Last week, the Legislature voted to advance my priority bill, LB 103. This legislation would appropriate $2 million from the General Fund in FY 2021-22 and FY 2022-23 to any county which has a judgment against it from a federal court in excess of $25 million, if the total cost of the judgment exceeds 20% of the county’s annual budget. An amendment specified the method for the State Treasurer to disperse aid to counties and added the requirement that a county has to set its property tax levy at the maximum for each year it receives aid, fifty cents. Aid can be used only for payment of the judgment.

As the residents of District 30 who live in Gage county are well aware, six people were exonerated of committing a crime through DNA testing in 2009. Collectively the group had served more than 70 years in prison. After their release, the group sued Gage County. In 2018, a federal judgement was rendered against Gage County for violation of civil rights. The six were awarded $28.1 million dollars. When you add in attorney fees, interest and other costs to the county, the total is closer to $31 million. 

This judgement is more than three times the yearly property tax collection of Gage County which has a population of a little over 22,000 people.  After the 8th Circuit Court handed down its judgement in 2019, the Gage County Supervisors raised the levy in the county to the maximum .50 cents allowed under law, an increase of 11.76 cents. This tax increase was expected to raise about $3.8 million a year. At that pace, the county taxpayers would expect to pay for at least the next seven and a half years.

In 2019, I brought LB 472 to the Legislature for a ½ cent countywide sales tax to help pay for federal judgements, with the idea of easing the burden on property tax alone, and to get the added revenue from any visitor making a taxable purchase in Gage county. This additional tax which went into effect on January 1, 2020, has brought in around $1.9 million as of April, 2021. These additional funds and future sales tax funds have reduced the payment period down to about six years.

Finally, in August of 2020, the county reached a settlement with the insurance carriers and received $5.96 million. This money has also been applied to the judgement. 

Gage County has exhausted every financial resource available to the county and the taxpayers; by maxing out the property tax levy as required by the judgment, adding that additional ½ cent sales tax, and receiving a settlement from the insurance carriers. The county and its residents have done everything fiscally possible to pay this federal judgement; as well as exhausting every legal option available, every appeal, and even exploring bankruptcy, which was without precedent for a county. 

LB 103 advanced to the second round of debate on a vote of 35 to 3. I will continue to answer any concerns my fellow senators might have about the bill, and hope to see it successfully through passage and the Governor’s signature.

A note about some of the “hot button” bills before us: my office gets a great number of phone calls and emails on these topics. These communications always represent both sides of the issue; relating the impact it may have on them personally, and the strong opinions they have about a certain bill. In general, we all assume that “everyone else” feels like we do on an issue, and that’s fine.

LB 474 is one of those high profile bills generating a lot of calls and emails. The use of medical marijuana in Nebraska has generated earnest feelings and expensive information campaigns on both sides, for and against. Several tax bills, legislative resolutions and constitutional amendments have also resulted in those types of conversations in recent weeks. 

I want you to know I read every message, I talk to experts whenever I can; I study the bill language and examine the financial and societal impacts; and then I listen to the debate between the senators before I decide how to vote. When my vote does not go the way you wanted it to, I do want to assure you, it was cast with a lot of thought and deliberation, with the idea of benefiting the people in greatest need, in the best way possible.

I welcome your calls and emails on every issue before us. You can talk to my staff or leave a message at 402-471-2620, or send your emails to mdorn@leg.ne.gov. My mailing address is PO Box 94604, Lincoln, NE 68509-4604. Thank you for your continued communication.