NEBRASKA LEGISLATURE
The official site of the Nebraska Unicameral Legislature

Sen. Dan Watermeier

Sen. Dan Watermeier

District 1

The content of these pages is developed and maintained by, and is the sole responsibility of, the individual senator's office and may not reflect the views of the Nebraska Legislature. Questions and comments about the content should be directed to the senator's office at dwatermeier@leg.ne.gov

Legislative Update

April 1st, 2016

The Legislature gave first-round approval to both bills introduced on behalf of Governor Ricketts, containing his plan for property tax relief. However, the bills have been completely rewritten through the amendment process.

LB 959, as amended by committee amendments, eliminates the minimum levy penalty which reduces state aid to districts with levies less than .95 cents, removes the levy criteria from the averaging adjustment calculation, and caps the special levy school districts can use to address health, safety and accessibility problems in school buildings at 3 cents, down from 5.2 cents. LB 959 will allow a number of school districts to reduce their levy and will also provide more state aid to some districts that depend heavily on property taxes to fund their schools.

LB 958, as introduced, would have affected local governments by placing limitations on the budget of restricted funds and reducing the number of exclusions to the property tax levy limit. It also would have limited the state-wide increase in agricultural land valuations to 3 percent. Following the public hearing, when the committee heard significant opposition from representatives of cities and other political subdivisions, LB 958 was advanced from the Revenue Committee with committee amendments that rewrote the bill. Although a portion of the original bill remained in the committee amendments, pertaining to the unused restricted funds authority for community colleges, the sponsor of the bill has filed an amendment to strike this portion during the second round of debate, as he doesn’t want it to hinder the passage of the bill.

Under the committee amendments, LB 958 proposed a $30 million increase in the Property Tax Credit program, targeted for agricultural landowners. This would be accomplished by valuing agricultural land for purposes of the Property Tax Credit program at full market value rather than 75% of market value. With the additional funding, on top of the $204 million already appropriated for the program, the credit for agricultural landowners would result in an approximate 10% reduction in property taxes.

During debate on LB 958, urban senators felt that all taxpayers should receive tax relief, not just rural landowners, and an amendment was offered to strike the provisions of the bill, replacing it with an income tax reduction. Following several hours of contentious debate, a compromise amendment was offered to reduce the additional funding for rural landowners through the Property Tax Credit program to approximately $20 million annually. I was disappointed that we had to compromise in order to get LB 958 advanced. Considering that property taxes collected statewide on agricultural land increased 176% over the last 10 years, compared with a 35% increase in residential property and a 49% increase in commercial property, it was obvious that agricultural landowners deserved some immediate relief. However, the Legislature must continue to work to provide significant relief for all taxpayers.

LB 1032, is Nebraska’s fourth attempt at expanding Medicaid, as part of the federal Affordable Care Act. After about an hour of debate, a motion was offered to bracket the bill until April 20, which is the last day of session. The motion was successful, meaning that the bill is essentially killed for this session.

The Health and Human Services Committee amendments to LB 1032 proposed to add a sunset date in three years. The amendments also proposed to appropriate $63 million from the Health Care Cash Fund to fund the state match for the coverage of the newly eligible.

In addition to the sunset, LB 1032 also states that if the federal share falls below 90%, the coverage for newly eligible individuals shall terminate. Although the intent of the bill is to ensure no appeals to the loss of eligibility if the program terminates, this could be problematic. Federal law classifies the new Medicaid expansion population as a “mandatory population” for states that opt into the expansion.

Furthermore, senators questioned whether the source of funding was sustainable. When federal reimbursement falls to 90% in 2020, the projected cost to the state for the expanded population would be approximately $58 million annually. Although the Health Care Cash fund has a positive balance currently, it only brings in approximately $59 million annually and is used to fund many other programs as well, such as tobacco-cessation programs, biomedical research, and behavior health and substance abuse services. Senators sympathized with those who fall in the gap, making too much to qualify for Medicaid, but not enough to be eligible for subsidies. However, the majority feared that the program could end up costing more than our state could afford, thereby requiring cuts in other essential programs and services.

With just a few days left in this legislative session, I still encourage you to contact me with your opinion on issues before us. 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.

Legislative Update

January 15th, 2016

Governor Ricketts presented his State of the State Address to the Legislature this past week. He said he looks forward to working with us to bring relief to taxpayers. He urged us to prioritize property tax relief, as it is his number one priority this year. He touched on economic development and the need to grow Nebraska. He expressed his support for a proposed $26 million investment in the Community Corrections Center in Lincoln, as part of his broader efforts to help reduce recidivism. The governor reiterated his opposition to Medicaid expansion, referring to it as one of the biggest long-term risks to the budget.

Following his speech, several bills were introduced by senators, at the request of the governor. Two bills, introduced by the chair of the Revenue Committee and the chair of the Education Committee, make structural changes to how property taxes are levied on residential, commercial and agricultural property. These bills tighten current spending limits on all local governments. They also propose to tighten levy limits by removing exceptions that don’t require voter approval. Furthermore, the proposed legislation will limit the statewide aggregate increase in the class of agricultural property to 3% per year by adjusting the value of agricultural land.

As I mentioned last week, I worked with other senators on legislation that alters the school finance formula to provide property tax relief. Senator Jim Scheer of Norfolk is the primary sponsor of LB 883 and 11 senators have signed on as co-sponsors. LB 883 proposes to provide a base amount of state aid per student to school districts to offset property taxes. This aid would be phased in over four years, until it reaches $3,000 per student, regardless of whether the school qualifies for equalization aid. The bill also makes some adjustments in the state aid formula to help subsidize the cost of the base aid. Under the current formula, almost two-thirds of the school districts receive no equalization aid. The increase in the valuation of agricultural land has contributed to the disproportionate burden placed on property taxes in supporting school districts. I don’t believe that the founders of the current state aid formula envisioned this would happen and consequently, I feel that it is time to revamp the system.

Last year, I introduced LB 47, which proposes to make the question mandatory rather than optional, on the driver’s license application regarding whether to place your name on the Donor Registry. LB 47 was selected as a Speaker priority bill last year, but was not fully debated. The purpose of the bill is to increase the number of donors in Nebraska. More than 98% of Nebraskans registered as donors became registered through the application process for a driver’s license. With the question currently optional, only 55% of applicants are registered as donors. This percentage is higher in states where the question is mandatory.

LB 47 does not require applicants to become donors, but merely requires that they answer the question with “yes”, “no” or “elect not to answer”. At the public hearing, an organ recipient testified that he can accept if applicants choose not to register. However, it’s harder to accept apathy, when applicants skip over the answer. After several hours of debate, LB 47 received initial approval earlier this week.

The Unicameral Youth Legislature will be held on June 5-8, 2016 at the State Capitol. It gives students an opportunity to learn what it’s like to serve as a state senator. High School students will learn about the unique process of our unicameral system by sponsoring bills, conducting committee hearings, and debating legislation. Students learn directly from senators, staff and lobbyists, working on legislation from the previous session. All high school students are eligible and the deadline is May 15. The fee is $350, which includes lodging, meals and transportation. Scholarships are available. For more information visit NebraskaLegislature.gov/uyl.

The hearing process will begin on January 19. Senators will meet as a body in the morning and divide into committees in the afternoon. All bills are referenced to a standing committee and a hearing is held before this committee. This gives the public the opportunity to make their viewpoints known before the committee takes action on the bill. If you are interested in any of the bills that have been introduced, I encourage you to attend a public hearing. I also encourage you to contact me with your opinions on legislation that has been introduced or with any question you may have. 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 at the capitol is (402) 471-2733.

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.

Legislative Update

March 12th, 2015

The Legislature is at the half-way mark of this 90-day session. This past week marked the priority bill designation deadline. Senators have the ability to designate one bill as their personal priority bill. Committees can designate two bills as committee priority bills and the Speaker of the Legislature is given the authority to designate up to 25 bills as speaker priority bills. After this point in the legislative session, generally only bills with priority status are debated by the Legislature.

I chose LB 106 as my priority bill. LB 106, the Livestock Operation Siting and Expansion Act, was recently advanced from the Government, Military and Veterans Affairs Committee. It directs the Nebraska Department of Agriculture, with advice from experts representing the Nebraska Association of County Officials, livestock production agriculture and the University of Nebraska, to develop an assessment matrix for use by county officials when determining whether to approve an application for a livestock operation siting permit. Nebraska’s agricultural industry has not grown in the past two decades at rates comparable to our neighboring states. LB 106 would provide for consistent standards, based on factual, objective criteria to be used by local governing bodies when granting permits, thereby allowing for more predictability and uniformity in the process.

As chair of the Performance Audit Committee, we chose LB 538 and LB 598 as committee priority bills. LB 538, introduced by the Performance Audit Committee, creates a process for ongoing evaluation of Nebraska’s tax incentive programs, in order to give legislators information to draw clear conclusions about whether tax incentives are benefitting Nebraska’s economy and meeting program goals. LB 538 requires the Legislative Audit Office to conduct a performance audit of each tax incentive program at least every three years.

LB 598, introduced by Senator Paul Schumacher, addresses the use of segregation in our prisons. Rules would be developed to guide the level of confinement, conditions, behavior, and mental health status of inmates. The legislation contains recommendations from an interim study conducted by the Department of Correctional Services Special Investigative Committee of the Legislature, which incorporated results from an audit conducted by the Performance Audit Committee.

Other bills designated as priority bills by individual senators include:

LB 350, introduced and prioritized by Senator Lydia Brasch, reduces the valuation of agricultural land for purposes of property taxation from 75% to 65%. As of this time, LB 350 has failed to advance from the Revenue Committee.

Another bill that was prioritized but has not advanced from the Revenue Committee was LB 357, introduced by Senator Jim Smith. It proposes to reduce the individual and corporate income tax rates and increase the amount of funding to the Property Tax Credit program. The tax relief would be funded through transfers from the cash reserve and reductions in spending.

LB 586 prohibits discrimination based upon sexual orientation and gender identity. This bill was introduced by Senator Adam Morfeld and designated as a priority by Senator Patty Pansing Brooks.

LB 610 was introduced by Senator Jim Smith and prioritized by Senator Curt Friesen. It would increase the gas tax by 1.5 cents every year for four years, with revenue being used by cities, counties and the state for road and bridge projects.

LB 643 proposes to legalize marijuana for medical use. It was introduced and prioritized by Senator Tommy Garrett.

Among the bills designated as priorities by committees include:

LB 259, which as amended by committee amendments, would exempt the first $15,000 worth of personal property value for each personal property tax return. This bill was designated as a priority by the Revenue Committee. Although this will provide some property tax relief, many senators were disappointed that the committee did not offer a more comprehensive solution.

LB 472 was prioritized by the Health and Human Services Committee. It is Senator Kathy Campbell’s third attempt at Medicaid expansion, which was ruled optional for states after the Affordable Care Act was challenged in court.

If you have any comments on the bills that have been given priority status, 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 email address is dwatermeier@leg.ne.gov.

Legislative Update

March 21st, 2014

The budget bills were discussed during the second stage of debate this past week. Senator Ernie Chambers offered an amendment to strip $5 million in one-time funding for county jails. A number of county jail facilities in the state have available empty beds. The intent was to temporarily ease current state prison overcrowding by contracting with willing counties to house up to 150 inmates in county jails, while a study is taking place on the feasibility of building a new prison and the Legislature is working with a national organization on alternatives to prison. However, the state’s two most populated counties have indicated that they may not be interested in taking state prisoners, since their facilities are not designed for long-term prisoners and due to funding concerns. The amendment offered by Senator Chambers failed on a 16-22-11 vote. Following the adoption of a technical amendment, the budget bills were given second-round approval.

The Legislature debated LB 887, the Wellness in Nebraska Act, this past week. The Affordable Care Act, proposed by President Obama, was passed into law on the federal level in 2010. Due to a Supreme Court ruling, the mandatory provision requiring Medicaid expansion became voluntary for the states. LB 887 proposed to expand Medicaid in Nebraska by increasing eligibility for Medicaid coverage to adults ages 19-64, with incomes at or below 133% of federal poverty level, regardless of whether they have dependent children. Currently eligibility for Medicaid is limited to low-income children, pregnant women, parents with Aid to Dependent Children, and the disabled, blind and elderly. The federal government has pledged to pay 100% of the costs of expansion for the first 3 years, with the federal share dropping to 90% by 2020. However, this does not apply to administrative costs, which are shared by the state and federal government.

Proponents of the bill stressed the importance of providing access to health insurance to all Nebraskans. Currently, those with incomes between 100% and 400% of the federal poverty level qualify for federal subsidies when purchasing insurance. Nebraskans with incomes below 100% of the federal poverty level do not qualify for any assistance, unless they meet current qualifications. Other senators pointed out that if LB 887 were to pass, 1 in 5 Nebraskans would be on Medicaid. They were also concerned with the future financial burden the expansion could place on the state, as the number of those eligible and the projected cost estimates varied significantly, reiterating the uncertainty surrounding the Affordable Care Act.

After 8 hours of debate on LB 887, Senator Kathy Campbell, the sponsor of the legislation and the chair of the Health and Human Services Committee, offered a motion for cloture. A successful cloture motion requires 33 votes. It immediately cuts off debate, allowing for a vote on the pending amendment and the advancement of the bill. However, the motion to invoke cloture failed, falling 6 votes short with a 27-21-1 vote. Due to the unsuccessful cloture motion, LB 887 will not be debated again this year.

Senator Jim Scheer of Norfolk prioritized a bill that would require any school district with fewer than 650 students to form an allied system with at least three other school districts. Although the school districts within the allied system would not have had to combine revenue, spending, taxation or state aid, they would have been required to have the same yearly calendar and daily schedule. The intent behind the bill was to enable smaller school districts to use modern technology to expand course offerings and educational opportunities for students. Senator Scheer pulled his bill from consideration after the major education organizations united in their opposition to the mandatory nature of the bill.

In addition to increasing the Property Tax Credit program, expanding the Homestead Exemption program, adjusting income tax brackets for inflation and shielding more social security income from taxes, which I mentioned last week, the Legislature also addressed the taxation of military retirement benefits. A proposal was initially approved this past week that would allow military retirees to elect to either exempt 40% of military retirement benefits for 7 years after the date of separation or to exempt 15% of military retirement beginning at age 67. Nebraska is one of only 8 states that provides no tax exemption for military benefits.

As the Legislature enters the final few weeks of this legislative session, I still encourage you to contact me with your thoughts and opinions on the legislation that is before us. 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.

Legislative Update

January 31st, 2014

Seat belts, texting, and Medicaid expansion were the topics of bills heard this past week by the committees on which I serve. LB 807, the Nebraska Roadway Safety Act, was heard before the Transportation and Telecommunications Committee on Tuesday, January 28. LB 887, the Wellness in Nebraska Act, was heard by the Health and Human Services Committee on Wednesday, January 29.

Currently, the laws pertaining to safety belts and texting are secondary enforcement laws. This means that motorists may only be ticketed if they have been stopped for another offense. LB 807 would place Nebraska among 33 other states that have primary seat belt enforcement laws and at least 36 states with a primary texting enforcement law. Enforcement of provisions applying to the Graduated Driver’s License law for young drivers would also change from secondary to primary. LB 807 would require back seat passengers to use seat belts and ban the use of cell phones and other wireless devices by school bus drivers.

In 2013, of the 207 people that died on Nebraska roadways, 179 were killed in passenger vehicle crashes. Of these 179 deaths, 146 were not wearing seat belts. Half of those not wearing seat belts were ejected from their vehicle. The National Safety Council estimated that 50-60 deaths could have been prevented if Nebraska had a primary seat belt enforcement law last year.

Research has shown that distracted driving is just as deadly as drunk driving. As many as 27% of all crashes each year are caused by drivers using cell phones.

At the public hearing, several senators questioned how law enforcement would be able to differentiate between drivers illegally texting or legally making a telephone call. They also wondered whether allegations of racial profiling might increase. Although it is apparent that the Transportation Committee is divided on this issue, we have not yet taken a vote on the advancement of LB 807.

LB 887, the Wellness in Nebraska Act, is this year’s attempt to expand Medicaid in Nebraska. The expansion of Medicaid, as a part of the federal Affordable Care Act, is voluntary for states.

The legislation would allow adults age 19-64 with incomes between 0 and 133% of the federal poverty level to qualify for Medicaid. The federal government would pick up 100% of the aid costs through 2016, decreasing to 90% in 2020 and thereafter. Administrative costs are split 50/50 between the state and the federal government.

The bill proposes to provide coverage through the marketplace with health insurance premiums paid by Medicaid funds for those with incomes from 100-133% of the federal poverty level or for payment of the employee portion of employer sponsored insurance, if the state determines it is cost effective. Medicaid coverage would be provided for those with incomes up to 100% of the federal poverty level through Medicaid managed care or for those classified as medically frail or with exceptional medical conditions.

The hearing room was filled with persons interested in LB 887, including two department heads. Both the CEO of the Department of Health and Human Services and the Director of the Department of Insurance testified in opposition to LB 887. The CEO of HHS stated that if LB 887 passed, nearly one in five Nebraskans would be on Medicaid.

Projections of the fiscal impact to the state differed from the department to the Legislature’s fiscal office. Furthermore, the estimated number of newly eligible Medicaid recipients that would apply for the benefits varies dramatically. This reiterates the uncertainty surrounding Medicaid expansion and is why the Governor has expressed his strong opposition to LB 887.

I encourage you to inform me of your opinion on bills 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 email address is dwatermeier@leg.ne.gov.

Legislative Update

January 17th, 2014

The Governor gave his final State of the State address to the Legislature this past week. He began his speech on the topic of health care, referring to the many problems with the federal Affordable Care Act. The Governor said that the new federal health care law will cost the State of Nebraska more than $200 million in state general funds over the next six years. He is still strongly against the expansion of Medicaid, which was originally part of the federal plan, but due to a lawsuit became voluntary for states.

Senator Kathy Campbell, the chair of the Health and Human Services Committee, introduced LB 887, the Wellness in Nebraska Act. It is her second attempt to expand Medicaid in Nebraska, proposing to offer Medicaid coverage to adults age 19-64 with incomes up to 100% of the federal poverty level, while those with incomes above 50% of the federal poverty level would have to contribute 2% of their income. For these newly eligible with incomes between 100% and 138% of the federal poverty level, insurance would be purchased through the marketplace, with the enrollees paying 2% of their income and Medicaid paying the remainder. The plan would have to be approved by the federal government.

Although the federal government has agreed to pay 100% of the costs for the first three years of the expansion, dropping to 90% after that, the Governor fears that the state’s share could jeopardize funding for other important programs in Nebraska, such as K-12 education and higher education. He also questioned whether the federal government will keep their promised commitment.

The Governor also addressed crime and punishment. He recommended legislation that will make violent criminals earn their “good time”, instead of automatically receiving it. Currently, Nebraska’s prisons are at approximately 150% of capacity. Some senators expressed concern that this change could enhance the overcrowding problem, while not addressing the underlying problem, of lack of services to prepare the inmate to live in the community. The Governor offered some suggestions for short-term prison capacity issues, but recommended further study for long-term changes.

Senator Brad Ashford, the chair of the Judiciary Committee, introduced LB 907. This bill incorporates the concept of “supervised release”, which has been shown to result in lower rates of recidivism than if inmates are released without supervision. The use of structured monitoring is intended to help inmates adjust to life outside of prison. Each inmate would undergo a comprehensive risk and needs assessment prior to release.

The Governor stressed that the biggest and most important issue facing the state is high taxes. He indicated his support for the Nebraska Farm Bureau’s proposal to lower agricultural land valuations from 75% to 65%. Last year, I introduced LB 101 which proposed this same concept for school taxation purposes. The Governor also recommended a decrease in the top individual income tax rate.

Governor Heineman suggested that the state could offer up to $500 million in tax relief over the next three years, considering our strong cash reserve and our growing economy – if we strictly limit spending. Senators, remembering how a strong cash reserve helped carry our state through the last recession, may be reluctant to spend down the cash reserve too far.

If you have any comments on the Governor’s speech or on other legislation that has been introduced, I encourage you to contact me. I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE 68509. My e-mail address is dwatermeier@leg.ne.gov and my telephone number is (402) 471-2733.

Legislative Update

January 10th, 2014

The One Hundred Third Legislature, Second Session, began on Wednesday, January 8 and got right down to work. This is considered the short session of the Legislature, lasting 60 days, and is tentatively scheduled to adjourn on April 17. During the 90-day legislative session in even-numbered years, the biennial budget is the Legislature’s primary responsibility. Only minor budget adjustments and deficit requests will be dealt with during this session.

Senators began introducing legislation on the first day of session and can introduce bills through the tenth day, which falls on January 22 this year. We will meet in full day session, discussing carry-over bills beginning on Monday, January 13. The public hearing process will start on January 21, lasting through the end of February. Every bill that is introduced is guaranteed a public hearing, allowing for the input of the residents of Nebraska.

Although it is just a short session, we will have many important issues before us this year. Tax reform is foremost on most senator’s mind, following the interim study on taxes, which was the direct result of the Governor’s proposal last year to eliminate the income tax, making up the lost revenue by repealing several important sales tax exemptions. Public hearings were held throughout the state and the senators on the Tax Modernization Committee heard repeatedly of frustrations with high property taxes. Two senators, who are also gubernatorial candidates, have already introduced several bills on tax relief.

I served on the Water Funding Task Force, attending a couple dozen meetings across the state over the interim. A package of bills will be introduced as a result of our efforts to recommend a permanent, stable source of funding to ensure that Nebraska’s water resources are managed effectively and efficiently.

Also this year, the Legislature will deal with prison reform, juvenile justice reform, funding for our K-12 schools and early education, seat belt and texting laws, taxing of retirement income, and whether to expand Medicaid as part of the federal Affordable Care Act.

I want to remind you of the Legislature’s website at NebraskaLegislature.gov. Viewers can read the text of bills introduced, search state statutes and past and current legislation, e-mail state senators, view the agenda for the day, read the online version of the Unicameral Update and watch the Unicameral live.

If you call my State Capitol office, I will be happy to visit with you if I am available. If not, my staff will be able to assist you. Tim Freburg is my Administrative Assistant. He answers the phone and handles my calendar. Kim Davis is my Legislative Aide. She works on constituent issues and legislation.

I encourage you to contact my office with your views and opinions on the legislation that is introduced by senators during this session. Only with your input, can I effectively represent the residents of the 1st district. My email address is dwatermeier@leg.ne.gov. My telephone number at the State Capitol is (402) 471-2733 and my mailing address is Senator Dan Watermeier, District #1, P.O. Box 94604, State Capitol, Lincoln, NE 68509.

Legislative Update

April 19th, 2013

The passage of the Affordable Care Act (ACA) by the federal government requires citizens to have health insurance or be subject to a penalty. As passed, the ACA required states to expand their Medicaid program to include adults between 19-65 years of age with incomes up to 138% of the federal poverty level (FPL). Currently, childless adults that are not disabled or elderly do not qualify for Medicaid. Parents of minor children with incomes above 56% of FPL also do not qualify. Last year, the U.S. Supreme Court upheld the federal law but ruled that the Medicaid expansion portion should be optional for the individual states.

To encourage states to expand their Medicaid program, the federal government has pledged to pay 100% of the expansion costs for the first 3 years, after which the reimbursement level will fall to 90%. Although senators agreed that this appears attractive on the surface, opponents also pointed out that the state must consider the burden that will be placed on taxpayers in future years, both on the state and federal level. The federal government’s budget is far from stable and going further in debt will place greater burdens on our children and grandchildren. As rules and regulations are still being developed, some senators expressed concern that the game plan could change once states have made the commitment to expand. An amendment was offered to address this concern, proposing language to allow the Legislature to reverse the expansion if federal reimbursement is decreased. This may not be a realistic option, as once Medicaid is expanded, it would be virtually impossible to reverse that trend. With the proposed expansion, approximately 1 in 5 Nebraskans would be on Medicaid and 1 in 5 tax dollars would be spent on Medicaid.

Senators discussed LB 577, which proposes to expand Medicaid in Nebraska, over several days this past week. This is probably one of the most important issues facing senators this session. Supporters of Medicaid expansion did not have the 33 votes necessary to cut off debate and vote on the advancement of the bill. Consequently, after more than 10 hours of debate, the Speaker of the Legislature pulled the bill from the agenda. Unless circumstances change and proponents of LB 577 can prove that they have the necessary votes, LB 577 most likely won’t be placed on the agenda again this year.

Senators had general concern for this group of Nebraska citizens that find it difficult to afford health insurance, but our state currently has commitments beyond its resources for other populations that are also in need of state assistance. Nebraska should not promise something that it may not be able to keep.

Medicaid benefits have no premiums or deductibles and minimal cost sharing. Medicaid expansion could cause some low-income workers to drop their job-based health coverage. The law addresses the lack of health insurance, but it will not necessarily result in better health care. Furthermore, studies have shown that Medicaid recipients use the Emergency Room more often than those without insurance, as there are no financial disincentives. Until these habits are changed, which the law does not address, we won’t see the reduction in costs that some are predicting. The shortage of primary care physicians could also result in more visits to the ER.

Considering all the uncertainty surrounding the expansion, enough senators felt that it was in Nebraska’s best interest to wait and see how the ACA plays out before committing our state and its citizens to a program that could be financially unsustainable in the future. I appreciate all the correspondence that I have received on this issue and I value your input.

Please continue to inform me of your thoughts and opinions 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 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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