NEBRASKA LEGISLATURE
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Sen. Dan Watermeier

Sen. Dan Watermeier

District 1

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Legislative Update

April 10th, 2015

For the third year in a row, the Legislature debated a bill that proposed to expand Medicaid. Initiated by President Obama, the Affordable Care Act was signed into law on the federal level in 2010. Medicaid expansion was mandatory in the original legislation, but due to a Supreme Court ruling it became voluntary for states. LB 472 would authorize eligibility for Medicaid coverage for adults ages 19-65 with incomes at or below 133% of federal poverty level. This year’s version of the legislation also proposed to create the Medicaid Redesign task force to review health care policy.

Supporters of the legislation referred to a recent report by two business professors at UNK, which found that our state would receive more than $2 billion in federal funds during the first five years of expansion. It was estimated that this would increase our state’s economic activity by more than $5 billion. The professors projected that the increased economic activity would generate more than enough tax revenue to pay for the state’s portion of the increased costs of expansion. However, Governor Ricketts warned against using subjective measures in determining the justification for entitlement expansions.

Although the federal government pledged to pay at least 90% of the cost, many senators were still concerned with the financial burden that would be placed on our state. They also questioned whether the federal government would keep their commitment. Supporters pointed out that LB 472 contained language that if the federal share falls below 90%, the coverage for the newly eligible would terminate. Opponents argued that once a program is expanded, it is very difficult to reverse direction. Senators were sympathetic to those that can’t afford health insurance and were concerned for hospitals that have experienced hardships as a result of the Affordable Care Act. However, Medicaid is intended to cover the most vulnerable. Under current guidelines, spending on Medicaid accounts for approximately 20% of our total state budget. An increase in the state’s portion to cover more than 75,000 new enrollees could jeopardize the funding for other state programs.

Unlike the two previous years, lawmakers spent just over 3 hours debating the issue before a motion was made to bracket LB 472 until the end of the legislative session. The motion to bracket was successful on a 28-16 vote, which means that LB 472 will not be debated again this year.

This past week, senators gave first-round approval to LB 519, which reflects the recommendations from a study by the Education Committee on the educational uses of lottery funds. The Nebraska Constitution specifies that forty-four and one-half percent of the money remaining after the payment of prizes and operating expenses shall be used for education as the Legislature may direct. Approximately $16 million is allocated per year for education projects.

Revenue from the lottery will continue to fund the Teacher Loan Forgiveness Program and Nebraska Opportunity Grants for higher education. New uses for the lottery funds will be for Competitive Innovative Grants and Expanded Learning Opportunity Grants for K-12 schools and for a Gap Tuition Assistance Program to provide funding to community colleges to assist eligible students in pursuing certification programs or licensure in high-demand occupations.

Programs currently funded by lottery proceeds that have been preliminarily recommended for funding through the General Fund include High Ability Learner Aid, Early Childhood Education Grants, Early Childhood Endowment Grants, and operating funds for the Military Child Compact. Decreased funding for Distance Education, which is currently funded by lottery proceeds, is contained in LB 343. The ACT Pilot Project and Career Education programs will not be funded.

The Speaker announced this past week that the Legislature will begin working into the evening beginning April 28. Although we have already met for more than 60 days, we still have many major issues before us, including the budget, repeal of the death penalty, prison reform, and workplace protections based on sexual orientation and gender identity.

As we begin the last third of this legislative session, 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 email address is dwatermeier@leg.ne.gov and my telephone number is (402) 471-2733.

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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