One of the most debated issues this session was LB599 which would create a program to provide pre-natal care to illegal immigrants. This bill was introduced in response to a 2010 decision by the federal government that declared Nebraska’s program providing care to this population was against federal regulations. Therefore, the state ceased providing this coverage. That same year, a bill was introduced to reinstate the program, but it failed to advance.

LB599 will create a new program here in Nebraska that is not found in the states surrounding us. If implemented, I believe that this program, paid for by Nebraska citizens, will see costs increase as more people take advantage of these state provided health benefits. The bill did advance through the first two rounds of debate, and I expect it will be passed by the Legislature.

LB357, a bill to allow municipalities to raise their local option sales tax by up to an additional ½ cent has passed. I oppose this bill because I believe it is a tax increase. Nebraskans and businesses across the state have been reducing their expenditures during the last few years. Many people have also experienced a pay freeze, a pay decrease or loss of a job. Now is the not the time for cities or other levels of government to be implementing new taxes.

As I travel the state, it is clear that citizens are frustrated with the level of taxation in Nebraska. Based on conversations I have had with Nebraskans, people in the state do not believe our cities need to have more taxing authority. Because of these concerns, I introduced my priority bill LB745. This bill will place restrictions on the implementation of new occupation taxes or the increase of an existing tax. The bill passed on a vote of 46-0.

The tax relief package, LB970, also passed on final reading and was presented to the Governor. This is a bill I strongly support because it provides a tax break for working middle-class Nebraskans. At a time when our country is emerging from the recession, I believe it is important for the government to cut spending, just as Nebraska households have been doing. Through thoughtful consideration the Legislature was able to prioritize important programs and reduce spending in order to pass this tax relief package. Additionally, I am proud that the Legislature was able to provide this important tax relief while also building up the state’s cash reserve.

The state’s budget is complete and signed by the Governor. However, the Legislature discovered that other bills with appropriations outside of the main line budget had exceeded the available revenue. For this reason, Senators came together to eliminate approximately $10 million in spending. We achieved this and will again meet our constitutional obligation to have a balanced budget. While I am happy that the Legislature balanced the budget, I would have preferred to cut back further on spending and provide more tax relief to citizens.

As always, thank you for sharing in our legislative process, and I’ll visit with you again next week.

Deb Fischer
Senator, District 43

An amendment was passed to reduce the general fund appropriation to the Department of Health and Human Services for the state’s Medicaid program in fiscal year 2011-12 and FY2012-13 by an additional $2 million per year. This amendment reinstated the governor’s budget recommendation to reduce the Medicaid appropriation by $5 million per year based on utilization projections. This change can be made without reducing provider rates, benefits or services. Also, an amendment was adopted to reduce the general fund transfer to the Ethanol Production Incentive Fund (EPIC) fund by $2.8 million. This reduction is an un-expended balance of the fund and is not needed for future payments. Another amendment would have reduced the state’s appropriation to the Behavioral Health Aid program by $1.85 million in FY2012-13. During discussion on this amendment, the Legislature agreed that the proposed cut was not appropriate at this time and the amendment failed to advance.

In addition to budget cuts, the Legislature made the decision to provide an additional $10 million to State Aid for Education. All school districts, equalized and non-equalized, will qualify for this additional revenue. I believe government must set priorities, and education should be a key component of government. This additional expenditure toward education is an important piece of this year’s budget.

After the Legislature advanced the budget, we began debate on the proposed tax relief package, LB970. The bill was advanced but in a significantly different form than the original bill. The primary focus of the advanced form of LB970 is to provide tax relief for working middle class families. The bill passed on a vote of 36-6. Compromise on this bill came after several members of the Legislature worked with the Governor to develop a plan that would provide relief to Nebraskans while staying within the spending constraints of the current budget. I believe this tax relief program is needed right now because so many Nebraskans have not had a pay raise in several years, and many citizens are still suffering the negative impacts of the recent economic recession.

Beyond the budget and tax relief, the Legislature took up several bills on Consent Calendar. This is a day where only those bills that have no opposition and do not make significant policy changes can be debated. A bill I introduced to provide significant protections to our Nebraska car dealers against national manufacturers was advanced. This bill, LB896, protects car dealerships from aggressive audits by manufacturers regarding incentive payments. I have heard from dealers in Legislative District 43 that these audits are extremely intrusive and stand in the way of our local Nebraska dealers providing excellent service to their customers.

Every summer the Legislature offers a wonderful opportunity for our teenagers, the Unicameral Youth Legislature. This year the event will take place June 10-13 at the State Capitol in Lincoln. Throughout the program young people will have the opportunity to sponsor bills, conduct committee hearings, debate legislation and discover the unique process of our nation’s only unicameral. The University of Nebraska-Lincoln’s Extension 4-H Youth Development Office coordinates housing and recreational activities for the youth legislature as part of the Big Red Summer Camps program. To learn more about the program, go to www.nebraskalegislature.gov/education/unicamyouth.php or call (402) 471-2420. The deadline for registration is May 15. I strongly encourage young people to participate in this event.

As always, thank you for sharing in our legislative process, and I’ll visit with you again next week.

Deb Fischer
Senator, District 43

The Unicameral Youth Legislature gives behind-the-scenes access to students who have an interest in public office, government, politics, law, public policy, debate or public speaking. Students will learn about the inner workings of the Legislature directly from senators and staff.

“Nebraska’s young people should experience the efficiency of our state’s lawmaking process,” stated Senator Deb Fischer. “Students will have an excellent opportunity to learn how state laws are made by participating in the Unicameral Youth Legislature this summer.”

The University of Nebraska-Lincoln’s Extension 4-H Youth Development Office coordinates housing and recreational activities for the youth legislature as part of the Big Red Summer Camps program. To learn more about the program, go to www.nebraskalegislature.gov/education/unicamyouth.php or call (402) 471-2420. The deadline for registration is May 15.

The budget recommendations include proposed funding for several capitol construction projects. There are several projects for the University of Nebraska Medical Center (UNMC) including $50 million for a cancer center in Omaha and $15 million for the design and construction of an additional building at the College of Nursing in Kearney. $14.2 million is recommended for projects at Peru State College and Chadron State College. Out of that appropriation, $6.7 million is recommended to construct and renovate Armstrong Gymnasium at Chadron State College.

Several programs under the Department of Health and Human Services (DHHS) will see an increase in funding. As I have discussed several times this session, the child welfare reform has proven to be more expensive than originally projected. In FY2010-11 there was a substantial increase in child welfare spending, which drove up funding needs for this biennium. This increased spending was in large part due to the fact that caseloads did not decrease as projected, causing the state to spend more money on private management contracts. Based on data from DHHS, the Appropriations Committee recommends an additional $17 million to meet these needs.

In the 2011 legislative session, the Governor recommended a 5% cut in Medicaid health care provider rates. That suggested cut was ultimately lowered to 2.5% by the Legislature. In light of the state’s improved financial status, the Appropriations Committee recommends an additional $9.7 million to Medicaid to reinstate part of these cuts. A program that subsidizes child care for low income Nebraskans experienced significant growth over the past several years. Due to this growth, the Governor recommended and the Committee concurs, that the program should be funded an additional $24 million over the next two years.

The Governor requested an additional $8.9 million for the Nebraska Emergency Management Agency. This request is due to the increase over the past several years in requests for emergency and disaster declarations. In the last six years alone the state has experienced a total of 23 federal emergency or disaster declarations. The program currently has approximately $14 million, however it is obligated to pay out $18 million for various projects. The requested funds will take care of the shortfall and re-establish the required $5 million base.

A state project I believe is important for the state’s agriculture industry will receive some funding under this plan. Approximately $6 million will go toward the design and construction of a Veterinary Diagnostic Center at the University of Nebraska Institute of Agriculture and Natural Resources. The current facility, built in 1975, has several design deficiencies that cause problems for the important work conducted there. The total project cost is estimated at $55 million of which $50 million is state funds and $5 million is private. The project will be debt financed, and this $6 million appropriation is the first annual debt service payment.

I look forward to receiving feedback and comments on all of the various components of the budget proposal. The Legislature will begin debating the appropriations bills on Tuesday, March 13th.

As always, thank you for sharing in our legislative process, and I’ll visit with you again next week.

Deb Fischer
Senator, District 43

The Nebraska Economic Forecasting Advisory Board, which is responsible for developing the state’s economic forecast, projected on February 24th that the state’s revenue outlook is flat. I believe this is positive news for the state, particularly considering the recent economic downturn. Further encouraging news is a recent report by the Tax Foundation citing that Nebraska has the best overall tax climate for new businesses. Our great state received high rankings as an excellent environment to locate a call center, corporate headquarters, research and development facilities, as well as capital and labor intensive manufacturing facilities. This information will be important as the Legislature develops this year’s budget.

One of the priorities for this legislative session is to reform the child welfare process. The Department of Health and Human Services (DHHS) began the process of privatizing child welfare services in 2008. While the reasoning behind this effort was well intentioned, the process has been complicated. The Legislature advanced five bills that will attempt to rectify the problems with the current system. LB821 creates the Nebraska Children’s Commission which will be tasked with creating a statewide strategic plan for reform by December 15, 2012. The bill also creates the position of Inspector General of Nebraska Child Welfare that will be located within the Office of the Public Counsel. This new Inspector General will be responsible for conducting investigations, audits, inspections, and other reviews of the child welfare system.

LB1160 will create requirements for report sharing with the Legislature’s Health and Human Services (HHS) Committee. Under the bill, the HHS Committee will be required to report annually to the Governor, the Legislature and the Chief Justice the progress made by the DHHS. Additionally, DHHS will be required to submit a variety of reports to the HHS Committee on reform progress. The bill also requires DHHS to create a statewide automated child welfare information system to integrate child welfare information into one system. This system is intended to improve the child welfare system’s management, tracking and information sharing, particularly for case management.

LB949 will require DHHS to include in its budget request a strategic plan for the Children and Family Service Division. The budget request will separate child welfare services as an independent budget program so that expenditures can be more easily monitored.

LB820 contains provisions that will move to increase foster care payments. A 2007 study found that Nebraska’s foster care payments were the lowest in the nation. To address this situation the bill creates a Foster Care Reimbursement Rate Committee to develop a statewide standard reimbursement rate structure. Additionally, the bill requires that all foster parents be licensed, except those who are related by blood, marriage or adoption.

Finally, LB961 will require an annual reduction of 25% in the average caseload of each case manager beginning September 1, 2012, and each September 1st thereafter, until caseloads are within the standards established by the Child Welfare League of America. This bill also prohibits DHHS from extending past July 1, 2014, the contracts with those organizations that were formerly leading the privatization effort.

These bills were advanced to Select File. Discussion will continue on this important issue when the proposal is next debated.

As always, thank you for sharing in our legislative process, and I’ll visit with you again next week.

Deb Fischer
Senator, District 43

I chose LB745 as my priority bill, which is a bill I introduced to have more accountability on occupation taxes. I believe cities use occupation taxes as sales taxes, which require a vote of the people. If my bill is passed, municipalities would be required to submit any new occupation tax to a vote of the people. A city would have to place the following information on the ballot; the proposed tax rate, the purpose for the tax revenue and a sunset date. This bill will not cap occupation taxes nor prevent cities from implementing these taxes, rather it will provide more transparency to the public in this process. My intention with LB745 is to make sure Nebraskans have an open, transparent process with regards to implementation of new occupation taxes just as we do with any new sales tax.

The Transportation and Telecommunications Committee has designated my bill, LB715, as one of our priority bills. LB715 deals with broadband service boundaries across the state. The state has experienced situations where a customer on one side of a boundary line receives high speed broadband with one provider, while the provider on the other side of the boundary line does not offer broadband to their customers. Although these two customers live in close proximity to each other, the one with inadequate service is being held hostage by an outdated statute from receiving broadband from the provider on the other side of the boundary line. This bill will rectify this situation and will hopefully help provide better broadband services to Nebraskans.

Another priority designation is LR358CA. LR358CA is a proposed constitutional amendment that will place the question of term limits for State Senators on the 2012 general election ballot. In 2000 Nebraskans voted to implement term limits for the Legislature, and this proposed amendment would change that decision. This bill would allow State Senators to serve three consecutive four-year terms instead of two consecutive four-year terms. The resolution was advanced from the Executive Committee on a 6-3 vote, and I voted to oppose the bill. I believe Nebraskans have already spoken on this issue.

A bill that will change State Senators salaries has also received a priority designation. This proposed constitutional amendment, LR373CA, would increase State Senators’ salaries from $12,000 per year to $22,500. I also opposed this resolution. Many Nebraskans across this state have not received a pay raise in several years, and I do not think it is appropriate for Senators to ask for a raise. When we decide to run for the Legislature, we do so with the understanding that this is a citizen legislature and we are aware of the salary.

A bill that I believe is important for rural Nebraska advanced this week, LB686. The original bill would have allowed for professionals with either a master’s or doctoral degree in reproductive physiology to perform nonsurgical embryo transfer in bovines. Currently, only a veterinarian can perform this procedure. Veterinarians across the state opposed the bill. The bill’s introducer, Senator Ken Schilz, agreed to a compromise amendment to allow only those individuals with a doctorate degree to perform this procedure. I supported the bill and it advanced to Select File.

As always, thank you for sharing in our legislative process, and I’ll visit with you again next week.

Deb Fischer
Senator, District 43

Governor Dave Heineman’s tax relief proposal, LB970, was heard by the Revenue Committee on Thursday, January 26th. The Governor made a rare appearance in front of a Legislative committee in order to testify in favor of the bill. LB970 would lower income tax rates and expand tax brackets. The corporate income tax rate would be reduced from 7.81% to 6.7% which would match the top individual income tax rate. Finally, the bill proposes to eliminate the inheritance tax, which is the tax imposed on beneficiaries. County representatives testified in opposition to the bill because they use the inheritance tax to help fund their budgets or meet special needs without imposing an increase in property tax on their citizens. Let me be clear, I support tax cuts. I also believe we must take a long look at our revenue picture and make certain to balance our budget before making a final decision on this bill. This is a major proposal before the Legislature and I will make sure to continue to provide updates on this bill as the Revenue Committee determines how to proceed.

A bill that will be helpful to residents of District 43, LB473, passed the first round of debate this week. The bill will allow counties to implement management plans for controlling the prairie dog population. The county would also have the ability to inform a landowner there is a prairie dog problem and require the landowner to take action. I have heard from many residents of our area in favor of this bill and I voted to support it.

The Transportation and Telecommunications Committee heard a bill, LB803, that would require a driver involved in an accident that causes property damage or injury/death to furnish the responding officer their information and proof of insurance. A driver who does not have these documents available would be guilty of a Class II misdemeanor. In addition, the offender’s vehicle would be immediately impounded until proof of insurance is furnished. With the increasing number of illegal immigrants in the State of Nebraska, uninsured motorists have become an rising problem. Driving is a privilege not a right, and our laws must be followed for our personal and financial protection. I know of cases where people have been hit by an uninsured driver, and the financial burden it places on law abiding citizens is simply not right.

The Education Committee heard a bill earlier this month that would establish a new accountability structure for teachers and schools. LB870 would authorize the Board of Education to set performance and assessment indicators for students, which would be established by August 1. While schools are currently held accountable for students’ results on content area assessments, this bill would add additional measures including student growth, improvement and graduation rates. Schools would be required to report the data annually.

Another bill in the Education Committee is LB990 which would require all school classrooms to prominently display the United States flag and the State of Nebraska flag. Additionally, all students would be required to say the Pledge of Allegiance during the first class of the school day. The bill’s public hearing will be on February 7th and I look forward to hearing from you on this proposed legislation.

As always, thank you for sharing in our legislative process, and I’ll visit with you again next week.

Deb Fischer
Senator, District 43

This week, Chief Justice Mike Heavican addressed the Legislature in the annual State of the Judiciary speech. The Chief Justice provided a report on the Supreme Court’s programs with the elderly and children, and how the court’s budget is managed through technological updates. Last year a major issue across the state was reforming the adult guardianship system in Nebraska. The Legislature passed LB157 that provides more protections for our elderly, particularly since the elderly population is expected to grow dramatically in coming years. The court system is very involved in the child welfare process and has been diligently working with the Health and Human Services Committee to improve the state’s foster care system. Finally, the Chief Justice highlighted technological advances the court system has made in order to deal with budget cuts over the last several years. He mentioned the work of our county officials and staff who work tirelessly to ensure all Nebraskans have access to the court system.

An important decision was made this week by the federal government that will likely have a significant impact on Nebraska. President Barack Obama, based on a recommendation from the U.S. State Department, made the decision to deny the permit for the TransCanada Keystone XL pipeline. The official reason given was that the February 21st deadline to make a decision was too short of a time line, particularly given the route change in Nebraska. I believe the reason for this decision was political in nature which is disappointing.

During the Special Session, my colleagues and I put significant measures in place to protect our natural resources. In that process, TransCanada agreed to move the proposed pipeline out of the Nebraska Sandhills. After the Special Session, Nebraska agencies quickly went to work to begin our environmental study. Right now the Nebraska Department of Environmental Quality and Governor Dave Heineman are trying to determine next steps. I will make sure to provide updates on this important issue as I learn of them.

There are several upcoming committee hearings that I think would be of interest to residents of District 43. On Thursday, January 26th, at 1:30 PM the Health and Human Services Committee will hold hearings for LB957 and LB961, two bills introduced to reform the child welfare system. I believe this is one of the biggest issues facing the Legislature this session and I would appreciate hearing from you about the proposed solutions. LB957 would create the position of Inspector General for child services. This position would be appointed for a term of five years and be required to investigate allegations of misconduct in the foster care system. LB961 would return case management of the child welfare system back to the state by September 1st. My office has received several calls and letters from constituents concerned about this issue and I encourage you to monitor the progress of these bills.

On that same day, the Revenue Committee, of which I am a member, will hear LB970 which is the proposal to terminate the inheritance tax and change income tax rates. I hope to see many citizens attend the hearing and share their thoughts on this important legislation. To follow the progress of these bills or any others you are interested in, please visit the Legislature’s website at www.nebraskalegislature.gov.

As always, thank you for sharing in our legislative process, and I’ll visit with you again next week.

Deb Fischer
Senator, District 43

The largest issue this session was the budget.  We began this year with the understanding that the state would face a $986 million shortfall over the next biennium.  With this in mind, we began looking for ways to cut spending.  This was a difficult process, but ultimately we cut approximately $606 million from the budget.  The Forecasting Board met twice during the session and revised the state’s revenue numbers which enabled the Legislature to cut less than anticipated.  The economy appears to be trending toward a recovery with several months of higher than projected revenue.  Over the interim, we will continue to monitor these economic indicators.

CIR reform was one of the most contentious issues of the session, with groups from across the state concerned about how the Legislature would handle this issue.  During the session, these groups worked together to develop a compromise which all parties could agree.  The bill will keep the CIR in place, while providing more transparency and accountability to taxpayers.

When I agreed to be a member of the Redistricting Committee, I understood that it would not be an easy job.  Given the projected population shifts, I knew districts would have to change.  When the census numbers were officially reported, I learned that District 43 had lost 9% of its population over the past 10 years.  This extreme loss meant that our district boundaries would have to change much more than I anticipated.  I spent many hours working with my colleagues to find a plan that would protect the core of our district while still meeting constitutional and legislative requirements.  Ultimately, the plan that passed the Legislature was not the plan I preferred.  District 43 changes significantly, as do many other rural districts.  District 49, to our west, is completely dissolved and moves to Sarpy County.  Given all of this, I will represent the new members of District 43 with great pride, and look forward to visiting these communities in the near future.  I am truly saddened to lose Custer, Rock, Holt and Boyd counties, but I will continue to make these communities a priority during my last year in office.

My roads bill is a plan I have been working on for years, and I am so pleased the Legislature and the Governor agreed that properly funding our state’s roads is a priority.  This bill will provide such an economic benefit to all parts of the state, including rural Nebraska.  I am excited to see the many positive effects this bill will have on our great state.

As the session draws to a close, I am planning my interim visits to the district.  As I do every year, I make a point to visit as many communities as I can during the Legislature’s time off.  If you would like me to hold a listening session in your community, or have an event you would like me to attend, please feel free to contact my office at 402-471-2628 or email me at dfischer@leg.ne.gov.  My office is open during the interim, and my staff is always happy to help with any questions or concerns you may have.

As always, thank you for sharing in our legislative process, and I’ll visit with you again soon.

Deb Fischer

Senator, District 43