State legislators work on amendments during special session

This week, the legislature convened for only two days, choosing to adjourn early after Sen. Linehan, chair of the Revenue Committee, requested additional time for the bill drafters to finalize amendments. The legislature was previously scheduled to remain in session through Saturday, Aug. 10 but instead, resumed the session on Monday, Aug. 12.

During this week’s session, senators and their staffs received a briefing from the Revenue Committee outlining their framework to try to deliver property tax relief. LB9, by Sen. Hughes, is the bill now intended to serve as the primary vehicle. Originally, LB9 aimed to deliver additional state dollars to public schools to lower the maximum levy cap from the current rate of $1.05 per $100 of taxable valuation to $0.65 for FY2025-26 and FY2026-27. The levy would continue to decrease in 10-cent increments every two years until reaching $0.25 beginning in FY2033-34. However, LB9 did not have a funding mechanism, leaving it up to the legislature to find $444 million in FY2025-26 and $1.456 billion by FY2033-34.

The Revenue Committee has been working to find ways to generate the revenue necessary to make some version of LB9 work, taking parts from the governor’s proposal in LB1 and other bills brought to that committee. Proposals presented to senators at the briefing include imposing an excise tax on delivery services, doubling the Earned Income Tax Credit, transferring the duties of district court clerks to clerk magistrates, reimbursing county jails, having the state takeover funding for Natural Resource districts similar to what was done last year with community colleges, taxing alternative recreational nicotine products, placing a 2% excise tax on agricultural machinery and equipment, and removing the sales tax on residential electricity. Right now, many other details remain a work in progress while bill drafters get a final amendment ready for floor debate.

I do want to give kudos to the Revenue Committee for being thoughtful in their approach and choosing not to rush the process. The members of that committee and their staffs have worked long hours well before the special session even began. I think that choosing to give more time to the bill drafters will ensure that amendments will come out well-prepared in time for floor debate.

Meanwhile, senators also debated and gave approval to multiple gubernatorial appointments. The approved appointments included positions on the Nebraska Information Technology Commission, State Racing and Gaming Commission, Commission of Industrial Relations, State Fair Board and Game and Parks Commission. Confirming gubernatorial appointments is permissible during a special session as courts have routinely found that the confirmation process is “ministerial” in nature and not strictly legislative. Finalizing these appointments now will also mean that the legislature will have a bit less work to do when it reconvenes next year.

I welcome your thoughts and opinions as this special session continues. My Capitol office telephone number is 402-471-2801 while my email is [email protected]. My mailing address is: Senator Barry DeKay, District #40, P.O. Box 94604, State Capitol, Lincoln, NE 68509.