GOVERNOR PILLEN SIGNS 'TRANSFORMATIONAL' INCOME AND PROPERTY TAX CUT BILLS

LINCOLN- Gov. Jim Pillen signed a pair of income and property tax relief bills into law that he labeled “transformational” and “historic.” The governor signed LB243 and 754 in front of a crowd of supporters from multiple industries. The two measures, along with a third bill making changes to state school aid, are projected to cut or offset more than $6 billion worth of property taxes and income taxes over the next six years.

Pillen claims the new laws will make the state more competitive with other states all while improving life for the daily Nebraskan. “The two bills truly are transformational,” he said. “These bills provide billions, billions — I like to call it bushel baskets and bushel baskets and bushel baskets — of property tax relief, business income tax relief and personal income tax relief.”

LB243 is expected to aid $1.76 billion over six years. LB754 is expected to be about $3.3 billion in changes over six years. LB683 will double the state aid for special education and guarantee $1,500 of state support for every public school student. Gov. Pillen thanked Sens. Linehan, Briese, and Sanders for being instrumental in the tax work this session.

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SENATORS OVERRIDE GUBERNATORIAL VETO OF AUDITOR FUNDS, SUSTAIN OTHERS

LINCOLN- Senators stuck with Gov. Pillen, only overturning one of his line-item vetoes. State Auditor Mike Foley had asked for additional funding, arguing that he was losing auditors to other state agencies because they could offer $20,000 to $30,000 more a year. Pillen originally denied the office the increase in money, but the legislature overrode the governor granting the office an additional $1.2 million.

A large part of the argument on the chamber floor was the delay of audits. The auditor's office has decreased in size from about 60 to 40 employees, largely delaying audits. The vote to override the veto was 31-14 with Sens. Hunt and Fredrickson switching their votes from 'not voting'. Other senators warned overriding any veto could spoil the package of bills that the body passed this year.

Pleas from some senators that the Legislature was a “separate branch of government” and that overriding a gubernatorial veto wasn’t anything out of the ordinary or in any way “personal” didn’t resonate. The body upheld vetoes for an increase in provider rates, workforce housing dollars, a reinstatement of the Court Appointed Special Advocates System, and an increase in wages for legislative staff.

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LAWSUIT CHALLENGES NEBRASKA LAW THAT BANS ABORTIONS AFTER 12 WEEKS, GENDER CARE FOR MINORS

LINCOLN- A legal challenge was filed in the Lancaster County District Court against LB574 declaring it unconstitutional on the basis that it violates Nebraska Constitution's single-subject requirement for legislation. LB574 combines a ban on abortions after 12 weeks and restrictions on gender-related care for transgender youths. In addition to seeking a permanent injunction against the law, the suit asks for a preliminary injunction to stop enforcement of the restrictions while litigation is pending. Attorney General Mike Hilgers has requested the court deny the injunction.

The American Civil Liberties Union and ACLU of Nebraska are representing Planned Parenthood of the Heartland and Dr. Sarah Traxler in the case. Traxler is the chief medical officer of Planned Parenthood North Central States and performs abortions. The bill was only signed into place just over a week ago and has an emergency clause that enacted the abortion language on May 23rd. Gender-related care restrictions are to be effective on Oct.1st.

The lawsuit argues that the Nebraska Constitution’s single-subject requirement is a key element of the state's lawmaking process that, taken with other requirements, promotes careful legislative consideration and ensures that legislators remain accountable for their votes. “Although both components of LB 574 took away Nebraskans’ freedoms, ultimately we are talking about two entirely unrelated subjects: gender-related care for trans youth and abortion access,” said Mindy Rush Chipman, ACLU of Nebraska interim executive director.

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GOV. PILLEN SIGNS 'OPPORTUNITY SCHOLARSHIPS' PROPOSAL INTO LAW

LINCOLN- Gov. Jim Pillen officially signed LB753, also dubbed 'opportunity scholarships'. The bill has been in the works for several years under the wing of Sen. Lou Ann Linehan. “Now when a child in your family or your neighbor’s child or their niece or nephew needs help, you’ll be able to point them in a place where they can find hope,” Linehan said at the bill’s signing.

In its first year, LB 753 would set aside $25 million in tax credits toward scholarships designed to support families of students who otherwise could not attend private schools — a “choice” between public and private schools. The bill sets up a dollar-for-dollar tax credit for individuals or corporations who donate to a “scholarship granting organization” distributing such scholarships for parochial and private schools.

If demand is through the roof, the limit could grow to $100 million in future years. The Nebraska State Education Association has already vowed to work to repeal the law and has laid the groundwork for collecting voter signatures to place the issue on the ballot. Pillen responded to this by saying “Last time I checked, we’re supposed to support every one of our kids so they get the education that they deserve to become an incredible Nebraskan and give back to the state of Nebraska." He also called the $25 million a "drop in the bucket" compared to public schools funding.

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STATE TEACHERS UNION FILES PETITIONS TO REPEAL NEW 'SCHOOL CHOICE' LAW

LINCOLN- The state's teachers union was quick to challenge LB754, a bill allowing generous tax breaks for donations for private schooling. The effort, by a group called “Support Our Schools” and backed by the Nebraska State Educational Association, seeks to place the issue before voters on the ballot in 2024. The group has filed for a ballot referendum to repeal the bill with the Secretary of State's Office.

“Our goal is to give Nebraskans the opportunity to vote to repeal this harmful bill,” said Jenni Benson, the president of the NSEA and a Support Our Schools Nebraska petition sponsor. Public schools, Benson said, educate nine out of 10 kids in Nebraska, and that “strong public schools support a strong Nebraska and a strong economy.” Benson says it will hurt public schools, services, and infrastructure for years to come.

Gov. Pillen and the bill's sponsor, Sen. Linehan, stood their ground and fired back at the union. Linehan said she was “beyond frustrated” by the NSEA’s claims “especially in a year when the Legislature and the governor have created a billion-dollar education future fund and provided another $305 million in annual funding.” Pillen, in a press release, said he was confident that Nebraska voters would reject any attempt to overturn the law. “The NSEA’s attempt to overturn the Opportunity Scholarships Act is an attack on our kids and their educational opportunities,” Pillen said.

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LAWMAKERS PASS REPEAL OF MOTORCYCLE HELMET MANDATE

LINCOLN- Sen. Ben Hansens LB138, a bill that removes the helmet requirement for motorcyclists, advanced thanks to a 41-0 vote. The helmet amendment to LB138 would allow any motorcyclist or passenger over age 21 who has completed a basic certification course by the Motorcycle Safety Foundation to ride without a helmet, starting on Jan. 1, 2024.

Riders from other states could also ride without a helmet in Nebraska if they have taken an equivalent course and carry proof of completion. The bill would require riders and passengers to wear protective glasses or have a windshield on their bikes. The amendment would make helmet law violations secondary offenses, meaning that law enforcement could only ticket riders for helmet violations if they are stopped for some other traffic offense.

The change has been introduced multiple times and has failed each time. The bill would add Nebraska to the list of states that have eliminated or relaxed laws requiring anyone riding a motorcycle to wear a helmet. The Nebraska law has been in place since 1989. It is believed that the state is missing out on major tourism dollars during the motorcycle season as people travel around the state to avoid the helmet requirement.

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NEBRASKA PASSES BILL REQUIRING DYSLEXIA REPORTS, SCHOOL DRESS CODES, TEACHER COMPACT

LINCOLN- This week, state senators gave approval to LB298 which merged K-12 education proposals, tracking dyslexia, clarifying school dress codes and streamlining hires of teachers from other states. Amongst the supporters were Sens. Linehan and McKinney who both expressed they were pleased with the passage of the bill. Linehan also nodded to the bill’s language from a multi-state compact that could make it easier for Nebraska school districts to hire teachers from other states participating in the compact.

Reporting of dyslexia has been a multi-year push from Sen. Linehan. Dyslexia is a specific learning disability that blunts a child’s ability to read. Schools struggle to diagnose some dyslexic students because they perform well in other subjects, she said. The reporting aims to identify students that will then be provided with targeted instruction to ensure the child does not fall behind.

The bill also requires K-12 school boards to adopt written student dress codes and policies for student grooming, part of a proposal McKinney said he aimed at fairness and predictability. McKinney said some schools and school districts have been inconsistent in applying and interpreting dress codes, which has left some students, often students of color, feeling targeted.

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NEBRASKA'S GAMING REGULATORS INCREASE FROM 3 TO 18 IN A YEAR

LINCOLN- Following the overwhelming voter approval of casino gambling in 2020, two casinos are open with additional locations on the horizon. "The Racing and Gaming Commission in the state of Nebraska is trying as quickly as we can to get up all aspects of gaming," Nebraska Racing and Gaming Commission Executive Director Tom Sage said. Doing that means making sure the correct regulations and regulators are in place and well functioning.

Casey Ricketts, the director of compliance for the commission, said she tracks each and every machine that comes into the state. "Prior to any casino opening. We have to verify all the software and all the machines," Ricketts said. Part of that vetting is the opening of the software box on the machine itself. "No seal can be broken without a racing and gaming commission official present," Ricketts said.

She said it's time intensive for a regulatory agency that last year at this time had only three full-time staff. "Currently, we have right around 18 employees. I believe that's not near enough," Sage said. Sage said when Columbus opens, there will be about 1,000 slot machines in the state. But as Omaha and other casinos open, they could be several thousand, as well as table games and sports wagering. Ricketts believes 50-60 people will be needed to ensure all machines are checked and running in a timely matter. As the casino market grows in Nebraska, so must the regulator pipeline.

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LAWMAKERS PASS BILL REQUIRING GAS STATIONS SELL FUEL WITH 15% ETHANOL

LINCOLN- Lawmakers voted 46-0 on the passage of LB562 which will soon require local gas stations to offer fuel blended with up to 15% ethanol. In earlier rounds of debate, lawmakers had concerns about government overreach, but in the final round, not a single senator spoke. Ethanol makes up the largest percentage of corn usage in Nebraska's agricultural industry. The Nebraska Corn Board believes the state can produce 2 billion gallons of fuel.

State Sen. Myron Dorn said during an earlier round of debate, Nebraska is ranked near the bottom of the nation in ethanol usage, with much of its ethanol being exported to other states. Nebraska ranks second in ethanol production. Dorn, who introduced LB 562, said requiring 15% ethanol fuel to be offered at gas stations will benefit the farmers who produce the fuel.

Many gas stations already use and offer gasoline with up to 10% ethanol, claiming that this new requirement is practically a government mandate. Sen. Steve Halloran of Hastings said he did agree that the bill is a mandate — but still supported it as a conservative because it will help Nebraska’s biggest industry and will give drivers more choices at the pump. The bill exempts businesses that would need to spend more than $15,000 to make the changes.

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GOV. JIM PILLEN ANNOUNCES PICK FOR ADJUTANT GENERAL OF NEBRASKA NATIONAL GUARD

LINCOLN- With more than 35 years of military experience, Brig. Gen. Craig Strong is poised to be Nebraska's next adjutant general of the Nebraska National Guard. Strong is set to succeed Maj. Gen. Daryhl Bohac. The role oversees three sectors: the Air National Guard, Army National Guard, and the Nebraska Emergency Management Agency. Gov. Pillen announced strong at a press conference late last week.

Pillen read a letter from Strong where the brigadier general wrote that service in the Nebraska National Guard is a “value-added proposition that builds exceptional citizens with personal values grounded in the ethos of duty, honor and selfless service.” Strong has a master’s degree in economics and another in strategic studies from the U.S. Army War College. Strong also has a degree from the Nebraska College of Law.

Strong, a fifth-generation Nebraskan, thanked Bohac for his guidance, which “always epitomized what it is to be a truly ethical, servant leader.” A major goal will be to secure a “future pipeline” of soldiers and airmen “looking to be part of something that is truly bigger than themselves", said Strong. Strong also received high praise from Sen. Brewer, a decorated veteran himself.

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NEBRASKA LAWMAKERS INTRODUCE RESOLUTION TO ENCOURAGE WASHINGTON, D.C. STATEHOOD

LINCOLN- Two Nebraska lawmakers are pushing to make Washington D.C. the nation's 51st state. LR146 introduced by Lincoln State Sens. Danielle Conrad and George Dungan, would urge Nebraska’s congressional delegation to support statehood for the nation’s capital if passed by the full Legislature. This would be a non-binding encouragement to U.S. Reps. Mike Flood, Don Bacon and Adrian Smith and U.S. Sens. Deb Fischer and Pete Ricketts.

Conrad said she is pushing for the motion to increase democracy and equality. “I think that each state has a part to play, as do our federal representatives to try and correct a historic wrong in regards to the legal status of the residents in our nation’s capital,” said Conrad. Washington D.C. only has one non-voting delegate in the House and no representation in the Senate.

The U.S. House has passed two historic resolutions in support of D.C. statehood, for the first time in June 2020 and again in April 2021. Bacon and former U.S. Rep. Jeff Fortenberry voted against both, while Smith voted against it in 2020 but did not vote on the 2021 resolution. A vote has not been held under Flood's time in office and has never made it to the Senate for Fischer or Ricketts.

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HEAVY RAIN LEADS TO FLOODING IN SOUTHWEST NEBRASKA

McCOOK- Heavy rains triggered flash flooding in the southwest portion of Nebraska leading to highway closures and closures of a state park. McCook, in Red Willow County, had officially received more than 6 inches of rain as of 1 p.m. on May 26th, according to the National Weather Service, which issued a flash-flood warning for the northwestern part of the county. 

The weather service said U.S. Highway 83 south of McCook was underwater. There were reports of more than 7 inches in Wauneta in Chase County. The Sheriff's Office also reported that a bridge was out on Max-Wauneta road, which runs north and south between the two towns. In Hayes County, the Nebraska Game and Parks Commission temporarily closed the Frenchman Wildlife Management Area north of Palisade on Friday. 

The water is expected to lower over the coming days, but reconstruction will be needed in multiple areas. The state park is not expected to be severely damaged as the entry road took the majority of the blow. "These conditions are dangerous for guests, as well as Nebraska Game and Parks employees," the press release said.

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DOUGLAS COUNTY BOARD BACKS ESTIMATED $33 MILLION MENTAL HEALTH UNIT ADDITION TO OMAHA JAIL

LINCOLN- The county jail in downtown Omaha received approval to build a mental health treatment unit as well as further approval for a new Community Mental Health Center. The County Board voted at their latest meeting to direct county staff to initiate a capital improvement project for building the addition to the Douglas County Jail, 710 S. 17th St. This process begins the search for contractors and architects before requiring more approval from the board.

First estimates put the cost of the building at $33 million with an unknown number for adequate parking. The money would come out of the $50 million in American Rescue Plan Act funds that the County Board earmarked for mental health projects. The addition is meant to address the chronic and growing problem of large numbers of people with mental illness in the Douglas County Jail, often with misdemeanor offenses.

The vote was 5-2. Roger Garcia and Maureen Boyle joined Morgan, Friend and Cavanaugh in voting yes. Mary Ann Borgeson and Chris Rodgers voted no. Borgeson said people had missed the point of putting the two facilities near each other, which she said was to better serve the population that county jail and mental health staff already jointly serve.

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NEBRASKA FARMERS CONTINUE TO BATTLE DROUGHT, PLAN FOR THE WORST

CEDAR BLUFFS- Continous drought conditions have caused farmers to deal with higher expenses and lower profits. Several farming entities have had to start irrigation wells due to the lack of spring rains. "The water usage of the plants is so little, as long as we’ve got them in the moisture where we’ve planted, we’re okay for a little bit," said Cedar Bluffs farmer Tim Shanahan. "Where we’ve got irrigation, we’re going to start running and keep on running and keep running until it rains probably."

All 93 of Nebraska's counties are currently experiencing abnormally dry conditions, with all but two experiencing at least some level of drought. Eighteen counties, including Saunders County where Cedar Bluffs is located, are currently in exceptional drought, the highest level of dryness possible in the U.S. Drought Monitor's measurements. "If we don’t get the rains where we don’t have irrigation, that will definitely be a problem," Shanahan said.

All 18 of the counties experiencing exceptional drought are located in the eastern third of Nebraska. Shanahan says he is unsure of what the future holds for him and Nebraska farmers. "Depends on what article you read," Shanahan said. "Some say we’re going to work our way out of the drought, and some aren’t so promising about it." The state is nearing its second year of near to extreme drought.

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SANTEE SIOUX NATION OF NEBRASKA AWARDED $500,000 TO BOOST TRIBAL INTERNET SERVICES

LINCOLN- The Santee Sioux Nation of Nebraska will receive $500,000 for high-speed internet development as part of the Biden Administration’s “Internet for All” initiative. They are one of nine tribal entities to receive a share of $4.5 million from the Tribal Broadband Connectivity Program. Alonzo Denney, chairman of the Santee Sioux Tribe said the $500,000 would help the tribe’s continued efforts to become a self-sustaining and solely owned Indian Internet Service Provider for its community in Knox County.

Denney said Covid-19 made the digital divide within the Nation apparent. He said the lack of digital services demonstrated the “urgent need” for the tribe to rely on its own people to seek ways to provide reliable services to its community. “We now have a financial start to our business goals and are grateful,” he said. “We will continue to seek out additional funding opportunities to find complete resolution to our digital needs for our tribal community.”

Nebraska Gov. Jim Pillen said the grant would help provide services necessary for growth in the 21st-century economy. The Tribal Broadband Connectivity Program is run by the Department of Commerce’s National Telecommunications and Information Administration, which is the advisory agency to the president on telecommunications and information policy matters. NTIA programs focus on expanding broadband Internet access, advancing public safety communications and economic growth.

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NU FACING A NEARLY $50M BUDGET SHORTFALL NEXT YEAR; MINIMAL TUITION INCREASE PROPOSED

LINCOLN- As costs increase and marginal revenue growth is minimal, the University of Nebraska will be closing a $49.4 million budget shortfall in FY23-24. Without cutting costs or finding additional revenue sources, NU's structural budget deficit will balloon to $79.8 million in 2024-25, university leaders told the Board of Regents at a special meeting. The meeting comes just two weeks before the board of regents will approve the new 2-year budget and set tuition rates for the 23-24 school year.

President Ted Carter said the hardship is not unique to Nebraska. "Large flagship institutions, even in the Big Ten, are not immune from these challenges," Carter said. Carter pointed to the number of traditional college-aged students being on the decline, the cost of doing business is on the rise and questions circle about whether a four-year college degree is worth it. Carter plans on using a combination of spending cuts and minimal tuition increases to do so.

Administrators will propose raising tuition rates for NU students by 3.5% in the coming school year at the regents' June 22 meeting as they begin planning how to close the remaining budget deficit. While the additional tuition revenue would alleviate some of the financial strain NU is facing, it would not eliminate it entirely, administrators told the board. If the tuition increases are approved as presented, NU would still be forced to cut $27.2 million from its budget in 2023-24 and $57.6 million in 2024-25.

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FIVE STAFF MEMBERS STABBED BY INMATES AT NEBRASKA PRISON, AUTHORITIES SAY

LINCOLN- Five staff members at the state's Reception and Treatment Center had to be treated in the hospital after being stabbed by three inmates. The staff members suffered injuries "consistent with stabbings utilizing manufactured weapons" and were also kicked and punched, the Nebraska Department of Correctional Services said in a news release. An additional two staffers were injured while trying to stop the assaults.

“The injured team members were primarily concerned with the well-being of their co-workers, which is indicative of the commitment they have to each other,” the prison's warden, Taggart Boyd, said in the news release, noting that staff responded quickly "and contained the situation within minutes.” The inmates were under the influence of alcohol and did the act in response to being 'directed' by the staffers.

The prior moments to the attack have not been released as well as when the attack actually occurred. The alleged attack transpired in one of the two high-security, maximum-custody housing units at the Reception and Treatment Center, which opened last May, combining two state prisons into one massive complex.

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NEBRASKA LAWMAKERS APPROVE OVER $400 MILLION TO REVITALIZE LOW-INCOME OMAHA NEIGHBORHOODS

OMAHA- Lawmakers gave the approval to a bill that will send more than $400 million to North and South Omaha for recovery and revitalization efforts. LB531 was approved thanks to a 37-8 vote, and if signed will go into effect the following day. This is a follow-up bill from last year's session that adds more money to the area to specifically focus on revitalization efforts.

State Sen. Terrell McKinney of Omaha, the bill’s introducer, grew up in North Omaha and said his main focus while in office is economic recovery for that area. He said the projects funded through LB 531 will aim to reduce poverty and crime rates and improve educational and health outcomes. “North Omaha is not a charity case for wealthy individuals to act as our saviors,” McKinney said.

Most of the money would be distributed through the Department of Economic Development to some of the 367 proposals submitted during an earlier phase of the project last year. LB 531 identifies a handful of those proposals to receive guaranteed money, including $20 million for a Malcolm X museum and another $20 million for local health centers.

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NEARLY 1,200 EDUCATORS LEAVING THEIR JOBS IN OMAHA-AREA SCHOOL DISTRICTS

OMAHA- As many Omaha-area schools come upon their final days this week, hundreds of resignation letters are being filed by administrators from teachers leaving their districts. While metro districts in Nebraska are losing fewer educators this year compared to previous semesters, the number of people leaving, according to school officials, is still higher than pre-pandemic levels.

Based on the resignation letters filed, it is estimated that around 1,200 Omaha-area educators are leaving their districts, a number expected to grow as additional school staff members exit following resignation deadlines. Last year, that number hovered right around 1,250 educators leaving their positions. In May of 2021, only around 900 educators left their jobs in the Omaha area. The most recent numbers are indicative of the nationwide teaching shortage still affecting many states.

Although the numbers are alarming to many, the Nebraska State Education Association, the State Board of Education, and Nebraska's lawmakers have attempted to allay concerns through the creation of meaningful legislation geared toward teacher retention. Recently, Gov. Jim Pillen even repealed the basic-skills test for teachers, which was previously a requirement for teacher certification. A legislative proposal also sought to give grants to teachers who stayed at their job for a certain amount of years. Reasons for leaving range from family relocation, to extra workload, to student misbehavior.

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LEGISLATURE PASSES NEBRASKA INCOME TAX CUTS, PROPERTY TAX OFFSETS, AND CHILD TAX CREDITS

LINCOLN- On Thursday, the Nebraska Legislature, with little objection, gave final approval to a $6.4 billion tax relief package, which includes income tax cuts, hikes in state property tax credits, tax credits for child care, and a boost to school funding to offset property taxes. Sen. Lou Ann Linehan, who spearheaded the push to lower Nebraska's top income tax rates and ease the burden of local property taxes, helped secure at least 39 votes in the Unicameral, allowing for the passage of LB243, LB583, and LB754.

"This is a big win for Nebraska," Linehan told her colleagues, "A big win." However, critics of these proposals weren't silent. Sens. Jane Raybould and Danielle Conrad, as well as the OpenSky Policy Institute, have long argued that the state risks cutting taxes too deeply through these proposals, and that spending so much on tax credits and tax offsets puts future funding for state services at risk. Others argued that the proposals only benefit the richest of Nebraskans. "This is a tax cut for the wealthiest in Nebraska, and eventually, if we have enough money, then maybe we'll get some middle-class tax cuts," argued Sen. Wendy DeBoer, "I don't think that's fair."

OpenSky Policy Institute, on Thursday, shared its projections that indicate that most Nebraskans would eventually receive an income tax cut of around $300, while the state's top 1% would pay tens of thousands of dollars less. Linehan argued that critics of the proposals are missing the bigger picture, and are ignoring the expanded child tax credits, which will ensure that parents receive more money back. The largest of this year's tax proposals, LB727, which is a combination of nearly 30 bills relating to tax credits, has still yet to pass.

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