This week, the Legislature hosted Governor Jim Pillen to give his State of the State address. The Governor proposed a very austere budget that provides for a 1.3% annual average increase in State spending during the two-year period ending June 30, 2025. He also cited the unprecedented $2.3 billion cash reserve expected to exist by fiscal year 2025 based on the latest revenue forecast. The Governor has proposed significant tax cuts and additional state funding for K-12 education. In addition, he has proposed setting aside funds for a new state prison, the Perkins County canal, and increased funding for building state roads.

In his education plan, the Governor envisions creating a new Education Future Fund which will require an initial investment of $1 billion and $250 million in additional funding each year thereafter. The increased state aid to schools would be coupled with a 3% cap on school district property tax revenue growth. The Education Future Fund would be used to provide $1,500 per student for all schools in the state and to increase special education funding in the future. On the tax relief side, Governor Pillen is asking for maximum individual and corporate income tax rates to be reduced to 3.99% by 2027 and to accelerate the elimination of income taxes on Social Security from the existing 3-year sunset to a total elimination in 2024.

The Legislature also commenced committee hearings this week and bills have begun to advance to the floor. In the coming two weeks, the Legislature will begin all-day hearings after briefly checking in to receive motions, amendments, and committee reports. Speaker Arch hopes hearing more bills in committees early in the session will allow bills to move more quickly and give Senators a chance to better examine which bill they may want to prioritize. On February 13, the Legislature will return to morning floor debate followed by afternoon committee hearings. All committee hearings will be completed by March 24.

Given the number of bills introduced this year, and the push by some of the progressive members to slow down the Legislative process, Senators will need to find a priority for legislation that doesn’t qualify for the consent calendar. Bills are eligible for each Senator’s personal priority, one of a committee’s two priorities which generally include an omnibus amendment, or can sometimes be attached to a priority bill on the floor. It is important each Senator use their priority designation wisely.

The Banking, Commerce, and Insurance Committee has scheduled two bills that I sponsored to be heard this week. The first bill, LB674, is scheduled for the morning of Monday, January 30. This bill would update the regulations surrounding digital currencies. I coordinated with the Nebraska Department of Banking and Finance on this bill in an effort to help safeguard the public and give the Department the tools necessary to better regulate this service as the industry continues to mature. The second bill, LB628 is scheduled to be heard on the morning of Tuesday, January 31. I worked with the Secretary of State to bring this bill to update provisions dealing with Limited Liability Companies, and other forms of corporate structures. I am hopeful both of these bills will be considered for inclusion in a committee omnibus amendment. If this happens, the bill should move to passage without having to carry them as standalone bills.

LB33, my bill to clarify when a mayor of a city of the first class may break a tie, and LB98, which updates the Micro-TIF statutes, will also be heard in the Urban Affairs Committee on the afternoon of Tuesday, January 31.

I will keep you informed each week regarding the upcoming bills of interest that will be heard so you can provide your input to me directly and provide testimony or comments to the Legislature. As always, if you are interested in joining the North Platte Area Chamber and Development Corporation’s weekly call, please contact the Chamber at (308) 532-4966 for times and call-in information.

As legislation and issues arise, please feel free to reach out to me at mjacobson@leg.ne.gov or 402-471-2729. My door is always open!