In an announcement this week, Speaker Mike Hilgers emphasized the importance of senators making good use of their time, noting that the short 60 day session is nearly a third of the way over. Some members who have been stalling debate on revenue-impacting bills this week have blamed the Speaker for scheduling several controversial spending measures so early in the session before hearings are complete on budget adjustments, ARPA, and other new proposals that would carry a price tag. These senators have warned it’s unwise to pass hefty spending measures this early in the game, to “blow all our money in one place” so to speak, until we have a full picture of everything that’s on the table. New bills that have not had hearings yet, for instance, could be great ideas that will require substantial general fund appropriations. The Speaker maintains that it’s his policy to schedule new 2022 priority bills as they come available on the floor for debate.
On the Floor
Sen. Halloran’s hard-fought LR 14, which adds Nebraska to the list of states calling for a Constitutional Convention, passed after defeating attempted filibusters on previous rounds. Nebraska is now the 17th state of the 34 needed to assemble a convention at which states could propose changes to the U.S. Constitution.
Two significant spending-related measures passed General File: LB 723, Senator Briese’s priority bill that would prevent the property tax credit provided by LB 1107 (2020) from falling below its current amount; and LB 825, Senator Lindstrom’s priority bill, which accelerates the time period over which Social Security income tax is phased out completely, setting the date for total phaseout to occur beginning with tax year 2025.
Observers may note that the candidacy for higher office of some members has begun to creep into conversations on the floor of the legislature. Three are running for Congress (Sens. Tony Vargas, Mike Flood, and Patty Pansing Brooks), two are running for Governor (Sens. Brett Lindstrom and Carol Blood), and a handful of others are running for other local and state offices. If you hear criticism about campaigning in the Capitol, or if it seems like unnecessary personal barbs are being traded or campaign-like stump speeches seem to be happening more often, this is probably what it’s about. expect this to be an ongoing undertone throughout the session.
Hearings Last Week
The Appropriations Committee was kept busy late into the evening most days this week, holding hearings about budget adjustments, agency requests for appropriations, and proposals for the use of ARPA funds.
Here’s an overview of what I think are pros and cons in LB 1014, the Governor’s ARPA proposal, for a nonprofit advocate perspective:
Pros: The proposal includes funds for public health, premium pay for essential workers, increased Medicaid provider rates (though some noted this should be put in the General Fund as an ongoing expenditure), increasing hospital capacity, and workforce housing.
Cons: A large portion of funding goes to water infrastructure, namely the proposed Platte River Canal and “STAR WARS Committee” lake projects. Many in the nonprofit space have noted that LB 1014 leaves relatively little for projects that will provide aid to struggling individual Nebraskans, and that the high-dollar tourism and water projects backed by Ricketts in the bill don’t fit within federal guidelines for the intended use of the funds. These federal funds are intended to support individuals that have suffered negative economic impacts due to the pandemic. This could open the door for possible litigation or cause the state to have to return funds to the federal government.
After hearing a large volume of requests this week, the Appropriations committee now have to put their heads together to determine what amendments to make to the Governor’s proposal.
Senator Linehan’s LBs 938 & 939, a set of bills that would cut the state’s top corporate and individual income tax rates, were heard in the Revenue Committee. They’re billed as a way to help level the playing field for businesses and to make Nebraska more tax-competitive with nearby states, but opponents raised concerns that the measures would mostly benefit the highest earners and out of state taxpayers. Under the proposals, middle and low income Nebraskans will see very little benefit. Since the Governor highlighted these as priorities of his, expect them to come to the floor soon.
The Judiciary Committee heard a few proposals to reform the criminal justice system in Nebraska and to attempt to reduce prison recidivism. Expect a major bill “package” to come out of the committee for debate around these issues.
Since so many hearings happen in a week’s time, I can’t cover them all in detail here, but I try to make a note of those that might interest CSN readers, and I’ll definitely cover them more if they come to the floor. A few other notable bills that had hearings this week:
- LB 890 (Walz) – increases state K-12 public school funding in order to drive down property taxes
- LB 869 (M. Hansen) – would provide parental leave for adoptive parents
- LB 932 (Hunt) – would require that the state conserve and use Social Security funds owed to foster youth in a way consistent with the youth’s best interests
- LB 929 (Wishart) – would extend postpartum Medicaid coverage provided to mothers from the current 60 days up to 12 months
- LB 1113 (McKinney) – a pilot program that would provide guaranteed basic income for young adults aging out of the Bridge to Independence program
The Week Ahead
Here’s what we know so far will be on the agenda. Not many other 2022 priority bills have been selected that have advanced from committee to the floor, though that will probably change soon.
- LB 767 (Kolterman) – would regulate Pharmacy Benefit Managers, in an effort to drive down prescription drug costs
- LB 376 (M. Cavanaugh) – increases developmental disability services in an effort to reduce the waiting list
- LB 986 (Briese) – places limits on schools’ ability to levy property taxes
Some bills on Final Reading will likely be scheduled at the end of the week on Thursday, with a recess day on Friday.
Until next week,
Your Capitol Fly on the Wall
