Summer is upon us. School is officially out all over the district and students are now on to their summer activities. There are 5 days remaining in this Legislative Session. I look forward to working around my house, going to my grandchildren’s activities, and preparing for my final session as a State Senator.

On Monday, May 22nd at 12:30 p.m. Governor Jim Pillen signed LB574 into law. Part of his column states “The passage of LB574 marked an historic day for the state of Nebraska. This legislation, which had the support of 33 senators, sent a clear message that Nebraskans are united in providing protections for our children, born and unborn, so they may have a brighter and promising future. LB574 protects kids, and demonstrates that Nebraskans care about the future welfare of our state. Only through the tireless and dedicated work of dozens of senators and conservative leaders was passage of this legislation possible.” (“Governor’s Column: LB574 Protects Life and Love”. May 24, 2023. https://governor.nebraska.gov/press/governors-column-lb574-protects-life-and-love.)

Bill Updates

• LB727–Change provisions relating to the sales and use tax exemption on purchases by the state and other public entities–This bill contains more than two dozen tax-related proposals and was advanced to final reading after senators amended it to reduce the fiscal impact on state revenue. On select file, Senator Linehan introduced an amendment that she said is a “negotiated resolution” intended to fit the package into the state budget, which the Legislature passed last week. Other changes in the amendment removed a provision that would have allowed Nebraska educational savings plan trust accounts to be used for elementary or secondary school tuition. Senator Linehan’s amendment would also cap a proposed sales tax credit for retail dealers that sell biodiesel at $1 million per year, rather than $5 million as originally proposed. Under another of the bill’s provisions, $12 million in credits could be allocated each year under the Nebraska Job Creation and Mainstreet Revitalization Act. The amendment would reduce that amount to $2 million. LB727 would authorize the state highway commission to issue bonds to accelerate completion of highway construction projects. Under the proposal, any bonds issued would be special obligations of the state payable only from the state Highway Capital Improvement Fund and any other funds specifically pledged by the commission. This fund is currently funded with state sales tax revenue, but the state constitution requires highway bonds to be paid off using revenue that is closely related to highway use. Linehan’s amendment would ensure that those revenue sources, and not sales taxes, are used to repay the bonds. Finally, the amendment added provisions of LB524 which would allow grocery stores, restaurants, and agricultural producers to apply for a nonrefundable state income tax credit equal to 50% of the value of food they donate to food banks, pantries or rescues. After voting 39-0 to adopt a technical amendment by Senator Armendariz, LB727 was advanced to final reading by voice vote. (“Revenue omnibus bill trimmed, advanced to final round”. Unicameral Update. May 24, 2023. http://update.legislature.ne.gov/?p=34441)
• LB753–Adopt the Opportunity Scholarships Act and provide tax credits–Under this bill, passed by a vote of 33-11, Nebraskans may receive a tax credit for contributions to organizations that grant scholarships to students to attend private school. Only Nebraska residents are eligible for the scholarships, which may be used to pay tuition and fees at a qualifying privately operated elementary or secondary school. A scholarship granting organization must provide the state Department of Revenue with sufficient information to show that it will use a tiered system that prioritizes certain students. (“Tax credit scholarship bill approved”. Unicameral Update. May 24, 2023. http://update.legislature.ne.gov/?p=34443)

News from the Governor’s office

• On Wednesday, May 24th, Governor Pillen authorized the deployment of 10 state troopers to the Texas border effective immediately. “Nebraska is committed to using every tool in its tool box to help stop the influx of illegal immigration at our southern border. Illegal immigration hurts our nation’s security, undermines the rule of law, and threatens the wellbeing of our state.” said Governor Pillen. We need to pray for our troopers as they go to the Texas border to assist them with the border.
• LB276–Adopt the Certified Community Behavioral Health Clinic Act–was signed into law on Thursday, May 25, 2023. This bill was passed by the Nebraska Legislature on May 19, on a vote of 46-0. It will be adopted immediately upon being signed by the Governor.
• On Thursday, May 25th, the Legislature received the signed 2023-2025 Biennium budget from Governor Pillen with line item vetoes. His letter to the Legislature states, “Investing in our core mission of providing quality services to the citizens of Nebraska while delivering transformational tax relief is a must. We must cut government spending, we must cut government red tape, and we must lead the charge in investing in our next generation. Over four years, my veto reductions will save the General Fund $94.2 million, Health Care Cash Fund $10 million, and Cash Reserve Fund $87 million.” I will be reviewing the budget over the holiday weekend to see what changes have been made.

More detailed information regarding the Governor’s budget recommendations may be found in the 2023-2025 Biennium Executive Budget Recommendations, which may be viewed on the Department of Administrative Services State Budget Division’s website at https://das.nebraska.gov/budget/publications.html.

As always, I invite you to let me know your thoughts, ideas, concerns, or suggestions by contacting me by calling (402) 471-2716 or emailing me at jalbrecht@leg.ne.gov.