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The legislative session is well underway, having passed the one-fourth mark of this 60-day session. Senators have been debating controversial issues, with several bills encountering a filibuster and requiring a cloture motion before the vote to advance can be taken.
LB 471 is an important bill that didn’t require much debate and was easily advanced by senators this past week. This bill, introduced by Omaha Senator Sara Howard, will strengthen the Prescription Drug Monitoring Program in Nebraska. Currently, dispensers of prescription drugs are not required to report prescription information and patients can opt out of having their information reported. LB 471 would prohibit patients from opting out of the system and would require all dispensed prescriptions to be entered into the system, including those with cash payments. Prescribers and dispensers of prescription drugs would be able to access the system at no cost to the provider.
Narcotic overdose deaths are a significant problem. Persons addicted to prescription drugs will go from doctor to doctor to obtain prescription painkillers. Nebraska and Missouri are the only states that have not implemented an operational prescription drug monitoring program. Senator Howard disclosed documentation showing that people from 38 states have come to Nebraska to fill prescriptions for narcotic pain medications. LB 471 would close loopholes in our current program in an effort to prevent the misuse of prescription drugs.
When our current school finance formula was first developed 25 years ago, one of the goals was to have no more than 45% of the revenue financing our K-12 school districts coming from property taxes. Today, property taxes make up approximately 50% of the funding for our local school districts. Our current state aid formula is too dependent on property taxes and needs to be revised. However, as I have mentioned earlier, the Legislature is facing a $140 million shortfall. Analysts have estimated that reducing school district’s reliance on property taxes to the 45% level would require $176 million in additional state aid.
Our current state aid formula calculates the needs of a district, which are what it costs to run the school. Subtracted from this figure are the resources of the district, which is made up of primarily property tax revenue, as well as state sources, such as special education reimbursement. The difference is paid to school districts through the state aid formula as equalization aid. The number of districts that receive equalization aid has steadily decreased over the years, primarily due to the significant increase in the valuation of agricultural land. Currently, only 87 of our 245 school districts receive equalization aid. That is why I am supporting LB 883, introduced by Norfolk Senator Jim Scheer and 11 other senators. It would provide a base amount of aid to all school districts, regardless of whether they qualify for equalization aid. LB 882, a companion bill, deals with school budgeting. It limits a school district’s ability to exceed its allowable growth percentage, limits cash reserve growth and removes the ability of schools to carry forward their unused budget authority.
When looking at the revenue that funds our state government, property taxes make up about 42% of total taxes paid in Nebraska, with sales tax revenue comprising 28% and the income tax contributing 27%. I believe that the Legislature should strive to more evenly balance the revenue from our three major tax sources. Last year, we increased the funding for the Property Tax Credit program by $64 million annually. This year, there are several proposals (including LB 883) that would increase state aid to school districts, thereby lowering the burden on the property tax to fund our schools. As a member of the Appropriations Committee, I am hopeful we can continue to make progress on property tax relief, while balancing the budget.
As the Legislature debates issues of interest to Nebraskans, 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 at the capitol is (402) 471-2733 and my email address is firstname.lastname@example.org.