Budget bills receive nod from Legislature

The legislature gave second-round approval to the budget bills this past week. This effort will allow the budget to be read on Final Reading next week, meeting the requirement to have it pass by the 80th legislative day. The budget would provide money for capital construction projects such as the Perkins County Canal Project and a new prison facility. Additional funds are appropriated to cover salary increases recently negotiated with the state employee’s union and for staff at correctional facilities and other 24/7 facilities that were experiencing dangerous staffing shortages. Worker shortages and competition also necessitated provider rate increases for nursing homes, behavioral health providers, developmental disability providers and other Medicaid service providers.

In addition to the budget, other major legislation was considered by the legislature. LB 705 is one of the Education Committee’s priority bills for the year. The underlying bill would distribute over $24 million in state lottery funds to various education sources, including college access and opportunity grants. LB 705 was amended to include provisions from 22 other bills which cover a broad range of subjects such as mental and behavioral health resources, credentialing and teacher recruitment and retention. The latter is a concern for lawmakers since the state is experience a worsening shortage of educators, particularly in rural Nebraska. According to the Nebraska Department of Education, unfilled teaching jobs across the state increased by nearly 60% over last school year, going from 482 vacancies at the start of the 2021-22 school year to about 768 at the beginning of 2022-23. Following a filibuster in protest of LB 574, LB 705 was advanced to Final Reading on a 39-4 vote.

LB 683, which would create the Nebraska broadband Office, was amended to include provisions of LB 63 to prohibit a telecommunication company from receiving support from the Nebraska Universal Service Fund if said company is using or providing any communications equipment or service deemed to pose a threat to national security.

A rising concern is the presence of Chinese equipment on Nebraska telecommunications infrastructure, which could allow China to monitor domestic communications and collect intelligence near sensitive sites, such as the missile silos in the panhandle. An amendment was brought forward to make this prohibition immediate. Senators supported the amendment on a 40-0 vote.

LB 562 would create the E-15 Access Standard Act and increase consumer access to E-15 fuel. An amendment was offered by the Agriculture Committee to address concerns raised by distributors and the petroleum industry. This amendment would clarify the waiver requirements for distributors and increase a refundable income tax credit program to retailers for every gallon of E-15 and higher blends sold to minimize the burden on gas stations as they make the transition. During debate, Senators attached provisions to LB 562 which would expand the eligibility requirements for the Beginning Farmer Tax Credit Program and standardize the permitting and inspection processes for food trucks. The Agriculture Committee amendment was adopted on a 41-0 vote before lawmakers advanced LB 562 to Final Reading on a voice vote, a rarity in this year’s legislative session.

LB 583 would increase state aid to public schools by ensuring the state provides eighty percent of a school district’s special education funding needs when combined with federal funding. Additionally, school districts would receive $1,500 per student as foundation aid as a component to the TEEOSA school funding formula. This bill would also provide an additional $300 million in aid to public schools on top of the $1 billion currently provided by the state. LB 583 was advanced to Final Reading on a voice vote.

Taxes were also a topic of discussion. LB 243 would increase the minimum amount of relief granted under the Property Tax Credit Act and makes other changes aimed at easing the financial impact of increasing property tax valuations on Nebraska’s local property taxpayers. LB 754 would reduce the state’s personal income and corporate income tax rates as well as accelerate the phasing out of income taxes on Social Security. Work continues on both bills, but they are on hold final consideration until the budget passes.

Looking ahead, the legislature will take up the budget bills on Final Reading before sending them to the governor’s desk for approval. Additionally, debate will begin on amendment AM 1658 to LB 574 which would combine restrictions on gender-altering surgeries with a revised version of LB 626 that creates a 12-week abortion ban with exceptions for rape, incest, and life of the mother.

Feel free to call my office anytime at 402-471-2801 or email me at [email protected]. My mailing address is: Senator Barry DeKay, District #40, P.O. Box 94604, State Capitol, Lincoln, NE 68509.