Senator Myron Dorn – District 30

February 15, 2019 Update

This winter’s weather may have caused quite a few cancellations but when the Legislature is scheduled to be in session, it IS in session. We continue to meet in the Chamber in the mornings to debate bills; and in public hearings each afternoon. Of the nine bills I introduced, two have been heard, two have hearings scheduled and five are still in the queue to be placed on committee calendars. With over 700 bills to be heard, there is a lot of work yet to be done.

The South Beltway is a major issue affecting District 30. The Governor announced early this week the project could be completed in three years instead of the original eight. The faster schedule could save the state around $25 million.  LB 616, introduced by Lincoln Senator Mike Hilgers, would create the financing mechanisms needed.

According to the Legislature’s fiscal office, LB 616 establishes a build-finance project where the Department of Transportation (DOT) may make payments to the entity who completes the project for up to ten years after the date of completion.

In meetings I have had with DOT director Kyle Schneweis, he said he expects lots of bids on the project and to be moving earth in about a year as it gets underway.

Property tax issues continue to be at the forefront and several key bills had hearings this week, LB 314, 497 and 677. A key fact to keep in mind is that the state does not set the levy on property taxes; the levy, collection and use, is always a local decision. The State only collects sales and income tax.  That being said, the Legislature is working to affect property taxes in the ways left to the State, whether that is through valuations, spending caps, or finding other revenue sources to lessen the burden on property tax.

Senator Briese’s bill, LB 314, is a comprehensive “revenue neutral” package that would collect sales tax on internet sales, eliminate some exemptions and raise some specific sales and income rates; and direct all revenue generated which is not otherwise earmarked into the Property Tax Credit Cash Fund. Other revenue would be specifically directed to restoring the Allocated Income Tax rate for schools to the 20% included in the original introduction of the Tax Equity and Educational Opportunities Support Act (TEEOSA).

LB 497, introduced by Senator Friesen, includes a combination of increased state aid to schools along with decreased levy rates and lower valuations on agricultural land. Revenue would be generated to cover the increase in state aid through alcohol, cigarette and various sales taxes, including food. Various ag groups have come out in support of this bill.  LB 677, brought by Senator Groene, lowers the local levy and increases state funding from the property tax credit fund, which is appropriated by the Legislature. Almost 10 hours of testimony, from both proponents and opponents, was given at the hearing for these three bills.

There is no simple fix for property tax and school funding, and I am closely following the bills in the Revenue Committee. Because of my position on the Appropriations Committee, I am well aware of how tight the budget is for the entire state and how all of these issues are interrelated.

Of course, residents of Gage County are greatly affected by the federal judgment of $30 million. LB 474 which I introduced will be up for hearing on Thursday the 21^st. This bill would add language to address the state claims process for paying judgments like this. We need to keep up the effort to insure this issue is on the radar of all state senators as we work to find funding solutions.

Even if you cannot come to the Capitol in person, anyone with internet access can watch public hearings through the NET website. Go to www.nebraskalegislature.gov, click on the NET logo on the right side of the page, then select the hearing you want to stream. You can also watch the Legislature in session, mornings now, and full days later in the session. Please continue to contact me at mdorn@leg.ne.gov or call 402-471-2620 any time!