I hope everyone had a safe and happy Independence Day! We are very blessed to live in a country that protects and cherishes our unalienable natural rights. It is an honor to serve you as part of our representational democracy. God bless America!

As we move into the heart of summer, I have had many questions regarding the status of the former State 4-H Camp, which was destroyed last October by the Bovee Fire. Both the Nebraska 4-H Camp and the Nebraska National Forest at Halsey are near and dear to my heart, and to many who make the trip to the area each year. The Nebraska 4-H Camp was first established in 1959. The Nebraska National Forest was established in 1902 and is the largest hand-planted forest in North America. About 12,000 visitors flock to the forest each year for camping, hiking, photography, hunting, stargazing, and relaxation. Finding a way to not only rebuild the facility but to build back something that could make a significant impact on the region has been one of my priorities since the fire.

Since the 4-H Camp was established, residential youth camping experiences have changed significantly. As a result, we now ask ourselves, what modern infrastructure should be in place to continue to host a residential 4-H camp as well as be maximized and utilized by the thousands of other patrons who visit the forest each year? Furthermore, how might that infrastructure accommodate visitors to the forest over the course of the entire year, not just during the summer months?

I am happy to report that I was able to work with my colleagues in the Legislature to create a $10 million matching grant for the first phase of the rebuild. I want to thank Jeff Yost and his staff at the Nebraska Community Foundation for all their help in setting the groundwork to get this project going. Jeff and I will continue to work together to complete a basic feasibility study and establish an initial board to lead this project forward. We will need to engage a broad group of stakeholders to ensure the project succeeds.

Key partners in this collaborative effort currently include the State of Nebraska, the University of Nebraska-Lincoln Extension, the Nebraska 4-H Foundation, the Nebraska Community Foundation, and local, regional, and statewide donors. Conversations have begun with the USDA National Forest Service and Nebraska Game and Parks Commission. The initial timelines are outlined below:

May 2023: State of Nebraska appropriation secured

June 2023: Begin facility feasibility study

Fourth Quarter 2023: Determine the site for the new complex and begin fund development assessment

Second Quarter 2024: Complete facility feasibility study and fund development assessment

Third Quarter 2024: Feasibility study accepted by the Nebraska Department of Economic Development and begin fundraising for Phase I

Third Quarter 2025: Complete Fundraising for Phase I and contract with a lead architect

2026: Complete construction of Phase I

This will be an ambitious undertaking, but I truly believe that this is a project that will have a profound impact on the region and the state. I will continue to be personally involved in the process and will be looking for any opportunities for additional state funding once we can prove-up our success in Phase I.

Please continue to contact me on this and other issues at mjacobson@leg.ne.gov, or feel free to call my office 402-471-2729. My door is always open!

With the Legislature out of session, it has been nice to spend more time in the District, but haven’t slowed down! Julie and I were able to attend the first night of the Miss Nebraska contest, which continues to be a major statewide event that is held each year in North Platte. I am so happy for Miss Nebraska 2023 Morgan Baird, who just completed two years of service as a page at the Nebraska Legislature. Given all the late nights as we ended the session, she had little time to prepare for the contest, yet her performance was flawless.

We also participated in some of the NebraskaLand Days activities, including the parade. Julie and I plan to attend as many of the upcoming parades as we can throughout District 42, as well as town hall meetings and other local events. Feedback from constituents is very important to me, and I look forward to having more time to see folks face-to-face.

Two weeks ago, we also had the opportunity to attend the 90^th Anniversary of Farm Foundation in Chicago. I was fortunate to be invited into membership over 10 years ago and have always enjoyed attending their semi-annual meetings. Farm Foundation is a policy research organization comprised of 150 members who are industry experts in the food system, including former Secretaries of Agriculture, large producers, processors, retailers, agricultural economists, and environmentalists. I was especially pleased to have been asked to lead a panel discussion at this meeting on the future of ag finance and business structures. As the capital required to operate profitable farms continues to rise, many producers will be looking to unlikely partnerships to access the capital needed to operate in the future.

Property taxes are a big component of the cost of running an agricultural operation, but they are a significant expense for any landowner. I continue to receive a lot of questions and complaints regarding recent property value increases, so I thought it might be good to review the process once again.

Property values are subject to review as of January 1 each year. A yellow card indicating the valuation change is sent to each property owner once a change is made. Valuations are based on a number of factors, including what the market value of your property might be and how similar properties have been valued. Currently, we are experiencing a shortage of homes and inflated construction costs. This means that the same home is selling for more than it would have even five years ago. Because the market is placing a higher value on properties, valuations are going up.

It is important to note, however, that a higher valuation does not alone indicate your property taxes will increase. Before your property tax can be determined, each local taxing authority must set its budgets (generally in October) and hold a public hearing before approving the budget. The State has no power to assess property taxes, which is why it is so important for people to know about and participate in the local budget process. You should receive another postcard in the mail alerting you to local budget hearings.

Once budgets are approved, the County Treasurer compiles all the tax requests for each taxing authority (County, City, School District, Ag Society, Airport Authority, Community College, etc.). The total requests and the property available to tax within each authority’s jurisdiction are used to determine what level the mill levy must be to generate the necessary taxes to fund all the local taxing authorities. The mill levy determines your property tax.

Again, the State only generates funding from income taxes, sales taxes, and fees. Since property taxes are assessed and collected at the local level, the Legislature cannot directly lower your property tax bill. However, the Legislature has tried to lower property taxes indirectly. First, the Legislature approved a significant increase in State aid to local school districts, which account for approximately half of your property tax bill. Our hope is that more State aid will reduce districts’ reliance on local property taxes.

Second, the Legislature provides property tax credits and rebates based on what you pay for support of local school districts and community colleges. Last year, that number amounted to 30% of the property taxes you paid to those entities.

Finally, the Legislature voted this year to begin funding the operation of community colleges at the state level, as it does with state colleges and the University system. Soon, property taxes for community colleges will only be assessed to pay off existing bonded indebtedness. Ongoing support will come from state support, tuition, and grants.

So, take a deep breath when reviewing your property valuation statements because it is only one piece of the puzzle. Although you may not have improved your property over the last few years, the market value has increased due to the cost of new housing and the short supply. It is good to have your value go up, but it is bad if that increase results in higher taxes. It is up to the local taxing authorities to determine how much the increase in property values affects your tax bill.

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, I discussed the progress made by the Legislature this year to curb property taxes. This week, I’m addressing the work done on income taxes and social security taxes at the state level.

Currently, Nebraska’s current top marginal income tax rate of 6.64% ranks 31^st among all states. Although this is in the middle of the pack nationally, it is higher than any of our surrounding states. Wyoming and South Dakota have no state income tax, Colorado’s is 4.40%, Missouri’s is 4.95%, Kansas’s is 5.7%, and Iowa’s is 6.0%. However, Iowa’s Legislature has voted to reduce their highest rate to 3.9%. If we want to attract more industry to Nebraska, it is imperative that we have a competitive income tax rate.

Passed this year, LB754 was a Revenue Committee bill that made changes to our income tax system. First, LB754 lowers the rate for the top two individual income tax brackets and the corporate income tax bracket to 3.99% by 2027. The rate for the lowest income tax bracket is 2.46%.

Some have criticized the adjustments as tax cuts for the wealthy, but it is important to note how quickly individuals can move through our state income tax brackets. If you are a single person (or married but filing separately), you start to pay income taxes on income over $3,440 (Bracket 1). Bracket 2 taxes income between $3,441 – $20,590, Bracket 3 between $20,591 – $33,180, and Bracket 4 taxes any income above $33,180. If you work 40 hours per week, $33,180 represents an hourly income of $15.95/hour. Current Census data show that the median household income in Nebraska is $66,644, the average household income is $87,815, and the per capita income is $35,189. Only 6.2% of Nebraska households are “high-income” households that make over $200,000 per year.

If the rate for the top two tax brackets was 3.99% today, like it will be in 2027, that rate would apply to individual income over $20,590 and dual-income filers over $41,190. The 3.99% rate would kick in below the median, average household, and per capita individual income levels. Clearly, most Nebraskans will get a tax cut.

In addition to cutting income tax rates, LB754 also exempts 100% of Nebraskans’ Social Security income from state income tax beginning in tax year 2024. Previously, our Social Security tax was set to phase out in 2025. LB754 also allows federal retirees to exclude the amounts received as annuities under the Federal Employees Retirement System or the Civil Service Retirement System from their federal adjusted gross income.

Finally, LB754 was amended to include provisions of LB318, which authorizes the Nebraska Department of Revenue to approve up to $15 million in refundable income tax credits each year for parents and legal guardians paying for child care. The tax credit is available to qualified individuals whose child receives qualified care, is enrolled in a childcare subsidy program, or the household income is below 100 percent of the federal poverty level. The amount of credit available is based on the taxpayer’s total household income. Similarly, the measure allows for credits for contributions up to $100,000 to establish or operate eligible childcare programs. Lastly, tax credits available under the School Readiness Tax Credit Act for childcare providers and employees are increased. These provisions will go a long way toward helping make childcare more affordable and solving our challenges with workforce shortages.

Many have asked if these cuts and credit programs are sustainable. Only time will let us know how our economy will perform, but the Legislature was careful to preserve a cash reserve (rainy day fund) of nearly $1 billion. In addition, the budget approved for the next two years provides for only a 2% increase in spending. Historically, we have always had at least a 3% increase in revenue. I am optimistic that this is indeed a sustainable plan.

The income tax cuts and credits in LB754 are just one piece of the puzzle. When paired with the school funding and property tax reduction measures I discussed last week, we are doing everything we can to keep Nebraska competitive and protect taxpayers like you from being over-taxed. As a rural Senator, I will continue to advocate for an equal amount of property tax reductions to match any income tax reductions. Since the State does not assess property taxes, the only way the State can impact local property tax rates is to increase state aid to public schools, in turn allowing local taxing authorities to reduce property tax requests and/or give property taxpayers a direct property tax rebate. The Legislature is doing both.

Please continue to reach out with questions about laws passed this session or issues to address next year. You can reach me at mjacobson@leg.ne.gov or 402-471-2729. My door is always open!

Now that the Legislature has adjourned for the year, I will be spending the next few weeks analyzing the bills that were passed this session and sharing with you the impact that the new laws will have on the residents of District 42.

As we discussed previously, this legislative session was far from normal. Once the filibusters began, it became clear that getting bills passed in a conventional way would not be easy. Typically, every Senator priority bill would at least get debated, as would the 25 Speaker priority bills and each standing committees’ two priority bills. This year, however, only 56 bills were passed on Final Reading and sent to the Governor’s desk for his signature. This doesn’t necessarily mean we were less productive, though.

Committee priority bills have traditionally been sent to the floor with a few other bills in the committee’s jurisdiction grouped together in the committee amendment (also known as a Christmas tree bill). Since so few bills were able to be debated this year, most committees were only able to get one of their two priority bills heard. In addition, we were kept from doing a consent calendar or hearing many of the individual Senator or Speaker priority bills. Accordingly, the committee priority bills that made it on the agenda included many more bills in their packages than normal. In many cases, additional amendments were offered to add even more bills to the introduced bill.

In the end, of the 821 bills that were introduced, 291 bills will become law via the 56 bills that passed Final Reading. This compares favorably to the last two 90-day sessions in 2021 and 2019, where the Legislature passed 281 and 322 bills, respectively.

I thought this week might be a great time to discuss property tax progress in this legislative session. Many of you received your new property “valuations” over the past couple of weeks and are now wondering how much your property taxes will rise as a result. First, let me be clear that the valuation of your property is just one part of the tax equation. The “mill levy” is the other half of the equation. You will not know the mill levy until taxing authorities complete their budgets this fall. Once budgets are completed, the county assessor will add up all the budget requests and then divide that total into the gross property values to determine the consolidated mill levy necessary to fund the budgets.

It is important to remember that the state does not have any authority to tax real estate. The state generates its income primarily from income taxes, sales taxes, and fees. The state can, however, impact your property tax level by providing state revenue to public schools, which are the largest property taxing entity.

Nebraska historically has ranked 49^th in the country for state aid to public schools. This aid is provided through the Tax Equity and Education Opportunities Support Act (TEEOSA) formula. This formula essentially considers each school district’s needs and the value of its resources (property values) and grants state funds to schools accordingly. This is referred to as “equalization” aid. Unfortunately, only the larger school districts in the state receive equalization dollars, and nearly all the small school districts (all but one in District 42) do not receive equalization aid.

This year, the Legislature passed major education funding reforms in LB243. First, it placed $1 billion into the Education Future Fund to be used as reserve funds to ensure continued additional funding to public schools. It also expanded annual public school funding by over $300 million by increasing current state aid to equalized schools and providing $1,500 per student in aid to all unequalized schools. We also increased special education funding from 40% to 80% of special education costs.

In addition to increasing financial support, the Legislature took steps to limit annual school spending growth to 3%. Many felt the cap was necessary to ensure the new funding actually goes toward property tax reductions. If the state provides more revenue, it is expected that less revenue will come from property taxes.

Additionally, LB243 increases the minimum amount of rebates provided through the Property Tax Credit Act. This Act refunds a percentage of the property taxes paid to your local school district and your local community college. The minimum amount of funding available each year beginning in 2023 is $360 million. This amount will grow each year until it reaches $475 million in 2028. The Legislature also will be removing community colleges from the property tax rolls. Instead, the State will fund their operating needs, just as they do for the University and the State colleges today. Community college assessment will only remain to pay off existing bonds.

The work done by Legislature this year in property tax reform was monumental. There were also major strides in income tax reductions, which I will address that next week.

It has been an honor representing you this past year, and I look forward to hearing from you regarding any issues you may have. Please feel free to reach out to me directly at mjacobson@leg.ne.gov or 402-471-2729. My door is always open!

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!