This past week started out being very productive. The Legislature passed the budget bills on Final Reading and sent them to the Governor. He has five days to decide whether to sign them or to line-item veto specific items. The budget bills are the only bills that must pass this year, as the Nebraska Constitution states that each Legislature shall make appropriations for the expenses of the Government.
The Legislature also voted to pull LB 147 from the Education Committee and place it on General File. LB 147 was stuck in committee with a 4-4 vote. The motion to pull the bill was made by the chair of the Education Committee, Senator Mike Groene. It received 25 votes, the minimum required. LB 147 proposes to amend the Student Discipline Act. It would allow an administrator, teacher, or other school personnel to use reasonable physical contact to protect a student, staff, or other person from physical injury. If physical contact is used, school personnel must notify the parents of the student and inform them of the incident. The bill would also require an administrator to remove a student from a class upon request by a teacher or other school personnel if the student’s behavior is so disruptive that it seriously interferes with the learning environment. The goal is to return the student to class as soon as possible after appropriate interventions or supports have been implemented. The teachers’ union is supportive of LB 147, recognizing the need for such legislation. However, administrators have concerns and feel the bill may create more problems than it resolves. I thought it was a good idea to bring the bill to the floor of the Legislature in an effort to encourage the administrators and teachers to work together on a compromise over the interim.
The Revenue Committee worked for months on a proposal contained in LB 289. It provided significant property tax relief by establishing a foundation aid factor in the school state aid formula, guaranteeing that every school district receive at least one-third of its formula needs from state aid. To ensure that the increased state aid resulted in property tax relief, school spending would be limited to the CPI inflation rate plus growth. To provide revenue for the proposal, the state sales tax rate would be increased, a couple of sales tax exemptions eliminated and the sales tax imposed on a limited number of services. During a seven hour public hearing on the proposal, only four people testified in support and more than fifty testified in opposition. The committee worked on revisions prior to advancing LB 289, lowering the proposed increase in the sales tax rate and increasing the number of services taxed, but the larger school districts remained opposed to the proposal. After three hours of debate, the sponsor of LB 289 could not come up with the necessary 33 votes to place the bill on the agenda again, as required by the policy of the Speaker of the Legislature.
After it appeared that LB 289 would not be discussed again this session, Albion Senator Tom Briese offered an amendment to LB 183, a bill already advanced to the second stage of debate. The amendment proposed to place an additional $100 million in the Property Tax Credit fund, bringing the total to approximately $375 million in property tax relief, reflected on a taxpayer’s property tax statement. This amount would be appropriated to the Property Tax Credit fund annually until the school state aid formula is reworked and state aid is increased by at least 20%, thereby incentivizing the Legislature to work on reforming the formula, which is currently too dependent on property tax revenue. To fund the property tax relief, the proposal would have eliminated a number of sales tax exemptions and the personal property tax exemption, while increasing the Earned Income Tax Credit to assist the lower income with the broadened sales tax. After three hours of debate, Senator Briese offered a motion to invoke cloture, allowing for a vote to be taken on the advancement of the bill. However, the cloture motion fell ten votes short and LB 183 was removed from the agenda.
I supported LB 289 and LB 183. Even though I didn’t agree with everything in these bills (I would have preferred further broadening the sales tax base rather than an increase in the sales tax rate), they did present an opportunity to offer property tax relief to Nebraskans. I also supported the passage of the budget bills which contained an additional $51 million in annual funding for the Property Tax Credit fund. Although this past week was disappointing, I will continue to work to bring property tax relief to taxpayers.
I was happy to see that the Nebraska Department of Transportation has awarded the contract to Hawkins Construction of Omaha, allowing them to begin immediate work on the Highway 281 Bridge over the Niobrara River, south of Spencer. A temporary single lane shoofly is anticipated to be in service by August 1, with work scheduled to start on May 28.
As we enter the final week of this legislative session, I encourage you to contact me with your thoughts. I can be reached at District #40, P.O. Box 94604, State Capitol, Lincoln, NE 68509. My email address is email@example.com and my telephone number is (402) 471-2801.
This past week, the Revenue Committee advanced LB 289, giving the full Legislature the opportunity to discuss property tax relief this session. The Appropriations Committee presented their recommendations for the next two-year budget to the Legislature as well. These two issues will be our primary focus during the remaining twenty days of this legislative session.
As amended, LB 289 contains an additional $500 million for state aid to schools. The amendment contains caps on spending, in an effort to assure that the increased state aid results in significant property tax relief. Furthermore, the valuation of property would be reduced by 10% of its actual value. To fund the property tax relief measure, the sales tax rate would be increased by one-half percent to 6%, lower than a previous recommended increase to 6.25%. The cigarette tax would be increased by 36 cents a pack and sales tax exemptions would be removed on candy, pop, bottled water, and ice. In addition, a couple dozen services that weren’t previously taxed would now be subject to taxation under the proposed amendment. Some of the services that would be taxed but haven’t been mentioned before include hair, nail and skin care, tattoos, parking, motor vehicle repair, dry cleaning, lawn care, and taxi rides. Approximately half of the current $224 million appropriated to the Property Tax Credit program would be dedicated for the increased state aid. Two senators on the Revenue Committee abstained from voting on the advancement of the amended version of LB 289, signaling that it will be a controversial discussion on the floor.
Governor Ricketts issued his first veto of the year this past week. LB 472 was introduced by Senator Myron Dorn, who represents Gage County. LB 472 allows a county board to impose a one-half cent sales tax to pay a judgment rendered against a county by a federal court for violation of federal law. The increased sales tax authority is intended to help Gage County, who must pay more than $28 million in damages to six men and women wrongly convicted in a homicide of a woman in 1985. The Governor opposed the measure that would increase the local sales tax without a vote of the people. Currently the county is paying these costs through property taxes alone, which falls disproportionately on rural residents. This legislation would help even the burden to all taxpayers in the county. The governor’s veto was easily overridden on a 41-8 vote, eleven votes above the thirty votes required.
Legislation was introduced to increase the age for using vapor products or e-cigarettes to 21 years of age, in an effort to reduce the use of vaping among high school students. It also would require a license to sell these products, as is required for those selling cigarettes and other tobacco products. The General Affairs committee amendments reduced the age to 19, but included all tobacco products. Advocates for vaping promote it as a way to help cigarette smokers quit, but others are concerned that the fruity flavor options are being marketed to kids. LB 149 received first-round approval with a 40-0 vote.
There have been many rumors regarding the offer of a floating bridge from South Dakota to be used over the Mormon Canal. I have visited with the Governor’s office and top officials from the Nebraska Department of Transportation. They have seriously considered this option, but found that it is far more complicated than appears on the surface. They also fear that it could actually extend the timeframe of the permanent bridge. The department hopes to have the contractor working at the site by the first of June, if not before. I realize this is a severe hardship, but trying to stay as positive as possible will help everyone involved. Please feel free to contact me and I will assist you in any way I can. I can be reached at District #40, P.O. Box 94604, State Capitol, Lincoln, NE 68509. My email address is firstname.lastname@example.org and my telephone number is (402) 471-2801.