For individuals and families across the nation, times are tough. Fortunately for Nebraskans, prudent fiscal decisions on the part of our leadership have put the state in a good position to weather this recession. Still, we cannot afford to be complacent. Recent reports indicate Nebraska is not immune from the economic downturn. With this in mind, the Legislature has a difficult task ahead of them in approving and enacting the state budget.

On January 15th, Governor Heineman presented his biennial budget proposal to the Legislature. His recommendations are indicative of the current economic environment. The proposal calls for restricted spending with limited to no growth in funding for many state agencies, boards, and commissions. In some cases, spending levels would be reduced from the previous budget cycle. One of the few areas to see an increase in funding is K-12 education.

Soon after the release of the Governor’s budget, the Appropriations Committee went to work preparing their own preliminary budget. This initial budget was used as the basis for discussion during recent public hearings. It is now up to the Committee to take all the information they have received and craft a final budget to submit to the full Legislature for debate.

Whatever budget proposal ultimately comes before the body, it is imperative for us to closely examine the contents to ensure it is the most responsible use of our state funds. This will mean making some tough decisions. Not everyone is going to get what they want and some things will have to wait. In short, we must be extremely selective and only fund what is truly needed.

An added twist to the budget process this year is the use of the federal stimulus funds. It is important to understand the implications of this money before deciding how to use it. I believe the funds should be used for one-time projects which actually stimulate the economy, not long-term programs that will need to be sustained with state funding. Ultimately, the stimulus money must be paid back. Let’s not make this task any more difficult by attaching strings to it.

In the past two years, strong foresight on the part of our state leaders has enabled them to make sound economic decisions. As a result, Nebraska has withstood the recession much better than many other states. Our task now is to make certain this holds true by continuing to make responsible decisions when debating the state budget.

It’s hard to believe we’re already at the halfway mark in this legislative session. Committee hearings will conclude by the end of this month and all day debate on the floor will then begin. Let me brief you on the rest of the bills I have introduced.

LB 673 was heard in the Education Committee on March 3rd. This bill proposed to fund community colleges for the next two years at the same level that is currently provided. I introduced LB 673 at the request of Metro Community College after learning of their concerns with the state’s new education funding formula and the impact it could have on access to education.

Metro officials have said the formula is unfair and might force them to raise property taxes. While Metro serves 35% of Nebraska community college students, they will only receive 27% of the approximately $90 million in funding. The intent of LB 673 is to provide more time for the Nebraska legislature to assess the state funding formula to ensure it achieves its intended goal of providing quality education to individuals across the state. As a result of this and other similar bills, compromise legislation has been proposed to require an evaluation of the formula.

The next bill, LB 533, would change the expense reimbursement process for meal costs incurred while employees are on state business. The bill would require employees to submit a receipt for their meal expenses rather than keeping a log as is now the practice. This change will standardize the state expense reimbursement process and bring it in line with federal practices. In addition, LB 533 changes the length of time an employee has to submit requests for reimbursement from 30 to 60 days. This bill was heard in the Government, Military and Veterans Affairs Committee on March 12th.

Finally, LB 418 will be heard in the Revenue Committee on March 26th. It proposes to require the Tax Equalization & Review Commission to equalize the valuation process in each county that is a member of the Learning Community. LB 418 is the result of concerns by Sarpy County constituents who feel they are paying more than their fair share of taxes for the Learning Community.

When the Learning Community was established, it was charged with helping to distribute property tax revenue among school districts in Douglas and Sarpy County. The problem is the assessment practices in Sarpy County are higher. Consequently residents are forced to pay more taxes towards the Learning Community. LB 418 attempts to fix this discrepancy to ensure both counties equally share the tax burden of the Learning Community.

In future columns, I will update you on the progress of the bills I have introduced. If you have any thoughts, questions, or concerns, please contact my office by phone at (402) 471-2627, by email at sprice@leg.ne.gov, or by mailing comments to Rm 1528 of the State Capitol, Lincoln, NE 68509. I look forward to hearing from you!