I want to begin this week’s column by recognizing the significance of Memorial Day and the debt that we all owe to our fallen veterans. All too often, people fail to appreciate the significance of this national holiday fully. In the United States, we celebrate Armed Forces Day to recognize those who currently wear the uniform. We also celebrate Veterans Day to show our respect for those who have worn the uniform. But on Memorial Day, we take time to show our appreciation for those who died wearing the uniform. May we never forget!

This past week at the Legislature, we were finally able to get a breakthrough with those leading the filibuster. I believe there is now a genuine effort to move on from the divisive social debate and try to end this session on a productive note. As a result, the last two days of the week were very productive, and the Legislature was able to adjourn early on Thursday. We are now entering the last full week of the session prior to laying off one week to allow the Governor to veto any legislation we pass this week. We will then return for the 90^th day on June 9 to consider any veto overrides and pass any final legislation.

On Wednesday, the Unicameral will consider overriding a few of the line-item vetoes to the budget we received from the Governor last week. Two items of local concern include his veto of the $10 million allocated for Rural Workforce Housing and the second year of the scheduled increase in Medicaid provider rates. The Governor vetoed the workforce housing funding because his office believes that increasing funding while demand for housing is high and the availability of sub-contractors and tradesmen is limited may simply push housing prices higher without increasing total output. Although his point is not totally off base, we should also consider the effect of high interest rates and high costs of housing, which has slowed new construction in the urban markets and sent builders looking to develop rural areas where significant workforce housing is needed. Clearly, this is the case in the North Platte area, given the demand created by the Sustainable Beef Project. As such, I am leaning toward voting for the override of this veto.

The Appropriations Committee had also approved a 3% increase in Medicaid provider rates for fiscal year 2023-24 and an additional 2% for fiscal year 2024-25. The Governor had originally proposed no rate increase for either year, but ultimately only vetoed the 2% rate for the out year. The Governor sees the rate increases as a “band-aid” that does little to address systematic workforce shortages that eat into hospital profits. Although workforce is certainly a challenge facing rural hospitals, I am very supportive of reasonable rate increases. I have introduced an interim study to look at “rebasing” Medicaid rates and am hopeful that the results of the study will demonstrate to the Governor that Medicaid rates are more than a band-aid.

Rural hospitals, nursing homes, and clinics are all under pressure because a high percentage of their patients are Medicare or Medicaid recipients. As such, the provider rates are currently below the cost of providing the services. Unfortunately, the shortfall is left for the health insurance providers to make up. This model is unsustainable. Keeping our rural hospitals and nursing homes open is critical to rural economic development. Rebasing could result in an increase for the out year that exceeds the 2% originally included in the budget. I look forward to working with the Governor and the Appropriations Committee next year to take a broader look at our healthcare challenges.

In addition to taking up the budget vetoes, the Legislature will also begin the Select File debate on the Voter ID bill. I continue to receive many emails and phone calls on this important issue. The voters made it very clear that they wanted every voter to show a valid photo ID to be allowed to vote. The challenge in implementing this provision is to do so in a way that does not suppress voters by making the process too cumbersome. For example, voting must still be accessible to those living in nursing homes, traveling, or members of the armed forces. Crafting a Voter ID law that follows both federal and state election laws, does not violate the federal or state constitution, and aligns with the many court cases on this topic is challenging. Senator Tom Brewer and Senator Julie Slama have both been working diligently on this issue and are now working with the Attorney General’s office to confirm that the final proposal meets the intent of the voter initiative and will withstand a court challenge.

I am anxious for the session to end and to get back to District 42. In the meantime, please feel free to reach out to me at mjacobson@leg.ne.gov or 402-471-2729 about issues impacting you. My door is always open!