Update Feb 16, 2024
Sen. Myron Dorn

Some unusually mild weather for mid February, but it’s been business as usual at the Legislature. That includes some very long public hearings in some committees, and good debate on the floor.

This week was the deadline for designating a priority bill for the session. I chose LB 1108, my bill that would take the “Fifty Cents for Life” program up to one dollar, to benefit the EMS and statewide trauma programs. The original bill would have added another 50 cents to the once-per-year car registration. At this time, we are looking at other funding sources, but those must be on-going and sustainable. We need to generate about $2.5 million per year to recruit and retain volunteer EMTs for rural areas, create a robust EMS service with an accurate registry and adequate equipment and training. The bottom line is that no matter when or where you dial 911, we need a squad able to respond.

This past week I had four bills heard by the Appropriations Committee, LBs 941, 942, 943 and 944. All of them appropriate funds to improve the state’s Medicaid provider rates for a variety of health care programs including assisted living and nursing facilities, and emergency and crisis behavioral health needs. We had an excellent turn out of citizens who use these services, as well as health professionals in support of these measures.

Last year, 29 nursing homes (out of 200+) closed in Nebraska. At this rate of closure, we will soon be in crisis mode for nursing care. Staffing numbers are an issue. The Medicaid reimbursement rate is an issue. About 60% of patients in these categories are on Medicaid, and the rate has not increased at the same pace as inflation. If you get up to 75 to 80% Medicaid patients, your facility cannot make ends meet with the low rates we have now.

I am hearing lots of feedback from counties about LB 1067, prioritized by Sen. Clements. The bill would phase out the inheritance tax over the next few years. Currently there are only six states with an inheritance tax, Nebraska being one. There are also 12 states that have an estate tax and Maryland levies both.

An estate tax is paid by the estate, not the heirs, but obviously still very similar. However, Nebraska is the only state with an inheritance tax that doesn’t affect state revenues, only county revenues. Let me be clear, I don’t mind eliminating the inheritance tax, but I do want to ensure that counties are reimbursed for the loss of this revenue stream.

About $75 to 80 million has gone to the state’s counties through the inheritance tax. Sen. Clements has a very small carrot out there, to pay counties so many dollars a day for inmates in their jails, which would total about $3.5 million. Not anywhere near the $75 million that will be lost, so that has not appeased the counties very much.

Counties must pay for everything from public safety and county law enforcement to county roads and bridges.
The only source of revenue for a county is property tax. Inheritance tax funds are used by many counties for the yearly operational budget; however some, like Gage county, have been careful to put this extra revenue aside for special projects. Either way, without it, there will be counties that have to raise property tax to compensate for the loss of revenue. Let me say it again, if this bill passes, the end result is an increase in property taxes, caused by the state not replacing that lost revenue in some way.

The Governor’s move to take federal summer grocery aid for low income families was a welcome decision. This will benefit children who may rely on school lunch programs just to eat, to have access to food during the summer break. It will also return some of our federal tax dollars back to Nebraska and benefit local businesses and jobs. I appreciate the administration’s willingness to reconsider and take advantage of this opportunity.

We have a couple more weeks of hearings and are nearing the halfway point of the session. Please continue to call and email with your concerns. mdorn@leg.ne.gov 402-471-2620 www.nebraskalegislature.gov