As your representative in the Nebraska Legislature, I’m informing you about some of the issues addressed in 2011 and what you may expect in 2012.

Nebraska’s Economy, the State Budget, and Taxes

I serve on the Appropriations Committee responsible for balancing the state’s budget, and we were again able to balance the budget without raising taxes. This has been true in each of the past five years I’ve served in the Legislature. Our budget did necessitate cuts to several areas of state government, and we have many agencies, programs, and public employees to thank for cooperating in balancing our budget. We also provided for a $362-million cash reserve to aid the budget in the future. We need to continue to exercise restraint and prudence in budgeting for government’s responsibilities as we go forward in the midst of an uncertain national economy.

Our state’s fiscal stability is rare and remarkable when compared with other states. As of July, Nebraska’s unemployment rate and number of homes in foreclosure were both less than half of the national average. Nebraska had a net in-migration of people from all Midwestern states for the first time in over two decades and had the lowest out-migration of people in thirteen years. There are certainly areas for improvement in Nebraska’s economy, but what we Nebraskans have always known – that ours is truly a great state in which to live, work, and raise a family – is being noticed by the rest of the country.

There will be an attempt to increase sales tax rates in next year’s legislative session. To preserve Nebraska’s fiscal health and competitive advantage, I believe it is important to oppose any attempt to increase taxes. It is argued that allowing cities to increase their sales tax rates will allow those cities to offset their property taxes. If this truly played out, I might reconsider my position, however, history argues against such an outcome. Property taxes have increased as sales taxes have increased for as long as there are records on such things. If workers, families, and small business have to make do with less, then so too should the governments they employ.

Reforming Government

This year marked the first significant reform of the Commission on Industrial Relations in four decades. The “CIR” is responsible for settling disputes between public employee unions and government. The CIR affects you because it orders elected bodies of government to alter wages and benefits – which come from all forms of our tax dollars. It is worth noting that states like Wisconsin, Indiana, and Ohio suffered paralyzing disputes and circus-like protests in dealing with government reforms. In Nebraska, all sides were able to sit with one another to enact a reasonable compromise which I was able to support. This was a generational issue where we succeeded in giving local officials greater control of their budgets while simultaneously preserving a say for public employees.

Public Safety

In 2008 I spearheaded the enactment of laws combating the devastating effects of drunk driving by using ignition interlock devices. This breathalyzer technology enables us to crack down intelligently on drunk driving, and Nebraska received positive national attention as a result. Statistics indicate that this tool has had a significant impact in Nebraska, and this year I worked with Speaker of the Legislature, Mike Flood, to further improve the law. I believe that the Legislature should continue to work to alleviate taxpayers of paying for the crimes of others, and the ignition interlock program is such an example. The program requires no tax dollars as it is funded entirely by offenders convicted of drunk driving. The success of this effort is prompting the Legislature’s Judiciary Committee to further examine innovative ways for more effectively fighting crime and reducing costs.

Keystone XL Pipeline

Many are concerned about the proposed oil pipeline by TransCanada that will cut through the Sandhills and Ogallala Aquifer of Nebraska. I want to make my position known to you as I suspect there will be varying media accounts on this topic in the coming year. I support the use of oil from Canada as they are a cooperative neighbor, and I am grateful for the revenue and jobs this project will provide in Nebraska. I do not, however, understand why TransCanada needs to re-invent the wheel by passing through the Sandhills when they have an existing pipeline running through the clay soil of Eastern Nebraska. Introduction of new risk to the Sandhills and the Aquifer can simply be avoided by following the existing route. Also concerning is the fact that TransCanada and the U.S. State Department seem to be the ones choosing this route. A balanced federalism does not allow the federal government to dictate with no input from the states. Simply stated, Nebraskans need more local control and less control from Washington, and I have advocated to that effect.

Please contact me with any issues or concerns you may have regarding these or any other matters before your Legislature. Thank you for the honor of serving as your senator.

Sincerely,

Senator Tony Fulton, District 29