RISING COSTS FOR CARE OF VUNERABLE NERASKANS MAY BE AT ODDS WITH TAX CUT HOPES

LINCOLN- Lawmakers’ dreams of making major tax cuts this year are about to collide head-on with the pandemic-driven costs of caring for Nebraska’s most vulnerable citizens.

On the one side are proposals to reduce individual and corporate income taxes, exempt Social Security benefits from taxes, and drive down property tax bills with increased state aid for schools.

People spoke in support of proposals to raise provider rates by 10% to 15% in the fiscal year starting July 1, bills that would boost state spending by $75 million or more for the two-year budget period.

Based on the committee’s preliminary budget plan, that would leave $30 million or less for tax cuts or other spending priorities. The amount available could change after a state panel meets in late February to update state revenue projections.

State Sen. John Stinner of Gering, the Appropriations Committee chairman, said rate increases are necessary to fulfill the state’s obligations in an unprecedented time. He said he hopes to lay a foundation, between state dollars and federal pandemic relief money, so providers can emerge from the pandemic with competitive wages and the ability to provide critical services.

“Increasing provider rates is something you have to do,” he said. “You do not want to call out the National Guard for group homes. All I’m trying to do is do what’s right, trying to keep people in business, trying to keep services going.”

But it will be up to the full Legislature to decide where to put the state’s money.

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RETIRED LIEUTENANT COLONEL FROM OFFUTT JOINS FORTENBERRY'S GOP CHALLENGERS

BELLEVUE- A newly retired lieutenant colonel from Offutt Air Force Base is the latest Republican to file for the congressional seat occupied by Rep. Jeff Fortenberry.

John “Glen” Weaver said his run for political office provides him an opportunity to continue serving his country.

“We need a point of reflection and clarity in this country,” he said. “I want to bring decency and honesty to the district.”

Weaver, 45, retired as chief of the 55th Wing Command Post. He has served two stints at the base for a total of 15 years.

Weaver has served 22 years with the Air Force and has been on 11 deployments, including in the Middle East and Southwest Asia. He has been on the ground and flown combat missions in Iraq and Afghanistan. His years in the military, his experience with national security, and his time at Offutt position him well to serve the district, he said.

Weaver is an Omaha resident, which places him outside of the 1st Congressional District’s boundaries. He said he intends to move to Bellevue, which is in the 1st District. House members are not required to live within the district they represent.

Weaver joins the race along with incumbent Jeff Fortenberry, Sen. Mike Flood, Thireena Yuki Connely, and Curtis Huffman.

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STATE CHAMBER WEIGHS IN ON CASINOS, SAYS LET FREE MARKET DECIDE HOW MANY

LINCOLN - A political heavyweight, the Nebraska Chamber of Commerce, is weighing in on the sticky issue of how many gambling casinos should be allowed in the state.

In a 23-8 vote, the Nebraska Chamber’s board of directors voted Thursday to oppose any effort by state legislators to limit the number of casinos by geography.

Typically, the organization stays out of gambling issues. This vote specifically concerned the geographic restrictions on casino locations and whether or not to limit the number to the state's six horse racing tracks, however.

Nebraska voters approved casino gambling in November 2020 which opened the door for potentially five new locations: Bellevue, Gering, Norfolk, North Platte, and York.

A bill currently under consideration would require any new casino that does not accompany a racetrack to be at least 50 miles from an existing racetrack. If passed, it would bar new casinos in Bellevue, Norfolk, and York because of their proximity to existing tracks. 

One proposed amendment would change the distance to 75 miles, excluding the state's three largest counties: Douglas, Lancaster, and Sarpy.

Dirk Petersen of Norfolk, a former president of the Nebraska Chamber, said now that casinos are legal, they should have the same free enterprise rights as any other business. 

“I think it’s an overreach of government when they try to dictate where private businesses should be located,” said Petersen, a retired executive of Nucor, the huge steel mill outside Norfolk.

Opponents of expanded gambling see it differently. Pat Loontjer of Gambling with the Good Life supports limiting the state to six casinos.

“Let’s wait a couple of years, see how it impacts those communities and family and taxes,” she said, “and then see if we want to inundate the state with casinos.” 

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U.S. DISTRICT JUDGE JOHN GERRARD ANNOUNCES HIS RETIREMENT

LINCOLN - U.S. District Judge John Gerrard has announced that he will transition to senior judge status by next year, creating a vacancy on the federal bench in Nebraska to be filled by President Joe Biden. 

Gerrard, in a letter Monday to the president, wrote that he will continue to “render substantial judicial service” because of a heavy caseload in Nebraska and because there are only three active federal judges.

He also urged the president to make a "timely appointment" of a successor and added that he was confident Nebraska's two Republican U.S. senators, Deb Fischer, and Ben Sasse, will work with the Democratic President.

“Nebraska has a long history of promptly filling vacancies on the federal bench,” Gerrard said in a press release. 

Gerrard declined to comment when asked whether the timing of his announcement was related to the possibility that the U.S. Senate could flip from Democratic control to Republican after the 2022 election.

Then-President Barack Obama appointed Gerrard, 68, to the bench and was confirmed by the U.S. Senate in 2012 on a 74-16 vote. 

Previously, Gerrard had served on the Nebraska Supreme Court from 1995 to 2012 after being appointed by then-Governor Ben Nelson.

Gerrard was in private practice in Norfolk, Nebraska prior to becoming a judge.

He said he is "still healthy, alive, well, and judging" and that his departure is solely due to his age; an age that other judges have made similar transitions at.

The U.S. District Court retains two senior judges, Richard Kopf and Joseph Bataillon. 

Gerrard said he will continue with his current caseload until February 2023 when he will make the final transition. 

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BILL TO GIVE TAX BREAKS TO CARBON CAPTURE FACILITIES RUNS INTO OPPOSITION

LINCOLN - A bill to ensure that Nebraska ethanol plants can qualify for state tax incentives for building carbon-capture facilities is running into opposition from a leading environmental group.

The Bold Alliance, which includes Bold Nebraska, the group that led the fight against the Keystone XL crude oil pipeline, testified last week against a proposal to ensure that state ImagiNE Act tax breaks are allowed for the “capture, transport or geologic storage” of carbon dioxide, a leading greenhouse gas.

There are at least two companies looking to build CO2 pipelines that cross Nebraska. The gas would be transported in liquid form, under high pressure, from ethanol plants and other manufacturers to storage deep underground.

A Bold Alliance representative testified at a legislative hearing Wednesday, January 2 that it is unnecessary to provide tax breaks for projects that are already planned in the state. They also noted that CO2 pipelines are risky and not subject to state regulation.

Advocates for the tax breaks have said that building carbon storage facilities will benefit the state's environmental rating, which would, in turn, allow them to increase sales to states such as California and Oregon. 

Now a year after state lawmakers passed a law that allows carbon storage facilities, State Sen. Dan Hughes introduced Legislative Bill 801, which he said would clarify that Nebraska's ethanol plants can get tax incentives if they build a storage facility on their own property. 

Hughes said current law provides incentives for CO2 pipelines that cross state borders but does not allow tax breaks for CO2 facilities that service only in-state customers. 

Tony Goins, the director of the Nebraska Department of Economic Development, came to the same conclusion and conveyed this to the Legislature's Revenue Committee during the public hearing.

“It’s a very big deal,” the senator said. “It would certainly give Nebraska ethanol plants a greener rating to sell ethanol in the California and Oregon markets.” 

Ken Winston, the Bold Alliance representative, testified that tax incentives should be provided to attract new businesses and jobs to the state, not to benefit currently existing projects that have already chosen to locate here.

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HERBSTER AND PILLEN SPAR OVER CRITICAL RACE THEORY

LINCOLN- Hog farmer Jim Pillen’s latest television ad takes aim at critical race theory. He says he knows slop when he sees it.

Charles Herbster, Pillen’s top opponent in Nebraska’s Republican primary for governor, questioned Pillen’s sincerity. He said he should have done more to protect university students from critical race theory. 

Herbster pointed to Pillen’s 2018 vote, as a University of Nebraska regent, in support of hiring a leader to create a new Office of Diversity and Inclusion at the University of Nebraska-Lincoln. The office was created after being studied for four years following race-related incidents on UNL’s campus. Pillen has been an NU regent since 2013.

“Jim Pillen’s lack of action and courage on critical race theory when Nebraska students needed him the most is shocking,” Herbster said.

“His sudden reversal in a paid ad for political purposes is too little, too late.”

Herbster said that, if elected governor, he would work with local school boards and the NU system to “make sure students are taught to love, not hate, America.” 

Pillen’s campaign said that he was the first elected university regent in the U.S. to stand up against critical race theory and that he is a recognized leader in higher ed on the issue.

Herbster’s attack on Tuesday followed criticism Pillen leveled against him on Friday. Pillen had criticized Herbster for locating Conklin Co. out of state. Herbster responded by criticizing Pillen’s business, Columbus-based Pillen Family Farms. 

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STATE APPROVED THE USE OF PESTICIDE-COATED SEED CORN FOR ETHANOL PLANT A DECADE AGO

LINCOLN - A troubled ethanol plant in Mead, Nebraska, had state approval to use seed corn treated with harmful pesticides years before state regulators raised concerns.

Recently discovered state documents indicate that Nebraska environmental regulators approved the use of seed corn by the troubled AltEn ethanol plant back on July 26, 2012.

The state's lawsuit against AltEn claims state regulators were unaware the corn used in the plant had been coated with chemicals and that, even if they had, they were not aware of the chemical's danger until 2018.

As more information got uncovered, it was found that state regulators didn't deem the use of treated seed corn as important enough to merit a public hearing because it was a "minor" change. The news spurred an increase in calls Tuesday, January 8 for a special investigation by the Nebraska legislature of the facility and its impact on public health and the environment. 

"We need to get to the bottom of this," said Al Davis, a former state senator and a representative of the Sierra Club of Nebraska.

State Sen. Carol Blood of Bellevue said that referring to using pesticide-coated seed corn as a "minor" change demonstrates a lack of understanding and concern by the state. Blood introduced the proposal to conduct the legislative investigation. 

A nearby resident of the AltEn plant, Jody Weible, said the revelation was one more frustration about AltEn, which currently retains 80,000 tons of contaminated waste corn on its south side of Mead. 

“I’m surprised they got permission and didn’t let us know,” said Weible, who formerly served on the planning board that initially approved the AltEn facility. 

Despite the shock from the news, a spokesman for the Nebraska Attorney General's Office said Tuesday that there was nothing inaccurate about the state's lawsuit against AltEn and that use of chemically treated seed corn for ethanol had been permitted, as long as it wasn't fed to livestock after being used to produce alcohol.

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BILL WOULD MAKE NEBRASKA SCHOOL DISTRICTS START AFTER LABOR DAY, END BEFORE MEMORIAL DAY

LINCOLN- One state senator wants all school districts in Nebraska to begin the school year after Labor Day and finish before Memorial Day. 

Sen. Steve Erdman of Bayard introduced LB1001, which would establish a statewide academic school term. Extracurricular activities and summer school would not be limited by the academic calendar. 

Speaking before the Legislature's Education Committee on Tuesday, Erdman said student learning is being interrupted by teacher in-service days and significant amounts of time off for things such as winter and spring break.

Those days off also make it difficult for parents to find child care, Erdman said. He added that young people are also being taught they don't need to work five days a week. 

The senator also challenged superintendents to prove teacher in-service days are needed. Erdman said if districts want to hold an in-service day for teachers, then that should be done before school starts. 

Currently, most school districts in eastern Nebraska begin the school year in mid-August and end in May.   

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SENATOR ARGUES NEBRASKA CASINOS SHOULDN'T GET TAX-INCREMENT FINANCING

LINCOLN- Sen. Mike Flood of Norfolk called Tuesday for a prohibition barring the use of tax-increment financing for the construction of casinos, arguing that such a subsidy runs contrary to the purpose of TIF and to the will of Nebraska voters, who approved the advent of casinos in Nebraska based largely on their tie to property tax relief.

"Las Vegas can afford to pay for public improvements" associated with casinos that can be built and operated in Nebraska now in association with licensed horse tracks as a result of voter approval of a 2020 initiative, Flood told the Legislature's Urban Affairs Committee.

Flood took aim at an Omaha City Council decision to authorize up to $17.5 million in TIF for the proposed $220 million WarHorse Casino at Horsemen's Park. 

TIF funding is designed to help cover redevelopment expenses in areas that are deemed blighted, Flood said, and are intended to help attract private development.

Sen. Carol Blood of Bellevue challenged Flood's proposal (LB713), arguing that "my concern is local control" and TIF funding is a local government issue. 

Christy Abraham, legal counsel for the League of Nebraska Municipalities, opposed the bill, suggesting that it "limits local control" while noting that casinos still will pay property taxes.

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NEBRASKA VACCINE MANDATE EXEMPTION BILL ADVANCES DESPITE COMPLAINTS IT DOES TOO MUCH, TOO LITTLE

LINCOLN- Nebraska lawmakers advanced a bill Wednesday that would allow employees to claim health or religious exemptions from employer-mandated COVID-19 vaccines.

An amended version of Legislative Bill 906, introduced by State Sen. Ben Hansen of Blair, cleared the first of three rounds of debate on a 33-0 vote.

Hansen said he introduced the measure out of concern about Nebraskans being forced to choose between their jobs and the COVID-19 vaccine. He said individuals have the right to make decisions that affect their future and employers should recognize that right.

He said he worked with a number of interested parties, including business and health care groups, to find a compromise. He settled on a version that mirrors federal guidelines for vaccine exemptions.

“We had to run a very fine line to make this work for all,” Hansen said.

However, some senators raised concerns that the bill didn’t go far enough to protect employees who object to COVID vaccinations, while others said it went too far in catering to such employees.

Sen. Mike Groene of North Platte called the bill “anti-science” for not taking into account immunity gained from COVID infections. He also argued that requiring unvaccinated people to mask and get tested amounted to discrimination.

Another critic, Sen. Curt Friesen of Henderson, said he supported the bill’s concept but wished it would do more, including protecting college students.

“I was hoping it would be a little bit, not as watered down,” he said.

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LINDSTROM TAPS HASTINGS' RIPPE TO BE LT. GOV. CANDIDATE

LINCOLN - With campaign priorities such as tax system reform, education funding, and economic development, Republican gubernatorial candidate Brett Lindstrom sees someone like-minded in Dave Rippe.

Lindstrom, who represents northwest Omaha in the Nebraska Legislature, is set to announce Thursday that Dave Rippe of Hastings, former director of the Nebraska Department of Economic Development, is his choice for lieutenant governor and running mate in the race for governor.

Lindstrom has served as a state Senator since 2014. 

“Throughout his career, Dave Rippe has fought for the people of Nebraska — strengthening our communities by helping home-grown Nebraska companies to expand, attracting big meaningful job creators, developing housing across the state, and now — to join me in bringing a New Generation of Conservative Leadership to the state,” Lindstrom said in a statement. “I know Dave is the right person to help grow Nebraska, and together, we will make Nebraska competitive for generations to come.” 

Rippe, 39, previously served as executive director of the Hastings Economic Development Corp. from 2010 to 2017. He went on to lead the state Department of Economic Development from 2017 to 2019.

During his time as director of the Nebraska Department of Economic Development, Rippe worked with Lindstrom on tax incentive policy and the business innovation act, among other programs that Rippe said are key development policies for Nebraska. 

Currently, Rippe, his wife Kristi, and their 9-year-old daughter Julia live in Hastings. They have built their own companies which focus on real estate and development. 

Rippe grew up in Malcolm, NE, and is a graduate of Nebraska Wesleyan University and the University of Nebraska-Lincoln.

With his 40th birthday coming five days before the May 10th primary election, Rippe said, "It'll be a busy May."

Lindstrom works in the financial planning industry and is on the Legislature's committees for Revenue; Banking, Commerce, and Insurance; and Nebraska Retirement Systems, as well as the Committee on Committees.

“Brett is laser-focused on what Nebraska can be and what we as a state can do and not mire down in what we can’t do or what we shouldn’t do or what we wouldn’t do or what we couldn’t do,” Rippe said. “I just really appreciate his forward focus and his commitment to making Nebraska a competitive state.”

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DEBORAH NEARY SEEKS SECOND TERM ON NEBRASKA STATE BOARD OF EDUCATION

OMAHA- Deborah Neary announced Tuesday that she will seek a second term on the Nebraska State Board of Education.

A news release described her as a strong advocate for public schools, for science-based and age-appropriate health standards, and for inclusive social studies standards. It also touted her advocacy for supporting teachers during and after the pandemic.

The Nebraska social studies standards, she said, made national news for being some of the most inclusive standards in the country.

Neary said addressing the teacher shortage is an urgent need, and it could be helped by offering alternatives to the basic skills test required to enter teacher-prep programs.

Neary, a Democrat, won the District 8 seat in 2018, handily defeating incumbent Pat McPherson. The district represents a large chunk of Douglas County.

Neary has been targeted by conservative critics who claim she overstepped bounds as a board member and improperly influenced the development of proposed health education standards for Nebraska schools.

“All I did was invite people to a discussion that was presenting the most current research that’s out,” she said. “Why wouldn’t our board want to hear that research?”

She said she’s always been an advocate for using expert and diverse opinions.

Republican John Sieler announced in December his intent to run in the district.

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FILIBUSTER BLOCKS BILL TO LIMIT PROPERTY TAX INCREASES BY K-12 SCHOOLS

LINCOLN - A multi-day filibuster has blocked a bill that would have imposed new taxing limitations on K-12 schools. On a 28-21 vote, Legislative Bill 986 fell five votes short of halting the filibuster Tuesday and allowing a vote to advance the proposal from first-round debate.

The bill, entitled the "School District Property Tax Limitation Act," sought to prohibit school districts from increasing property taxes by no more than 2.5%, or inflation; whichever is greater. LB986 would have allowed those limits to be exceeded with a vote of 75% of a school board's members of 60% of registered voters at an election.

State Sen. Tom Briese said this is a way to ensure property tax credits provided by the Nebraska Legislature translate into reductions in local property taxes, not just slowing increases. To emphasize the importance of the bill for Nebraska homeowners, Sen. Briese marked the bill as his priority. A legislative attempt to impose more fiscal caps on K-12 school districts has now failed for two years in a row. Briese was frustrated by the education lobby being unwilling to find a middle ground.

“Our failure to act really tees it up for folks who want to put a cap proposal on the ballot,” he said.

Sen. Matt Hansen of Lincoln led the opposition to the bill. Their main argument against it was the new cap would hurt large and growing school districts like those in Lincoln and Bennington. Others who opposed the bill said school spending has not been irresponsible and that local school boards are best suited to determine local budgets. Hansen said he is normally willing to seek compromises, but LB 986 was “just flat-out bad policy.”

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CHANGES IN STATE PROCUREMENT SOUGHT AFTER FAILED OMAHA-AREA CHILD WELFARE CONTRACT

LINCOLN - A state lawmaker on Thursday called for changes in the process that selected a troubled Kansas-based nonprofit to oversee the care of abused and neglected children in the Omaha area and led to other major contract failures.

St. Francis Ministries won a five-year, $197 million contract in July 2019, based on bidding 40% less than the previous contractor. But the agency’s tenure was troubled from the start, and in December, state officials announced early termination of the contract. The announcement came nearly one year after Nebraska was forced to sign a new, emergency contract with St. Francis in order to keep the agency running. The 25-month, $147.3 million contract erased the original 40% cost difference. After winning the contract, the agency often fell short on contract requirements and caseload standards. Child welfare advocates said the situation had put children at risk.

During a public legislative hearing on Thursday, February 10, State Sen. John Arch of La Vista commented that this was not the first time Nebraska's procurement process led to the selection of a low-cost bidder that ended up failing at their job. Arch went on to say a legislative investigation into the St. Francis contract illuminated a history of what he called "procurement failures." The failures have not been limited to this administration, involved multiple people in key roles, and cost the state millions of dollars.

“It became apparent we have a system issue,” said Arch, who led the investigative committee. “We did the process and checked all the boxes, and it led to a poor outcome.”

In its December report, the investigative committee suggested a thorough evaluation of the state's procurement process and practices to address and improve areas that have historically fallen short. Sen. Arch's Legislative Bill 1037 was the result. The bill would require the Department of Administrative Services to hire a consultant to do the recommended evaluation when handling procurement for the state. In order to give lawmakers ample time to craft legislation, the consultant's reports would be due by Nov. 15.

Arch said that the potential $400,000 cost of the consultant would offer an opportunity to improve state government and be a wise investment.

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POLICE-RELATED BILLS DESIGNED TO "SHAME," OR BEEF UP ACCOUNTABILITY?

LINCOLN - Law enforcement agents did not see eye to eye Wednesday with promoters of public information over the question: Should Nebraska make public a list exposing police officer misconduct?

State Sen. Terrell McKinney of Omaha has introduced Legislative Bill 882, which he said was intended to ensure transparency and police accountability — not to “shame” sworn officers.

Several of those who testified Wednesday, February 10, said law enforcement agencies are already required to indicate those officers who have been accused of misconduct, and prosecutors are supposed to turn over a name to defense attorneys when relevant in a legal case.

Sen. McKinney's proposed bill would make this list easily accessible to the average citizen.

Among supporters who spoke before the Legislature’s Judiciary Committee were Spike Eickholt of the American Civil Liberties Union of Nebraska and Korby Gilbertson, a representative of the nonprofit Media of Nebraska.

“We think the public’s right to understand the people their tax dollars are paying … outweighs the right of privacy," said Gilbertson.

Those in opposition were several law enforcement officials, including public attorneys and police union leaders.

Anthony Conner, an officer who heads the Omaha police union, said he was a "staunch" critic and viewed the possibility of a public list as little more than a way to shame and "jeopardize the reputation and careers" of police officers rather than increase public safety.

Conner claimed the proposed bill as an "extension of the 'defund the police' movement," to which Sen. McKinney dismissed as merely a phrase used to "rile people up."

Members of the Judiciary Committee raised concerns about unanswered questions and did not take action Wednesday on the bill as a result. One question, specifically, that remained unanswered was how well the accusations have been vetted and how far back into the officer's past the list might extend.

State Sen. Suzanne Geist of Lincoln said she didn't see a benefit to publicizing such a list that could disclose past allegations, some of which may not be accurate, or offenses. "That's dangerous territory," Geist said.

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REGENTS RESCIND BAN ON ALCOHOL, PAVING WAY FOR BEER TO BE SOLD AT HUSKER GAMES

LINCOLN - The University of Nebraska Board of Regents lifted the prohibition on alcohol sales at Husker athletic events on Friday.

Rescinding the 1999 policy, as regents did on a 7-0 vote, doesn't mean beer and liquor will automatically go on sale at Memorial Stadium, Pinnacle Bank Arena, or Haymarket Park. Instead, rescinding the old policy simply allows NU's president and campus chancellors the authority to make changes in the future.

"This is about consistency across our campuses," President Ted Carter said.

The university had previously applied the alcohol ban inconsistently as the University of Nebraska at Omaha sports and other places were allowed to sell alcohol but Husker events were not. Carter went on to say that even if alcohol is allowed at Husker events, it will not take place this coming fall. A spokeswoman for the university said there is currently "no definitive timetable" for when that might happen. Chancellor Ronnie Green said last week he has discussed what beer and wine sales would look like at Husker events with the City of Lincoln.

"With respect to Husker Athletics, (Athletic Director Trev Alberts) and I have been considering this carefully and will thoughtfully approach how to best move forward," Green said in a statement.

Despite the lack of a timetable for football games, regents are expected to approve amending the university's contract with the city to allow alcohol to be sold at the Big Ten Conference Wrestling Championships at Pinnacle Bank Arena on March 5-6. Friday's vote rescinding the ban paves the way for UNL to one day join a majority of Big Ten schools -- Illinois, Indiana, Iowa, Maryland, Minnesota, Ohio State, Purdue, and Rutgers -- as well as programs across the country that sell alcohol at games.

Some have been in opposition to allowing alcohol sales at sporting events, including many past athletic directors.Carter said NU would consider several factors before approving alcohol at any events, and would bring any proposal to regents for approval.

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RICKETTS: NEBRASKA MUST BUILD PERKINS COUNTY CANAL OR RISK $1B ECONOMIC HIT

LINCOLN - If Nebraska stands pat, the Cornhusker State’s portion of the Platte River could run dry, Nebraska Gov. Pete Ricketts told a legislative committee Wednesday.

Colorado, he said, is investing nearly $10 billion to keep more of the South Platte River’s water inside its borders rather than letting it flow east into Nebraska. He said building his $500 million canal would be “a bargain.”

“Colorado is looking to take our water,” Ricketts said, pointing to massive population growth in Denver and on the Front Range.

Ricketts said in order to claim the water promised to the state in a 1932 compact with Colorado, we must build the Perkins County Canal and a series of storage reservoirs.

The compact promised Nebraska flows of 500 cubic feet per second from the South Platte River outside irrigation season.

Other Nebraska state officials have echoed Ricketts' concerns. They say the water agreement with Colorado is only promised if Nebraska builds a canal to divert flows from northeast Colorado.

“As an attorney, I can tell you how important it is that Nebraska maintain its legal rights under the compact,” said State Sen. Mike Hilgers of Lincoln, who introduced the canal proposal on behalf of the governor. Hilgers has announced a run for Nebraska attorney general.

The Platte River's importance has been strongly emphasized by those in favor of building the canal as they note it provides water not only for irrigation and wildlife but also for water systems like Omaha's and Lincoln's which supply more than half of the state's population.

Senators on the Legislature's Natural Resources District have raised questions as to whether the project could be built for less than $500 million or if there is an option to renegotiate its compact with Colorado to capture river flows.

Tom Riley, director of the Nebraska Department of Natural Resources, estimated it would take up to three years to design the canal system and five to seven years to build.

Nebraska has been able to capture the water in the past but we are now at threat of losing it as Colorado's population increases, Ricketts said.

“It’s a huge hedge against future droughts,” Ricketts said.

Officials estimate a potential economic hit of $1 billion if the canal isn't built.

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LATHROP ANNOUNCES THAT HE WON'T SEEK RE-ELECTION; CANDIDATES BEGIN TO FILE TO REPLACE HIM

LINCOLN- A leading Democrat in the Nebraska Legislature, State Sen. Steve Lathrop of Omaha, confirmed Monday that he isn’t running for re-election. Lathrop, a 64-year-old attorney, has served 12 years in the Legislature, returning to the Unicameral in 2018 after sitting out four years because of term limits.

On Monday, he said it was time to “let someone else step in and have an opportunity.”

“It’s a very personal decision,” Lathrop said. “I’ve been doing it for 12 years. That is a long time. It’s a lot of sacrifices to come down here...I’m looking forward to going back to the office, maybe taking a few more trips and spending some more time on my pastimes,” he said.

Lathrop, who chairs the Legislature’s Judiciary Committee, has been a lead senator on issues surrounding the state’s overcrowded state prison system. He has been involved in several of the major compromises struck in the Legislature and has several times been mentioned as a candidate for higher office.

The senator, who represents a district that includes the Ralston and Millard areas, has also expressed frustration about the growing partisan divide in the 49-seat Unicameral Legislature, compared to his first eight years in office, from 2006 to 2014. Lathrop is part of a group of moderates, both Republicans and Democrats, who have worked across the aisle on issues.

The day after Lathrop's announcement, Former State Sen. Merv Riepe, 79, made his intentions known that he would seek his old seat again. Riepe, a Republican, previously served in the Nebraska Legislature from 2014 to 2018 but lost to Sen. Lathrop. Robin Richards, a fellow Ralston Board of Education member along with Riepe announced her candidacy, as did current union leader Bob Borgeson.

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INHERITANCE TAX CUT PASSED BY LEGISLATURE, APPROVED BY GOVERNOR

LINCOLN- Those who inherit property in Nebraska would pay less in taxes under a bill given final approval Friday by the State Legislature.

Legislative Bill 310, introduced by State Sen. Robert Clements of Elmwood, would increase what is exempt from state inheritance taxes and reduce the rates paid by more distant relatives and nonrelatives.

The proposal was amended after Nebraska’s counties, which collect about $70 million a year in inheritance taxes, complained that they would be hurt by the senator’s original proposal, which would have made deeper cuts in the tax.

Only six states levy an inheritance tax, and Iowa will soon eliminate its inheritance tax. The changes passed by the Nebraska Legislature apply to estates of individuals who died on or after Jan. 1.

Under the amended LB 310, which Gov. Pete Ricketts is expected to sign into law:

Immediate relatives, such as children, would continue to pay a 1% inheritance tax, but the amount of property that is exempt rises from $40,000 to $100,000.

More remote relatives would pay an 11% tax, down from the current 13%, and get an exemption of $40,000, up from $15,000.

Nonrelatives who inherit property would pay a 15% tax, down from 18%, and their exemption would rise to $25,000 from the current $10,000.

Douglas County, the state’s largest county, estimated it would lose $2 million a year in revenue from inheritance taxes, according to a state legislative fiscal note. A survey of 14 counties, excluding Douglas and Lancaster Counties, estimated the average loss at $90,000 a year.

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APPROPRIATIONS COMMITTEE CHAIR VOICES DOUBT ABOUT PERKINS COUNTY CANAL PROJECT

LINCOLN — A leading state senator is expressing opposition to one of Gov. Pete Ricketts’ top priorities: setting aside $500 million to build a canal off the South Platte River. State Sen. John Stinner of Gering, who chairs the powerful Appropriations Committee, said he cannot agree with earmarking that much in state funds for the Perkins County Canal.

On Wednesday, February 16, Stinner said he would, however, support spending a smaller amount on a feasibility study for the project.

“This canal is a complicated, long-term project that deserves to be looked at,” the senator said.

He went on to say the allotted $500 million - $400 million in cash reserve funds and $100 million from the American Rescue Plan Act (ARPA) - could be used in better ways now.

Ricketts and his administration have attempted to portray the canal as the lone method for Nebraska to get all the water promised under the 99-year-old compact with the State of Colorado regarding the South Platte's flows. But a spokesman for Colorado's governor said the Perkins County Canal was a "canal to nowhere" and a "boondoggle" that would never be built. Senator Stinner's hesitancy seems to indicate he also does not believe this to be the only way for Nebraska to get the necessary water.

The governor, however, said the project is urgent given the increase in population that Colorado is seeing. Gov. Ricketts claims the water development plans in Colorado will consume 90% of the South Platte's flows. Officials have also said the canal could take up to a decade to be designed and built, however.

The Appropriations Committee is finalizing its budget recommendations, as well as its suggestions on how to spend Nebraska's $1.04 billion allocation from ARPA. Proposals for spending the funds will be debated by the full State Legislature later in this year's 60-day session.

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