Before the session even began, we knew the Legislature would be facing some weighty issues. After just the third full week, we see that prediction is accurate. Hearings this week included motorcycle helmet laws, interlocal agreements, concealed weapons, and taxes.

The Legislature has 14 standing committees which are organized on the first day of the session, and as I have noted, I will continue to serve on the Appropriations Committee. We also have several select committees and I was pleased to be appointed to the Performance Audit Committee and to be elected chairman.

The Performance Audit division of the Legislature evaluates whether specified state agency programs are accurately implementing legislative intent. Examples of their recent work include a review of the Nebraska Advantage Act, and overtime paid by Corrections, Health and Human Services and Transportation. Any senator can ask for an audit, then those requests come before the committee and along with the division, we decide what will be taken up.

As a committee, we also go over draft reports prior to their release. A final report from Performance Audit may lead to some additional legislation to improve a program. The Performance Audit staff can request confidential information if they believe they see something of interest, non compliance or even wrong doing, but must maintain that confidentiality.

The Governor delivered his State of the State address to the Legislature on Wednesday. I felt he did a good job of explaining his priorities. Governor Pillen wants to control spending and limit budget growth to a two year average of 1.3%. This would be a very fiscally tight, conservative budget.

The Governor’s tax plan would remove property taxing authority from community colleges and replace it with state funding. In K-12 education, one of the major proposals includes $1500 per student in foundation aid. The Governor also supports “school choice” which would extend some form of funding to students in private education.

Generally speaking, since I’ve been in the Legislature, there have been some good education bills brought forward. With most of those bills, it isn’t the idea so much as it is the funding it requires. The determining factor as to why those bills haven’t passed is the dollar amount, and trying to fit that into our state budget. Governor Pillen proposes taking $1 billion out of the rainy day fund and moving that to education; with $1.3 billion investment in education in the next few years.

Another item in the Governor’s budget is the Perkins County Canal project to get water flowing from Colorado into the South Platte. We put in $53.5 million in the budget last year; the Governor wants to add $574 million for construction of the project. This will show the state of Colorado we have intent to proceed with that project and make sure we get our water. Colorado has no responsibility to give us water unless the canal is built, so that is a very important step.

The Pillen budget also includes $95.9 million for a new corrections facility. We had set aside money the previous two years of around $240 million for construction, but without spending authority. With his proposal, the amount available for building would be roughly $340 million, which studies show will be the amount required to construct the proposed facility. All of those funds will be sitting in a fund with no spending authority until given by the legislature. Another $500 million of the state budget would be devoted to transportation infrastructure.

The Governor suggested legislation that would look at income from ag land. Studies have shown property tax on agricultural land should not be based on sales in the area; but instead on income potential, with several years of data included. There would also be a proposed cap on the increase of 3% per year.

This will be something for taxing entities and home owners to watch in the next few years. With the rapid rise in home valuations, if the levy does not go down when the valuation goes up, then you obviously have a higher tax bill. Holding the levy steady is not the same as providing property tax relief with these rising valuations.

Prior to his address, the Governor met with the Appropriations and Revenue Committee to discuss his budget. The revenue numbers in his proposed budget are based on predictions from the Nebraska Economic Forecasting Advisory Board, which meets quarterly. Their forecast in April will be the one we use to finalize the budget bill and funding requests. The board typically does an excellent job of predicting revenue. They use a formula that has proven pretty reliable, and we generally look at a four year cycle. With the surge of federal funding, revenues have increased in the last couple of years. But looking ahead, with less federal aid, inflation and potential changes in the economy, we need to consider how this will look in years three and four.

Over the interim, I had commented that we have a lot of money in the general and rainy day funds, which may lead to a lot of requests. That has come to pass. The Appropriations Committee has 84 bills that ask for direct funding requests, as well as other committee’s bills with funding attached. Right now we are going through the 93 state agency reports, plus specific programs and commodity boards. We have already seen some funding increases from the Office of the Chief Information Officer (OCIO), Department of Administrative Services (DAS) and Attorney General. We are seeing requests for increases in staff due to workload. For example, the Secretary of State has indicated a need for additional personnel to handle election security questions. All of these requests will be reviewed to see if they fit into the budget.

I always appreciate hearing from you. Contact me at mdorn@leg.ne.gov or 402 471-2620. Thank you for sharing your concerns and suggestions.

By the numbers: 2023, 108th Legislative Session. Ninety day session, 812 bills and 9 constitutional amendments introduced. I have 16 of those bills, and will consider a couple of recommendations for interim studies to be completed next summer.

In the end, only around a quarter of those bills will pass; and several of them will relate to the state budget, which is required to be passed in this 90 day session. A brief summary of three of the bills I have introduced follows:

LB 562 would require gas stations to have at least 50% of their pumps provide E-15 fuel, and grants would be available to gas stations for conversion. This bill was brought to me by the Renewable Fuels Nebraska organization, and is modeled after similar legislation in Iowa. The goal of this bill is to increase use of E15 and boost the ethanol industry, which in turn helps out corn farmers in our state. We talked with retailers and ethanol producers about the best ways to accomplish this, and the bill does include grant money for pump conversion, waivers for older gas stations, and so on. The bill will be heard by the Agriculture Committee on February 7, 2023.

LB 563 would provide funding for downtown revitalization. At one time, there was funding to help with statewide implementation of these programs, but that support dwindled during budget cut years. My staff and I worked with Michael Sothan in Beatrice and the Nebraska Main Street Network organization over the summer, looking at the positive impact in the past and what could be done in the future through these projects. Getting an early start on the legislation gave ample time to develop a bill I was comfortable introducing.

LB 564 The Dairy Association brought me a proposal that would include all livestock production and livestock processing operations to be included in the Transportation Infrastructure Bank Fund for road improvements. For example, if a five thousand head dairy operation wanted to build on a site in Nebraska, and they needed a two mile road improvement for access, this bill would help with those road improvements.. This helps keep large livestock facilities away from more populated areas, while improving the access they need on roadways. It manages traffic, provides a safer roadway, and is good for the current residents in the area.

I was thankful Governor Pillen came forward with a proposal on school funding. The bill package, which was developed by a committee he put together, provides a good starting point for discussion. LB 583 would provide $1500 per student each year from the Education Future Fund. This fund would be created in LB 681, starting with a $1 billion appropriation in the current budget, and another $250 million in each of the next six years following, resulting in a $2.5 billion fund. The last piece of his recommendation is a ‘soft cap’ on property tax asking of 3%, based on total revenue. There are some exceptions and ways to accommodate school district fluctuations built into the bill.

Currently in Nebraska, we have 86 to 90 schools which are equalized and get funding from the current funding formula known as TEOSA. The remaining 150+ schools in the state or so receive only funding for special education, option students, etc. Funding provided by the federal government for special education has eroded over time to about 42% of the actual costs, leaving schools to pick up the rest. This bill would add $157 million to special education to compensate for that gap.

The eye popping part, the big number, is the Education Future Fund. As a member of the Appropriations Committee, I am always looking at how we sustain programs, especially in times of lower state revenue. I see a lot that is good in this package. But I will be focused on the funding aspects. When you throw out numbers like a billion or two billion, it is our duty to make sure it is both doable now, and sustainable for long term planning.

Today the state is in a very strong position financially; but will we be in the same place four years from now? That is a question I ask. In past years we had some good school proposals, but the funding portion was the determining factor. If the funding isn’t responsible and sustainable, and we have to cut it in future years, then it is not a good proposal. Again, the package is intriguing and I am very glad it was brought forward and that Governor Pillen is involved in this conversation.

The Governor also announced a legislative tax package. Several of the bills in this proposal speed up the timeline of reductions we have passed in previous sessions. LB 754 would reduce the top income tax rate to 3.99% by 2027. LB 641 eliminates state income tax on social security. A bill was passed last year to be phased in over five years; this new bill would make it effective much sooner. Additional bills in the package would immediately implement income tax cuts made last year; eliminate Community College ability to levy property tax and replace it with state funds and cap the increases; and provide income tax credits for donations to organizations that give scholarships to students going to private schools or parochial schools. In the past, this proposal for credits has been filibustered and the votes haven’t been there. But with 17 new senators and a new governor, we could see some of these moving forward.

LB 750, speaks to how we assess agricultural land and would base valuations on income potential rather than land sales prices. Between the years 2010 to 2020, ag land went up 150%. If valuations had been based on income instead of land sales, we wouldn’t have had that steep increase in those ten years. Until we decide, in the state of Nebraska, to determine how to evaluate land, other than the current system, we’re going to continue having these same discussions.

We are now seeing the same issue in residential valuations. Lancaster county residents received valuations notices in the past few weeks that for some grew by 20 to 30%. Again, this reflects the housing market of recent years. We will see if we have the will, along with this governor, to change some of that. I don’t have a good read on that as of yet, but again, I’m glad we’re going to have this discussion and people can weigh in on these concepts.

On Thursday I had the opportunity to preside over the Legislature while we were in session. This enabled the Speaker, Sen. John Arch, to participate in debate about the permanent rules. It was a great experience and I look forward to more opportunities to “sit in the chair.”

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 hearing from you!

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 Legislature may only be in session in Lincoln for a few months each year, but the meetings and events continue at a fast pace. Looking at the positive, it gives me a chance to listen, and learn as much as I can about concerns in the district as we begin to formulate bills for next January.

I serve on two committees that have had numerous meetings this summer. The first is the Building and Maintenance subcommittee of Appropriations. Each interim, four state-owned locations are selected from across Nebraska for evaluation.  We have visited the Game & Parks Commission at Louisville, the Lincoln Correctional Center, the Military Readiness Center in Sidney and the University of Nebraska at Kearney. This allows a first hand examination of the condition of buildings, the programming and use of state funds.

The second is an interim study (LR 374) committee looking at school funding mechanisms. We began in May and will continue through the fall months, combing through existing formulas, TEEOSA, and proposals for the future. As I often caution, if this was an easy issue, it would be fixed by now. When you consider the difference between a Class D-2 school in the Sandhills and a Class A urban school in Omaha and their respective resources, it is easier to see the complex problem of educating every student in Nebraska.

Many state divisions and organizations hold conferences in the summer months, making it possible for senators to attend. I was able to attend the Governor’s Agriculture and Economic summit, held annually in August. Both the Platte Institute and OpenSky Policy Institute had seminars in recent weeks. I had the privilege of speaking at the Thriving Children, Families and Communities Conference, put on by the Buffett Institute and UNL. The Nebraska Cattlemen and Nebraska Farm Bureau also hosted events. Quick trips to the State Fair and Husker Harvest Days, and some time at our county fairs were great reminders of why Nebraska is the good life.

My staff and I were afforded the opportunity to tour several important facilities this summer. In Omaha, we visited QLI rehabilitation center, Boys Town, and Childrens Hospital. At UNMC we saw the psychiatric intake center and some of the Buffet Cancer Institute. Staff also attended the Innovation Policy Forum and heard from four entrepreneurs who have contributed to the economic development of the state by taking advantage of some state funded programs and assistance from UNL and UNO.

Some new, interesting and eye opening tours included dilapidated buildings in our district as well as in the adjoining District 32; utilities projects in Lincoln and memory care programs in Beatrice. I joined several other senators in touring the Perkins County (canal project). The Nebraska Chamber sponsored an excellent tour of manufacturing in Lincoln. 

The bulk of my time however, is spent in meeting with groups and individuals about their concerns; and hearing recommendations for legislation. In the past couple of months I have met with rental property owners in Gage county, the Nebraska Cooperative Council, Beatrice Fire and Rescue, Center Pointe in Lincoln, the Main Street Beatrice organization, Mosaic, Tri-County and Beatrice schools. In addition, I talked with child care providers in Gage county and had conversations with administrators from the Nebraska Department of Administrative Services about budget discrepancies. I have met with behavioral health providers, school choice advocates, pro life supporters and those who want voter identification.  

I provided input to the Lancaster County Strategic Plan and have met with representatives of the City of Lincoln. Discussions with electricity generators and ethanol producers took place last week. Recent conversations with both Lancaster County and the Nebraska Department of Transportation have yielded information about upcoming projects on Saltillo Road and Highway 43 between Bennet and Adams/Highway 41. Both of these are in the planning phase at this time. 

Saltillo Road will be improved between 27th and 68th streets with features to complement the South Beltway. The project would encompass four round-abouts and extensive work on culverts and wider shoulders. More details can be found at https://lancaster.ne.gov.  

The Highway 43 project, which will extend through Lancaster and Gage counties, is included in the FY 2023-2027 plan. The target date for beginning this construction is 2024. All of District 30 is contained within District 1 of the State Highway Commission. https://dot.nebraska.gov/about/divisions-districts/

A recent version of the monthly drone footage video of the South Beltway project shows a really nice before-and-after picture of the construction. You can find it on Youtube here:  https://www.youtube.com/watch?v=L6si6EIqfRI

Remember to watch out for slow moving farm equipment on the state’s highways and country roads. Wishing everyone a safe and pleasant fall. Contact me at any time, I always appreciate hearing from you.  mdorn@leg.ne.gov  402-471-2620  District 30, PO Box 94604, Lincoln NE 68509-4604  www.nebraskalegislature.gov

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.