By the numbers: 2023, 108th Legislative Session. Ninety day session, 812 bills and 9 constitutional amendments introduced. I have 16 of those bills, and will consider a couple of recommendations for interim studies to be completed next summer.

In the end, only around a quarter of those bills will pass; and several of them will relate to the state budget, which is required to be passed in this 90 day session. A brief summary of three of the bills I have introduced follows:

LB 562 would require gas stations to have at least 50% of their pumps provide E-15 fuel, and grants would be available to gas stations for conversion. This bill was brought to me by the Renewable Fuels Nebraska organization, and is modeled after similar legislation in Iowa. The goal of this bill is to increase use of E15 and boost the ethanol industry, which in turn helps out corn farmers in our state. We talked with retailers and ethanol producers about the best ways to accomplish this, and the bill does include grant money for pump conversion, waivers for older gas stations, and so on. The bill will be heard by the Agriculture Committee on February 7, 2023.

LB 563 would provide funding for downtown revitalization. At one time, there was funding to help with statewide implementation of these programs, but that support dwindled during budget cut years. My staff and I worked with Michael Sothan in Beatrice and the Nebraska Main Street Network organization over the summer, looking at the positive impact in the past and what could be done in the future through these projects. Getting an early start on the legislation gave ample time to develop a bill I was comfortable introducing.

LB 564 The Dairy Association brought me a proposal that would include all livestock production and livestock processing operations to be included in the Transportation Infrastructure Bank Fund for road improvements. For example, if a five thousand head dairy operation wanted to build on a site in Nebraska, and they needed a two mile road improvement for access, this bill would help with those road improvements.. This helps keep large livestock facilities away from more populated areas, while improving the access they need on roadways. It manages traffic, provides a safer roadway, and is good for the current residents in the area.

I was thankful Governor Pillen came forward with a proposal on school funding. The bill package, which was developed by a committee he put together, provides a good starting point for discussion. LB 583 would provide $1500 per student each year from the Education Future Fund. This fund would be created in LB 681, starting with a $1 billion appropriation in the current budget, and another $250 million in each of the next six years following, resulting in a $2.5 billion fund. The last piece of his recommendation is a ‘soft cap’ on property tax asking of 3%, based on total revenue. There are some exceptions and ways to accommodate school district fluctuations built into the bill.

Currently in Nebraska, we have 86 to 90 schools which are equalized and get funding from the current funding formula known as TEOSA. The remaining 150+ schools in the state or so receive only funding for special education, option students, etc. Funding provided by the federal government for special education has eroded over time to about 42% of the actual costs, leaving schools to pick up the rest. This bill would add $157 million to special education to compensate for that gap.

The eye popping part, the big number, is the Education Future Fund. As a member of the Appropriations Committee, I am always looking at how we sustain programs, especially in times of lower state revenue. I see a lot that is good in this package. But I will be focused on the funding aspects. When you throw out numbers like a billion or two billion, it is our duty to make sure it is both doable now, and sustainable for long term planning.

Today the state is in a very strong position financially; but will we be in the same place four years from now? That is a question I ask. In past years we had some good school proposals, but the funding portion was the determining factor. If the funding isn’t responsible and sustainable, and we have to cut it in future years, then it is not a good proposal. Again, the package is intriguing and I am very glad it was brought forward and that Governor Pillen is involved in this conversation.

The Governor also announced a legislative tax package. Several of the bills in this proposal speed up the timeline of reductions we have passed in previous sessions. LB 754 would reduce the top income tax rate to 3.99% by 2027. LB 641 eliminates state income tax on social security. A bill was passed last year to be phased in over five years; this new bill would make it effective much sooner. Additional bills in the package would immediately implement income tax cuts made last year; eliminate Community College ability to levy property tax and replace it with state funds and cap the increases; and provide income tax credits for donations to organizations that give scholarships to students going to private schools or parochial schools. In the past, this proposal for credits has been filibustered and the votes haven’t been there. But with 17 new senators and a new governor, we could see some of these moving forward.

LB 750, speaks to how we assess agricultural land and would base valuations on income potential rather than land sales prices. Between the years 2010 to 2020, ag land went up 150%. If valuations had been based on income instead of land sales, we wouldn’t have had that steep increase in those ten years. Until we decide, in the state of Nebraska, to determine how to evaluate land, other than the current system, we’re going to continue having these same discussions.

We are now seeing the same issue in residential valuations. Lancaster county residents received valuations notices in the past few weeks that for some grew by 20 to 30%. Again, this reflects the housing market of recent years. We will see if we have the will, along with this governor, to change some of that. I don’t have a good read on that as of yet, but again, I’m glad we’re going to have this discussion and people can weigh in on these concepts.

On Thursday I had the opportunity to preside over the Legislature while we were in session. This enabled the Speaker, Sen. John Arch, to participate in debate about the permanent rules. It was a great experience and I look forward to more opportunities to “sit in the chair.”

To contact me directly, use my email or call/leave a message. mdorn@leg.ne.gov 402-471-2620. Send mail to District 30, PO Box 94604, Lincoln, NE 68509-4604. Follow me on Facebook or see my webpage by going to the legislative website. As always, I look forward to hearing from you!