This past Thursday, the Nebraska Legislature concluded the first session of the 108^th Legislature. Although we adjourned on Day 88 of a possible 90 days, we were able to consider all vetoes and pass priority bill packages before we adjourned. After all the drama this session, every Senator welcomed the early sine die adjournment.

The Unicameral’s final week was largely spent debating Voter ID implementation, prison and sentencing reform, and the Governor’s line-item vetoes to the budget.

Voter ID came down to debate over the committee bill and the competing solution brought by Senator Slama. Although I received many emails and calls on this issue, I voted to move the committee bill forward since the committee overwhelmingly supported its amendment after thoroughly reviewing all the issues involved. Every state with Voter ID must balance implementation with existing state and federal election laws and case law. I am hopeful that the legislation passed this year will strike that balance.

We also passed LB50 to implement certain prison and sentencing reform measures. I expect this will be a perennial issue that we will need to revisit. Although the bill passed, I joined those who voted against the bill on Final Reading. In the end, I received too much negative feedback from constituents who felt that the bill went too far. I came to the same conclusion. It should be noted, however, that our prison system is grossly overcrowded, and we must take steps to resolve this problem. We did set aside funds to build a new prison, but we are still several years away from getting it completed. Meanwhile, we need to find better ways to help inmates to transition to the outside world and reduce recidivism.

As for the budget, the Governor returned several line-item vetoes, including $10 million for rural workforce housing for each of the next two years. These funds are matching funds to assist non-profit organizations to build rural housing projects that will sell for not greater than $325,000. Although I agree with the purpose of this program and the overwhelming need for affordable housing, I also agree with the Governor that utilization of the program over the next year may be tough with the high cost of construction and the rising interest costs. Additionally, there is $8 million that will carryover from the last fiscal year to be used in this coming fiscal year. If the demand is there, the Governor and the Appropriations Committee chair are open to reinstating funding next year. I feel strongly that a vote to override the Governor’s veto should only be done when there are overwhelming reasons to do so. This one seemed to not rise to that level.

I was pleased to see the Governor leave the 3% Medicaid provider rates for this coming year untouched. However, he did veto the second-year increase of 2%. I agreed to support the veto with the understanding that the Governor would consider the results of an interim study I introduced to look at “rebasing” provider rates to catch up with current costs. Proper funding of our rural medical providers, particularly in the wake of Medicaid expansion, is critical for retaining and recruiting people to our rural communities.

Finally, I was proud to participate in a signing ceremony for LB562, which will increase access to E-15 fuel across Nebraska. It was fitting that the signing ceremony was on the same day as the funeral for my friend Bob Lundeen of North Platte. Bob was CEO of Mid-America Bio Energy, and I know he would have been excited to see the work of the Legislature to support biofuels. He will be missed, and my prayers go out to his family as they grieve his passing.

It has been an honor to represent you in the Nebraska Legislature during the 2023 session. And my work is not done! Please reach out to me at mjacobson@leg.ne.gov or 402-471-2729 about issues you think the Unicameral should address next session. In the meantime, I will use these articles to provide a more in-depth recap of major 2023 legislation and other interim activities of the Legislature. I look forward to being able to spend more time in District 42 and meeting with constituents like you.

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!

Last week proved to be the most eventful week of the session thus far. It started on and ended with the Legislature voting on LB574. On Tuesday, the Legislature voted to return LB574, the Let Them Grow Act, to Select File for a specific amendment. That amendment did two things. First, it modified LB574 to allow puberty blockers and hormone treatments to treat gender dysphoria subject to strict protocols established by the Chief Medical Officer while still prohibiting surgical procedures until age 19. Second, the amendment added a modified version of LB626, the Nebraska Heartbeat Act. In what is now called the Preborn Child Protection Act, abortions are prohibited after 12 weeks from the last menstrual cycle (approximately ten weeks from conception), with certain exceptions. The amendment was adopted and the bill was advanced to Final Reading for a second time. On Friday, the Legislature voted to pass LB574 into law before adjourning for the weekend.

In between debates on LB574, the Legislature debated the series of budget bills on Final Reading. The Unicameral’s rules require the budget to be passed on or before Day 80, and we made it just under the wire. I now can breathe a sigh of relief because the budget includes $10 million of funding to rebuild the State 4-H Camp in Halsey and sets aside $576 million for possible construction of the Perkins County Canal.

The mainline budget bill, LB814, is very conservative, only increasing state spending by 2.3% over the next two years. Among other things, the measure provides funding for income and property tax relief, $1.25 billion for the Education Future Fund to increase state aid to public schools, and funds to construct a new prison. It also includes $20 million for rural workforce housing and $20 million for middle-income housing. As finalized, the budget will leave $892 million in the state’s General Fund for tax cuts and other uses over the next two years, and the state’s Cash Reserve fund is expected to be at $779 million by June 30, 2025 (13% of the state’s revenues). Any line-item vetoes from the Governor will need to be sent to the Legislature by Tuesday or Wednesday.

Once the budget was passed, we could consider tax cuts and other spending bills. The Legislature gave first-round approval to LB727, which originally provided sales tax exemptions for certain purchases by the state and other public entities. The Revenue Committee amendment to LB727 incorporated provisions of an additional 20 tax-related bills. A General File floor amendment inserted five additional bills.

The Legislature also gave second-round approval to LB531 this week, one of the Urban Affairs Committee’s priority bills. Amendments made on the floor incorporated my LB98 (Micro-TIF), and my LB33 (Mayoral Voting) bills. The Governor has expressed his support for the bill, which will reduce the risk of a veto, assuming the bill gets final approval.

Unfortunately, the Unicameral is not done with controversial legislation. Pursuant to a ballot initiative passed in 2022, the Legislature is tasked with passing laws to implement Voter ID. The Government, Military, and Veterans Affairs Committee, chaired by Senator Tom Brewer, has been in tough negotiations with several Senators, the Secretary of State, and the Attorney General to put together language that will pass constitutional muster. It is challenging to walk the line between protecting election integrity and suppressing voters. Although many want a more expansive election overhaul, the key will be to find language that enacts what the voters approved in November and has enough support to get the necessary 33 votes. The Speaker has scheduled the bill for this week, but there is still no consensus on all the terms. I am hopeful that we can work out the differences and avoid a special session.

We are down to nine legislative days remaining this session. If we follow the proposed schedule, the last day will be June 9, 2023, one week following the 89^th day. The gap between Day 89 and 90 is to allow for the Governor to make any final vetoes. Business on Day 90 will be limited to any veto overrides and passage of bills with a low risk of veto.

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!

This week begins with Day 78, which means there are only 12 working days to complete this session’s business. The week will begin with consideration of the Revenue Committee’s sales and use tax exemption package, followed by the amendment to LB574 which relates to restrictions on both “gender affirming care” for minors and abortions. We’ll then turn to getting the budget bills passed on Final Reading, just in time to meet our statutory requirement of completing the budget by Day 80.

As of the end of last week, there were 23 bills on Final Reading, 31 bills on Select File, and 248 bills on General File. Assuming all of these bills are filibustered, it is very unlikely that many of the bills still on General File will be passed this year, given the time remaining. It will be a race to the finish line as we close out the remaining days of the session. Stay tuned!

Despite being short on time, I am happy to report that many of my bills should get across the finish line. Not only did the content of LB281 (funding rebuilding the State 4-H Camp) get included in LB813 (a budget bill), but I was also able to get a slightly revised version of LB433 (behavioral health services) included in the budget with “intent” language. The amendment directs the Department of Health and Human Services (DHHS) to allow the six behavioral health districts to have more control over their individual budgets to better address specific conditions in their local districts. Region II is headquartered in North Platte but includes a 17-county area. During their last budget cycle, Region II lost $1.2 million that was included in their budget because DHHS refused to allow the district to redirect these funds. It is important to note that the local board consists of County Commissioners who represent each of the counties within the region. They clearly have a better understanding of how these funds should be spent. Thank you to Cathy Seacrest for bringing this issue to my attention and for her help in finding a solution. She has been an incredible public servant who has led this organization for several decades!

LB531 is the Urban Affairs Committee’s priority bill, and will hopefully be the vehicle for LB98 (Micro-TIF) and LB33 (Mayoral Voting). I believe that the changes included in LB98 will provide significant assistance to homeowners and developers willing to rehabilitate older homes in major disrepair, in areas where public infrastructure is already in place. If we want to make affordable housing available to accommodate the impending economic growth in the region, we will need to find creative, cost-effective ways to accomplish this. Micro-TIF can help make this possible. The mayoral voting bill simply makes the statutes clear as to when the mayor is able to break a tie vote. This is truly a clean-up bill.

LB674 (Digital Asset Depositories) is a bill that I brought on behalf of the Department of Banking. The bill doesn’t expand in any way digital assets. Instead, it gives the Department all the tools they need to regulate existing digital asset depositories better. While I have not supported digital assets depositories, this bill is necessary for better enforcement. The bill has been included in the Banking Committee priority bill that is currently on Final Reading.

Although several of my bills are moving this year, some will carry over to next session. I have had some questions regarding LB628, a clean-up bill that I brought on behalf of the Secretary of State. This bill modernizes the statutes relating to Professional Limited Liability Companies and Professional Corporations. These entities differ from regular Limited Liability Companies because they are designed to provide liability protection to individuals who perform certain professional services, such as doctors, lawyers, dentists, etc. This bill simply brings the Professional Limited Liability Company statutes in conformity with existing Professional Corporation statutes. We will likely run out of time this year to get the bill passed, but it will be back on Select File once we return next year.

Finally, LB149 deals with “rebasing” of reimbursement rates from Medicaid to long-term care hospital providers. Rebasing brings the rates in line with current inflation and brings the reimbursements more in line with actual provider costs. It has been 30 years since the rates were last “rebased.” Although the bill will not move this year, I have signed on to an interim study to keep the issue moving forward.

As we get closer to the interim, 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!

Last week, the Appropriations Committee advanced the mainline budget bills and issued the biennial budget report for fiscal year 2023-24 and fiscal year 2024-25. The state’s fiscal year begins on July 1 and ends on June 30 each year. The report reflects the current projected budget line items for the current fiscal year and the projected fiscal year numbers for each year through June 30, 2027. These projections take into consideration the most recent revenue projects released by the economic forecasting board and include the spending projections from bills included in the committee’s budget.

The budget bills are broken down into three bills: LB814, LB818, and LB813. LB814 outlines the Legislature’s mainline budget and capital funding. LB818 makes transfers from the Cash Reserve Fund, and LB813 deals with adjustments between individual funds. All three bills were debated on General File and moved on to Select File last week. These bills will continue to be debated over the next two weeks and will be the primary focus of the Legislature until these bills are passed. By rule, the budget bills must be passed by Day 80 or May 18.

There are several large projects funded in LB814, including $574 million to build the Perkins County Canal, $1 billion to the Education Future Fund, and the balance of the projected funding costs to build a new $350 million prison. There are some smaller projects with given funding. I am happy to report that LB814 allocates $10 million in matching funds to rebuild the former State 4-H Camp near Halsey and $20 million in funding for both rural workforce housing and middle-income workforce housing.

After line-item budget appropriations and any other appropriations bills passed by the Unicameral, the remainder of the state’s net revenues will go towards funding the Revenue Committee’s tax proposals to provide property and income tax relief. With just the proposed biennium budget items, the remaining net revenue for the next two years will be $714,929,728. In their current form, the proposed property and income tax relief packages are estimated to reduce state revenues by approximately $870 million over the next two years. Since these proposals would outstrip revenues, it is anticipated that some of the tax relief provisions may need to be pared back. Alternatively, the Governor could utilize his line-item veto authority to reduce spending measures. However, the current budget is already very conservative. As currently advanced, LB814 will only increase state General Fund spending by an average of 2.3% over the next two years, which is much lower than the current level of inflation.

As we continue the budget and tax discussions this week, I want you to know that I believe that our strong cash position is a result of “over” taxing those who pay income and sales taxes to the state. As a result, the Legislature should primarily focus on giving these funds back to those who paid them to reduce this surplus. Many are hopeful that – even though the state does not assess property taxes – it can help reduce them by properly funding our public schools and therefore reducing the local reliance on property taxes. I also believe that one-time expenditures focused on our state’s growth are also a wise use of funds. By making smart investments, we can help grow the tax base to ensure stable revenues in the future.

With the limited number of days remaining this session, many Senators are pushing to get their bills scheduled and doing all they can to find a path forward for their priorities. It is important to remember that if your bill does not get defeated along the way, it will carry over to next year’s session.

In closing, I want to thank our firefighters and first responders for their bravery and sacrifice as they fight new wildfires in our area. I am glad that the newest fire in the Nebraska National Forest at Halsey has been contained. Hopefully, the much-needed rainfall in parts of the District this past week will help green up the Sandhills and give our firefighters a break.

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!

Last week was, without a doubt, the most difficult week that I have spent in the Legislature. As many of you know, we ended the week by considering LB626, the Nebraska Heartbeat Act, on its second round of debate. The bill would have prohibited abortions once a fetal heartbeat is detected except for cases of rape, incest, and “health” of the mother. Unfortunately, when the motion was made for cloture in order to cease debate, we fell one vote short. Senator Merv Riepe cosponsored the bill and had voted in favor of the bill previously, but chose to be “present not voting.” Senator Riepe proposed an amendment moving the timeline from approximately six weeks (heartbeat) to 12 weeks, but without his cloture vote, we never had the chance to vote on the amendment.

Nebraska’s current law bans all abortions at 20 weeks except for the life of the mother. Today, approximately 2,000 unborn babies are aborted in Nebraska annually and 85% of these abortions occur after six weeks and almost all prior to 12 weeks. The most common reason for abortion in Nebraska is failed contraception. With all the remedies available today, I firmly believe that six weeks is the right time for an abortion restriction. In the end, it is about taking personal responsibility. I am confident the Legislature will revisit this issue.

In other action this past week, the Legislature moved LB92 (the banking omnibus bill) to Final Reading, along with LB191, which is the Business and Labor Committee priority bill. The committee amendment to LB191 incorporated LB249, a bill introduced by Senator Tom Briese and prioritized by Senator Teresa Ibach. LB249 allows nonprofit development organizations to apply for multiple rural workforce housing grants but caps the amount awarded to any nonprofit to $5 million over a two-year period. This should provide more money for workforce housing and be an important component in solving our rural housing shortage.

The Appropriations Committee will send its proposed State budget bills to the floor on Tuesday. The budget holds increased spending to 2.3% over the next two fiscal years. The primary distinctions between the Governor’s budget proposal and the Appropriations Committee package relate to healthcare and University funding. An additional $80 million in the Appropriations Committee budget will go to increased provider rates for Medicaid services, which will be particularly helpful for rural healthcare providers. The Committee also increased the State contribution to the University of Nebraska system from 2% to 2.5% over the biennium. There are also several big-ticket items included in the biennium budget, such as construction funding for a new prison ($366 million) and the Perkins County Canal ($574 million).

It is anticipated that the Appropriations Committee budget plan would leave $703 million for tax cuts and other uses. In their current form, the income and property tax relief packages total about $807 million over the next two years. The Legislature will need to consider reducing spending or revising the tax relief packages to balance the State’s budget. My prediction is that adjustments will be made to the income tax package. The budget is already very conservative and property tax reduction is a priority of many Senators – urban and rural. I am hopeful that the income tax cuts will simply be delayed and that the income tax rebate that refunds taxpayers for property taxes paid will continue. Property tax relief is clearly my highest priority!

The Legislature should begin to debate the budget on Wednesday and must pass the budget by Day 80 (May 18). On Tuesday, the Legislature will take up the Education Committee’s omnibus bill, which includes approximately 18 bills, on General File. We’ll also consider LB683, Senator Myron Dorn’s priority bill to increase access to E-15 fuel, on Select File. Finally, there are also a series of appropriations bills and a telecommunications bill on the agenda.

I am optimistic that the debate this week will be much more substantive than we have seen in some past weeks. I look forward to getting some work done for the State as we dive into the budget and can start to finalize our tax relief packages.

Please continue to submit public comments on individual bills at NebraskaLegislature.gov, or feel free to reach out to me directly at mjacobson@leg.ne.gov or 402-471-2729. My door is always open!

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!

This past week was another week filled with filibuster activity. We did, however, engage in some good debate on several issues, including bills related to school funding, abortion restrictions, and gender-affirming treatment for minors. We also began debate on some of the committee priority bills.

In past years, it has been common to have committee priority bills be accompanied by a committee amendment that incorporates several bills within the committee’s jurisdiction. Usually, no more than five or six bills are included in these “Christmas tree” or “omnibus” amendments. Generally, bills included in Christmas tree amendments are fairly non-controversial. This year, however, many committees are pushing for larger amendments of 20-30 bills due to the slow pace of the session. By including more individual bills in the committee’s amendment package, the Unicameral can advance many measures after an eight-hour filibuster (or six- or two-hour filibuster, depending on the stage of debate) rather than going the full debate time on each individual bill.

The Legislature needs to consider every avenue for moving good-governance bills forward in light of our current situation. However, it is also critical that Senators pay close attention to the many provisions in these large packages. In our quest to expedite the consideration of legislation, we also need to make sure bills get the scrutiny they deserve.

Monday, April 17, marks Day 63 of the 90-day session. The Appropriations Committee is required to send all budget bills to the floor by Day 70 (May 2). Speaker Arch has received approval from the Executive Board to use his “Speaker Major Proposal” tools on the five budget bills. Speaker Major Proposals must already have a priority designation or be a general appropriation bill, and approval requires a two-thirds vote of the Executive Board. Once a bill has been designated as a Speaker Major Proposal, the Speaker can reorder all motions and amendments to better manage debate.

I continue to work closely with my colleagues to identify funding for LB281, which provides funding to rebuild the State 4-H Camp. Although LB281 is currently included in LB425, one of the two Natural Resources Committee priority bills, given the ongoing filibusters, I need to be prepared if we can’t get to that bill this session. There is a bill moving forward with several appropriations measures that is expected to be discussed during the budget debate, in which I hope to have the State 4-H Camp included. Because of the way some of the other funding pieces are structured for eastern-Nebraska projects, there may be an opportunity to reduce or eliminate the matching requirement for the bill as part of negotiations. Stay tuned!

Time will tell if we can make time for any “consent calendar” bills. If so, my Micro-TIF (LB98) and Mayoral vote (LB33) bills could be heard at that time. My personal priority bill, LB644, is still on track to be heard as a part of a larger package as well. If successful, this bill will provide up to $25 million to help fund a major development site west of the 100^th Meridian that has an Inland Port Authority. Yes, that sounds a lot like North Platte. Hopefully, we can get this across the finish line this session.

I appreciate the feedback I have been receiving this session from constituents about issues impacting them. Please feel free to reach out to me at mjacobson@leg.ne.gov or 402-471-2729. My door is always open!

Although the Legislature is still not moving at full speed, we have made some progress over the past week. Certainly, much time has been wasted with the ongoing filibusters, but we are still moving important bills forward that will benefit residents of District 42.

This past week was dominated by debate on bills that will reduce income and property taxes. Additionally, we debated public school funding alternatives that are intended to both reduce property taxes and increase public school funding. As we have discussed on many occasions, property taxes are assessed at the local level and the bulk of your local property taxes go to your local school district. Nebraska’s current level of state aid to public education, in comparison to local tax funding, ranks at nearly the lowest in the nation. However, the current school spending on public education in Nebraska ranks in the top 25. The gap between state aid and school spending is made up by property taxes.

If I heard one message loud and clear during the campaign, it’s that property taxes are too high. I wholeheartedly agree! It is for that reason that I support LB583. LB583 will reduce property taxes by bringing more funding to public schools throughout the state and especially schools in rural areas, including the ten public schools in District 42. The bill also caps school districts’ revenue growth to 3% unless a higher increase is approved by 70% of the school board or 60% of the voters in a special election. By increasing aid and slowing spending, property taxpayers should see reduced levies.

The week ahead should see three late-night days compared to last week’s one. In addition to going late into the night, the Speaker has also signed off on allowing the committees to add more bills to each committee priority bill. Normally a committee amendment would include up to five bills, but because time is short, the Speaker has said that as long as there is unanimous consent of the committee and no large fiscal note, committees can create larger omnibus bills. We could see some with as many as 30 bills in one amendment. This will allow more bills to be passed in the limited time left in this session. There are also still ways to pull out problematic legislation on the floor, if necessary, so there is no concern with rubberstamping whatever the committee puts forward.

Although we don’t know the full agenda, the Speaker has announced that LB626 (the heartbeat bill) will be debated on Wednesday. We’re also likely to hear Senator Brewer’s LB77 (Constitutional Carry) on Final Reading. That means LB77 could be the first bill the Legislature sends to the Governor’s desk for signing in 2023.

One of the looming questions in the Unicameral is the fate of all the priority bills with fiscal notes that were heard in committees other than the Appropriations and Revenue Committees. These bills will not be included in budget bills. And, since we don’t know how much money the Appropriations Committee will leave for spending outside of the budget, it will likely be a mad scramble to get funding for non-budget projects. My State 4-H Camp bill, for example, has been added by committee amendment to LB425, one of the Natural Resources Committee priority bills. However, it has a $15 million fiscal note. I am turning over every rock and working all angles to get this funding secured this year.

In the end, many will likely remember the 2023 session as the session of the filibuster. That will certainly be true. However, I think that this session will also be remembered as the session where we passed transformative tax cuts for Nebraska families and made significant strides in moving more educational funding from property taxes to state support. It will also be remembered for taking Nebraska back to a state that prioritizes the lives of the unborn. To that extent, this can and should be a very memorable session.

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.

With just eight days left in the 107^th Legislature, major progress was made last week in getting the budget passed that included specific items that will impact our District.

The Legislature passed on Tuesday the final budget bills including LB1013 which directed the State Treasurer to transfer $53,500,000 from the cash reserve fund to the Perkins County Canal Project Fund on or before June 30, 2023, to fund the feasibility study for the proposed canal project and to purchase options to buy the land for the project should the project be found to be feasible.  This is a major first step in preserving the state’s water rights with Colorado.

The Legislature also approved LB1015 which was the enabling legislation that grants the Department of Natural Resources to the necessary authority to develop, construct, manage, and operate the Perkins County Canal Project consistent with the terms of the South Platte River Compact and pursuant to the Perkins County Canal Project Act.  This is to be done to protect Nebraska’s full entitlement to flows of the South Platte River.

The canal is actually located in Keith County, but the resulting river flows diverted to the proposed storage facilities will provide much need ground water recharge and bring with it potential recreational opportunities as well.  There is much to be done before the canal would actually be built, but this is a great start.  Protecting our water rights with Colorado will be paramount in the coming years.

The Legislature also advanced to the second round of debate LB873 which has become the bill that now carried all of the tax cut bills.  The bill was amended with amendment AM2649.  This amendment in essence replaced the original bill’s intent.  This was necessary because the original bill that was voted on a week earlier LB825 failed to pass by one vote.

LB783 as amended, now included the provisions originally contained in LB825 which was the Social Security tax phase out.  Last year, a prior bill had started the process by eliminating state income tax on social security income over the next 10-years, LB825 now speeds up the phase out over the next 5-years.  This is a huge win for our seniors on fixed incomes.

The second part of LB783 lowers the state’s top personal and corporate income tax rates to 5.84% over the course of the next several years, which is down from current top rate of 6.84%.

The third part of the LB783 incorporates the provisions of LB723 that sets the minimum level of LB1107 refundable income tax credit at $580 million once fully implemented.  LB1107 provided for tax payers to receive an income tax credit based on the amount of property taxes paid to your local school district.  In 2021, this income tax credit will be equal to 25% of the amount of school district related property tax paid.

The fourth part the bill created a new refundable income tax credit for community college property taxes paid that would be in addition to the local public school taxes.

All told, this entire tax package is expected to amount to $900 million annually.  By fiscal year 2027-2028.  This is real tax saving for hard working Nebraska families!

As we look to this week, the speaker plans to schedule for Tuesday, second round debate on LB873 (tax bill), LB920 the criminal justice reform bill, and LB264CA the proposed EPIC tax bill. On Wednesday, we will have general file debate on LB 933, the Human Life Protection Bill.  We can expect vigorous debate on each of these bills.

As always, my door is always open to constituents and I would love to hear from you at mjacobson@leg.ne.gov or 402-471-2729. It is an honor to represent you and District 42 at the Nebraska Legislature.