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.