PANDEMIC BRINGS 'UNPRECEDENTED' UNEMPLOYMENT FRAUD; NEBRASKA BEEFS UP SECURITY

LINCOLN- The state labor commissioner reported Monday that the unemployment system has battled fraud at an 'unprecedented level' during the pandemic. Commissioner John Albin assured lawmakers that Nebraska added more security measures which have been more successful than the national average in detecting and preventing fraudulent claims. Nebraska's average fraud rate is at 2.43% whereas the national rate sits at 4.35% (these rates only looking at traditional unemployment, not pandemic relief). 

“Nebraska, and all states for that matter, has had to continually evolve its fraud response,” he said. “The type of fraud and the brazenness of the attacks had never previously been experienced at this level in unemployment systems.”

Bellevue Senators Carol Blood and Jen Day wrote a letter to the commissioner asking him to estimate the dollar amount of losses and how this can be prevented going forward. In the response, Albin said it is speculative to estimate the scope of fraudulent claims. 

The Nebraska Department of Labor identified $89.2 million worth of 'overpayments' in 2020 or 2.2% of the total pay out from all state and federal unemployment programs. $62.5 million of those overpayments have been recovered so far. Albin continued on to say the federal coronavirus relief legislation 'created a system designed for fraud'. PUA benefits were the most common fraud because the claims were not able to be cross-checked against the state and national directory of new hires. Identity theft also increased drastically during the pandemic. 

In December, the state began requiring two factor authentication for claims but it is still possible to get around those blocks. 

“The fraudsters are really good with their criminal activities,” he said. “It’ll be a battle throughout the end of these federal programs.” 

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NEBRASKA'S PRIVATE, PAROCHIAL SCHOOL BACKERS TRY AND FAIL AGAIN ON SCHOLARSHIP TAX CREDITS

LINCOLN- The latest attempt to use state tax breaks to help more low-income students attend private and parochial schools failed in the face of a filibuster Wednesday. The measure fell four votes short of ending the filibuster on LB364. Introduced by Sen. Lou Ann Linehan, LB364 would provide tax credits to people or businesses that donate to a designated private or parochial school scholarship fund. The vote came after eight hours of debate that ranged from comparing private and public schools to constitutional law and the best ways to help children of color living in poverty. 

Sen. Linehan says this bill would help give more educational choices to Nebraskans. "In America, a child's opportunity for education should not depend on income or zip code," she said. She went on to say one of her biggest concerns is the gap achievement in scores between students of color and White students. She believes the chance to attend private or parochial schools could help students improve academic performance. 

Sen. Justin Wayne agreed with Sen. Linehan, saying education is key to the American promise many people in his district have been sold. 

Sen. Terrell McKinney on the other hand opposed the bill, although he did say his constituents were about 50-50. He noted that people in his district have faced racism and discrimination when they choose private and parochial schools. Sen. McKinney went on to say that living in poverty will not be erased if the child goes to a private school. He gave the example that a scholarship can't make up for going to bed hungry or not having decent shoes. Sen. Machaela Cavanaugh agreed saying more children would benefit from better food assistance programs or housing subsidies. 

"This is a bill that is a gift to the wealthy under the pretense of helping the poor," said Sen. Megan Hunt of Omaha.

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NEBRASKA LAWMAKERS' COMPROMISE PUTS STAMP OF APPROVAL ON 'POSTCARD BILL'

LINCOLN- A compromise reached on Wednesday night approved a bill that requires the mass mailing of postcard notices when a property tax increase is proposed. The measure has been hailed as increasing transparency for taxpayers when an increase in property tax is being considered. Opponents on the other hand complained that mailing postcards would be expensive and unfair in instances of inflation and growth force an increase. 

LB644 says postcard mailings to taxpayers would only be required when proposed growth in property taxes is higher than 2% plus local growth in property valuation. The need for a postcard is based on the amount of property taxes collected, not the tax levy. The bill also includes a notice of public hearing in the county newspaper. 

The "2% plus growth" language was modeled after a proposal, backed by Gov. Pete Ricketts, that would have limited increases in property taxes by 3% plus growth. But that proposal died in the face of a filibuster.

The original bill, drafted by Sen. Ben Hansen, would have required postcards to be sent with any increase. Discussions showed that this could cost Douglas County alone $500,000. So, lawmakers compromised and removed objections by cities, counties and school districts. 

The bill advanced to final reading on a voice vote. 

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COVID PANDEMIC DELAYED DEVELOPMENT OF LEGISLATIVE RELATIONSHIPS, NEBRASKA STATE SENATORS SAY

LINCOLN- The relationships that normally help shape legislation were delayed or reduced amidst the pandemic, two state senators told a Lincoln Chamber of Commerce briefing. 

"It placed freshmen senators in a really tough position," two-term Sen. Brett Lindstrom of Omaha said, because they had to wait to develop the personal relationships that can be a key factor in achieving legislative success.

First term Sen. Eliot Bostar said there were some legislators he did not speak to for the first few months. "Everyone has something to teach me," Bostar said. Beyond freshman senators, second-term and beyond senators missed the opportunity to step into the Rotunda and speak with their colleagues, lobbyists and representatives from various organizations as they do in a normal session.

In instances such as LB64, it is a two-term issue. Without the typical conversations being had, new senators are at a disadvantage in debate with the issue. 

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LEGISLATURE CONSIDERS STUDY OF PLATTE RIVER FLOODING, HIKE IN NON-RESIDENT PARK FEES

LINCOLN- In a 42-2 vote of approval for a $2 million study of mitigating flooding and enhancing economic development along the Lower Platte River, Lake McConaughy and Lewis and Clark Lake. Sen. Mike McDonnell proposed the study, which in an amendment adopted Thursday, will be called the "STAR WARS" committee, or the “Statewide Tourism and Recreational Water Access and Resource Sustainability Special Committee.”

McDonnell believed the study was needed because of the $3.4 billion in flood damage along major rivers in 2019. He went on to say that these damages could have been reduced with better levees and other controls. 

The two 'no' votes, Sen. Moser and Sen. Albrecht, said that state entities are already doing flood control studies and this would turn into just another study shelved and ignored. Other senators had a problem with the high cost of the study.

“Maybe we should call it ‘Noah’s ark,’” Moser said, rather than STAR WARS. “It’s down to earth. That’s where the problem is.”

Speaker Hilgers pledged to discuss all changes wanted for this bill before it heads to second round debate.

Also included in debate is a bill that would allow an increase in non-resident state park entry permits from $45 to $60. Sen. Hughes says the increase in revenue will help control Lake McConaughy on big holiday weekends, often said to be overcrowded and dangerous. 

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COMPLAINT ALLEGES LANCASTER COUNTY SHERIFF MUST DISCLOSE WHO PAID FOR CHALLENGE TO MEDICAL MARIJUANA INITIATIVE

LINCOLN- A complaint has been filed by a Lincoln attorney against Lancaster County Sheriff Terry Wagner for not reporting the benefactor of his legal challenge against the medical marijuana petition drive last year. Nebraska Families for Medical Cannabis asked the Nebraska Accountability and Disclosure Commission to review whether or not state law has been broken by not disclosing who paid for the legal fees of the challenge. 

Nebraska law requires elected officials to report any gift over $100 on a Statement of Financial Interests which is filed annually. Wagner challenged the ballot initiative because the measure appeared to violate the single-subject rule. Wagner maintains that he is unaware of who paid for the challenge even though his name was listed on the lawsuit. The attorney who led the challenge says it would violate attorney-client privilege to disclose the benefactor. 

"We are not going to rest until justice has been served on the sheriff," Trish Peterson, executive director for Nebraska Families for Medical Cannabis said. "No one is above the law, not even him."

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SOCIAL SECURITY STATE INCOME TAX EXEMPTION SAILS AHEAD

LINCOLN- The legislature gave LB64 a commanding 47-0 first round approval to totally phase out state income taxation of Social Security income over a 10-year period, which would reduce state revenue by more than $130 million a year once fully implemented. A large concern of lawmakers is that the loss of revenue could limit prospects for additional property tax reduction. 

Other lawmakers suggested a change in which Nebraskans at lower-income levels would be taken care of. Sen. Brewer's bill, LB237 would tie Social Security tax exemptions to the level of a taxpayer's income with a cap on eligibility set at $95,000 for a married couple and $80,000 for a single taxpayer. 

"Give relief to those who need it (and not) up to a cost that we can't manage," Brewer said.

Head of the Revenue Committee, Lou Ann Linehan says Nebraska is not competitive with neighboring states when it comes to tax policy which is a factor in Nebraskans moving to southern states upon retirement. 

The fiscal impact remains the largest issue with this bill especially considering the impact when the measure would be fully implemented. Retirees with incomes of more than $114,000 a year would receive two-thirds of the tax cut benefits if the bill is fully implemented, according to a study by OpenSky Policy Institute, which opposes the measure.

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COVID-19 VACCINATION PACE SLOWING DOWN IN LINCOLN, STATEWIDE

LINCOLN- The pace of local COVID-19 vaccinations has slowed considerably since the peak a couple of weeks ago. 5,500 Lancaster County residents got a first vaccine dose last week as compared to 15,000 the week prior. For second doses, the number was at 11,500 down from 24,600 a week earlier. Lancaster County is no different from the rest of the state as 93,284 vaccines were given last week and 211,057 were given the week before. 

This past week also noted the first time less than 100,000 doses were administered. Now, 46% of Lancaster County residents over 16 are fully vaccinated and 66% have received a first dose. Many places are also now switching from mass clinics to smaller, more-targeted clinics as well. In the upcoming weeks, vaccination plans will lead vaccinations to parochial and high schools. The goal is to have elementary school students begin vaccinations before the fall school semester. 

"The best way to get back to normal, as many people hope and wish for, is to get vaccinated," LPS superintendent said.

There has not been a COVID-19 related death in the county since April 19. 

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NEBRASKA LEGISLATURE ADVANCES AIR POLLUTION STUDY IN STATE'S CLASSROOMS

LINCOLN- LB630 introduced by Sen. Eliot Bostar is legislation designed to launch a study of the impact that installation of commercial air filters would have on both academic and behavioral performance in Nebraska classrooms. The measure gained 41-2 first-round approval Tuesday. Sen. Bostar says there is evidence that air pollution has a detrimental effect on the development of children's brains along with damage to lungs which leads to an overall negative impact on classroom performance. 

The bill saw little opposition from both sides of the aisle, with many noting that this is a pilot project that could lead to new solutions to problems. 

Air pollution in classrooms is “stunting our children’s brains and damages our children’s lung functions,” Bostar said.

A committee amendment that would require the Department of Education to include the University of Nebraska in the study as a consultant is being considered as well. 

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PLAN TO SPEND $40 MILLION ON BROADBAND EXPANSION IN NEBRASKA ADVANCES

LINCOLN- Lawmakers gave a thumbs-up Tuesday to Gov. Pete Ricketts' plan to spend $40 million on expanding high-speed rural internet services. LB388 advanced on a 44-0 vote after an amendment that would have allowed cities and towns to enter the broadband services market was rejected. Sen. Justin Wayne of Omaha had introduced the amendment, saying that broadband should be considered a critical need that broadband companies have not stepped up to serve the entire state. Proponents of the amendment said that these companies continue to be allowed to not serve the entire state because of federal and state money collected from cellphones and landlines. Large parts of the state lack broadband service which only hurts the state's economic development. 

80,000 Nebraskans lack internet that delivers adequate service placing the state 48th in terms of access, price and speed.

LB388 would put $20 million per year into grans for projects that will help increase access to broadband. Projects in areas with less than 25/3 speeds that have no projects planned or projects that will take over 24 months to complete will be prioritized. The bill would also direct the federal Rescue Act into the program which enacted $7 billion nationwide for the effort. 

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US SUPREME COURT HEARS HIGH-STAKES ARGUMENTS IN BIOFUELS CASE AFFECTING IOWA, NEBRASKA

WASHINGTON, D.C.- Hollyfrontier Cheyenne Refining LLC v. Renewable Fuels Association was heard in front of the U.S. Supreme Court on Tuesday and will hold large implications for Iowa and Nebraska. The case addresses questions over whether small refineries can request exemptions from the Renewable Fuel Standard. 

Iowa and Nebraska are the top producers of ethanol made with corn. Iowa is the top producer of biodiesel, made with soy beans. The standard sets the amount of biofuels that must be blended into gasoline and diesel. 

Nebraska Attorney General Doug Peterson and Iowa Attorney General led an effort of eight states to file an amicus brief with the Supreme Court supporting the Renewable Fuels Association. The association argues that exemptions should not be granted in cases where they haven't been in place continuously. In 2020, The Court of Appeals ruled that the EPA issued exemptions to refineries that did not qualify. These same refineries are arguing that they will face financial ruin if they are forced to buy ethanol and biodiesel at the levels demanded by Congress. 

“Simply put, if Congress wanted to adopt the generally available exemption petitioners advocate, it would not have enacted the scheme it did here,” Christopher Michel, Department of Justice said. “That scheme does not doom small refineries to failure. The vast majority of small refineries, including the petitioners’, have successfully complied with the RFS in many prior years.”

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KAY ORR ENDORSES JIM PILLEN FOR NEBRASKA GOVERNOR

LINCOLN- Former Gov. Kay Orr (1987-1991) is endorsing Republican gubernatorial candidate Jim Pillen. She described him as, "a principled conservative who will preserve our values and defend our way of life." She announced her endorsement in a TV advertisement mounted by the Pillen campaign. 

Jim Pillen is a Columbus pig farmer and University of Nebraska regent. Charles Herbster, farmer and owner of Conklin Co. has also announced his entry into the race.

"Jim has what it takes to keep our state moving in the right direction," Orr said. "Nobody will fight harder for Nebraska."

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SEN. ELIOT BOSTAR DIGGING IN DEEP AS LINCOLN'S NEWEST SENATOR

LINCOLN- Lincoln's newest senator, Eliot Bostar, has found himself at the center of the property tax debate. Sen. Bostar is succeeding Sen. Kate Bolz, who has term-limited out of office. As a member of the Revenue Committee, he is uniquely positioned to give Lincoln a voice in the decades-old debate. He is the sole Democrat on the Revenue Committee and the other committee he serves on, Banking, Commerce and Insurance. 

"You always have to be willing to work to find common ground," Bostar said, while recognizing that "sometimes that may be a frustrating journey."

Years in which redistricting comes around creates a different environment in the legislature in which party affiliation becomes particularly strong. Bostar's priorities include health care, economic development, education and environmental issues.

"Every bill gets a hearing, everyone can come and share their thoughts, the ability to bring forward an idea that will be heard in a public forum is incredible," Bostar said. "We should really be proud of this."

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NEBRASKA LAWMAKERS WON’T SEND RESOLUTION ON FEDERAL OVERREACH TO DIFFERENT COMMITTEE

LINCOLN — State lawmakers on Thursday rejected a motion from Sen. Megan Hunt of Omaha to reassign a resolution objecting to federal government overreach to the Legislature's Government, Military and Veterans Affairs Committee

Hunt sought to rereference LR107, introduced by Sen. Mike Groene of North Platte, from the Executive Board, saying the subject matter of the document was the responsibility of the government panel. The resolution, co-signed by 30 senators, objects to incursions by the federal government into everything from religious freedom and Second Amendment rights to elections, land usage and vaccinations.

Sen. Steve Lathrop of Omaha said the Executive Board, under the rules of the Legislature, doesn't have purview over the issues raised in Groene's resolution and warned that lawmakers were diminishing the integrity of the institution.

What we're doing here now is trying to pick a committee where this particular resolution will receive favorable treatment," Lathrop said. "This isn't how we ought to operate in this body."

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PROPERTY TAX RELIEF, AT THE COST OF GROWTH ACROSS NEBRASKA, BLOCKED BY FILIBUSTER

LINCOLN- LB408, the proposal to place a 3% annual limit on local property tax increases was trapped by a filibuster Thursday night and disappeared from this year's legislative agenda after eight hours of intense debate. The 29-8 roll call vote to end the filibuster fell four senators short of the 33 required to free the bill for further consideration.

A last-ditch effort to gain sufficient votes to invoke cloture, the legislative motion to end debate, was built upon a promise to try to negotiate an alternative compromise property tax plan that could attract 33 votes before any effort would be made to try to advance the bill.

"Park the bill and try to find a way to move forward," Sen. Mike Flood of Norfolk urged.

Sen. John Stinner of Gering, chairman of the Appropriations Committee, said "property tax relief is my No. 1 priority" and his committee and the Legislature already are delivering relief in a variety of ways. The state's fiscal 2021-23 budget contains $1.45 billion in property tax relief over two years. Sen. Matt Williams of Gothenburg expressed concern that the premise of the bill was that local government spending needed to be limited because it was too high when the evidence in his legislative district shows school district spending increases below the rate of inflation.

"Our constituents elected local leaders to make those decisions," Sen. Adam Morfeld of Lincoln said. "This would take control away from local governments when you say you support local control." 

In response to the vote, U.S. Senator Deb Fischer, a former two-term state senator, said that when she was in the Legislature "we stood up and we took a stand...We voted. We did not pass on votes. We were accountable to our constituents," she said. "We didn't hide behind this seemingly now acceptable practice of 'present, not voting.'

"I have refrained from publicly stating positions on state Legislature activities since I left the Unicameral," Fischer said, "but this must be said...This must change.... Know this — the 'present, not voting' is in reality casting a No on their vote."

Fischer announced that after considering a run for governor in 2022, she would not seek the seat and instead stay in the United States Senate. 

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NEBRASKA BUDGET HEADS TO RICKETTS' DESK AS FOCUS TURNS TO OTHER TAX, SPENDING IDEAS

LINCOLN- As passed, the legislature's $9.7 billion, two-year state budget package was sent to the governor's office with just over $205 million for other legislative priorities. Gov. Ricketts' decision to sign the budget or veto specific provisions will tell the legislators how much is available for other spending or tax cut measures. He has until Monday to approve or veto the budget bills as a whole or issue line-item vetoes targeting specific items. 

"We're always hopeful that the governor will sign the budget without vetoes," said Sen. John Stinner of Gering, the Appropriations Committee chairman. "It's a good budget that covers a lot of ground. I think it checks off a lot of boxes."

The package would build up the state's 'rainy day' fund to about 14% of annual revenues while capping spending growth at a two-year average of 1.7%. It also increases payment rates for health and human services and educational endeavors. The budget also includes the $230 million prison. That figure is the only budgetary decision that garnered debate and was the only bill to receive 'no' votes on the budget package.

In the upcoming weeks, the legislature will be debating more tax cut and spending measures. Many priority bills are also coming up that would combine to cost more than twice the available funds, with the cost increasing in the future. Please see our Speaker's Weekly Announcement story to see which bills can be expected to be considered during debate in the legislature over the next two weeks.

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EDITORIAL: STATE SENATORS ARE EAGER TO CUT TAXES AND SPEND MONEY; DON'T OVERDO IT

LINCOLN- For the first time in years, revenue projections are providing the Legislature with considerable room for tax cuts and spending projects-- about $210 million. The coming days of debate in the legislature will bring scenes of tax-cut and spending proposals. The lawmakers are not obligated to spend the cash, but it does not seem there will be any restraint on spending. The body may even exceed the $210 million.The projected tax-cut proposals add up to much more than $210 million. 

Senators should have the responsible sense of balance that will ensure individual bills do not add to the total. After the past years of tight budgets, lawmakers are eager to spend but have already placed more revenue-affecting proposals for consideration than the upcoming budget can sustain. Two bills that highlight the spending disconnect are LB64 and LR11CA. 

"This situation shows how the legislative process is harmed when lawmakers casually indulge in so much vote-trading that faulty legislation is irresponsibly voted out of committee. Serving in the Legislature is a privilege, and it must be taken seriously."

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FORTENBERRY, CAPITOL POLICE IN SNAFU OVER EMERGENCY CALLS

LINCOLN- Rep. Jeff Fortenberry made two calls to Capitol Police in Washington with his emergency office button last week to see how long it would take officers to arrive. Fortenberry had told the police that he would be doing the test. Officers expressed annoyance with this 'drill' as it took them away from their regular duties.

The officers believed Fortenberry just wanted to push the button to see if it worked and did not respond to the call until he called again. Capitol police say this is infuriating, especially after the Capitol Riot in the past few months. 

The congressman repeatedly said to the police: 'I know you have better things to do than this.' But, given the violent mob insurrection at the Capitol, we thought it wise to test our systems.’

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RICKETTS, OTHER GOP GOVERNORS ATTACK BIDEN CLIMATE INITIATIVE

LINCOLN- Ricketts and 14 other governors submitted a letter to President Joe Biden showing their opposition to his executive order pleading to put the United States on the path to protecting 30% of land and ocean waters by 2030 to combat climate change. 

"Nowhere in the laws of our nation is the authority delegated by Congress to the president or executive agencies to unilaterally change the policies governing land use in America," the governors wrote.

The letter signed by the governors went on to say Biden's plan would violate property rights and would damage the economy. 

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RADIO PERSONALITY CHRIS BAKER FIRED AFTER OFFENSIVE TWEET, CALLS IT A 'BOOMER TWITTER MOMENT'

OMAHA- Omaha conservative radio personality Chris Baker was fired after posting an offensive tweet about the Derek Chauvin verdict. The tweet showed a GIF of Black men with body paint and dancing, with spears in front of them. Above the picture he tweeted, "Guilty!" Baker tweeted this just one hour after the verdict was read. 

When asked about the tweet, Baker said it was a "boomer Twitter moment" following with "That’s not me, that’s not who I really am". He further noted that he knows it was horrible and said his intentions were not to be racist. 

The calls for Baker to be fired and for his advertisers to pull away rolled in immediately and continued after the tweet was deleted. A long time guest of the show, local activist, Preston Love Jr. said all he felt was disgust. He was also shocked to see Baker be fired so swiftly. 

Sen. John McCollister, a frequent critic of members of his own Republican Party, tweeted a screenshot of Baker's post saying, "Racism like this is a FEATURE of conservative talk radio but they usually mask it with dog whistles. But not this time.”

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