The Legislature has wrapped up a second week, reaching day eight of the 90 day session. The first ten days are for the introduction of new bills and confirmation of committee assignments. After lengthy discussions, the committees have been approved, and I will continue to serve on the Appropriations Committee. The past four years on Appropriations have been educational and enlightening, and I am pleased to have the opportunity to continue on this important committee.

I will also be a member of two special committees: Building and Maintenance, on which I served the past two years; and Legislative Performance Audit. The Building Committee has oversight of the structures owned by the State of Nebraska and each year, we inspect selected locations from across Nebraska. Our task is to assess the condition of each facility and determine best uses and any needed maintenance.

The Performance Audit Committee evaluates state agencies to ensure the intent of legislation has been met. I was elected chairman of this committee. In Nebraska, this function is carried out by the Performance Audit Section, housed within the Legislative Audit and Research Office. I look forward to serving on these committees the next two years.

Bill introduction will continue until January 18th. Public hearings will begin on Monday the 23rd. At this time I have introduced thirteen bills and have another three yet to be “dropped”. It is important to note that not every bill addresses some huge issue. Many bills simply change a word here and there for clarity, or to correct a date or an omission in statute. Very few bills start from scratch and create a big new program. Of course, we will see legislation like that in this session – school funding is one example.

As a member of the Appropriations Committee, I am asked by constituents and organizations to carry a number of bills for funding. My staff and I evaluate the merit of each request, and how it will affect the current budget year and future projections. As a result, I accept some of the requests and have to say no to others.

The bills I have introduced so far include: a study of provider rates for home health skilled nursing services; appropriations for inpatient/outpatient hospitals, increased reimbursement rates for Medicaid nursing facilities and assisted living facilities, and funds for Educational Service Units; and one to clarify open meetings notices for fire districts. All of these are very straightforward.

A new initiative would be developed in my bill, LB 45, called Revitalize Rural Nebraska grant fund, which we have nicknamed ReRun. This bill would allow first and second class cities and villages to apply to the Department of Environment and Energy for funds to facilitate the demolition of dilapidated commercial property. During the interim months last summer, my Legislative Aide and I toured several areas in our legislative district and our neighbors to the west, and talked with other states about their legislation. Smaller communities struggle with unsightly and dangerous properties that need to come down, but the cost can be prohibitive. ReRun is designed to aid in that process, boost economic growth and revitalize key rural areas.

There is a tremendous amount of information available on the Legislative website. You can find the calendar, daily agenda, hearing schedule, the text of every bill introduced, contact information for every senator, maps of each legislative district and more. The budget proposal will be published when that draft is complete, and you can sign up to receive the official weekly publication Unicameral Update. Go to www.nebraskalegislature.gov.

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 communicating with you!

The 108th Legislature is off and running! The first day on Wednesday the 4th, consisted of the swearing in of new and re-elected senators. I was happy to have my family in attendance, and I am honored to represent everyone in District 30 for another four years.

After the ceremonies, we turned immediately to the election of officers and committee chairs for the session which covers the next two years; a 90 day session this year and a 60 day session in 2024. Senator John Arch of Omaha/LaVista was elected as Speaker of the Legislature. We will also have a new Clerk for the first time in over 40 years, Brandon Metzler will head up the Clerk’s office, the administrative arm of the Legislature.

I will continue to serve on the Appropriations Committee as my assignment for the next two years. I have four years of prior experience on this committee, and while it can be challenging, I have enjoyed this time examining the state’s expenditures.

Bill introduction has begun, and extends through the first ten legislative days. At this time, I have entered four bills, with the intent of introducing another ten or so. Provider rates for health care, ethanol, small community revitalization, education and emergency services are just a few of the topics covered in these bills. I will address each bill I introduce in future columns.

Please contact me at any time with your questions, concerns and suggestions. My staff and I are here to assist. Phone:  402-471-2620.  Email:  mdorn@leg.ne.gov  Website:  https://nebraskalegislature.gov/senators

You can follow me on Facebook, and receive my email newsletter by contacting the office. You can follow the Legislative agenda online at www.nebraskalegislature.gov  where you will also find a link on the right hand side of the web page, for live video streaming on Nebraska Public Media. I look forward to hearing from you as we work together in the 108th session.

It is definitely beginning to look a lot like… a new legislative session is right around the corner. Running unopposed for my seat in the Legislature enabled me to devote my time in the past few weeks to existing topics and learning about new issues. I appreciate the opportunity to serve as your representative in the Unicameral for another four years.

The schedule and my travels reveal there are many concerns facing Nebraskans, and that means a lot of chances to do some good things for our state. I was able to tour a couple of facilities providing for citizens with developmental disabilities and youth services. We need to bolster our provider rates and make sure we have the best people giving care to both vulnerable and elderly individuals, and pay them accordingly. I believe this is one way we can grow and strengthen our state.

Revitalizing our smaller communities by keeping buildings well maintained and up to date is another opportunity. I am in a working group that has toured small towns and land banks in Omaha, and looking at ways to assist economically. We also need to preserve our historic landmarks where possible.

A continuing priority is rural EMS and ambulance services. Along with Sen. Tom Brandt, I have met with these groups as well as Health and Human Services to make sure we are distributing federal funds as efficiently as possible, to where they are most needed.

Another important economic tool for Nebraska is expanded use of E-15 ethanol for motor vehicle use. My staff has been looking at how other states handle this in their state statutes.

Broadband continues to be vital as we see more and more telehealth, telecommuting for jobs, and the use of technology in education. Again, with federal funds available to help in expansion, we are studying this from the local to statewide level.

It has been a pleasure to participate in several award presentations including Serve Nebraska, the Rotary Club of Lincoln, Gage County Tourism, and the Beatrice Chamber. I was also glad to attend several ag organization meetings including Farm Bureau, Farmers Union, A-Fan and the Nebraska Cattlemen. Seeing all these people working for the betterment of the state is very gratifying and inspiring.

My work on the LR 374 interim study continues, with a meeting just this past week. This study is looking at how we fund our public schools, which in turn impacts tax formulas. It is complicated; and it is crucial that we keep moving forward with ideas. But it will require a mind-set change by a variety of stakeholders to get real and meaningful results, as well as cooperation between committees in the Legislature.

The Appropriations Committee has held various hearings in the past few months and will wrap up with a report on the Perkins County Canal project and an annual report on the state’s transportation system. I attended the most recent meeting of the Nebraska Economic Forecast Advisory Board in late October. Projections for the state budget remain very strong, but in estimates for future years, we are beginning to see a little more restraint. I believe this is prudent and we need to move forward accordingly in our state budget process these next two years of the biennium.

On November 11th, I helped serve free breakfast to some of our Veterans at the HyVee near 40th and Old Cheney. There were lots of familiar faces in the crowd and I very much enjoyed my time there. I also attended a quilt presentation to Veterans at Freeman Schools in Adams later that day.

In recent days, I was able to meet many of the new senators-elect. The incoming class will face a very steep learning curve as we tackle some important issues in the early days of the new session, which begins on January 4th, 2023.

In the meantime, may I wish you all a very happy Thanksgiving, remembering that while every year brings highs and lows, we have much to be thankful for in Nebraska and our nation. And with that thankfulness in mind, we will move into the Christmas season, and I also wish you a time of peace and joy in your holiday celebrations.

Please contact me at any time through my office email or phone. mdorn@leg.ne.gov 402-471-2620 You can follow me on Facebook at Senator Myron Dorn, visit my website by going to www.nebraskalegislature.gov and sign up for my newsletter by sending me an email. Again, may you enjoy safe and happy holidays!

The summer interim is always an excellent time for learning about issues, meeting people in the district and working on legislative studies at the office. I am also enjoying our many community celebrations and parades, which allows me to talk in person with so many of you!

The calendar has been full and varied since the session ended, which all helps as we contemplate legislation for next year. I was able to participate with Mosaic via zoom on their annual update, and be part of a panel discussion at UNL on the political process. Additional meetings were held on workforce and low income housing, public health departments and the state chambers of commerce. A large group of educators met with me in my office to discuss teacher shortages in key areas. 

As a member of the Building and Maintenance Committee of the Legislature, I have traveled to several state owned facilities around Nebraska. It is always enlightening to see the management of existing infrastructure and look at future needs. A tour of the Department of Corrections Treatment Center in west Lincoln was also on my schedule; as was a meeting with the Department of Transportation about routes through the city of Beatrice. 

Officials from the Department of Health and Human Services, as well as Sen. Arch and Sen. Brandt, attended a meeting and tour at the Beatrice State Developmental Center. I appreciate hosting these meetings in an effort to educate my fellow senators about the services provided by BSDC and Mosaic in Beatrice. 

A couple of speaking engagements allowed me to encourage citizen participation in our legislative process; at Leadership Beatrice and the OLLI program sponsored by the University of Nebraska. An additional opportunity, sponsored by Open Sky, was shared with Sen. Brandt via zoom, educating non profit organizations about how to engage with the legislature and make all voices heard.

The SIMS (Simulation in Motion – Nebraska) program, which brings emergency medical education to rural  areas by delivering high-tech training to hospital ERs, EMS and ambulance services across the entire state, was in Adams in early June. I have supported this project with legislation in the past and will continue to look for ways to enhance this important teaching tool and the numerous benefits to our small town EMS providers.

I have met with some of our Congressional delegation about issues affecting District 30, and attended city council meetings in Beatrice and Hickman. I have also talked with Lincoln Public School officials about their upcoming school year and needs at LPS. Other meetings have covered wind turbines, extraterritorial jurisdictions, and judicial issues in southeast Nebraska. Finally, I met with new state Sen. Kauth, who was appointed to fill the seat of late Sen. Pahls. I will look forward to meeting with yet one more appointee, when the legislative seat held by Sen. Flood is filled. 

In coming weeks, I will be attending interim hearings and meetings for LR 374, a study of local school aid. This is an important piece of the funding mechanism known as TEEOSA and concerns how property tax goes to fund education. Also on the calendar: the plan for improving the 14th and Old Cheney intersection, the Gage county board, Main Street Beatrice and continued meetings with newly elected officials. Of course, we are waiting to hear about a possible special session to be called in wake of the Supreme Court decision overturning Roe v Wade. 

Remember, my office is always available to receive your emails and calls. mdorn@leg.ne.gov, 402-471-2620. PO Box 94604, Lincoln NE 68509-4604. I look forward to hearing from you. 

The members of the Legislature said their goodbyes this week, as the session adjourned on Wednesday. Foremost among the farewells was a memorial service and tribute to former state senator Dennis Byars of Beatrice, who represented District 30 longer than any other to date. He was laid to rest on Tuesday, and I was privileged to serve as an honorary pallbearer. We are so grateful for his unwavering support of those with developmental disabilities and his dedicated service at many levels of local and state government.

The final day of session was largely ceremonial in nature, with an opportunity to congratulate outgoing senators and hear from the Governor. I was gratified to get a number of measures enacted by the Legislature in this extremely busy short session.

My priority bill, LB 1261e, was signed into law by the Governor during a ceremony on Tuesday afternoon. The bill amends the Nebraska Advantage Rural Development Act with the goal of promoting investment in Nebraska agriculture through livestock modernization or expansion and to encourage businesses to locate in rural Nebraska. This Act, administered by the Nebraska Department of Revenue, provides a refundable credit against taxes for investments in livestock production. These are awarded through an application process. LB 1261e also includes provisions from LB 596 to provide tax credits to fuel retailers selling E15 or higher blends of ethanol. The “e” clause means the bill went into effect immediately upon the Governor’s signature on Tuesday. 

Another of my bills, LB 761, the Precision Agriculture Infrastructure Grant Act was amended into a Transportation Committee bill, LB 1144. The goal is to obtain better connectivity with specific download and upload speeds, especially in unserved agricultural areas of the state. Uses of improved connectivity include on-farm traceability solutions; products that improve soil health, water management tools, and seeds that lower water, carbon, and nitrate footprint; and products using autonomous solutions (self driving) in agricultural equipment.

LB 707 was a bill I introduced to clean up statutes relating to out-of-state auctioneers selling real estate in Nebraska, and was included in the Banking Committee bill, LB 811. That bill was passed in mid April.

Some of the bills I introduced this session were amended into LB 1014, which distributed the $1.04 billion coming into Nebraska through the American Rescue Plan Act (ARPA) for Covid related expenditures. This measure included four of my bills: LB 760, grants to EMS programs; LB 968 for affordable housing; LB 996 for assisted living facilities; and LB 1091 for scholarships to college students in nursing. 

I had three bills incorporated into the budget bills which were moved out of the Appropriations Committee. Budget bill LB 1011 was the vehicle for my LB 762, providing funding for behavioral health. Budget bill LB 1012 included LB 759 and LB 1090, dealing with loans and grants for small business. 

Looking back over the session, I would say the biggest accomplishment was on the revenue side, through the tax rate reductions in LB 873. What this will ultimately do for many people in the State of Nebraska is give back some taxes, not only on Social Security and income tax but also through property tax credits paid on community colleges. This will help a broad segment of the people in our state. It took a lot of work to get this done. Three different tries on three different bills, but long-term it will have a huge impact.

As for a disappointment, I would have to say it was the failure to enact justice reforms (LB 920) as a part of reducing Nebraska’s serious prison overcrowding problem. From an interim study, we had twenty one recommendations and seventeen of those were generally agreed upon by all of the senators. There were four issues that were an obstacle. 

Both sides visited about LB 920 multiple times, including senators, the Speaker and the Governor. I estimate we had probably forty hours of discussion on the sentencing reforms on the floor and the bill failed to advance. If or when the state builds a new prison, without justice reforms the state is likely to be right back at that 150% of capacity level. Not to have something meaningful come out of all that, for me, was disappointing. 

Looking ahead, the “interim” months between now and January offer many opportunities to study the issues, learn about new ones and evaluate what is most important going forward. Each year has challenges and chances to make things better for our District and the entire state. 

I encourage you to contact me through my office, which is staffed all year. We will work to help with any questions regarding the state government or concerns you may have. We also welcome your ideas and suggestions for future legislation.  mdorn@leg.ne.gov  402-471-2620  District 30, State Capitol, PO Box 94604 Lincoln NE 68509-8604  Thank you! 

The Nebraska Unicameral has completed 59 of the 60 days of the session, the last part of a two year biennium. This final week of work was mainly focused on final reading and passage of bills. 

We will now be in recess for the next five days. This allows the Governor the time allotted by law to sign or veto any of the bills passed and sent to his desk. Should he veto a bill, that leaves one last day for a senator to move to override the veto. If that happens, we will take up those motions on our 60th day, which is April 20. 

Major legislation in this 107th Legislature included a tax rate reduction / tax credit package, distribution of the unprecedented $1.04 billion in federal funding from the American Rescue Plan Act (ARPA), and passing a budget that has had to account for a variety of factors. 

My position on the Appropriations Committee the past four years made me keenly aware of the need to balance the needs and wants of our citizens. It is safe to say we all have recommendations for what the state should provide to us as tax paying citizens, while at the same time wanting our taxes to be as low as possible. I am firmly in that camp as well. It really is a balancing act to produce a balanced budget, but I have thoroughly enjoyed my work on the Committee.

As I have covered in this update in recent weeks, it took multiple efforts to get a tax package across the finish line. LB 873 became the vehicle for reducing income tax rates. This will occur over several years, and will reduce the top individual rate from 6.84% to 5.84% by tax year 2027. This bill also included provisions to eliminate state tax on social security and insure a refundable state income tax credit does not fall below its current amount of $548 million, first enacted in 2020. On the revenue side of this issue, the state general fund will be reduced by $115.5 million in the next fiscal year, and that amount is estimated to reach a reduction of $948 million by FY2027-28. This bill was signed into law on Wednesday by the Governor.

The ARPA funds coming into Nebraska were distributed through LB1014. Federal guidelines for these dollars included use for mitigating the effects of the pandemic, providing premium pay for essential works, and funding water, sewer, broadband and infrastructure projects. Physical and mental health services, care providers for those with developmental disabilities and non profits working with food assistance are some of the recipients. Workforce housing and shovel ready construction projects will also benefit from this federal program.

Some high profile legislation dealt with the proposed lake between Lincoln and Omaha, and the canal project to insure water flow into Nebraska from Colorado. Another measure will devote federal funds to qualified census tracts where poverty has become critical. This same bill also supports innovation hubs, airport business parks, affordable housing and some tourism projects, all designed to improve economic conditions. 

Looking back at the work done by the Legislature since convening in January, there have been a number of very important issues discussed on the floor. Some were passed into law and others failed to advance. Such has been the case in every Legislature since 1867. We have to remember that every measure can be adjusted, if it doesn’t work out as well as we hoped; and any bill can be reintroduced if it didn’t succeed the first time. Or a second time, or more for that matter. 

With that in mind, I commend the senators who have completed their terms in service to the state and will not return to the Legislature next year. They are: Sen. Friesen, Henderson; Sen. Gragert, Creighton; Sen. Matt Hansen, Lincoln; Sen. Hilkemann, Omaha; Sen. Hughes, Venango; Sen. Kolterman, Seward; Sen. Lindstrom, Omaha; Sen. McCollister, Omaha; Sen. Morfeld, Lincoln; Sen. Pansing Brooks, Lincoln; Sen. Stinner, Gering; and Sen. Williams, Gothenburg. Of these thirteen senators, eight of them chaired a committee. They will be missed for their valuable ‘institutional knowledge’.

I count it an honor to represent you in the Nebraska Legislature. If you have concerns, ideas for legislation, or questions about bills and laws, please contact me.  The office is always available throughout the interim. mdorn@leg.ne.gov  402 471-2620  www.nebraskalegislature.gov  PO Box 94604, Lincoln NE 68509-4604

This past week was quite similar to the previous one with long days of debate and important issues before us.  Not every measure advanced, but some critical legislation was passed. 

LB 933 was the bill that would ban abortions in Nebraska, if the Supreme Court overturned Roe v. Wade.  We took about eight hours of debate, so it needed 33 votes to break the filibuster. I am a co-sponsor of the bill and of course, voted to support it. However, only 31 yes votes were cast, so it most likely will not come up again this session. I do expect some form of the bill to be brought back next year in the 2023 Legislative session. 

LB 873 was passed on final reading, and now goes to the Governor for his signature. This bill number may not be familiar because two other bills were used as vehicles for a tax package but both failed to advance. The third attempt amended the income and social security tax reductions into LB 873. The bill lowered individual and corporate income tax rates; eliminated an income tax on social security benefits; guaranteed the amount of credit available for property tax paid for K-12 schools, and added property tax paid for community colleges to that credit program as well. This credit must be claimed on your Nebraska tax forms. 

Several veto override motions were taken up this week. Using the strong financial position of the state as it stands today, the Appropriations committee and the Legislature’s fiscal office worked diligently to produce a budget. And as a member of this committee, I can tell you our decisions about the budget were well thought out.  Three bills comprised the budget, LB 1011, 1012 and 1013. These were passed last week and the Governor used his line-item veto authority to reject certain portions. All three bills were restored by more than enough votes to override the vetoes.

It was important to me to put provider rates back to the level we had appropriated in the budget, with an increase of 15%. The Governor had line-item vetoed about $50 million allocated for child welfare providers, developmentally disabled care providers and others. As we have heard in the past 24 months in particular, staffing issues and extra costs, as well as an increased need for care, have reached a critical stage. I felt it was important for the state to show a firm willingness to support this sector of our economy and these human services. If Medicaid rates are higher, it allows facilities to take on more of those patients and still keep their bottom line healthy, provide jobs and keep their facility open. This is vital for our district and for the state of Nebraska.

Another attempt to override the Governor’s veto was close, but fell one vote short. LB 1073 would have required the Governor to request additional rental assistance from the federal government. During discussion on this override motion, we learned that in rural Nebraska, nonprofit organizations were not available to disperse the funds like they were in Lincoln and Omaha. Individuals had to get online to request the funds and the process was somewhat difficult. As a result, not all of the original federal allocation for rural areas was dispersed. The state will still get another $70 million but it will be allocated to Lincoln, Omaha and their counties.  We hear there is still a great need in rural areas, and the additional $50 million would have been for those areas. 

After much negotiation and extended floor discussion about LB 920, proponents of the criminal justice sentencing reform bill said they would rather let the bill go as it had been amended, and bring it back in the future. A study of the corrections system last year produced 21 suggestions to deal with our prisons; 17 of those were included in a bill with agreement among the study group members. Another four issues did not have a consensus but were included in the bill. Sen. Geist’s amendment removed those four main points, resulting in a filibuster which fell short of the votes needed to advance. 

There is about $240 million sitting in a fund for construction of a new prison, but it has not been officially allocated and cannot be spent without legislative approval in the future. Again, I do not feel like one can advance without the other – we need both sentencing reform as well as improved or additional facilities to help solve our problems in the corrections system.

LR 264CA, if it had passed through the three stages of debate, would have ended up on the November ballot for voter approval. This measure was called the “epic consumption tax”. A simple description of the bill is it would have eliminated property, sales and income taxes, and instead would have implemented a tax on all new purchases of around nine percent. I voted against this because there are far too many unknowns about completely tossing out our tax structure. Entities from schools, counties, NRDs,  townships, fire districts, etc., would all have their funding coming to the state before it was dispersed back out to local areas. 

Basically with a consumption tax, the state would be in control of all of these funds, and there would be less local aspect to the tax collection. My fear was that if revenue went flat or below projection, local entities would have been at the mercy of the state’s appropriations no matter what their budget required. 

While I definitely agree that our tax structure needs overhaul, I did not feel the specifics of revenue collection and distribution were spelled out well enough in LR 264CA to ensure all local subdivisions would have a strong voice, be treated equitably, and be able to operate sustainably. I do believe we will continue to discuss the more intriguing parts of this concept in the next session.

There are only four days left in the current session, but I encourage you to keep the lines of communication open with my office. Contact me at mdorn@leg.ne.gov or call 402-471-2620. 

The main concern you hear from people as an elected official, especially as a state senator, is taxes. It took three bills, several amendments and some late evening sessions, but the Legislature has advanced a measure to address income and property taxes. 

LB 873 was debated on the floor by “dividing the question”, so five sections of the bill were discussed in turn.  The first piece dealt with individual income tax rates. After much debate, the amendment was approved that would cut Nebraska’s top individual income tax rate in several steps from the current 6.84 percent to 5.84 percent by tax year 2027.

The second portion of the bill focused on corporate income tax. This portion of LB 873 would continue the phased-in reduction of the state’s top corporate income tax rate, which applies to income in excess of $100,000, approved by the Legislature last year. The committee amendment would cut the rate from the current 7.5 percent to 5.84 percent by 2027.

Next was a section to offset property tax paid towards community colleges. Similar to the existing credit for K-12 school property tax, it would create a refundable tax credit under the Nebraska Property Tax Incentive Act (NPTIA) based on the amount of property taxes paid to a community college.

That property tax credit fund was addressed in the fourth component, to ensure the refundable state income tax credit does not fall below its current amount of $548 million. NPTIA was first created by the Legislature in 2020.

Finally, a phase out of income tax on Social Security benefits was amended into the bill. This amendment included the provisions of LB825, introduced by Sen. Brett Lindstrom, to exempt Social Security from state income taxation by tax year 2025. 

The comprehensive tax bill, LB 873, now moves to second round debate. The goal of the tax package is to benefit both individuals and businesses, encourage all to stay in Nebraska and increase economic growth. I do have some concerns about how the state budget will look a few years down the road, when we are no longer experiencing the influx of federal pandemic dollars like we are right now. But it is crucial to lower tax rates and guarantee property tax credits remain in place. 

Another major piece of legislation is pending in LB 920. This bill from Judiciary Committee Chair Steve Lathrop looks at the way we impose sentencing on those convicted of crimes, and how we deal with their eventual release and parole. 

A discussion of LB 920 also involves the Governor’s plan to construct a new facility to handle current overcrowding. Nebraska presently ranks among the nation’s most overpopulated prison systems. Several senators and other state officials worked with the Crime and Justice Institute last year to look for ways to deal with the problems in Corrections. 

The study showed that while fewer inmates did enter the system in recent years, they had longer sentences and lengthy release processing. This complicates the problems of high prison population and low staffing numbers. 

As I have mentioned before, in order to achieve genuine improvement in our Corrections system, there needs to be attention given to both improving our physical capacity and enhancing our training and programming. Incarceration is expensive on many levels. Restoring previous offenders to meaningful, successful and productive lives is just so much better overall for our state and everyone involved.

Debate on LB 920 will resume next week but will also be competing for time with other key issues as we enter our final seven working days of the session.  The Legislature will be taking up a motion to override the veto of the Governor on federal rental assistance funding, as well as finalizing the South Platte canal project, the recreational lake between Lincoln and Omaha, and the nearly $1 billion package of American Rescue Plan Act (ARPA) federal fund expenditures. Also waiting to be finished up are bills on rural housing, broadband and LB 933 which would ban abortion if the Supreme Court overturns Roe v. Wade. 

I welcome your communication as we continue our work on these issues.  Please contact me at mdorn@leg.ne.gov, or call 402-471-2620. The website can be found at www.nebraskalegislature.gov

Nearly all of our time the past two weeks has been taken up by either revenue or budget bills, and at the same time, discussion has covered a vast range of topics. Early in the week, we took up LB 939. Sen. Linehan proposed this bill to lower the income tax rate over a number of years. It passed the first round and was on second round debate; amendments were added to incorporate parts of Sen. Briese’s LB 723 to guarantee the fund for future property tax credits to around $560M; another one was to phase in credits for property taxes paid for community colleges over the next few years. Opponents of the bill mounted a filibuster, which would have eliminated the chance to vote on adding these amendments. 

Sen. Linehan chose to pull LB 939 and planned to use a different bill, LB 919, which would incorporate the provisions noted above. The only issue was that this bill had to start over on first round debate. As an alternative Friday morning on the floor, elements of LB 939 were amended on to Sen. Brett Lindstrom’s LB 825, which would phase out taxes on state Social Security benefits, and was already on second round debate. After four hours, a vote for cloture failed. At this time, LB 825 and the accompanying amendments are off the agenda. 

The analogy of a three-legged stool is often used in tax conversations. This concept began under Gov. Norbert Tiemann back in the 60’s. But the balance of the “stool” eroded over time as property values rose, and other taxes fell due to various changes in the economy, resulting in a shift of more of the burden on to property taxes. This year you can get 25% of school property taxes paid (excluding school bonds) as a credit on your income tax. You must apply for that, but the process has been made easier on tax forms this year, a little more user friendly. 

Turning from revenue to appropriations, we passed the three budget bills in the first round debate last week. All three, LB 1011, 1012 and 1013, were filibustered for eight hours. On Thursday, we took them up for the second round. This includes the cash reserve or “rainy day fund”, addressed in LB 1013. I would like to see at least $950 million maintained in that fund to give us a reserve and a cushion for the next couple of years as we wait to see what effect inflation and international events will have on our economy. 

 LB 1013 would use $513 million from the cash reserve to pay for $53.5 million towards the Perkins Canal project to secure water rights in the South Platte River coming into Nebraska from Colorado and $50 million for surface water irrigation improvements, which after over 50 years, need some upkeep; the “Star Wars” lake between Lincoln and Omaha, as well as upgrades and maintenance at locations such as Lewis & Clark and Lake McConaughy; economic development, rural projects, workforce housing, military base development and funds for the Youth Rehab and Treatment Center (YRTC) in Kearney. 

Some of the floor debate focused on money set aside from the cash reserve for a new prison, $175 million, sitting in a fund for use if, or when, the Legislature would decide to proceed with that construction. Based on a study of prison reform conducted last year, Sen. Lathrop introduced LB 920 and he asserts that without these changes in sentencing, we will always be behind in trying to build enough capacity for all the inmates and we will not catch up. 

Every year approximately 2000 of our 5500 prisoners are released, and we need programming and training to keep those people from offending again and getting sent back into the prison system. Instead, we need to help them become productive members of society. Sentencing guidelines, staffing, parole supervision and programming are some of our challenging issues. 

I supported LB 1073 which would have required the Governor to apply for additional rental assistance from the federal government. Nebraska is one of just two states that has not taken advantage of these federal funds. The Governor had said it was not necessary and that he would not apply for those funds. I believe these funds help fellow Nebraskans whose jobs were impacted by Covid and are struggling financially to make up lost ground. In addition the rental assistance goes to the landlords who are trying to keep their rental properties viable. 

LB 1073 passed the first and second rounds with enough of a margin to advance. However, this week, the bill only passed on Final Reading with a vote of 26. The bill had an “emergency clause” which required a vote of 33. The bottom line is without 33 votes, LB 1073 would not take effect until long after the federal deadline passes for the application. The only way to get the funds into Nebraska would be for the Governor to apply on his own. Most likely the state will not be getting these funds unless the federal government extends the deadline.

A separate budget bill, LB 1014, deals with the American Rescue Plan Act (ARPA) money allocated to Nebraska, $1.04 billion. Designated a “super priority” bill by the Legislature’s Executive Board, it allowed the Speaker to have some flexibility in scheduling amendments and the amount of time taken on each. We were able to take a vote on the bill by 6:30 pm on Wednesday. For a senator who wanted to get funding for a proposal not included in the original bill, amendments had to specify a program or project to reduce or eliminate, and move those dollars from one program to another. One successful amendment was offered by Sen. Brandt, allowing small livestock processing facilities to access funding for expansion. That should be a tremendous help to any smaller meat processors we have in District 30. 

ARPA is a time restricted, finite amount of money, so it has generated a lot of interest among the 49 legislative districts.  I am committed to being fiscally responsible and sound going forward these next few years when ARPA and other federal funding is no longer available. We cannot spend so much in the near term and then find ourselves without that revenue in the years ahead. The result could be we would then have to make painful budget cuts. We need to analyze these ARPA proposals for their value as long term investments that will help the people of Nebraska.

Action on the main budget bills needs to be completed by the 50th day of the session, which is March 29. I expect more time to be spent on extended debate, including on a ‘pull motion’ for a pro-life bill which I co-sponsored. In many ways we are running out of time to move these measures forward, but we are working late into the evenings to accomplish as much as we can. 

Please contact me if you have any questions or concerns at mdorn@leg.ne.gov, 402-471-2620. Thank you.

The Legislature has completed 44 of the 60 days allotted for this session. With so many pressing issues, it could be argued we couldn’t afford to lose an hour of debate time.  So quite appropriately, we began the week by taking up a bill concerning Daylight Saving Time (DST). When I was first elected, my wife indicated I should do something about this issue. She is not alone in this; changing the clock twice a year generates a great deal of communication to all the senators, from all sides of the issue. Sometimes the ‘internal clock’ doesn’t change as easily as the one on the wall.  Younger people adapt more quickly, those older or with a more rigid routine may adapt less easily. 

Sen. Briese of Albion has introduced bills every year on DST, and this year made it his priority. During a brief discussion on the floor, Sen. Erdman, from the Panhandle area, suggested keeping standard time all year as well as combining all of Nebraska into one time zone. However, the bill advanced to the next round of debate by a wide margin without amendments. Then surprisingly the next day, the U.S. Senate passed a measure to maintain DST all year by unanimous vote, a rare occurrence. So in the end, Congress may end up doing the heavy lifting on this bill and it could come about quicker than we thought. 

After that fast start to the week, the process slowed down to talk through the budget.  You can find the entire budget document on the homepage of the legislative website, under “recent legislative information”, about fourth in the list. www.nebraskalegislature.gov

In the first year of our two-year biennium, seven bills were used to complete the budget. In this second year, we have just three bills, to make adjustments to that main budget passed last year. LB 1011 modifies appropriations from last year for specific programs and agencies. 

LB 1012 takes care of fund transfers and includes some of the big proposals such as the “Star Wars” water and tourism bill, the “Perkins County canal”, and so on. This bill was filibustered by Sen. Lathrop and some other senators who want criminal justice reform, or because they do not see the need for a new prison. LB 1012 sets aside $175 million for building a prison, but would need future authorization for these funds to be used. We need to wait on that until more information about prison sentencing reforms, construction projections and location comes in, which may not be available until August.  

The third budget bill, LB 1013, makes changes to the cash reserve (or “rainy day”) fund. Last year the amount in reserve was $700 million to $800 million.  This year we started at $998 million, and now with our strong economy and the federal funding flowing into Nebraska, we sit right at $1.7 billion. A previously unheard of number. Some of these funds will be expended for specific projects. 

After approving the budget bills, about $450 million will remain available for bills pending on the floor. Every day, the legislative fiscal office puts together a running total of how much of that has been “spent”.  The funds might be allocated to an actual program, or it can mean the amount is decreased by tax cuts, which lower the amount of available revenue to the state. Either way, I firmly support leaving that cash fund in a strong position going forward when changes in the economy inevitably occur.

As I mentioned, Sen. Lathrop of Ralston led the discussion on criminal justice reforms in sentencing, parole, and so on. A judicial study completed last year produced more than 20 recommendations and some of those were included in his bill, LB 920. Sen. Wayne of Omaha argued the state should be investing in areas like census tracts in North Omaha, especially if there were funds for prisons, recreational lakes and other proposals.

As a member of the Appropriations committee, I heard the testimony on all of these funding requests. Our task was then to decide on the best use of both state and federal money and the merits of projects all across the state. We had more full day hearings than ever before and listened to a vast range of needs and reasonings for a share of the dollars. We had to look at the big statewide picture and how that would play out over time.  We will find out over the next five years if it was done well, and what needs still exist.

I also want to emphasize the difference between the state’s general budget and the bill we will debate next week on American Rescue Plan Act (ARPA) requests.  From the 84 bills asking for one time federal ARPA funding, the Appropriations committee combined about 40 of those together in one bill. That ARPA package has been unanimously designated a speaker super priority by the Executive Board of the Legislature, giving the Speaker the ability to control the order of amendments taken up, and the amount of time spent on each amendment. 

Please continue to contact me at mdorn@leg.ne.gov or call 402-471-2620. I look forward to hearing from you and discussing your concerns.  Thank you.