Monday, March 26, 2012

Contact:  Matt Boever

Phone:  (402) 471-2929

Lincoln, NE—Greetings from your State Capitol. On Tuesday of last week, the Legislature took up lengthy General File debate of LB 970, a tax cut bill introduced at the request of the Governor by Sen. Abbie Cornett, chair of the Revenue Committee.

In my January 16, 2012 Capitol Update, I talked about LB 970 and the need for tax cuts so that families could keep a few more dollars to help make ends meet. I said that times are tough and that, as the Legislature discusses the budget, the Governor’s tax relief proposal would be an integral part of the state budget discussion. I also said that a tax cut package would need to be weighed against the state’s current and future economic picture before the Legislature adopts any changes to its biennial budget.

As you may recall, LB 970, originally, would have reduced individual income tax rates, broadened tax brackets, reduced the top corporate income tax rate, and repealed the county inheritance tax. The Governor’s proposal was estimated to reduce state revenue by $326.6 million for the remaining year of the 2011-13 biennium and for both years of the 2013-15 biennium. The counties were strongly opposed to the provisions that would have eliminated the inheritance tax, as county tax revenue would have been reduced by $43 million annually.

With a projected revenue shortfall of $461 million at the end of the next biennium, the Revenue Committee had concerns about whether the state would be in a position in the coming years to implement all the changes in LB 970. Ultimately, the Committee decided to advance the bill but with amendments that attempted to lessen its fiscal impact. The committee amendments eliminated inheritance tax provisions and the corporate income tax rate reduction, and kept a gradual individual income tax reduction in the proposal. The changes had the effect of reducing the fiscal impact over the three-year period from $326.6 million to $148.2 million.

Concerns about future budgets remained, however, and the Legislature advanced LB 970 on a 36-6 vote on Tuesday only after adopting AM 2572, a compromise amendment that reduces the three-year fiscal impact to $97.2 million and targets the tax cuts to lower and middle income taxpayers. As amended, the bill expands the four income tax brackets and lowers income tax rates for all brackets except for income over $58,000. I supported the tax cut compromise because it returns some money to Nebraskans, and it does it in a way that does not jeopardize legislative priorities in future budget years, priorities like education and child welfare.

As always, I welcome hearing from you, and if I can ever be of assistance to you or your family, please feel free to contact me at (402) 471-2929, mflood@leg.ne.gov, or via U.S. mail at District 19, State Capitol, P.O. Box 94604, Lincoln, NE 68509-4604.

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Monday, March 19, 2012

Contact:  Matt Boever

Phone:  (402) 471-2929

Lincoln, NE—Greetings from your State Capitol. Today marks Day 46 of the current 60-day “short” session. After today, less than 15 working days remain until the Legislature adjourns “sine die.” There is much work still to do, and, in order to accommodate the needed debate on priority bills, I have scheduled several late nights in the next three weeks. In a change from previous sessions, we will also be starting debate at 8:00 a.m., except for the first day of our work week, which will continue to begin at 10:00 a.m.  More information is available on my Speaker’s page on the Legislature’s website.

One of the primary responsibilities of the Legislature is to pass a state budget. The lengthy process is governed by provisions in the Nebraska Constitution, state statutes, and legislative rules. Biennial budgets are enacted during regular 90-day legislative sessions held in odd-numbered years. During 60-day sessions in even-numbered years, the Legislature makes budget adjustments. By rule, the Legislature must pass appropriation bills by the 50^th day in a short session. This afternoon, the Legislature has had continued debate on LB 968 and LB 969, two budget bills that I discussed last week.

Earlier this month, Committee Chairs submitted to me their list of Consent Calendar recommendations. Consent Calendar bills are usually noncontroversial bills that can be considered and advanced to the next legislative stage without protracted debate. Usually these bills do not add a lot of changes, do not have a general fund impact, and the bill has been reported to General File by March 8, 2012. Later this week, I will finalize my list of Consent Calendar bills, and then I expect the Legislature to take them up in debate at the end of this week.

Finishing up, here is a quick status of the 104 priority bills. There are 17 priority bills in committee: six senator priority bills, four committee priority bills, and seven speaker priority bills. There are 42 bills on General File and 32 bills on Select File. Eight bills are on Final Reading, and three bills have been passed and approved by the Governor. A full list of the 2012 priority bills is available on the Legislature’s website.

As always, I welcome hearing from you, and if I can ever be of assistance to you or your family, please feel free to contact me at (402) 471-2929, mflood@leg.ne.gov, or via U.S. mail at District 19, State Capitol, P.O. Box 94604, Lincoln, NE 68509-4604.

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Monday, March 12, 2012

Contact:  Matt Boever

Phone:  (402) 471-2929

Lincoln, NE—Greetings from your State Capitol. On Tuesday afternoon this week, the Legislature will take up debate on three budget bills advanced by the Appropriations Committee: LB 968, LB 131, and LB 969. In today’s update, I would like to provide a brief overview of the Committee’s mid-biennium recommendations, which are contained in these bills.

During the preliminary budget stage earlier this year, the financial status was projected to be $63 million above the minimum reserve. This amount has since been reduced to $17.6 million, due primarily to the funding of five items.

1. TEEOSA School Aid:  Using the latest calculation by the Nebraska Department of Education, the Committee’s proposal includes $7.2 million more for state aid to school districts. The total recommended appropriation of $852 million in state general funds for the 2012-13 school year is $27.3 million less than the $879.4 million estimated at the end of the 2011 legislative session.

2. Child Welfare Reform:  Due to the problems with the privatization of child welfare services, the Committee recommended an appropriation of $17 million to the Department of Health and Human Services to cover shortfalls and for additional staff to lower caseloads.

3. Medicaid Provider Rates:  The Appropriations Committee voted to reinstate 1.5% of the 2.5% cut made in Medicaid provider rates for the upcoming fiscal year, due to concerns about the loss of Medicaid providers, thereby adding $9.7 million to the budget.

4. Developmental Disability Waiting List:  Committee members also voted to recommend the appropriation of $4 million to help reduce the developmental disability waiting list. This funding will serve approximately 212 persons. There are about 1,769 persons waiting for services.

5. Veterinary Diagnostic Center at the University of Nebraska:  Finally, the Committee included $6.1 million for funding for the design and construction of a Veterinary Diagnostic Center at the University of Nebraska Institute of Agriculture and Natural Resources. The total cost for this project is estimated at $55 million.

In a couple other items of note, the Appropriations Committee voted to recommend the appropriation of $50 million for a Cancer Research Center at the University of Nebraska Medical Center in Omaha and $15 million for the UNMC College of Nursing and School of Allied Health Professions at the University of Nebraska in Kearney. The committee has proposed that this funding will be transferred from the Cash Reserve Fund. With these and other transfers that would go to one-time construction projects, the ending balance in the Cash Reserve Fund is projected to be $341 million.

As always, I welcome hearing from you, and if I can ever be of assistance to you or your family, please feel free to contact me at (402) 471-2929, mflood@leg.ne.gov, or via U.S. mail at District 19, State Capitol, P.O. Box 94604, Lincoln, NE 68509-4604.

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Monday, March 5, 2012

Contact:  Matt Boever

Phone:  (402) 471-2929

Lincoln, NE—Greetings from your State Capitol. Several weeks ago, I outlined a few of the bills introduced this session that are aimed at improving the child welfare system. I described the process that began with Legislative Resolution 37 in 2011 and the recommendations contained in the Health and Human Services Committee report that was published last December. In today’s Capitol Update, I would like to provide a current status of the Legislature’s child welfare reform efforts, specifically three bills that originated from the LR 37 Report: LB 821, LB 1160, and LB 961.

LB 821 would establish the Nebraska Children’s Commission and the Office of Inspector General of Nebraska Child Welfare within the Office of Public Counsel. The Commission’s purposes are to create a statewide strategic plan for reform, provide a permanent home for collaboration among state, local, community, public and private stakeholders, and establish collaborative networks in each service area. The Inspector General of Nebraska Child Welfare will, among other responsibilities will conduct investigations, audits, inspections, and other reviews of the child welfare system, such as allegations or incidents of possible misconduct or violations of statute.

LB 1160 would require the HHS Committee to report on Dec. 15 of 2012, 2013, and 2014 to the Governor, the Legislature, and the Chief Justice of the Nebraska Supreme Court on progress made by DHHS toward recommendations contained within the LR 37 Report. The bill would also require DHHS to submit a report to the Legislature by December 1, 2012 regarding a web-based, statewide automated child welfare information system to integrate child welfare information into one system.

LB 961, as amended by AM 2159, includes provisions on caseloads, case management, moratorium on lead agencies, and a definition of “case” for caseloads. The bill would require an annual reduction of 25% in the average caseload of each case manager beginning September 1, 2012, and each September 1st thereafter, until case managers’ caseloads are within the standards established by Child Welfare League of America. LB 961 also prohibits DHHS from extending past July 1, 2014 the contracts with lead agencies in existence on the effective date of LB 961 in the eastern or southeastern service areas and provides that, as of the effective date of LB 961, DHHS shall not reinstate a lead agency in the central, western, or northern service areas of the state.

Each of these three bills has passed on General File and will likely be debated again on Select File, or second round of debate, on Wednesday of this week.

As always, I welcome hearing from you, and if I can ever be of assistance to you or your family, please feel free to contact me at (402) 471-2929, mflood@leg.ne.gov, or via U.S. mail at District 19, State Capitol, P.O. Box 94604, Lincoln, NE 68509-4604.

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Monday, February 27, 2012

Contact:  Matt Boever

Phone:  (402) 471-2929

Lincoln, NE — Greetings from your State Capitol. Today marks Day 34 of this 60-day “short” session. Committee hearings have wrapped up, and we have moved to full day floor debate.

February 16^th was the deadline for Senators and Committees to identify priority legislation for this session. Each senator designates one priority bill; each committee designates two priority bills; and, as Speaker, I designate an additional 25 priority bills. My job, as Speaker, is to provide an opportunity for the Legislature to debate each of the 104 priority bills if advanced out of committee. In this week’s Capitol Update, I would like to highlight a few of the “Speaker priority” bills.

LB 793, introduced by Sen. Scott Lautenbaugh of Omaha, would limit frivolous lawsuits filed by prisoners at public expense. It would prohibit a prisoner from filing a civil action, other than for post-conviction relief or a petition for habeas corpus relief, in forma pauperis (without liability for court fees or costs) if the prisoner has filed three or more civil actions in state or federal court that have been declared frivolous by the court. The bill has been placed on General File with a Judiciary Committee amendment.

LB 888, the Historic Property Restoration and Reuse Act, was introduced by Sen. Abbie Cornett of Bellevue. This bill provides a 25% credit against state income tax for developers who rehabilitate historically significant properties. LB 888 applies to properties that are either (a) federally listed, (b) state listed, or (c) designated by local ordinance. The intent with LB 888 is to drive economic development in both rural and urban communities by leveraging tax credits to generate private investment in historic properties and districts. The bill is being held by the Revenue Committee.

LB 990 was introduced by Sen. Tony Fulton of Lincoln. It would require the display of the flags of the United States and the State of Nebraska in public school classrooms of Nebraska. The bill also requires the leading of students in a group recitation of the Pledge of Allegiance during the first class of each school day. LB 990 is in the Education Committee.

Finally, Sen. Steve Lathrop of Omaha introduced LB 1155, a bill that would increase the penalty for any person who is found guilty of operating a motor vehicle when his or her operator’s license has been revoked or impounded for a fourth or subsequent offense. The bill would elevate driving under such circumstances to a Class I misdemeanor. LB 1155 had a hearing earlier this month before the Transportation and Telecommunications Committee, and it is on General File.

As always, I welcome hearing from you, and, if I can ever be of assistance to you or your family, please feel free to contact me at (402) 471-2929, mflood@leg.ne.gov, or via U.S. mail at District 19, State Capitol, P.O. Box 94604, Lincoln, NE 68509-4604.

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Monday, February 13, 2012

Contact:  Matt Boever

Phone:  (402) 471-2929

Lincoln, NE—Greetings from your State Capitol. Public hearings continue in the afternoons as Committees look to wrap up bill introductions by the end of next week. By the end of this week, Senators and Committees will have identified their priority bills. One of the bills I expect to receive a priority designation is LB 1113, a bill I introduced that adopts the Nebraska Uniform Power of Attorney Act.

To provide some background, a power of attorney is a written instrument granting someone authority to act as an “agent” in the place of the “principal.” The principal is simply a person who grants authority to an agent in a power of attorney. A power of attorney is commonly used to allow individuals with an inexpensive, non-judicial method of surrogate property management in the event of the later incapacity of the grantor, such as when he or she is impaired due to illness.

The Uniform Law Commission, which drafted the original Uniform Power of Attorney Act, has worked for over a century on the improvement of state laws by drafting uniform state laws on subjects where uniformity is desirable and practicable. A national study of durable powers of attorney, conducted in 2002, revealed the need to address numerous issues not contemplated in previous power of attorney acts, such as the authority of multiple agents, the authority of later-appointed guardians, and the impact of dissolution or annulment of the principal’s marriage to the agent.  The study also revealed other topics about which the states had legislated, although not necessarily in a divergent manner, including: successor agents, execution requirements, portability, sanctions for dishonor of a power of attorney, and restrictions on powers that alter a principal’s estate plan.  In a national survey, trust and estate lawyers’ responses demonstrated a high degree of consensus about the need to improve portability and acceptance of powers of attorneys as well as the need to better protect incapacitated principals.

In the fall of 2008, the Real Property, Probate, and Trust Law Section of the Nebraska Bar Association formed a committee to study the Uniform Power of Attorney Act and to make any Nebraska-specific changes. The members of the committee, local experts on the legal issues involved, met many times in the last couple years. LB 1113 is the result of their dedicated work. The bill has a public hearing scheduled for Wednesday, February 15, in front of the Judiciary Committee in Room 1113 of the State Capitol. The full text of the bill is available here.

As always, I welcome hearing from you, and, if I can ever be of assistance to you or your family, please feel free to contact me at (402) 471-2929, mflood@leg.ne.gov, or via U.S. mail at District 19, State Capitol, P.O. Box 94604, Lincoln, NE 68509-4604.

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Monday, February 6, 2012

Contact: Matt Boever

Phone: (402) 471-2929

Lincoln, NE—Greetings from your State Capitol. This afternoon, the Legislature’s Transportation and Telecommunications Committee held a public hearing on LB 1112, a bill I introduced concerning state highway construction planning. The bill adds an additional factor for the Department of Roads to consider in establishing priorities for its state highway system long-range plan. The Department currently considers several factors: current and projected traffic volume, safety requirements, economic development needs, current and projected demographic trends, and enhancement of the quality of life for all Nebraska citizens. LB 1112 would add a new consideration: whether funding is available for a project from a local entity, such as a town or county.

Last session, the Legislature passed an important highway funding bill, Sen. Deb Fischer’s LB 84, which, beginning in 2013, will dedicate a quarter of one cent of existing state sales tax for roads funding. The new law is expected to provide $60 million to $65 million annually for badly needed road construction projects. As evidenced from its most recent 10-year plan, this LB 84 funding has allowed the Department of Roads to take several projects off the shelf, including the Highway 30 project between Schuyler and Fremont, which, when completed, would connect Columbus and Omaha with four lanes.

Close to my hometown of Norfolk, finishing the 50 miles of expressway on Highway 275 between Tony’s Steak house and Scribner is vital to our long-term economic success and livelihood in northeast Nebraska. This Highway 275 project is not part of the Department’s current 10-year plan, and it is not my intent with LB 1112 to require the Department to reshuffle its current highway project priorities. But LB 1112 does require the Department to consider, at least, whether there is local buy-in. In other words, if it is important enough for a community or several several communities to invest part of their limited resources toward a highway construction project, it should be important enough for the Department to consider this cooperation when it sets project priorities. Because, for cities like Norfolk and other communities located off an interstate, good roads provide needed mobility, connect our communities, and promote economic development.

As always, I welcome hearing from you, and, if I can ever be of assistance to you or your family, please feel free to contact me at (402) 471-2929, mflood@leg.ne.gov, or via U.S. mail at District 19, State Capitol, P.O. Box 94604, Lincoln, NE 68509-4604.

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Monday, January 30, 2012

Contact:  Matt Boever

Phone:  (402) 471-2929

Lincoln, NE—Greetings from your State Capitol. Earlier this session, I introduced a bill, LB 1115, with the goal of expanding natural gas capacity and spurring economic development in the rural areas of our State. With today’s Update, I’d like to provide some background on LB 1115 and the pressing need for increased natural gas pipeline capacity to meet the demands of current and new industries in many Nebraska communities.

LB 1115 provides for a streamlined, less-regulated process whereby a utility may develop and implement a plan to construct rural natural gas infrastructure in unserved and underserved areas. It would allow for collaboration between the interstate natural gas pipeline operators, local utilities, municipalities, and businesses in developing and funding new capacity. Communities would have to demonstrate significant support for such a project.

I became familiar with this issue early on in my time in the Legislature when the city of Norfolk lost out on a soybean processing facility. Unfortunately, rural Nebraska communities have been routinely passed over by new businesses, and we have watched as these opportunities go elsewhere when they find out our communities can’t support their utility needs. Something needs to be done about the chokepoint in the current system that puts a huge barrier in front of development in much of rural Nebraska. There is certainly more work to be done, but LB 1115 is a starting point to turn the tide and allow for a forward-looking partnership between the gas and pipeline companies, local municipalities, and businesses.

Recently Mayor Sue Fuchtman of Norfolk said that to retain and expand industrial and manufacturing businesses in northeast Nebraska, they need the promise of firm gas, and, for several of the local industrial businesses, that guarantee is not provided them. I share Mayor Fuchtman’s concern that resolving this issue of natural gas capacity is imperative to providing better opportunities for a vibrant economic future in rural Nebraska.

The Legislature’s Urban Affairs Committee has scheduled a public hearing on LB 1115 for Tuesday, February 7 at 1:30pm in Room 1510 of the State Capitol building. Please let me know if you are interested in attending or testifying in person. For those unable to come to Lincoln but who still wish to follow the hearing, NET Television streams public hearings on its website.

As always, I welcome hearing from you, and, if I can ever be of assistance to you or your family, please feel free to contact me at (402) 471-2929, mflood@leg.ne.gov, or via U.S. mail at District 19, State Capitol, P.O. Box 94604, Lincoln, NE 68509-4604.

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Monday, January 23, 2012

Contact: Matt Boever

Phone: (402) 471-2929

Lincoln, NE—Greetings from your State Capitol. Last session, 15 senators, including all the members of the Health and Human Services Committee, introduced Legislative Resolution 37. The resolution directed the committee to review, investigate, and assess the effects of child welfare reform, which the Nebraska Department of Health and Human Services (DHHS) began implementing in July 2009.

LR 37 was adopted by the Legislature in February 2011, and between February and November 2011, Health and Human Services Committee members and staff undertook a wide array of research, interviews, correspondence, consultations, briefings, surveys and public hearings. Other individuals, legislative divisions, and groups undertook specific tasks at the committee’s request. The end result was a detailed report published December 15, 2011, which contained a list of recommendations as well as rationales for those recommendations. The report is available in its entirety online here.

In this Capitol Update, I would like to briefly outline several bills introduced this session that reflect the LR 37 recommendations.

LB 774, introduced by Sen. Gwen Howard of Omaha, would require DHHS to report on December 15^th of 2012, 2013, and 2014 to the Governor, the Legislature, and the Chief Justice of the Supreme Court on progress made toward recommendations contained within the LR 37 Report. It had a public hearing on January 18^th.

LB 820 was introduced by the Health & Human Services Committee and had a hearing on January 20^th. It would require, by January 2013, DHHS to apply for a certain federal waiver. The funding incentives in the waiver are in line with program goals and good practices and provide an alternative to expensive out-of-home care for in-home and reunification services.

Other bills introduced by the Health and Human Services Committee this session are LB 957, LB 961, and LB 821. LB 957 would create the position of Inspector General for children’s services. LB 961 would return case management to the state. LB 821 would create the Nebraska Children’s Commission and provide for the creation of the Department of Children’s Services in 2013. LBs 957 and 961 have hearing dates this week on January 26. LB 821 has a public hearing on February 1.

Finally, LB 949, introduced by the Legislature’s Performance Audit Committee, would provide for performance-based budgeting for the Division of Children and Family Services within DHHS. It has a hearing date on February 8. It requires DHHS to include a strategic plan for the Children and Family Services division in its budget request. The plan is to describe the main purpose or purposes of each program within the division and provide performance measures, benchmarks and time-frames for meeting them.

Much more information on these, and other bills, is available on the Legislature’s website, www.nebraskalegislature.gov. If you have an interest in attending these hearings or submitting testimony, please contact me at your convenience.

As always, I welcome hearing from you, and if I can ever be of assistance to you or your family, please feel free to contact me at (402) 471-2929, mflood@leg.ne.gov, or via U.S. mail at District 19, State Capitol, P.O. Box 94604, Lincoln, NE 68509-4604.

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Lincoln, NE—Greetings from your State Capitol. Last week, Gov. Dave Heineman delivered his annual State of the State address before the Legislature. He highlighted the progress made in Nebraska’s tax climate improving from 45th to 29th since 2006 in the Tax Foundation’s state rankings. He also noted that there is more work to be done, and middle class Nebraskans need tax relief.

The Governor’s proposed plan calls for $326.6 million in tax relief over three years beginning January 1, 2013: lowering individual income tax rates and expanding brackets; helping small businesses grow by lowering the top corporate tax rate to the same rate as the top individual rate; and repealing the inheritance tax. Nebraska, it should be noted, is one of only 8 states with an inheritance tax. Of the $326.6 million in tax relief, $273.7 million would go to individual income tax and $52.9 million for Nebraska businesses.

As an illustration, tax relief for Married, Filing Jointly would be as follows:

Bracket 1 - Expand from $0-4,800 to $0-6,000 & Lower rate from 2.56% to 2.42%.

Bracket 2 - Expand from $4,800-35,000 to $6,000-36,500 & Lower rate from 3.57% to 3.40%.

Bracket 3 - Expand from $35,000-54,000 to $36,500-60,000 & Lower rate from 5.12% to 4.90%.

Bracket 4 - Expand from over $54,000 to over $60,000 & Lower rate from 6.84% to 6.70%.

Corporate income tax relief would lower the tax rate for income over $100,000 from 7.81% to 6.70%.

The Governor’s proposed changes are contained in LB 970, which was introduced by Sen. Abbie Cornett of Bellevue.

This time last year, the Legislature was facing a $956 million dollar shortfall. Fortunately, through an improved revenue forecast and a conservative approach to the budget by making significant cuts, the Legislature only had to utilize $22 million dollars of the Cash Reserve Fund (the equivalent of the state’s savings account) instead of the originally planned $256 million dollars. With a current balance of $413 million in the Cash Reserve Fund, the Governor believes Nebraska can afford to provide income tax relief for the middle class and our corporate community. Times are tough and there is no question that our middle class families could use a few more dollars to help make ends meet. As the Legislature discusses the budget, the Governor’s tax relief proposal will be an integral part of the discussion, in addition to property tax relief proposals and proposals to reinstate some of the budget cuts made last year. All of these views will need to be weighed against the state’s economic picture before the Legislature adopts any changes to its biennial budget in late March.

As always, I welcome hearing from you, and if I can ever be of assistance to you or your family, please feel free to contact me at (402) 471-2929, mflood@leg.ne.gov, or via U.S. mail at District 19, State Capitol, P.O. Box 94604, Lincoln, NE 68509-4604.

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