Sen. Lavon Heidemann
Sen. Lavon Heidemann
District 01

Legislative Update

February 10th, 2012

I introduced a bill in the Revenue Committee this past week that proposed to decrease the valuation of agricultural land from 75% to 65% over a 5-year period for school district taxation purposes. Under LB 1061, the value of agricultural land would remain at 75% for other taxation purposes, such as counties, NRDs, etc., assuring that these political subdivisions would not experience a reduction in their property tax revenue. By decreasing the valuation of agricultural land for school taxation purposes, it would trigger an increase in equalization aid to school districts that contain agricultural land.

Farmers represent a small percentage of the state’s population but shoulder a significant portion of the property tax burden. Even though farmers and ranchers are funding a disproportionate part of our rural school districts, all residents benefit equally from having their children educated in our public schools. Furthermore, since agricultural land values are increasing more rapidly than residential or commercial property, it enhances the problem and places an increasingly heavy burden on farmers and ranchers to fund our K-12 schools.

The number of school districts that are non-equalized is increasing at an alarming pace. Non-equalized means that the district doesn’t qualify for state equalization aid because their resources, primarily the valuation of land within the district, are greater than their needs. When I began my service in the Legislature, there were 46 non-equalized school districts. For this school year, 95 school districts are non-equalized. I think it is very disappointing when more than a third of the school districts in the state don’t qualify for state equalization aid, yet the cost for the state aid system for K-12 schools is projected to increase by an average of 15% per year over the next two years. LB 1061 would help reverse this trend, allowing some school districts to regain their equalized status.

Representatives from the Nebraska Farm Bureau, the Nebraska Cattlemen and the Nebraska Soybean Association all testified in support of LB 1061. They agreed that our current state aid system relies too heavily on property taxes to fund our K-12 schools and noted that LB 1061 would be a first step in resolving this problem.

The Appropriations Committee released their preliminary report this past week. It shows that the financial picture for the current biennium has actually improved since the Legislature last met. The variance from the minimum General Fund reserve increased from $3.2 million to $63.2 million. Although the current budget is balanced at the present time, the projection for the following biennium (fiscal year 2013-2015) is not as positive. The current financial status shows a projected balance of $343 million below the minimum reserve for the 2013-15 biennium. (This figure does not reflect the Governor’s proposal for income tax reductions.) The projected negative figure is due to a structural imbalance, reflecting that our predicted appropriations are greater than our projected revenues. The Economic Forecasting Board will meet on February 24 and the Appropriations Committee will use their forecast to base our final budget recommendations on.

I encourage you to contact me with your comments and opinions on the various bills that are before the Legislature. 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 if (402) 471-2733.

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Legislative Update

February 3rd, 2012

It’s been a busy week in the Appropriations Committee hearing room. On Monday afternoon and evening, the Appropriations Committee heard approximately seven hours of testimony on health and human services issues. Providers of health care urged the committee to restore last year’s 2.5% cut in provider rates, as well as oppose the mid-biennium reductions to Medicaid and other health-related programs, as proposed by the Governor.

The majority of the testifiers at Monday’s hearing were present to support LB 952, which was introduced by Omaha Senator Jeremy Nordquist, in response to a December letter from Vivianne Chaumont, director of the Division of Medicaid & Long-Term Care, with the Nebraska Department of Health and Human Services. In the letter, Ms. Chaumont laid out her division’s plan for Medicaid reform. Co-payments would increase from $1 to $2 on visits for physical, speech and occupational therapies and would increase to $50 for non-emergency visits to the ER. Home health services would be limited to 240 hours per year and private duty nursing services would be eliminated. In order to receive Personal Assistance Services, clients would be required to meet the nursing facility level of care and would be limited to 3.5 hours per day or 60 hours per month. Oral nutritional supplements would be eliminated and behavioral health therapy visits would be limited to 60 per year. Further cuts were outlined should the federal budget crisis create across the board cuts to the Medicaid program. The intent of LB 952 is to prohibit the implementation of these proposed cuts to the Medicaid program for the remainder of the 2011-13 biennium.

Supporters of LB 952, many who were disabled themselves or who brought their severely disabled children with them to the hearing, testified that such costs could lead to more institutionalized care, which could cost more in the long run. Ms. Chaumont pointed out that during 2011, 237,000 Nebraskans received Medicaid funding, up 11,000 from 2010. She explained that some changes must be made in order to ensure that Medicaid remains a viable program for meeting the basic health needs of Nebraskans into the future.

On Tuesday, January 31, Scottsbluff Senator John Harms, the vice chair of the Appropriations Committee, introduced LB 1019. This bill proposes to appropriate $13.7 million to Chadron State College for the renovation of the Armstrong Gymnasium and $8.6 million to Peru State College for renovation of the Oak Bowl. I am a co-sponsor of LB 1019. I recently invited Senator Harms to tour Peru State College. In his testimony he spoke of the dire condition of the Oak Bowl, in the midst of an impressive campus, and his concern with safety and liability issues with the current facility. He stressed the need for improvements to assist in the recruitment of students and the overall reflection of the campus, as well as the benefit to the community.

On Thursday, February 2, the Appropriations Committee held a public hearing on the four bills brought forth on behalf of the University of Nebraska as part of their legislative initiative entitled “Building a Healthier Nebraska”. LB 1089 seeks an appropriation of $50 million for the construction of a new cancer research facility at UNMC. LB 1055 would appropriate $19 million for the construction of a new facility for the Kearney Division of the College of Nursing and LB 1065 asks for $17 million for the construction of a new facility for the Lincoln Division of the College of Nursing. LB 1066 proposes an additional $5 million for the planning and architectural design of a new veterinary diagnostic laboratory facility at the Institute of Agriculture and Natural Resources. A separate request for approximately $50 million would be made in the future for the construction of the new center. Altogether, these four bills would require an initial investment of $91 million. The University has suggested that the funding be taken from the state’s cash reserve fund. Private donations and other sources would account for approximately $300 million of the $441 million capital initiative.

This is the first time in several years that the state has more funds available than required by the minimum statutory reserve. Therefore, the Governor has proposed income tax cuts and we are seeing requests for funding for projects that have been delayed due to years of budget cuts. All of these proposals have their merits. However, the members of the Appropriations Committee will have to prioritize and determine what proposals will fit not only into this year’s budget, but will be sustainable in future years.

I encourage you to contact me with your thoughts and opinions on these proposals as well as others that are 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.

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Legislative Update

January 27th, 2012

Several major legislative bills were heard before their respective committees this past week, including LB 970, which was introduced by Bellevue Senator Abbie Cornett, the chair of the Revenue Committee, at the request of the Governor. LB 970, heard before the Revenue Committee, proposes to reduce three separate taxes – the individual income tax, the corporate income tax and the inheritance tax. The individual state income tax would be reduced by lowering current tax rates and expanding tax brackets. The bill also reduces the current top corporate income tax rate from 7.81% to 6.7%, which matches the top proposed individual income tax rate. Additionally, LB 970 would repeal the inheritance tax, to complete the process begun in 2007, when the estate tax was repealed.

The Governor himself testified in support of LB 970, as did the Nebraska Tax Commissioner, Doug Ewald. The individual income tax and corporate income tax reductions proposed in LB 970 are projected to reduce revenue for our state by $51 million in fiscal year 2012/13, by $130 million in fiscal year 2013/14 and by $143 million by fiscal year 2014/15, for a cumulative total of approximately $325 million over the next three years. Additionally, the elimination of the inheritance tax would reduce revenue for Nebraska counties by $40-45 million annually.

The hearing room was crowded, primarily with representatives of the 93 counties across the state that oppose the Governor’s proposal to eliminate the inheritance tax. In his testimony, Larry Dix, the executive director of the Nebraska Association of County Officials, compared the inheritance tax for counties with the cash reserve fund for the state. Counties depend on this revenue and if it were eliminated, it could result in property tax increases. However, for those counties that are up against or close to the levy lid, services would have to be cut in order to deal with the loss of revenue. I am sympathetic to the concern expressed by the counties, as just last year, in an effort to cut spending at the state level in order to prevent an increase in taxes, the Legislature eliminated state aid to counties, as well as cities and Natural Resource Districts. Although I had concerns with these cuts last year, it became apparent that everyone had to share in the spending reductions during the recession our state was experiencing. Consequently, to hit counties again this year is troublesome. As to whether the state can afford to reduce income taxes, the Legislature will have a better idea of the state’s economy after the Economic Forecasting Board meets on the 24th of February.

The Health and Human Services Committee heard testimony on LB 825, introduced by Fullerton Senator Annette Dubas. Approximately two years ago, the Department of Health and Human Services began phasing out local benefits offices and caseworkers, moving to centralized call centers to process applications and case reviews for persons seeking public assistance benefits such as food stamps, Medicaid, and child care subsidies. Although this type of system was supposed to be more efficient, one of the downfalls is that a caller never speaks to the same caseworker. In the previous system, caseworkers were familiar with the case histories of their clients.

LB 825 would require the Department of Health and Human Services to establish or reestablish 25 local offices throughout the state for in-person application and eligibility determinations for public assistance programs. The local offices would have to be open and staffed 40 hours per week. The fiscal note projects the cost to the state to fund this bill would be approximately $1.9 million annually.

As the Legislature debates these controversial issues and other issues of interest, 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 is (402) 471-2733 and my e-mail address is lheidemann@leg.ne.gov.

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Legislative Update

January 20th, 2012

There were 468 bills and 6 resolutions for constitutional amendments introduced during the 10-day introduction period of this legislative session. This is higher than the 428 bills and 14 constitutional amendments introduced two years ago during the short (60-day) legislative session, possibly because the revenue situation is beginning to stabilize following the recession that hit our economy over the last several years.

On January 19th, Supreme Court Chief Justice Michael Heavican delivered the State of the Judiciary address to the Legislature. Just as the Governor did in his State of the State address, Chief Justice Heavican also began his message by referring to the issue of child welfare privatization. He pledged the willingness of the courts to continue to explore and implement innovative programs for Nebraska’s children. The Chief Justice informed senators that Nebraska is now one of only a few court systems in the nation that have a statewide comprehensive case management system, which allows for electronic filing of cases, electronic payment of fines, and electronic viewing of court records 24 hours a day. He credited the former Supreme Court Chief Justice William Hastings, who passed away in 2010, for his foresight in the establishment of the Court of Appeals, which helps expedite appellate cases, and the passage of the Dispute Resolution Act, which established the use of mediation in Nebraska Courts. Chief Justice Heavican closed by reiterating the commitment of the judicial branch to efficiently fulfill their role of providing access to justice for all Nebraska citizens.

I have introduced 5 legislative bills this year. LB 761 would streamline a process created last year to require review and approval of cash gifts or donations used for the purchase of real property or structures. LB 960 harmonizes the appropriation of funding from the Health Care Cash Fund. LB 994 proposes to transfer funding from the Civic and Community Center Financing Fund to the State Colleges Sport Facilities Cash Fund. LB 995 updates statutes pertaining to county hospitals and places them on equal footing with their peer hospitals. LB 1061 attempts to reduce the valuation of agricultural land for school district taxation purposes by 2% per year for 5 years.

The Appropriations Committee, of which I chair, has completed initial agency briefings. We will now start the public hearing process on agencies and on bills that have been referred to the Appropriations Committee. One controversial bill that the committee will hear the first day of public hearings would appropriate $2 million for an environmental study to consider the impact of the placement of a hydroelectric dam on the Platte River. If the project proposed in LB 808, introduced by Senator Scott Lautenbaugh of Omaha, was found to be feasible and directed to proceed, it would create a lake between Omaha and Lincoln, where the community of Ashland is now located. Senators have received many letters, phone calls and e-mails from local residents expressing their opposition to this proposal, which has been rejected in previous attempts.

Again, I would like to encourage you to contact me with your thoughts and opinions on the legislation that is before the Legislature. 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.

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Legislative Update

January 12th, 2012

Governor Dave Heineman presented his State of the State message to the Legislature this past week. After recognizing the nine state senators that will serve their last year in the Legislature due to term limits, he switched directions and focused on one of the most important challenges facing the state, that being the safety of children that are part of the child welfare system. He noted that reforming the system is an extremely complex task, but that he did not want to return to the failed practices of the past. The Governor indicated that he is working with the Health and Human Services Committee to develop a common sense plan of action for the future.

The Governor also commented on the federal health care law and assured the citizens of Nebraska that our state will not default to the federal government regarding the implementation of health insurance exchanges. However, he thinks it would be a mistake to spend large sums of money to begin implementing the law’s provisions prior to the U.S. Supreme Court’s decision on the constitutionality of the law, which is expected by June 29 of this year.

Governor Heineman spoke of our accomplishments made since he began his term as governor, specifically the investments and jobs attributed to the passage of Nebraska Advantage, as well as the passage in 2007 of the largest tax relief package in history, which repealed the estate tax, eliminated the marriage penalty in the income tax system, repealed the sales tax on construction labor, and lowered income taxes. The governor also noted the passage of the Talent and Innovation Initiative last year and the investment made in the University of Nebraska’s Innovation Campus.

However, the Governor stressed that there is more to do. Therefore, Governor Heineman recommended providing middle class taxpayers more than $326 million in tax relief over the next three years. His proposal would accomplish this through lower individual income tax rates, expanded tax brackets, a lower corporate income tax rate, and the elimination of the inheritance tax.

Legislation to accomplish what the Governor has proposed in his State of the State message will be introduced on his behalf by various senators. The introduction of bills will continue through January 19. All bills, with the exception of budget bills, must be introduced during the first 10 days of the legislative session. The public hearing process will begin January 17. After this date, the Legislature will meet as a body in the mornings and divide into their specific standing committees in the afternoon. A public hearing is held on every bill that is introduced. The public is invited to testify at the public hearings or written testimony can be submitted to the applicable committee.

As we begin to discuss legislation, I encourage you to contact me with your thoughts and opinions on the various bills. Your input helps me truly represent District #1. 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.

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Legislative Update

January 6th, 2012

On Wednesday, January 4, the Nebraska Legislature began the 2012 legislative session that will last for 60 days, with adjournment tentatively scheduled for April 12. Term limits will make this session the last for nine senators: Senator Mike Flood, Speaker of the Legislature; Senator Deb Fischer, chair of the Transportation and Telecommunications Committee; Senator Chris Langemeier, chair of the Natural Resources Committee; Senator Abbie Cornett, chair of the Revenue Committee; Senator Rich Pahls, chair of the Banking, Commerce and Insurance Committee; Senator Tony Fulton; Senator LeRoy Louden; Senator Gwen Howard; and myself, chair of the Appropriations Committee.

Since the conclusion of the 2011 legislative session, Senator Dave Pankonin resigned from the Legislature and Senator R. Paul Lambert was appointed to fill the vacancy. I will be working closely with Senator Lambert, as we both now represent part of Nebraska City, due to the redistricting process that took place last year.

During the opening procedures for the 2012 session, the Legislature took some time to remember our colleague, Senator Dennis Utter, who passed away shortly after Christmas. Although the Governor is in the process of selecting his replacement, we will all miss Senator Utter, as he was an honest, hard-working, and highly-respected legislator and friend.

Last year at this time, the Legislature was facing a nearly $1 billion shortfall. We successfully dealt with the shortfall through budget cuts and without raising taxes. We are in a better position this year, as projections reflect an excess of $34 million at the end of the current biennium. However, as chair of the Appropriations Committee, I hesitate to commit to any new proposals with on-going costs, especially since projections for the 2013-15 biennium show a shortfall of $430 million, most of which can be attributed to projected increases in state aid to schools.

Two years ago, the Nebraska Department of Health and Human Services began the process of privatizing the state’s child welfare system. The outcome has not been what the department envisioned. The number of state wards has not decreased and expenses have increased by 27 percent. The general consensus is that services for children and families have not improved. The Health and Human Services Committee of the Legislature recently issued a report summarizing their nearly year-long review, investigation and assessment of Child Welfare Reform. They made some notable suggestions for change, including returning case management duties to the state by July 1; creating a separate Nebraska Department of Children’s Services to oversee all child welfare programs; and creating the Children’s Commission to oversee child welfare in the state, acting as an advisory body to all three branches of government. Child welfare issues are sure to be a priority of the 2012 legislative session.

I will be driving back and forth to Elk Creek every day during session. I enjoy talking to residents of District #1 when they call or stop by the Capitol. However, if I am in a meeting or on the floor of the legislature, my staff will be happy to assist you. Tim Freburg answers the telephone, greets visitors, and handles my schedule. Anne Fargen is the clerk for the Appropriations Committee and Kim Davis works on legislation and on constituent inquiries.

If you are interested in the legislative process, I recommend visiting the Legislature’s website at NebraskaLegislature.gov. Viewers can read the text of bills introduced, search state statutes, e-mail state senators, read the Unicameral Update online and watch the Unicameral live in action.

I encourage you to contact me with your opinions and comments on the issues that are 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. My office number is Room 1004 and is located on the northwest side of the first floor of the State Capitol.

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Special Session Update

November 22nd, 2011

Governor Dave Heineman called the Legislature into Special Session on Tuesday, November 1, 2011, to discuss the possibility of enacting siting legislation that would force TransCanada to move the proposed route for the Keystone XL pipeline out of the Sandhills region. Since the U.S. Department of State had indicated that it would make a decision on the issuance of a final permit by the end of the year, the Governor felt the necessity to call a Special Session, thereby reversing his earlier stance on the issue.

The Legislature met in Special Session for 15 days and passed two bills – one dealing with the proposed Keystone XL pipeline and one enacting siting legislation that would affect any oil pipelines proposed in the future. It was an eventful Special Session, with the game plan changing often, as new circumstances occurred.

Prior to the Governor calling the Legislature into Special Session, several senators met with TransCanada officials, strongly suggesting that the proposed route be altered to avoid the Sandhills region and the portion of the Ogallala Aquifer where the water table is higher. It was learned that altering the route was an unacceptable solution by TransCanada, as it would require a supplemental environmental impact statement under the National Environmental Policy Act, thereby delaying the project. However, TransCanada officials did agree to additional safety measures, including a $100 million performance bond. These measures were in addition to the 57 special conditions for operation and maintenance that TransCanada had already agreed to, which are beyond industry standards, including an increased number of inspections, an increased number of safety shut-off valves, and building the pipeline four feet below the ground instead of three feet.

The question of whether our state could legally enact legislation to change the route at this point in the review process, which was more than three years after TransCanada submitted their application to the U.S. Department of State, was not answered prior to meeting in Special Session. Attorneys on both sides gave conflicting information. Senators expressed concern as to the extent of our state’s liability if lawsuits were filed, which was an expected outcome if such legislation was passed.

However, while the Legislature was meeting in Special Session, several important events occurred. First, the U.S. Department of State announced on November 10th that it would undertake an in-depth assessment of potential alternative routes in Nebraska, citing the concentration of concerns regarding the environmental sensitivities of the current proposed route through the Sandhills of Nebraska. The statement noted that Nebraska currently had no law governing routes for interstate petroleum pipelines or any regulatory framework authorizing state or local authorities to determine the location of a pipeline. The announcement also mentioned that Nebraska lawmakers were currently meeting in Special Session to discuss this issue. They estimated that the decision on the final permit would now be delayed until the first quarter of 2013.

Shortly thereafter, Speaker Mike Flood brokered a deal where TransCanada voluntarily agreed to move the route out of the Sandhills. This was a most noteworthy announcement because it eliminated the need for Nebraska to pass siting legislation affecting the proposed Keystone XL pipeline, which most likely would have triggered expensive lawsuits. These announcements led the way for the passage of LB 4 (affecting the proposed Keystone XL pipeline) and LB 1 (enacting siting legislation that would be in place prior to any future proposals for pipelines) on November 22, 2011. LB 4 will allow the Nebraska Department of Environmental Quality to work with federal agencies in a review under the National Environmental Policy Act involving a supplemental environmental impact statement, as a result of the agreed upon revised route in Nebraska. In order to make sure that the supplemental environmental impact statement is impartial and avoids any appearance of conflict of interest, it was decided that the State of Nebraska would pay for the associated costs. (The initial environmental impact statement that was approved in August was paid for by TransCanada, who recommended contractors to complete the analysis.) After the supplemental environmental impact statement is prepared, the Department is to submit it to the Governor for his approval.

LB 1 adopts the Major Oil Pipeline Siting Act, which sets out a procedure for pipeline carriers to follow. An application must be approved by the Public Service Commission prior to beginning construction of a major oil pipeline in Nebraska. One or more public hearings would be held. In making the decision as to whether the pipeline is in the public interest, the Commission can evaluate evidence of the impact due to intrusion upon natural resources, including evidence regarding the irreversible and irretrievable commitments of land areas and connected natural resources and the depletion of beneficial uses of the natural resources. The Commission can also evaluate the reports submitted by related agencies, as well as the views of the governing bodies of the counties and cities in the area of the proposed route. The Commission is preempted by federal law from looking at safety issues when making their decision. Furthermore, LB 1 requires the approval of an application prior to the use of eminent domain.

Although most residents of Nebraska seemed to support the pipeline in general, recognizing the need to reduce our reliance on Middle East oil and provide for increased jobs and tax revenue for our state, the issue of most concern was the route through the Sandhills region. With the proposed agreement to voluntarily move the route out of the Sandhills, which was ratified through LB 4, and with the passage of LB 1, which will prevent this same situation from happening in the future, I feel that the Special Session was successful. We also need to be thankful that the U.S. Department of State and TransCanada officials listened when the people of Nebraska spoke.

With the adjournment of this Special Session, senators will have just over a month before convening for the regular session which begins on January 4, 2012. If you need to contact me during this time, I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE 68509. My telephone number at my Capitol office is (402) 471-2733 and my e- mail address is lheidemann@leg.ne.gov.

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Legislative Update

May 26th, 2011

The One Hundred Second Legislature, First Session, has adjourned three days earlier than expected, on the eighty-seventh legislative day, rather than the ninetieth day, which was tentatively scheduled for June 8. The delayed last day would have given the Governor the five days allowed by our state constitution to make a decision on whether to sign or veto bills presented to him. However, the Governor agreed to work with the Legislature and make his decision on whether to sign or veto the bills on the same day they were presented to him, thereby giving the Legislature the opportunity to override any vetoes, if necessary, before adjournment.

The Legislature passed a balanced budget, despite a projected nearly $1 billion deficit at the beginning of this legislative session. We completed the redistricting process for congressional, legislative, Supreme Court, public service commision, NU Board of Regents, and State Board of Education districts. We overhauled the Commission of Industrial Relations (CIR) without great upheaval, as has happened in other states. The Legislature strengthened DUI laws, abortion laws, and economic development laws. Overall, it was a very successful session.

The Legislature passed more than 200 bills this year. Other bills were either killed, remain in committee, or at the various stages of debate. All bills pending at the end of a session in odd-numbered years are automatically carried over to the next year’s legislative session.

Some of the issues that are pending and the Legislature may debate next year are a proposal to return Nebraska to a winner-take-all presidential electoral vote system, legislation that would allow cities to increase their local option sales tax to 2% upon the successful vote of the people, and a constitutional amendment to protect Nebraskan’s right to hunt, fish and trap. Among the bills that were killed during this legislative session include proposals to eliminate daylight savings time, to prohibit fast-food restaurants from putting toys or prizes in children’s meals unless they met certain nutritional guidelines, and to offer tax incentives to movie production companies that film in the state and hire local talent.

With the completion of the legislative session for this year, I am looking forward to spending more time in the district. I usually try to work in my office at the State Capitol at least one day a week during the interim. My legislative staff will be available daily if you should need assistance and will pass your information on to me. The contact information for my office is 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.

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Legislative Update

May 20th, 2011

The Governor signed the budget bills this past week. As I mentioned last week, he had the authority to veto portions of each individual bill, as well as the entire bill. However, Governor Heineman signed the entire package of budget bills without one line-item veto. The legislation contains a balanced budget, despite the $986 million shortfall projected earlier this year. The budget calls for a 2.6% average annual increase in general fund spending, compared with a projected average annual revenue growth of 4.3%.

As the Appropriations Committee began their work on the biennial budget, I predicted that this would be an extremely difficult task considering the substantial projected deficit. Over the interim, the various committees of the Legislature developed suggestions for possible cuts in areas under their jurisdiction. The Education Committee took on the monumental task of reducing the growth in state aid to education for K-12 school districts. Furthermore, I believe that Nebraskans were well aware of the repercussions of the recession and accepted the fact that substantial cuts would have to be made in order to avoid any tax increase. As Appropriations Committee chair, I was very impressed with the role that the Legislature and the citizens of Nebraska played in the budget process, resulting in the passage of a very responsible budget.

The Governor also signed LB 84, which will divert ¼ cent of the current sales tax revenue for road construction projects for 20 years beginning in 2013. The delayed time frame will allow the Legislature to monitor the recovery of the economy to determine if the state can afford this necessary expense without having to reduce other important services.

Every 10 years after the completion of the census, the Legislature is given the task of redrawing district boundaries. This redistricting process covers the Public Service Commissioners districts, the Board of Regents of the University of Nebraska districts, the State Board of Education districts, the Supreme Court Judicial districts, as well as legislative districts and congressional districts.

LB 703 contains the proposal for the revamped legislative districts, based on the new census figures. Due to the population shift from rural areas to urban areas, the proposal moves Legislative District #49, located in the far northwestern corner of the state, to the Omaha area.

Under LB 703, Legislative District #1 will undergo some changes. The counties of Johnson, Nemaha, Pawnee and Richardson remain intact in District #1. Currently, District #1 contains the Southwest corner of Cass County, including the Village of Eagle. Under the proposal, all of Cass County would be located in District #2, represented by Senator Dave Pankonin of Louisville. To reach the target number of 37,272 residents, District #1 would grow by covering half of Nebraska City. Currently, District #1 contains most of Otoe County, but not Nebraska City. Highway 75 would be the dividing line from the north, continuing on Highway 75 through town and then along East 4th Corso. Residents living north and east of this dividing line would remain in District #2.

Several counties in southeast Nebraska will change districts if the plan for Congressional Redistricting, as contained in LB 704, is passed by the Legislature. Under the proposal, the counties of Johnson, Nemaha, Pawnee and Richardson would become part of District #3, represented by Congressman Adrian Smith. Otoe and Cass counties would remain in District #1, represented by Congressman Jeff Fortenberry. Although I was not pleased with the proposed boundaries, as I feel that southeast Nebraska has more in common with District #1, I realize that changes had to be made to accommodate the population increases in the metropolitan areas of eastern Nebraska. On the positive side, Congressman Smith has already contacted my office and is interested in visiting his new district and meeting the people of southeast Nebraska.

An agreement was reached on the bill affecting collective bargaining and the Commission of Industrial Relations. After a last minute proposal was submitted by the Lincoln, Omaha, and State Chambers of Commerce, which would have severely limited the authority of the CIR, several state senators met for hours with representatives of business and labor groups, finally reaching a compromise in which both sides had to give and take. The compromise allows for a range of acceptable wages, but narrows it from the 85-115% proposed by the chambers, to 98-102%, but dropping to 95-100% during a recession. If salaries are found to be higher than the acceptable range, the wage freeze would be replaced with a three-year adjustment period. The lack of transparency of the current system would be addressed with the requirement for a public vote on the last best offer by a union and a government employer before a case could be taken to the CIR. Comparison of wages with the private sector was stricken, as obtaining the data proved unworkable.

As we work to conclude this legislative session, I encourage you to contact me with your thoughts on the issues still before us. 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.

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Legislative Update

May 12th, 2011

It has been an eventful week. The budget bills were passed by the Legislature, providing for a balanced budget and calling for no tax increases. There was a single dissenting vote on one of the eight budget bills. The remainder passed with no dissenting votes. These bills have now been presented to the Governor, who is allowed five days to take action on the bills. If no action is taken within this time, they automatically become law. In addition to the Governor’s authority to sign or veto the bills, he also has the ability to line-item veto budget bills, meaning that the Governor can veto just a portion of a bill rather than the entire bill. I do not foresee many vetoes, as the Appropriations Committee followed the general direction of the Governor’s proposed budget recommendations offered in January.

The Legislature passed LB 84, which will divert ¼ cent of the sales tax revenue for roads construction projects for 20 years beginning in 2013. Thirty-three senators voted in support of this bill and ten voted against it. It is unknown at this time what action the Governor will take on this legislation. Although everyone seems to agree that more funding is necessary for our road system, as revenue from the gas tax has not kept pace with the increased costs of roads projects, senators were somewhat hesitant to commit this revenue source. However, with the delayed effective date, it will allow us time to determine how the economy rebounds prior to the law taking effect.

My priority bill was also passed by the Legislature on a 43-0 vote. LB 386 would encourage companies to establish internships in an effort to retain our graduates in Nebraska, as research shows that interns tend to stay in the region after graduation. Using funding from the Job Training Cash Fund for two years to help companies pay for the new positions, it is estimated that 700 new internships will be created statewide.

The Legislature discussed and gave first-round approval this past week to two bills dealing with driving under the influence of alcohol. LB 667, introduced by Senator Mike Flood of Norfolk, would encourage the use of vehicle interlock devices. These devices require the driver to exhale into the device prior to starting the vehicle. If alcohol is detected, the vehicle will not start. Under the proposal, if someone is arrested for DUI, a temporary license for 15 days would be granted, followed by a 180-day license revocation. If the person agrees to an interlock device, they would be allowed to drive to work, to school, to probation hearings, etc. If they choose not to get the interlock device, they would still face the 180-day license revocation period. Since some make the unwise decision to drive with a suspended license, this bill aims to make the interlock device a more attractive option, thereby granting more privileges while focusing on keeping the drunk driver off the road. Additionally, LB 667 proposes to criminalize drunken driving with a child in the vehicle, increases the penalty for providing alcohol to a minor who later kills or injures someone, makes motor vehicle homicide of an unborn child a distinct crime, and brings boating under the influence in line with our DUI laws.

LB 675, introduced by Senator Pete Pirsch of Omaha, targets habitual drunk drivers. The proposal would make it illegal for a repeat drunken driver to drive a vehicle with as little as 0.02% blood alcohol content and sets a minimum sentence of two years for people convicted of 5th offense or higher driving under the influence. It also increases penalties for leaving the scene of personal injury where it involves death or serious bodily injury and increases the look-back period for sentence enhancement purposes from the current 12 to 15 years.

As we enter the last few weeks of this legislative session, I still encourage you to contact me with your thoughts and opinions on the 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.

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