.

As the Legislature begins our final weeks of this legislative session, I still encourage you to contact me with your thoughts on issues before us. I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE 68509. My e-mail address is lheidemann@leg.ne.gov and my telephone number is (402) 471-2733.

As senators were discussing the budget, it was made known that the Revenue Committee had advanced the Governor’s proposal for tax cuts. As advanced by the Revenue Committee on a 5-3 vote, LB 970 would pare down the governor’s plan. The elimination of the inheritance tax was dropped, as was the governor’s plan to lower the top corporate income tax rate for all corporate taxable income over $100,000. Remaining in the revised version, is a gradual reduction of individual income tax rates. During the first year of the proposal, the marginal rate in the bottom three brackets would be lowered, the marginal rate in the top bracket would be decreased the second year and the brackets expanded, and in the third year the marginal rate of all four brackets would be further decreased. The revised proposal would cost $8.9 million the first year, however it would grow to approximately $125 million a year when fully implemented.

The General Fund financial status shows only a $17.6 million variance above the minimum reserve at the end of the current biennium, which is to be used to fund all bills pending that have a fiscal impact. Furthermore, it reflects a projected $460 million shortfall for the following biennium.

Amendments to the budget bills were offered during the second round of debate to eliminate $424,727 in unspent funds remaining after the Community Corrections Council was terminated, to eliminate $1.85 million of estimated excess behavioral health funding, to eliminate $2 million in estimated excess Medicaid appropriation for two years, and to eliminate $2.8 million of the planned transfer amount not needed for final payments from the Ethanol Production Incentive Cash Fund. The amount of savings found through this package of amendments is approximately $9 million, enough to fund the first year of the governor’s proposed tax cuts, but does not address the future costs of the governor’s plan.

An amendment was also offered to transfer $10 million from the Cash Reserve Fund to the General Fund, with the intent that it be used for Special Education. This money would be allocated to all school districts, both equalized and non-equalized. Although I am supportive of funding for Special Education, the Appropriations Committee was careful to use the cash reserve fund for one-time expenses only. After much discussion, the committee agreed upon a certain level of transfers from the Cash Reserve Fund, keeping in mind the necessity to maintain a solid balance in this fund for future needs. It was because of this philosophy that the Legislature did not have to increase taxes during the recent recession.

The Legislature adopted the amendment on a 25-16 vote to transfer the $10 million to the General Fund. If a subsequent amendment is adopted to fund special education, it will further increase our projected deficit in the next biennium. The Legislature is in the process of debating the rest of the amendments offered in order to gain revenue for the governor’s tax cut proposal.

If the Governor’s tax reduction proposal is passed by the Legislature, we will be able to balance the budget for this next fiscal year, but I have concerns about the following biennium. Due to term limits, I will no longer be able to serve as chair of the Appropriations Committee and I fear the new chair will have a challenge in leading the committee to find a way to balance the budget and meet the needs of Nebraskans.

Again, I welcome your comments and opinions as the Legislature enters the last fifteen days of this legislative session. I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE 68509. My email address is lheidemann@leg.ne.gov and my telephone number is (402) 471-2733.

The first funding addition is $7.2 million more for state aid to school districts based on the latest calculation by the Department of Education. The recommendation for the appropriation of $837 million in general funds for the 2012-13 school year is approximately $32 million higher than the general fund appropriation last year.

Due to the problems with the privatization of child welfare services and the recent withdrawal of KVC as a lead agency, the committee recommended an appropriation of $17 million to the Department of Health and Human Services to cover shortfalls and for additional staff to lower caseloads.

The Appropriations Committee voted to reinstate 1.5% of the 2.5% cut made in Medicaid provider rates for the upcoming fiscal year, after both urban and rural senators expressed their concern with the loss of Medicaid providers, thereby adding $9.7 million to the budget. Additionally, committee members voted to recommend the appropriation of $4 million to help reduce the developmental disability waiting list, which will serve approximately 212 persons from the waiting list. There are approximately 1,769 persons waiting for services.

Finally, the committee included $6.1 million for funding for the design and construction of a Veterinary Diagnostic Center at the University of Nebraska Institute of Agriculture and Natural Resources. The total cost for this project is estimated at $55 million, of which $5 million must be raised privately. The project will be bonded over a 10-year period and the $6.1 million appropriation represents the first annual payment.

The Veterinary Diagnostic Center was part of a comprehensive proposal from the University of Nebraska, but is the only project funded through the General Fund. The Appropriations Committee also voted to recommend the appropriation of $50 million for a Cancer Research Center at the University of Nebraska Medical Center in Omaha and $15 million for the UNMC College of Nursing and School of Allied Health Professions at the University of Nebraska in Kearney. The committee has proposed that this funding will be transferred from the Cash Reserve Fund, as will $6.7 million for the renovation of the Armstrong Gymnasium at Chadron State College, $7.5 million for improvements to the Oak Bowl at Peru State College, and $800,000 for the Centennial Mall project in Lincoln. Local matching funds would be required for all the projects. Even with these transfers, which are one-time construction projects, the balance in the Cash Reserve Fund is projected to be $341 million.

The Governor’s budget proposal included a number of Medicaid cost-saving measures. The proposed changes would have limited home health care services, eliminated private duty nursing services, implemented a nursing home level of care requirement for personal care services and limited behavioral health therapy visits. After listening to hours of testimony, the Appropriations Committee decided that these proposed changes would have created too great of hardships on persons needing these services.

Although the budget for the current biennium is balanced, the projections for the following biennium are not as positive. The current financial status shows a projected balance that is $461 million below the minimum reserve at the end of the 2013-15 biennium. This is primarily due to below average revenue growth, higher spending growth in the school aid formula, and the implementation of LB 84, which was passed last year by the Legislature to divert the equivalent of one-quarter of one percent of sales tax revenue to highway funding.

The recommendations from the Appropriations Committee will be debated by the entire Legislature beginning on Tuesday, March 13.

If you have any comments on the recommendations put forth by the Appropriations Committee or any other legislation that is before the Legislature, I welcome your input. I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE 68509. My email address is lheidemann@leg.ne.gov and my telephone number is (402) 471-2733.

Prior to the primary and general election, the Secretary of State shall notify election commissioners and county clerks as to every registered voter who does not have a driver’s license or state ID, who shall then be required to mail an acknowledgment of registration to such voters for the purpose of presenting identification at the voter’s polling place. This amendment was proposed in an attempt to resolve concern that the cost of a photo ID could be a hardship on some voters. A voter having neither the photo ID or the acknowledgment of registration would be allowed to vote on a provisional ballot, which wouldn’t be counted until their registration was verified. Residents who vote by absentee ballot or in elections held by mail would not be required to show identification.

Senators speaking in support of LB 239 stated that it will protect the integrity and reliability of our elections by deterring and detecting voter fraud. Opponents questioned whether Nebraska even had a problem with voter fraud and feared it would discourage students and minorities, as well as the poor, elderly, and disabled from voting.

A proposal to alter Nebraska’s strict truancy law received first-round approval this past week. LB 933, introduced by Omaha Senator Brad Ashford and prioritized by Schuyler Senator Chris Langemeier, amends the way excessive absenteeism is dealt with by school districts. Currently, when a student misses more than 20 days of school in a year, the case must be reported to the county attorney. As amended under LB 933, if the absences are due to documented illness that makes attendance impossible or impracticable or are otherwise excused by school authorities, it would not be required that the attendance officer reports such information to the county attorney.

Statistics have shown that the current truancy law has reduced the number of students with excessive absenteeism by approximately 20%. Additionally, it has been proven that there is a significant correlation between attendance and test scores. Although part of our truancy problem stemmed from parents excusing their children for frivolous reasons, senators don’t want parents thrown into the court system when their child is legitimately ill or has other valid reasons for absence from school.

Most of this past week was spent discussing the bills relating to child welfare. The Legislature gave first-round approval to five separate bills that aim to improve the state’s handling of abused and neglected children. The legislation would create the Nebraska Children’s Commission, who would be charged with creating a statewide strategic plan for reform by the end of this year. An Inspector General of Nebraska Child Welfare would be established, who would conduct investigations, audits, inspections and reviews of the child welfare system. The Department of Health and Human Services would be required to submit a plan for a web-based, statewide automated child welfare information system to integrate child welfare information into one system and would be required to contract with a nationally recognized evaluator with expertise in child welfare programs to complete an independent evaluation of the child welfare system. Furthermore, the legislation would require all foster parents to be licensed, except those who are related, and would create the Foster Care Reimbursement Rate Committee to develop a statewide standard reimbursement rate structure for foster parents. Finally, legislation would require annual reductions in the average caseload of case managers until the caseloads are within the standards established by the Child Welfare League of America. Although the original bill would have returned all case management to the state, an amendment will be worked on prior to Select File to allow Nebraska Families Collaborative to continue to serve the Eastern Service Area (Douglas and Sarpy County) as a pilot program.

If you have any comments on the child welfare legislation or other bills being discussed by the Legislature, 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 e-mail address is lheidemann@leg.ne.gov.

Holdrege Senator Tom Carlson introduced a constitutional amendment that would alter the term limit provision for state senators. Currently, senators are limited to two consecutive terms or eight years. LR 358 CA would ask voters if term limits should be extended to three consecutive terms or twelve years. LR 358 CA was given first-round approval this past week on a 30-12 vote. This proposed constitutional amendment must be approved two more times by the Legislature before it goes to a vote of the people. Thirty votes are required for passage by the Legislature.

Voters approved several constitutional amendments for term limits in the 1990′s, only to be thrown out by court decisions. The current version was passed in 2000 and took effect in 2006. Nebraska is now one of 15 states that limit the terms of senators. During the 1990′s, 21 states restricted the length of service of lawmakers, but since that time several laws have been thrown out by courts and other states have repealed their restrictions.

Supporters of lengthened term limits stress the value of experience and historical knowledge that accumulates over the years. They claim that the executive branch and the lobby have more power over inexperienced lawmakers and point out that voters have the ultimate power in the voting booth to elect their representative of choice. Opponents of LR 358 CA argue that the voters made a decision and the Legislature should not attempt to alter the constitution just 6 years after term limits went into effect.

Currently students can legally drop out of school with the notarized consent of a parent or guardian at the age of 16. LB 996, introduced by Senator John Wightman of Lexington, would remove this option, thereby requiring students to remain in school until graduation. Although this may sound like a good idea, as lawmakers want to encourage every student to graduate, it also did raise some concerns. If students don’t want to be in school, teachers will have to deal with behavioral issues, which takes time away from students who are ready to learn. LB 996 received first-round approval, but the sponsor agreed to work on an amendment prior to the second round of debate that would help prevent students from dropping out, without taking away the exception that is available for parents.

This past week, it was learned that KVC will no longer provide case management and related services for children and their families in the child welfare system effective March 1. In 2009, the Department of Health and Human Services began the process of privatizing child welfare services in the state. It has been a rocky road that began with the Department contracting with 5 lead agencies. With the recent announcement, only one lead agency remains – Nebraska Families Collaborative (NFC). NFC will now provide child welfare case management services for all children and families in the eastern service area, including Douglas and Sarpy counties, taking over the portion that was previously served by KVC. The Department will resume their role in the southeast service area of the state.

The Department of Health and Human Services and NFC have stated that they plan to keep many of the KVC workers, in an effort to prevent additional disruptions in caseworkers for children and their families in the system. The Department has also vowed to reduce caseloads to an average of one worker for every 16 children. Prior to privatization, the average worker caseload had been one worker for every 23 children. Although the instability throughout this process for children and their families has been unfortunate, the reduction in caseload size is a significant change and will be a critical factor in the success of the child welfare system.

The Legislature’s Health and Human Services Committee conducted a very thorough interim study last fall. The recommendations from the interim study, as well as the introduction of several bills, were intended to provide a bridge to the future of child welfare reform. Five bills that pertain to child welfare have been prioritized, two by the Health and Human Services Committee, two by the Legislative Performance Audit Committee and one by Senator Kathy Campbell, the chair of the Health and Human Services Committee. This will assure that child welfare is a top priority during the remainder of this legislative session.

I encourage you to contact me with your thoughts and opinions on the bills currently before the Legislature. I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE 68509. My email address is lheidemann@leg.ne.gov and my telephone number is (402) 471-2733.

LB 970, which is the Governor’s proposal to reduce individual income tax rates, widen tax brackets, reduce the top corporate income tax rate, and eliminate the inheritance tax, was prioritized by Senator Beau McCoy of Omaha. This bill is still being held in the Revenue Committee and some committee members have expressed opposition to the repeal of the inheritance tax, as it could result in property tax increases in counties across the state. Whether the income tax reductions could be sustainable long-term is still a matter of discussion.

Assuring that child welfare is a priority issue for this session, the Health and Human Services Committee designated LB 961 and LB 821 as their priority bills. With the recent privatization of child welfare, many issues have arisen and it is my hope, as well as the committee’s, that these issues are resolved during this legislative session.

LB 599 deals with the controversial issue of whether women that are in the country illegally should have access to prenatal care under the Medicaid program. Lincoln Senator Amanda McGill designated LB 599 as her priority bill. Previously, the status of the unborn child, not the mother, was used to determine eligibility. A couple years ago, it was determined that this practice was in violation of federal rules and prenatal coverage was dropped for these women. LB 599 would allow the state to provide prenatal coverage through the Children’s Health Insurance program, known as Kids Connection.

Senator Tom Carlson of Holdrege designated a proposed constitutional amendment as his priority bill. If passed by the Legislature, it would allow Nebraska residents to vote on whether term limits should be lengthened. Currently, Nebraska senators are limited to two terms in office or eight years. LR 358 would allow office holders to remain in office for three terms or twelve years.

LB 913, designated by Senator Greg Adams of York as his priority bill, would change the school finance formula for school districts. The chair of the Education Committee introduced this bill due to his concern that the future double digit increases projected in the state aid formula for schools are not sustainable.

Omaha Senator Brad Ashford selected LB 357 for the second year in a row as his priority bill. It would allow a municipality to impose a sales tax of up to two percent. Current law allows local option sales tax rates of up to one and one-half percent. Cities could only use this additional authority if voters approved it.

Two senators designated bills pertaining to oil pipelines as their priority bills. This was the issue discussed in the Special Session called last November pertaining to the proposed route of the Keystone XL Pipeline. LB 845, designated as a priority by Cedar Rapids Senator Kate Sullivan, would require a pipeline carrier to complete final grading, topsoil replacement, installation of erosion control structures, seeding and mulching within 30 days after back-fill, unless certain circumstances occurred. Papillion Senator Jim Smith selected LB 1161 as his priority bill. It would permit the Nebraska Department of Environmental Quality to study and evaluate routes for oil pipelines across the state. LB 1161 was introduced to serve as a vehicle for legislation that may be needed as the pipeline proposal evolves on the federal level.

I chose LB 1061 as my priority bill. It proposes to reduce the valuation of agricultural land for school district taxation purposes by 2% per year for five years. One of the reasons why I ran for the Legislature 8 years ago was because I wanted to do something about high property taxes for rural landowners. This bill would be a first step in resolving the problem.

These are just a few of the bills that have been given priority status. I encourage you to contact me with your opinions on these bills and others that has been selected as priority bills. I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE 68509. My e-mail address is lheidemann@leg.ne.gov and my telephone number is (402) 471-2733.