Gragert outlines governor's budget recommendations

Governor Pete Ricketts delivered his State of the State address to the legislature this past week. He highlighted 2021-23 state budget recommendations for senators. This will be his last biennial budget proposal, as his eight years in office will be completed at the end of next year.

Ricketts recounted the devastating flood in 2019 and coronavirus pandemic that followed in 2020. He commended Nebraskans for responding in the Nebraska Way - by working together to overcome challenges.

The governor’s budget proposal limits the two-year average growth in state spending to 1.5% but still accomplishes his proposed priorities of property tax relief, military families and veterans, public safety and investment in broadband internet.

The governor included $1.36 billion in property tax relief in his budget recommendations. This includes $550 million through the Property Tax Credit Fund (shown on property tax statements), approximately $600 million for the newly-passed refundable income tax credit based on the amount of school district property taxes paid and $214 million in property tax exemptions under the current homestead exemption program. The amount appropriated to the income tax credit will increase until it reaches $375 million by the fifth year, after which it will increase annually, based on the percentage change in overall statewide valuations. At Rickett’s request, Senator Lou Ann Linehan introduced LR22, a proposed constitutional amendment to limit the growth of property taxes to 3%. Although the governor supports limits on local spending in order to ensure that property tax relief works, he emphasized his support for public schools and has proposed to fully fund state aid for K-12 schools, as he has done every year as governor.

In continuing his quest to make Nebraska the best state in the nation for military families and veterans, the governor has included $50 million toward the establishment of a public-private partnership to assist in building the projected $1 billion headquarters for U.S. Space Command, estimated to create 1,400 jobs. Although it was recently announced that Redstone Arsenal in Alabama was selected as the preferred site for this project, Nebraska is not giving up and plans to continue their work with the Biden administration. At the request of the governor, Senator Tom Brewer introduced LB387 to exempt 100% of military retirement income from state income tax. This would complete the work done last year, when legislation was passed to exempt 50% of military retirement. I have designated this legislation as my priority bill. Finally, the governor is working with Senator Rita Sanders on additional steps to cut red tape to allow military spouses, with teaching licenses in other states, to teach while their families are deployed here.

For many years, Nebraska has had a severe prison overcrowding problem. To protect public safety, the governor is endorsing a new $230 million facility, projected to house 1,500 inmates. An initial investment of $115 million is included in the governor’s budget proposal. The facility is projected to be operational by 2025.

Many Nebraskans still do not have access to broadband and even more households lack adequate broadband speeds. Nebraska was able to use federal pandemic funding to begin connecting households with broadband. To further this goal, the governor’s budget includes an investment of $40 million in rural broadband over the two-year period.

A public hearing was held by the Rules Committee on proposals for rule changes, submitted by senators.

One of the more controversial proposals was from Executive Board chair, Senator Dan Hughes. It proposed to exclude news reporters from the executive sessions of the legislative committees.

Hughes said their presence limits a senator’s ability to speak freely and frankly in making decisions on the direction of a bill.

Representatives of the press urged the committee to reject the proposal, as they gain valuable insight when permitted to listen to the discussion, thereby allowing for more accurate reporting on the status of legislation.

Another proposal would change the voting process for the election of committee chairs from a secret ballot to a roll call vote. Arguments for the rule change include increased transparency, but opponents fear it will cause senators to vote down party lines instead of for the most qualified person. The Rules Committee will submit their recommendations and the legislature will debate suggested rule changes beginning Jan. 21.

As the legislature finishes introducing new bills and begins the public hearing process, I encourage you to contact me with your thoughts and opinions on the legislative issues before us.

I can be reached at [email protected]. My mailing address is District #40, P.O. Box 94604, State Capitol, Lincoln, NE 68509 and my telephone number is 402-471-2801.