This week, I want to start by addressing fliers that many of you received over the past few weeks regarding medical marijuana legislation. The bill in question is LB588, The Medicinal Cannabis Act. The bill was introduced by Senator Anna Wishart and had a public hearing in the Judiciary Committee on February 9, 2023. The bill remains in committee and will not be heard on the floor this session. I don’t know who is behind these fliers and why they are sending them. I don’t take positions on bills that are not moving. This bill is no exception.

One reason I like to wait until there is movement on a bill to take a position is the amendment process. Amendments, particularly committee amendments, can change a bill substantially. Sometimes these amendments address issues raised by opponents and are designed to change Senators’ positions.

As it relates to marijuana, I have always opposed recreational marijuana use and will continue to do so. I might be able to support the medical use of marijuana if it were administered under strict medical supervision and had the appropriate oversight of the state. However, these details have continued to shift in each year’s proposed legislation, and without a bill to review, I cannot speak to my position on the subject generally. But be assured, LB588 will likely not be considered this year.

As to matters that will be before the Legislature this year, the Appropriations Committee expects to release the budget bills on May 2. We should begin debate shortly thereafter and must pass the budget by May 18. Although the filibusters will continue, the debate on the budget will likely be more substantive. I fully expect that we will have a lively debate on the budget since there will be many un-funded priorities. Those Senators fortunate enough to have project funding in the budget will need to work hard to protect that funding.

One reason for delaying release of the budget bills is that the state’s March receipts were slightly lower than the forecast. The Nebraska Economic Forecasting Advisory Board will meet on April 26 and the Appropriations Committee wants to see whether the Board will lower the forecast. A lower forecast could require reduced budget spending, or scaling back of proposed income tax, property tax, and education spending reforms.

If the forecast remains relatively stable, I am happy to report that $10 million in funding to rebuild the State 4-H Camp should be included in the budget. It was a long path to secure funding, but I am determined to deliver on this important project. I also continue to get questions from many who want to know where they can send their donations. I am working closely with the Nebraska Community Foundation to determine what will be the next steps after funding is approved and will provide more information when it’s available. Given the local and statewide support, I am optimistic that this project will be bigger and better than the one that was destroyed.

Finally, I have received some questions regarding the school funding proposed in LB589 as amended into LB243. You have often heard the statement that Nebraska ranks 49^th in the nation in state aid to schools. However, public school spending in Nebraska ranks around 22^nd in the nation. The additional funding is generated from local property taxes. As a result, roughly 50% of your local property tax goes to fund your local school district. Since the State of Nebraska does not assess property taxes, the only way it can play a role in reducing your local property taxes is by increasing the state support to public schools or offering other tax credits for a portion of local property taxes paid. This, in turn, should reduce the amount of school funding that comes from local property taxes.

LB589 increases state aid to schools. To ensure that the additional funding results in reduced local property taxes, the LB589 was designed to place a “soft” cap on growth in public school spending. This cap is equal to the sum of 3% plus the annual weighted percentage increase in the student enrollment of the school district. Any increase in taxing authority above this level, after adding total non-property tax revenue from the prior year, would require a 70% vote of the local school board, or a 60% approval of voters in a special election. If this is not done, the school district could lose additional funding from the state.

The new state aid program also ensures that every school district receives at least $1,500 per student and an 80% cost reimbursement for special education. That reimbursement is currently at 40%. Every school district in District 42 will see a sharp increase in school funding once this bill becomes law.

In addition to increasing public school funding, the state will begin funding community colleges directly and remove the community college property tax levy. Community colleges will continue to collect taxes to repay existing bonds, then their taxing authority will cease so long as the state continues to meet its funding obligation.

The Legislature is serious about returning tax dollars to the taxpayers and getting property taxes back in line with other taxes. At the same time, the Legislature is committed to providing funding for public schools at levels more in line with other states. LB589/LB243 should be a great start to that goal.

I look forward to hearing from constituents about issues impacting you. Please feel free to reach out to me at mjacobson@leg.ne.gov or 402-471-2729. My door is always open!