Last Friday was Day 64 of the Nebraska Legislature. We will begin late-night sessions on Tuesday with a one-hour lunch breaks, since the Appropriations Committee will no longer meet over the lunch break. On our first late night, we will go until 7:00 p.m. with no dinner break. But, the length of late night debate will vary depending on bills scheduled that day and can go as late as 11:59 p.m.

This Friday, April 25, will be a significant day, because the Revenue Forecasting Board will meet that day. It will be their final meeting prior to the end of the regular session, and our budget will be based on these numbers. The Appropriations Committee has until Day 70 (April 29) to advance its budget proposal to the full legislature, and it must be approved by Day 80 of the 90-Day session. This means that the time to debate other non-budget bills is growing short, even with the longer days.

Anyone listening to the session on TV has witnessed some outlandish claims by those filibustering bills on the floor. The general theme is that the budget is out of balance due to Governor Pillen overspending and on tax breaks for the wealthy. The fact is, it is the Legislature that passes spending bills, not the Governor. And it’s important to remember the decisions of recent legislatures, and outside factors, that influence where we are today.

I was first appointed to the Legislature in February 2022 during the second half of the 107th Legislature. At that time, the pandemic was ending, and massive amounts of federal money had been infused into the economy. This infusion of dollars caused tax revenues to surge as businesses and individuals either paid more in income taxes and sales taxes, or both. The additional state income tax revenues were used to begin the elimination of the State tax on Social Security and the phase down of the highest income tax rate to 3.99% from the nearly 7% at the time. This change was necessary to make Nebraska more competitive in attracting businesses to Nebraska. Our neighboring states had more competitive tax rates, with South Dakota and Wyoming having no income tax at all. This was one of then-Governor Ricketts’ signature accomplishments as he ended his time as Governor.

It should also be remembered that the state budget surplus has exceeded the statutory limit in recent years, which required legislators to spend down the surplus. It was for that reason that several “one-time” spending measures were taken.

Around this same timeframe, the American Rescue Plan Act (ARPA) dollars were flowing as well. These dollars were targeted dollars for infrastructure projects and could not be used for tax reductions. I remember securing $20 million in ARPA money for the Sustainable Beef project to be used for the sewage treatment project. This was one of the permissible uses for ARPA funding.

Then came 2023, the year of the filibuster. This was the year when Senator Machaela Cavanaugh pledged to “burn down the session” if Senator Kauth did not withdraw her priority bill, LB574. As a result, she led a filibuster on every bill heard on the floor, including confirmations. As a result, committee amendments, which typically include provisions from multiple bills heard by the committee, grew to ensure work was still being done. One bill had over 23 separate bills included in one amendment. Many bills slipped through the process as Senators were tired, and the bills were so massive, it was hard to know what was in them in the amount of time we had to review. Some of the work we’re doing now is to undo legislation passed in 2023.

Part of our financial commitment is also the state’s increased support of education funding. When certain Senators accuse the Governor of crazy spending on tax breaks for the wealthy, they fail to mention the Education Future Fund, which called for $1 billion in education support. Stronger state funding for public education improves certainty for schools’ budgeting and decreases the educational portion of local property taxes. Lower property taxes benefit all Nebraskans.

Now, as we turn to the 109th Legislature, the Revenue Forecasting Board delivered a massive reduction in the revenue forecast that took away significant funding on which the budget was based in 2023-24. The work we are doing today is to make up that revenue shortfall with spending cuts and some replacement revenue. Keep this in mind as you listen to the debate over the budget. You will see a push on one side to repeal the income tax reductions and the property tax credits, and you will witness a strong defense of these tax reductions on the other. Let’s not forget how we got here.

I look forward to continuing to hear from you about issues that are important to you. It is a privilege to serve as your State Senator, and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or 402-471-2729.