NEBRASKA LEGISLATURE
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Sen. Dan Watermeier

Sen. Dan Watermeier

District 1

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Legislative Update

April 3rd, 2014

This past week began with the Legislature being notified of the Governor’s veto of $64 million within the budget bills. The Appropriations Committee met early in the week and developed a package of items that they recommended for override. The Legislature agreed with the Appropriations Committee and voted to override the recommended vetoes.

The Governor had vetoed $7.4 million of the $17.5 million in funding for the Game and Parks Commission. In his veto message, the Governor stressed that the partial funding would still allow for the projects at Ponca State Park and Arbor Lodge State Historical Park. However, the written agreement between the Appropriations Committee and the commission stated that should the committee provide $17.5 million, the commission would be able to further address priority deferred maintenance needs statewide and the undertaking of capital projects at Ponca State Park and priority capital projects at Arbor Lodge State Historical Park to put the existing facilities in a condition that would be conducive to transferring operating and management to a local partner. With the successful override motion, it eliminates any question as to whether the projects will be undertaken.

I joined the Governor at a press conference where he signed legislation offering more than $400 million in tax relief to Nebraskans over the next 5 years. Among the bills the Governor signed was LB 96. This bill will eliminate the sales tax on repair or replacement parts for agricultural machinery and equipment. Nebraska was one of only 8 states that charged sales tax on such items, which created a competitive disadvantage for our farm equipment supply industry, particularly for those located close to the state’s border. LB 905 will increase the Property Tax Credit Program by $25 million, bringing the annual appropriation to $140 million. LB 986 will expand Nebraska’s homestead exemption program so that more Nebraskans qualify, by increasing the limit on household income. LB 850, the bill I introduced to authorize a homestead exemption for individuals with developmental disabilities who meet income and valuation guidelines, was included in LB 986. LB 987 will index Nebraska’s individual income tax brackets for inflation, exempt more social security income from taxation, and provide limited tax exemptions for military retirees. Furthermore, LB 725 contains an additional $33 million in state aid to local school districts.

LB 1098, which would reconstruct the Nebraska Natural Resources Commission, was given first-round approval this past week. The legislation is the result of the work of the Water Funding Task Force during the past interim. The restructured commission would be required to revise their rules and regulations to ensure the funding process follows the ranking and criteria recommendations of the task force.

Several senators are pushing for basin-wide planning to ensure water sustainability and threatened to filibuster LB 1098 if provisions for a state water plan were not included. Others feel that such a proposal favors surface water irrigators at the expense of groundwater irrigators. I feel that statewide water planning is already in place through the work of the Department of Natural Resources and our local NRDs.

The budget bills contain $31 million in funding for water sustainability projects and LB 1098 is the vehicle for the distribution of these funds. Interested parties have pledged to work together on a compromise prior to the second-round of debate. I spoke on the floor of the importance of dealing with water sustainability projects now and not postponing them. The project at Lake McConaughy cost $43.5 million in 1935. Today, that cost would have grown to $695 million.

Although the Legislature has advanced some controversial issues, other legislation hasn’t fared as well. LB 943, which would have increased the minimum wage, failed to receive first-round approval. LB 1058, a bill that would have adopted the Interstate Compact on the Agreement Among the States to Elect the President by National Popular Vote, was pulled from the agenda by its introducer. LB 965, which was intended to encourage more renewable energy development but could have resulted in higher electric rates, was bracketed until the end of session.

As we enter the final days of this legislative session, which is scheduled to adjourn on April 17, I still 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 email address is dwatermeier@leg.ne.gov.

Sen. Dan Watermeier

District 1
Room #2108
P.O. Box 94604
Lincoln, NE 68509
Phone: (402) 471-2733
Email: dwatermeier@leg.ne.gov
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