The Legislature has adjourned, ending our work on the 88th day of a possible 90 day session. Since January, major issues have been debated including several that will affect taxes, education, economic development and criminal justice. Much attention was also given to social and cultural issues, resulting in many filibusters.

A main piece of legislation in the session is always the budget. As a member of the Appropriations Committee, this was a primary focus for me, as it has been the past five years while serving in the Unicameral. I have reported our progress as we put together the financial package for the state, culminating in a nearly $10 billion budget. Late last week, the Governor returned the budget package with several vetoes.

On Wednesday, we took up motions to override those line item vetoes of specific appropriations. The first was a motion to put rates for Medicaid providers back into the budget at a level of 2% the second year of the biennium, FY 23-24. After much discussion about how much funding was already available but not yet dispersed by Health and Human Services, this motion failed with a vote of 22 to 24. An override requires 30 yes votes.

A motion to fund expansion of the State Auditor’s staff to accommodate additional work was discussed, with support for the quality of previous audits and the experience of State Auditor, Mike Foley. There was also concern about the appropriate use and distribution of federal ARPA funding and the need to track those dollars. This override was successful, the vote was 31 votes for and 14 against.

Another override motion would have restored funds for workforce housing. Again, the debate on this topic included the use of existing funds first. This motion failed on a 25 to 23 vote. A motion to fund interpreters and ex-officio clerks used in the court system across the state failed on a 20 to 23 vote. Additional motions offered as overrides also failed.

I support using our state’s financial resources as efficiently and prudently as possible. I also know that funding ongoing budget items, such as salaries, with one time funds such as would require dipping into reserves, may not be sustainable in the long run. With that in mind, as well as my knowledge of the process followed by the Appropriations Committee, I did vote to override several of the line item vetoes.

If you remember last January, I introduced 16 bills. I also signed on as a co-sponsor to an additional 19 bills. I was very pleased to get LB 562 across the finish line, to expand the accessibility of Ethanol E-15 across Nebraska. Additional use of ethanol will benefit the state’s economy and the environment. A signing ceremony was held on Thursday at the Governor’s Mansion, which included Sen. Vargas of Omaha and Sen. Brandt of Plymouth as their bills for food truck regulations and beginning farmer legislation, respectively, were included in LB 562.

My remaining bills were either included in the budget, combined with other bills, or are still pending. LB 45 to revitalize rural Nebraska was incorporated into LB 531 which was passed on Thursday. LB 90 was merged into LB 254, relating to tax incentive performance audits. I introduced that bill as the Chair of the Legislature’s Performance Audition Committee.

Several of my bills were placed into the general budget: LB 128, 129, 131, 361 and 362. LB 361 deals with funding for the Precision Agriculture Infrastructure Grant Program; the remainder address hospitals, assisted living and nursing facility funding.

A couple of bills will be turned into interim studies for further research and possible amendments or new bills for the next session. One will examine how the state can ensure it has effective emergency medical services in rural communities. Another will evaluate the current funding mechanisms and operations of the state mesonet system, a series of automated weather stations that aid in disaster mitigation, such as flooding and wildfires, and more accurate weather forecasting.

I also introduced a proposal to find ways to improve the handicapped accessibility of parking, entryways and interior spaces of the Capitol. If you have ever attempted to enter the building in a wheelchair, or even on crutches, you know the difficulty of accessing our beautiful state Capitol. We hope to find ways to preserve the historical and architectural integrity of the building, while making it possible for everyone to navigate and enjoy.

During the interim, I will continue my work with the Performance Audit Committee which chooses several programs each year for review of adherence to legislative intent and success in implementation. I also serve on the Building and Maintenance Committee, which has oversight for all state owned properties. With these and the studies mentioned above, I expect another very busy summer and fall before we reconvene next January.

The interim is a great time for you to communicate your ideas and concerns. My staff will be on duty, and the answering machine is always on. Contact me at mdorn@leg.ne.gov . Call 402-471-2620. Send mail to District 30, PO Box 94604, Lincoln, Ne 68509-4604. Updates will be sent on a monthly basis going forward. Wishing everyone in District 30 a safe and happy summer.

The Legislature has completed 85 days of this 90-day session. The long hours and intensity ramp up a bit as we must work through the three stages for passing bills in the very short time remaining. The Memorial Day weekend comes at a good time, allowing us to refocus on the freedoms we have in this nation, and honor those who gave all to preserve those rights for us.

This week several major proposals were up for debate including voter identification, education scholarship tax credits and justice reform. The week ended with examination of the governor’s line item vetoes on the budget and possible motions to override.

The Appropriations Committee met early on Thursday to discuss the vetoes and possible action. I was disappointed to see so many crucial reductions after the Committee had worked cooperatively with the governor in crafting the budget. Our decisions were not made lightly; we labored over each item in the budget. Careful consideration was given to each individual expenditure, as well as the impact on the state today and in years to come.

I was especially concerned about vetoes of more than $45 million in increases for provider rates for Medicaid providers. As I have mentioned in past updates, bolstering health care is vital in so many ways. We need to ensure areas outside of Lincoln and Omaha have viable and up to date facilities and a strong workforce. In our metro areas, we must be able to keep these services growing and on the cutting edge of treatments.

Among the other items vetoed were both rural workforce housing and middle income housing in urban areas. Some business leaders and rural senators have called the lack of housing a major barrier to solving the state’s workforce shortage. Other programs that had reductions in funding included additional court interpreters, public guardians and expansion of the Court-Appointed Special Advocates (CASA) program that helps children in the court system. In next week’s report, I will comment further on any overrides that were successful.

Many hours of debate this week were spent on tax credits for contributions toward scholarships for attending private schools. This bill was introduced by Sen. Linehan at the request of the governor. It allows individuals, passthrough entities, estates, trusts and corporations to claim an income tax credit of up to 50 percent of their state income tax liability on these contributions.The first two years the total is capped at $25 million: it could then increase based on several things. Much of the discussion centered on who would benefit from these credits and the effect on public schools and state revenues. For these reasons, I did not vote in favor of the bill.

Another eight hours elapsed as we debated voter identification. If you remember, this was on the ballot last fall and Nebraska voters passed an amendment to the Nebraska Constitution to “require that, before casting a ballot in any election, a qualified voter shall present valid photographic identification in a manner specified by the Legislature.”

LB 514 laid out requirements for valid forms of photo identification including documents issued by the state (such as a driver’s license), state agencies or political subdivisions, the military, postsecondary educational institutions, or a recognized Native tribe. Hospitals and care home records that utilize a photo ID would also qualify. Mail in ballots would need to include a copy of the ID or their driver’s license or state ID number. The Secretary of State would then have to match the number to the state election database. Just to be clear, you would need to show an ID, or meet the exclusions, every time you vote.

Sen. Brewer, chairman of the Government Committee, said the measure would implement the will of the people expressed in the constitutional amendment, while not infringing on the rights of eligible voters. We passed the bill on a vote of 44 to 1, although I do expect additional time to be taken on the next stage of debate.

Criminal justice reform was another contentious issue before us this week. The main bill, LB 50, creates several programs to improve the state justice system such as more problem-solving courts, probation incentives and parole oversight. Behavioral health treatments and an increase in probation officers were also included.

Over 98% of those incarcerated will be released from prison and return to society. Offering parole is an excellent way for the state to monitor the parollee’s actions as he or she transitions back into society. The goal of the programming is to provide more oversight, a support system, career guidance and family structures that will result in a positive start to a new life, and prevent a return to prison.

There was also a lot of conversation on the floor about preserving the rights of victims of crime and ensuring adequate sentences are served before parole. With these differing viewpoints between some of the senators who practice law, amendments are being considered before the next round of debate.

There are only five working days left in this session. Your conversations and input are always important to me and to the legislative process. Thank you! mdorn@leg.ne.gov 402-471-2620

As you always see at the end of these weekly updates, I invite your communication via calls, emails or letters. I mean that sincerely, as your representative in the Nebraska Legislature.

This current session, my office has received more correspondence than ever before, directly due to the subject matter of bills up for debate. I still look at every email, letter and phone message and try to respond, even if just an acknowledgement of receipt, to everyone in the district.

During recent conversation on the floor about a particular bill, one senator stated that we are all (the entire Legislature) concerned about children, we just have differing ideas on what it means to protect them. This explanation applies to nearly every issue on which there is disagreement. We often have similar goals but varying ideas on how to achieve them.

It may also be that we will never agree. I try to listen carefully to all arguments, pro and con, before I cast a vote. If it comes to a tipping point, I will go with the fact that I was elected on a specific platform and will adhere to those values. That said, your input is always important and invited.

This week we got to Day 80 of the session, which is the date the biennial budget must be passed. The Legislature approved the state’s $10.7 billion two-year budget package on May 17th and 18th. The package consisted of seven bills dealing with everything from payment of salaries for judges, constitutional officers and senators to various construction programs.

The main-line budget bill, LB 814, carries funding for state aid and for the operations of state government. This bill gave final authorization to the $335 million expenditure for a new state prison, $8.5 million for increases in reimbursement rates for child welfare service providers, and $574.5 million for the Perkins Canal project to protect Nebraska’s water rights with Colorado.

One of my priorities this year was to ensure increased rates for behavioral health providers, higher reimbursement rates for assisted living facilities, nursing homes and hospitals. These increased rates were included in the budget package.

Our state cash reserve sits at a strong $780 million dollars. I have discussed this “rainy day” fund in previous updates along with my concerns that we keep the long range view in mind, while funding as many projects as we can with the surplus dollars available to Nebraska in recent years.

Now that the Legislature has passed the state budget package, the Governor has five calendar days to make any line-item vetoes. This authority is given to the Governor only on the state budget. If or when he returns any line-item vetoes, the legislature will have the opportunity to consider possible overrides which would require 30 votes.

The Revenue Committee also presented a package of bills for consideration this week. LB 727 is the vehicle for 26 bills running the gamut of exempting twine and bailing wire from sales tax (treated as a business input) to revamping the Job Creation and Mainstreet Revitalization Act. One significant piece in this bill is the creation of “Good Life Districts”. These districts would have to meet certain thresholds of job creation and development benchmarks. The districts would also have to show that upon completion of the project, at least 20 percent of the project’s sales come from out-of-state residents, with the goal of attracting large retailers.
Another bill included in the revenue package was sponsored by Sen. Brandt. It would permit retail dealers that sell and dispense biodiesel to apply for a refundable state income tax credit equal to 14 cents per gallon sold. The state Department of Revenue could approve up to $2 million in credits each year, and no new applications could be filed after Dec. 31, 2028. These proposals are designed to make Nebraska more competitive in a number of different markets.

Late on Thursday, the Legislature took up LB 531. This bill, as introduced by Sen. McKinney of Omaha, deals with the Economic Recovery Act passed by the Legislature in 2022, which provided funding for pandemic recovery projects in North and South Omaha and other communities that were disproportionately impacted by the COVID-19 pandemic.

A couple of bills of interest to District 30 were amended into the McKinney bill. LB506 would authorize a $180 million grant to a primary class city to fund a water treatment plant, land acquisition, wellfields, permitting, pumping and transportation costs to provide potable water to the city. This will be crucial for the city of Lincoln as the water supply dwindles over time.

Another important boost for our smaller communities was included in LB 531, my LB 45 would create the Revitalize Rural Nebraska Grant Fund for cities of the first class, second class, or village. This grant of $1 million would provide for dilapidated commercial property deconstruction, and would be run by the Department of Environment and Energy. This is a good starting point for helping small towns and main street areas clean up old buildings and improve business districts in our more rural communities.

There has been thorough coverage of the debate process on LB 574 (The Let Them Grow Act) and LB 626, which would ban abortions after 12 weeks; and how these two measures were amended into one bill. This was a very intense, emotional issue. I want you to know I met personally with several families and multiple health care providers; and read through pages and pages of documentation on these topics. It would be impossible to craft legislation to cover every possible scenario. And obviously, this is one of those issues on which we might not agree on the approach to caring for and protecting children. The bill was taken up on Friday for debate, and in the end it passed on a vote of 33 to 15. I voted to support this measure.

Again, be assured I welcome and value your input. Contact me at mdorn@leg.ne.gov or 402.471-2620. Thank you.

The late evening debates in the Unicameral have been making news, but what you do not see is all the work going on behind the scenes. A tremendous amount of technical work goes into the session by our legislative divisions such as the Clerk’s office, transcribers, bill drafters, IT, research and so on. But it also takes effort on the part of each senator to get information out to fellow senators, bring in supporting testimony, and find areas of agreement to get a bill moved forward.

My priority bill, LB 562, is an excellent example of this focused approach. Even though LB 562 was advanced on first round debate, it still needed to be amended by the Agriculture Committee. With the ongoing filibusters, this was not accomplished until the second round. It required negotiations and hard work by a lot of people but we were able to move LB 562 to final reading.

In the committee amendment to LB 562, retailers will be incentivized to increase the blender rate of ethanol from the current average of 9.7% up to 14% in the next five years. If a new fueling station is built in that time frame, or an upgrade is made to 80% of the facility, then half the pumps would need to be E15 compatible. Incentives are in the form of tax credits to retailers, and are based on gallons sold and cents per gallon; they can choose to pass that along to the consumer or put it back into the business to cover costs. Either way, it flows back into the Nebraska economy, boosts ethanol consumption and production, and provides an enhanced market for corn; while producing a more environmentally friendly fuel and giving consumers more options.

Also included now in LB 562 is Sen.Tom Brandt’s beginning farmer program at a $2 million funding level. The amendment of LB 116 into the ethanol bill was adopted 38-0. It is intended to help those just starting out in agriculture with tax exemptions and credits, and also to owners who rent assets to beginning farmers and ranchers.

A second measure was also incorporated into LB 562. This one was brought by Sen. Tony Vargas of Omaha, to simplify the permitting process for food trucks, and was adopted by a vote of 40-0. There was no cost to this bill, and it will be beneficial as it makes requirements more consistent across the state for the growing, and very popular, food truck industry. The last hurdle for LB 562 is final reading and then on to the Governor for approval.

All the budget bills have now been advanced on to final reading, which should be completed next week. That is the only constitutional requirement for the Legislature and it will be good to have that accomplished as we have only a dozen working days left in this 90 day session.

Overall, the budget reflects a growth rate held to 2.3% and leaves about 16% (two months’ worth) of annual spending in the Cash Reserve, known as the Rainy Day Fund. An additional transfer was moved from the reserve into the General Fund at the request of the Governor. There won’t be much more taken out of that cash reserve, nor should there be. But this will allow for covering the cost of other legislation, since funding must come directly from the General Fund.

Five years ago when I started my first term as a state senator, the cash reserve was only at $300 million and we had to work to get it up to $345 million. By my third year we had about $990 million in reserve, and last year it grew to over $1.6 billion. Without any spending this year, it could have grown to $2.3 billion. Of course, this rapid growth was due to the influx into Nebraska of massive federal funding from pandemic relief programs and the American Rescue Plan Act (ARPA). As a result, some large project expenditures have been approved, including the Perkins Canal, a new prison and the Education Future Fund. It also allowed for moving some of the ARPA funding to support projects such as water for the city of Lincoln and other vital programs.

As long as the state forecasting board’s predictions are sound, we will be fine. But there are many economic factors that go into this, and we will need to keep a sharp eye out for changes that could affect the cash reserve/rainy day fund in coming years.

Floor debate this week included LB 727, a package from the Revenue Committee covering a range of topics. Beginning with sales and use tax provisions, other subjects were: the Imagine Act, the Build Nebraska Act, the Nebraska Advantage Rural Development Act, transformational products, good life districts, taxes on vaping and nicotine, jobs, mainstreet revitalization and others. All together, twenty bills were combined into LB 727.

Additional legislation discussed this week included LB 243. It combines six bills and provides direct property tax credits, deals with property valuation appeals, funding for community colleges and child care tax credits. I consider the addition of the child care provisions to be good for this bill as we have heard so much in the past couple of years about both the cost and lack of childcare in many communities. As a package, LB 243 will provide tax relief for anyone who owns property and that part of the bill is very good.

As we proceed through the last couple of weeks of this current session, I welcome your correspondence. Email me at mdorn@leg.ne.gov or call 402-471-2620. You can follow the progress of all bills and watch the Unicameral live at www.nebraskalegislature.gov.

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The National Day of Prayer was observed in the Capitol Rotunda on Thursday. Among the many significant concerns for our state and country, we are experiencing critical drought conditions across most of Nebraska. Hopefully by the time you read this update, we will all have received a good rain.

Major legislation was considered in debate this week. The first was LB 705, the Education Committee priority bill, into which 22 other bills were amended. The underlying bill would distribute over $24 million in state lottery funds to various education sources, including college access and opportunity grants. The lottery portion of this bill was due to sunset at the end of the year, and needed to be extended. Amended bills covered a range of educational needs from addressing the growing teacher shortage to increasing mental health resources and equipping educators accordingly.

Still other amendments dealt with paraprofessionals, creating pathways for more people to get their teaching credentials and eliminating the Praxis Test. Grants to help retain teachers were included. Studies have shown if someone stays in education for so many years in the profession, they are more likely to make that their career. The LB 705 education package met with little opposition overall and was passed to the next round by a vote of 40 to 0.

The biennial budget for Fiscal Years 23-24 and 24-25 was distributed to the full Legislature early Tuesday. A briefing for all senators was held on Wednesday. The entire report runs 267 pages and can be accessed from the home page of the Unicameral at www.nebraskalegislature.gov or by following the link HERE.

As we have noted in updates in the past, the task of the Appropriations Committee (the only five-day committee) is to review all state agency budgets and programs, the Governor’s proposal, and requests for funding in senator’s bills. From these pieces, we assemble a complete budget package for the full Legislature to consider.

In his proposed budget, Governor Pillen recommended a 1.3% growth rate. The difference between the Appropriations Committee budget package, which has average growth of 2.3% for the two years of the budget, and the Governor’s plan, was an increase in Medicaid provider rates. As a Committee, we increased these rates with $80 million from the general fund for hospitals, nursing homes and assisted living facilities. That will garner about $122 million in matching federal funding for Medicaid, resulting in around $202 million in the next two years to bolster this important sector of healthcare.

LB 814 is the mainline budget bill, which is introduced by the Speaker at the request of the Governor. It runs from July 1, 2023 to June 30, 2025, totalling about $5.35 billion of General Funds appropriations for each year of the two year budget. This measure includes the budget proposals for all State operations and aid programs. The amendment, AM915, becomes the bill and contains the Appropriations Committee’s budget recommendation and the provisions of LB 817, which is the appropriations bill for capital construction projects, and several other bills.

LB 818 is the Appropriations Committee’s funding and cash transfers for a variety of projects and programs including (not the entire list): the Cash Reserve Fund, Cultural Preservation, Vocational and Life Skills Programming, Agricultural Products Research, Charitable Gaming, State Parks, Economic Recovery, Water Recreation, Panhandle Improvement, Surface Water Irrigation, Environmental Trust, the Critical Infrastructure Facilities and the Interlocal Cooperation Act for the purpose of funding a portion of the cost of a wastewater system.

LB 818 also includes the Perkins County Canal Project Fund, and credits fees collected for water
delivery to the fund and allows the money in the fund to be used to “identify the optimal route and
purchase land for and develop, construct, manage, and operate the Perkins County Canal”.

Additional sections of the bill deal with the Health Care Cash Fund, Medicaid and the Nebraska Tobacco Settlement Trust Fund. It creates the Capitol Preservation, Restoration, and Enhancement Endowment Fund and the Education Future Fund. The Site and Building Development Act was amended to allow for riverfront improvement projects, housing, employment, or programming for youth exiting foster care; and cities that have partnered with the U.S. Department of Defense for upgrades to ground based nuclear deterrence.

Also in LB 818, the Shovel-Ready Capital Recovery and Investment Act was amended and the Economic Recovery Act and use of the Economic Contingency Fund were addressed. The Department of Health and Human Services will be required to submit a state plan concerning assistance for needy families, child advocacy centers, domestic violence services; and grants to nonprofits that provide food assistance. New programs include the Economic Development Cash Fund,the Lead Service Line Cash Fund, the Panhandle Improvement Project Cash Fund and the Youth Outdoor Education Innovation Fund.

If you have actually read this far, you can see from the exhausting list why the Appropriations Committee has just one job – develop the state budget. We consider each individual request, agency and program and take multiple votes before we advance the finished budget. This also explains why ten days of the session are devoted to budget debate and passage, why the Governor has line item veto powers and why passing the budget is the one constitutional requirement of the Legislature each biennium.

As we debate these issues, you are always welcome to contact me at mdorn@leg.ne.gov or call 402-471-2620. I appreciate your communication.

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The yards, trees and fields are really starting to green up. It may look like spring but in many ways it is Christmas at the Legislature. Or at least that is a term we use to describe the amending of multiple bills into a main one – a “Christmas tree bill”.

My staff is monitoring these amendments and at last count, eight bills have been made the vehicles to carry 83 other bills. As an example, a Revenue Committee bill contains all or portions of 22 others. This was done to allow more bills to get through this year with all of the filibusters that are happening. Many of these bills would have been on a consent calendar (non controversial bills that get just 15 minutes of debate), and came out of each committee unanimously.

I do have some concerns about the approach of incorporating large numbers of bills into one vehicle. While this method is not new or rare (in fact I anticipate a couple of issues could be amended into my own priority bill), the sheer number we are seeing in this session is unprecedented. We need to discuss, analyze and vet each portion of a multi-part bill before casting our votes. Attempting to do this well, during a filibuster, can be difficult at best. As a result, I expect we may need to revisit some of these issues in the next session.

LB 562, which I designated as my priority for the session, was finally heard on the floor on Thursday. As I have outlined previously, this bill would expand the options for using E-15 ethanol at fueling stations across the state. As has been the case with many bills thus far, senators opposing other issues took the time to stall LB 562. However, we did have some conversation about the economic and environmental benefits of ethanol for Nebraska. The bill will be taken up again next week for continued first round debate.

For the first time this session, legislation was passed on final reading this week. These bills included LB 376e, with a vote of 41 to 0. The “e” clause means it will take effect immediately upon the Governor’s signature. LB 376 was brought on behalf of the Liquor Control Commission. This legislation will enable the commission to more accurately and correctly identify alcoholic products being imported into or produced in Nebraska for taxation and distribution purposes.

Another bill passed on final reading was LB 296 which regulates insurance for pets. LB 775 also passed and will make necessary changes and additions to the Nebraska Gaming Act, address Licensed Racetrack Enclosures, the Racetrack Gaming Act, county and city lotteries, pari mutuel wagering and keno.

One of the more prominent bills of the session, LB 77, was passed on a 33 to 14 vote. This bill provides for the carrying of concealed handguns without a permit, changes provisions relating to concealed weapons, and prohibits certain regulation of weapons by cities, villages, and counties. The bill was filibustered at each stage of debate but ultimately did pass.

With the recent appointment of Sen. Carolyn Bosn in District 25 to fill the position of Senator Susan Geist, some committee structure needed to be reshuffled, including a new chair of the Transportation and Telecommunications Committee. Sen. Moser of Columbus was elected for this position. Sen. Bosn will serve on that committee as well as the Judiciary Committee.

The Appropriations Committee is putting together the final versions of the five bills that comprise the state budget. These are then sent to the state printer; hard copies and an online version will be available by May 2nd. The entire legislature is scheduled to begin debate on the budget on Wednesday, May 3rd. We are now in the final stretch of the session, and I welcome your communication. 402-471-2620 mdorn@leg.ne.gov

The Legislature is putting in long days to get as many issues discussed as possible. It may seem like we are not going anywhere in this session, but at the same time we have had many important bills before us. These do require careful thought and consideration before votes are cast and I appreciate that part of the process. I do not wish to make any quick decisions on these difficult topics.

My own priority bill, LB 562, has been voted out of committee and on to the floor of the Legislature. LB 562 has a goal of increasing the use of ethanol by expanding access to E-15 at gas stations. Nebraska is the second largest ethanol gas producer yet we rank 45th in consumption with a 9.6% blend rate.

We have every indication that gas prices will continue to rise, placing a greater financial burden on Nebraskans. This bill creates an opportunity to not only save money at the pump and have cleaner air, but also to support an entire value chain. It begins in farmers’ fields and ends in consumer fuel tanks. Utilizing home grown and home processed resources to manufacture economical and environmentally responsible ethanol is a win-win-win for our state.

LB 562 states that beginning January 1, 2024, any new retail motor fuel site built after that date, or existing sites that replace more than 80% of their facilities and infrastructure, shall advertise for sale and offer E-15 through at least 50% of dispensers.

LB 562 also addresses the statewide average ethanol blend rate. E-15 is defined as gasoline that is more than ten percent but no more than fifteen percent ethanol. Presently, the state average blend rate of ethanol is about 9.6%; this bill will increase that up to 14% by the end of 2027, making Nebraska the leader in ethanol blends. Right now, the highest blend is in Minnesota with 12.6% and Iowa is second highest.

E-15 has the potential to be a great boost to the economy and a tremendous help to agriculture, which creates one in every four jobs in Nebraska. In the farm economy, we have a lot of peaks and valleys. So even if the price of corn is higher today, it will drop at some point in the future. Ethanol helps even out those ups and downs and makes the entire state economy more stable.

Regarding two of the bills debated this week, we have seen excellent discussion on both sides. Senators were asking for clarification and receiving respectful responses for the most part, especially on LB 626.

This bill, termed the “heartbeat bill” as it applies to infant development and abortion, saw more people in the Rotunda this week than any time so far this year, with press conferences from both sides. We have been inundated with information from the medical community as well, representing opposite views. I did vote for cloture and advancing LB 626. My concerns are mothers, babies and health care providers – all receiving the consideration, care and protection they need. This will now move to the second of three rounds of debate.

LB 574 would ban doctors from performing gender altering surgeries and offering hormone therapies to individuals younger than 19. An amendment to pare the bill back to just surgery was offered, which was defeated. The bill was advanced but with the caveat that an improved amendment would be negotiated and offered on the next stage. We will wait and see if there is a path forward now, with amendments. Even so, I have had people tell me that there could be court challenges in the future to both LB 626 and LB 574.

One more major bill was taken up this week, LB 753, to give tax credits to donors that fund scholarships to attend private and parochial schools. I did support an amendment for spending and reporting requirements, but overall I am still generally opposed to the concept and the potential effect on the budget. I was present and not voting on the bill’s advancement. The state’s primary obligation, and its constitutional duty, is to provide public education.

Your email, phone calls and messages are appreciated. Contact me at mdorn@leg.ne.gov or call 402-471-2620. Find information and livestream of debate at www.nebraskalegislature.gov Thank you.

The Legislature is working to get as many hours of debate in as possible. This has included some late evening sessions, going past 10 pm once this past week. Good conversations have taken place, interspersed with discussion to purposefully use up time. When this occurs, we are able to have brief meetings and get other work done, so despite the efforts of those filibustering, all is not lost, nor is time completely wasted.

 LB 243, which was amended to include parts of seven other bills, is part of the Governor’s proposal to deal with education and property taxes. The package includes the Education Future fund, and would increase the amount of property tax relief through direct income tax credits. The credits offset part of what a taxpayer paid in property taxes to their school district during the previous year. 

The act will grant roughly $315 million in relief this year and would increase to $388 million for tax year 2024. The fund for these credits would continue to increase annually, reaching $560 million in tax year 2029. After that, it would grow by the percentage increase in the total assessed value of all real property statewide over the prior year.

Some concerns raised during debate questioned whether the amount in the Education Future Fund, combined with other proposed income tax cuts, could leave the state unable to meet obligations to pay for education and tax credits in the future. 

An amendment offered by Sen.Tom Brandt led to some of our best conversations on the floor regarding school funding. It included the $1500 per student foundation aid; but also changed different classes of property for taxation, such as lowering agricultural land down to 42%. The amendment was ultimately defeated.

In LB 243, every school will get $1500 per student and more special education funding, up to 80% of those  costs. The TEEOSA formula will see some changes, but nearly every district should see a decrease in property taxes. There will be an increase in reporting requirements from school districts and a cap lid of 3% with various ways to raise that cap (a super majority of a school board, or 60% approval in a vote of the people). So local control remains, but there is also a great deal more funding coming from the state. 

Funding for special education will grow to more than $250 million, which is nearly double the current amount.. The $1 billion education fund will grow over the next few years, and we will see if that fund is adequate to fulfill  educational needs or if it will need additional appropriations to keep pace with the needs of education in the future.

Another measure amended into this package was LB 783 which ends or limits the community college system’s ability to levy property tax. With removal of that authority, there will be a 3.5% growth rate increase every year of state funding. In this new proposal there will be no property taxes collected for operations. There are still some bonds that will remain, but going forward, most of the costs of community colleges will be picked up by the state.

I visited several times with Dr. Paul Illich of Southeast Community Colleges to gauge the impact on our schools in Beatrice and Lincoln. The bill represents a large amount of property relief for Nebraska, in the amount of $275 to $300 million.

Another major bill, LB 683, would create a broadband office. We have heard several times that federal dollars will not be available to Nebraska unless we have this agency. Amounts vary from $100 million to $400 million from the federal Broadband Equity, Access and Deployment (BEAD) program that our state could be using to build out to the people who really need it. So many areas in the state are severely limited in connectivity; and this is not necessarily restricted to rural areas, even parts of Omaha have this problem. Covid really revealed this lack of broadband when we turned to remote learning, working from home, telehealth, and so on. 

A new broadband office would bring interests together to develop a plan for infrastructure, operation and maintenance. It would also advocate for Nebraska at the federal level in matters of mapping, speed data and regional networks.

LB 683 was also amended with other bills from the Transportation and Telecommunications Committee. Among them were clarifications to grant applications for broadband and prohibitions to using state subsidies for any company that uses equipment from the Chinese company Huawei, which could pose a threat to national security. 

With the resignation of Senator Geist to be able to focus her energy on running for mayor of Lincoln, we welcome new Senator Carolyn Bosn to the Unicameral. She was appointed by Governor Pillen to serve out the remainder of the term in District 25. I wish both of them well as they take on these new responsibilities.

Contact me at any time via email at mdorn@leg.ne.gov or call my office at 402-471-2620.  Easter blessings to you all!

Our schedule at the legislature has been expanded and compressed at the same time. We have adopted an earlier start time and a much later end time, a shorter lunch hour and a quick dinner break. While it does give us more hours for floor debate, it greatly reduces the ability to hold meetings and catch up on calls and correspondence.

The Speaker of the Legislature implemented the change in schedule to gain back some time that is being lost to filibusters. Several controversial bills, including LB 574 and LB 626, have led a group of senators to work within the rules to slow or stop debate as much as possible. A rule change we enacted this week was designed to let more substantive debate occur on the issues by reducing the number of priority motions that could be introduced solely for the purpose of stalling a bill. However, on bills set to come up on the agenda, over 700 new amendments have been filed by those still wishing to slow down the legislature. The votes may be there to move the two bills noted above; but the total number of bills we can address will be drastically reduced simply due to a lack of time.

Even so, we have had some really good debate on the floor about important topics such as a model for statewide behavioral health services, concealed carry permits, broadband expansion and the proposal to lower income tax rates in LB 754. During the eight hours before a cloture vote, there was plenty of discussion about the merits and risks of changing the tax rate.

LB 754 lowers the tax rate to 3.99% on the top two tiers of both individual and corporate income. Today the top individual rate is 6.64% and the top corporate rate is 7.25%. Both will drop to 5.84% by 2027 because of a bill adopted last year. The current bill would drop the rate all the way down to 3.99% in the same time frame.

Other bills were amended into LB 754 as well. Childcare credits would be extended to low income parents and child care providers, this would reduce revenue coming into the state by $35 million. Another part of the bill would eliminate taxes on Social Security benefits by next year. Also related, an amendment would allow income tax on Federal Employees Retirement or Civil Service Retirement annuities to be eliminated by 2024.
Still another amendment deals with expensing and deduction of qualified property for LLCs and corporations. This depreciation was allowed in the past but had sunsetted; the amendment would put it back into law.

The arguments for this income tax proposal are familiar – people move away or stay away from Nebraska due to taxes. Corporations look at energy costs, workforce availability, but also what their employees will be paying for income tax and their own corporate income tax. The premise is you must be competitive to get companies to locate in Nebraska.

Caution lies in the ability of the state to meet obligations after the federal funds from the pandemic programs have ended, and the fact we do not yet know the total loss of state revenue from the provisions of LB 754. In the end the bill had broad support with a vote of 41 to 0, with seven not voting. This was just the first round of debate, there are two more to come before it can be sent to the governor for his signature.

The Appropriations Committee hearings are over but we are meeting in executive session to hammer out the budget. We meet over that hour lunch time and then again in the afternoon while bills are being filibustered. This week we reviewed the agency requests that were presented in January and February, before adding them to the budget package. We still have a lot of funding bills to consider, including major initiatives such as the Perkins County Canal project and corrections proposals.
So far, my priority bill that expands the availability of E-15 Ethanol at gas stations, LB 562, is held up in committee. The bill includes waivers for small or older stations and funds grants to help with equipment upgrades. Ethanol is extremely important to the whole state, the agriculture community, the corn and ethanol industries, the economy and the environment. So we will continue to work on the bill to get it in the best possible form. Yet we also have to consider if the bill would even have time to be taken up on the floor for debate this year. I have been talking with the Speaker about that possibility; the chances are somewhat slim, again due to a lack of time.

No matter the schedule, I appreciate hearing from you. Contact me at mdorn@leg.ne.gov. 402-471-2620. Thank you.