PUBLIC SERVICE COMMISSION REJECTS RECONSIDERATION OF OVERLAPPING BROADBAND GRANTS

LINCOLN- A state commission that hands out grants to expand high-speed internet services decided to reject a request to reconsider a $535,500 grant that overlapped with another broadband project. Dan Watermeier, the chair of the Nebraska Public Service Commission, said Nextlink Internet failed to follow proper procedure by not challenging the grant given to a competitor, Pinpoint Communications, to deliver high-speed internet to the same area near Beatrice.

In its order denying the reconsideration, the PSC stated that Nextlink did not meet the deadline to challenge the Pinpoint grant and that the commission lacked specific, detailed information to determine whether Nextlink could serve the contested locations within 18 months, as required by the state-funded Broadband Bridge program.

During the 2023 grant cycle, the PSC received 51 applications for Broadband Bridge grants and approved 22 projects at a cost of $19.7 million. Those projects must be completed by July 9, 2025. Last year, as part of the Biden administration’s “internet for all” initiative, Nebraska received $405 million in federal funds to expand affordable, reliable high-speed internet service.

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PLATTE INSTITUTE, OTHER ADVOCATES CELEBRATE NEW NEBRASKA OCCUPATIONAL LICENSING REFORMS

LINCOLN- Advocates behind an overhaul of Nebraska occupational licensing celebrated the passage of a new law Wednesday, one week after Gov. Jim Pillen approved the measure. State Sen. Danielle Conrad of Lincoln, who spearheaded LB16 this year, described the proposal as a “comprehensive rewrite” of the state’s occupational licensure laws. “After many, many years of hard work, we were able to finally bring it across the finish line this year,” Conrad said.

Laura Ebke, senior fellow for the Platte Institute, which advocates to remove barriers in the state, pointed to a handful of states, such as Arizona, that have advanced universal recognition of licenses and seen success. “If we can have a portion of that success, that’ll be wonderful,” Ebke said. LB 16 proves that good policy is cross-partisan and cross-ideological, Ebke said.

The legislation provides additional ways to license experienced workers coming from out of the state. Conrad said the bill removes red tape and barriers at a minimal cost with specific relief. The legislation is also part of “proven strategies” allowing second chance employment for people who have been involved with the criminal justice system but can then reenter society and the workforce successfully, Conrad explained.

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PARTS OF TAX-RELIEF PACKAGE START TAKING SHAPE

LINCOLN- The Nebraska Legislature’s Revenue Committee started shaping two of the six bills Wednesday that leaders say will contain the group’s broader tax-relief package. The committee spent much of the morning in an executive session combining tax credits, tax deductions and tax tweak proposals into Legislative Bills 937 and 1023.

That proposal from Revenue Chairwoman State Sen. Lou Ann Linehan of Omaha comes after Gov. Jim Pillen has discussed reducing sales tax exemptions to provide property tax relief. Most of the measures added to the committee bills were folded in unanimously. Albrecht’s received no votes from State Sens. George Dungan and Eliot Bostar, both of Lincoln.

Thus far, the proposal includes portions of Legislative Bills 606, 1158, 1184, 1400, and 1049. The committee started discussing the potential to reduce some separate tax incentives for businesses now that the state has cut income taxes. They said they needed more time to talk. The Committee spent the remainder of the week discussing plans to increase the state sales tax to offset property taxes.

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MORE SCRUTINY COMING OVER USE OF STATE LEGISLATIVE SPACE AFTER BIBLE STUDY HELD IN HEARING ROOM

LINCOLN- A Bible study group that ministers to the State Capitol is in hot water after using a state legislative hearing room for an unauthorized purpose. Public spaces in the Capitol are reserved for meetings that “have a reasonable relationship to the legislative process,” according to policy. However, a meeting by a group called Capital Studies was deemed a religious event.

“I got lied to,” said Brandon Metzler, the clerk of the Legislature, whose office approves requests to use legislative hearing rooms and other “public” spaces in the building. The Capital Studies meeting had about eight attendees, including three state senators, at least one legislative staffer and Arin Hess, a former minister who serves as the chaplain and president of Capital Studies.

“It’s not an open forum for any group that wants space,” Metzler said. State Sen. Loren Lippincott of Central City, in his written request for the use of the hearing room, listed the purpose as “hosting district community leaders” and stated that 10 state senators and a total of 40 people would be attending. It did not list Capital Studies as leading the meeting. Metzler said requests will be under additional review in the future.

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SENATORS GIVE FIRST-ROUND APPROVAL FOR STATE BUDGET ADJUSTEMENTS WITH FEW CHANGES

LINCOLN- State lawmakers gave first-round approval Wednesday to the mid-biennium budget bill that made few changes from the spending proposals of Gov. Jim Pillen. The budget calls for a spending increase of 3.1%, which is slightly higher than the 2% increase called for by the governor because of an unexpected, $94 million increase in state aid to K-12 schools.

The “good news,” according to State Sen. Rob Clements of Elmwood, the chair of the budget-writing Appropriations Committee, is that $904 million will be left in the state’s cash reserve fund at the end of the two-year budget in June 2025, and the budget should show excess funds of nearly $575 million. During the debate, concerns were voiced about various spending cuts such as in developmental disabilities.

Concerns were also raised about whether the state can sustain the deep cuts in state income taxes passed a year ago, but there was also talk of amendments during second-round debate. State budget figures indicate that the excess $575 million in cash will shrink to $68.5 million at the end of the 2026-27 fiscal year, as the reduction in income tax revenue takes effect.

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HOUSING ADVOCATES CONVERGE AT STATE CAPITOL, HEAR GRIM UPDATE ON AFFORDABLE HOUSING EFFORTS

LINCOLN- The Nebraska Legislature gets a “low” score for progress so far this year on improving affordable housing options, State Sen. Tony Vargas of Omaha said Wednesday during an annual housing justice and lobbying event that drew about 100 advocates to the Unicameral. “We are not keeping up,” Vargas said, adding that Iowa spends twice as much as Nebraska on affordable housing.

Carol Bodeen, director of policy for the Nebraska Housing Developers Association, was among others who offered a grim update: “We do feel concern.” Their remarks come on the heels of a recent survey in which state legislators boosted affordable housing to among the top two priorities warranting action, said Sen. Wendy DeBoer of Omaha, who chairs the Legislature’s Planning Committee.

Affordable housing, as defined by the federal government, is that in which the occupant is paying no more than 30% of gross income for housing costs, including utilities. Bodeen and others told the group that the increased cost to build new homes, low inventory of existing homes and out-of-state investors scooping up used houses to rent have put homeownership out of the reach of many Nebraska families.

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GOV. PILLEN SLAMS UNIVERSITY OF NEBRASKA OVER PRESIDENTIAL SEARCH, ATHLETIC DIRECTOR'S DEPARTURE

LINCOLN- Gov. Jim Pillen is blaming Nebraska’s eight elected regents for not naming a presidential successor for the University of Nebraska and for the departure of the flagship campus’ athletic director. Pillen, in a “call to action,” said that NU is “immeasurably bigger than one person” but that leadership matters. He urged the regents to support a decisive choice for both athletic director and president.

“I am deeply disappointed by Trev Alberts’ decision to leave so soon after restating his commitment to Nebraska and I don’t fully understand or know his reasons why,” Pillen said in a statement. “I do know that the time for reflecting on the failures of university leadership, which led to his decision, must come later,” Pillen continued. “Now is the time to act.”

Alberts confirmed that leadership, or the lack thereof, played a role in his decision to leave. Regent Rob Schafer, board chair, said that the selection of the next NU president is the “highest duty” of a regent and that the regents owe it to the university community to find the best possible leaders. Schafer did note that the search process is reflecting previous search timelines.

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EPIC BATTLE OVER TAXES SHAPING UP, WITH ONE GROUP WARNING AGAINST AN 'EPIC' MISTAKE

LINCOLN- A group of Nebraska organizations publicly launched its effort to oppose the initiative petition seeking to replace all state taxes with a consumption tax. They called the EPIC Option Consumption Tax initiative “flawed,” a “devastating” elimination of local government control, and a proposal based on inaccurate estimates of its ability to replace all sales, income and property taxes.

A new analysis of the EPIC tax, released Thursday morning by the business-oriented Tax Foundation, reported that a consumption tax rate of 21.6% percent would be required to totally replace other state taxes — much higher than the 7.5% stated by EPIC backers. That would dramatically harm the state’s economy, the EPIC opponents said. The group was formed to combat EPIC misinformation.

State Sen. Steve Erdman of Bayard, a leading proponent of the EPIC tax, said he wasn’t surprised by the opposition. He said it’s been those organizations that have been spreading misinformation. Erdman maintained that the new group is being financed by former Gov. and now U.S. Sen. Pete Ricketts “and his people.”

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AG HILGERS, TREASURER BRIESE: NEBRASKANS NEED TO BEWARE OF TAX-RELATED SCAMS

LINCOLN- Nebraskans are being cautioned about tax-related scams as the season continues through April 15. Nebraska Attorney General Mike Hilgers and Treasurer Tom Briese said that scammers are sending messages that look like official documents from the Internal Revenue Service, state agencies or officials, tax software companies or Nebraskans’ own tax professionals.

“They may copy language, logos or fonts from the IRS to make it look as legitimate as possible,” Hilgers and Briese said in a joint news release. “These scammers are seeking to steal personally identifiable information from your official tax documents.” Hilgers and Briese said Nebraskans should never click on any links in these suspicious communications and should check on their status of any pending refunds directly with the IRS.

Nebraskans who think they may owe back taxes can call the IRS at 1-800-829-1040 or visit irs.gov/balancedue. More information is available from the Attorney General’s Office or with its Consumer Affairs Response Team at 402-471-2682. “Take extreme caution if you get an unsolicited contact about your tax information,” Briese and Hilgers said.

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BILL TO 'SWEEP' $244 MILLION FROM STATE AGENCY EXCESS FUNDS ADVANCES AFTER AMENDMENTS

LINCOLN- State lawmakers advanced a controversial portion of the state budget on Thursday — $244 million in “sweeps” of state agency cash reserves — but not before adopting two minor amendments. The contentious portion is a proposed $70 million transfer from the state unemployment insurance trust fund, the largest of the transfers.

If removed from Legislative Bill 1413 it would “blow a hole” into the plan by Gov. Jim Pillen to provide interim government funding for his proposal to increase state taxes and funds, in order to lower local property taxes by 40%. The transfer is opposed by groups representing state businesses, who pay premiums into the unemployment insurance fund to cover payments to workers who find themselves unemployed.

Two amendments to LB 1413 that were adopted would drop a $5 million transfer out of the State Visitors Promotion Cash Fund. North Platte Sen. Mike Jacobson proposed the change, saying that sweeping the state lodging taxes would damage local tourism promotion. And, halt transfers of interest earned off the Universal Service Fund in June 2025. The bill had allowed such transfers indefinitely.

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FEBRUARY 2024 GENERL FUND RECEIPTS RELEASED

LINCOLN- Tax Commissioner James R. Kamm reported that gross General Fund receipts for February were $758 million. The breakdown is as follows:

• Gross Sales and Use: $ 257,769,741

• Gross Individual Income: $ 429,718,075 

• Gross Corporate Income: $ 41,423,487 

• Gross Miscellaneous: $ 28,865,234

 February tax refunds amounted to $292 million and February net receipts were $466 million. The breakdown is as follows:

• Net Sales and Use: $ 178,327,210 

• Net Individual Income: $ 231,182,127 

• Net Corporate Income: $ 27,915,533 

• Net Miscellaneous: $ 28,832,902

Net General Fund receipts for fiscal year 2023-24 are $5.085 billion. The breakdown is as follows:

• Net Sales and Use: $ 1,653,970,334 

• Net Individual Income: $ 2,209,121,591 

• Net Corporate Income: $ 1,040,464,112 

• Net Miscellaneous: $ 181,229,189

The Nebraska Economic Forecasting Advisory Board (Board) met on February 29, 2024 and revised the current year forecast upward by $575 million to $7.020 billion. The Board forecast was divided into monthly estimates by the Tax Commissioner and Legislative Fiscal Analyst on March 11, 2024. For the full report click HERE. 

HARDIN BILL TARGETS LAND PURCHASES BY 'FOREIGN ADVERSARIES NEAR NEBRASKA MISSILE SILOS

LINCOLN- On Tuesday, Nebraska lawmakers advanced Sen. Hardin's LB1120, which curbs the purchase of property in eight Panhandle counties by anyone connected with a country or person determined by the federal government to be a foreign adversary. More specifically, the bill would require land buyers in those counties to file an affidavit certifying that they are not affiliated with any foreign adversary.

Hardin argued that the measure is necessary as the federal government prepared to update its Minuteman III missiles. Nebraska's Panhandle is home to 80 missile launch sites and nine later facilities. "We've seen purchases of land in very interesting ways by very interesting people," said Hardin.

Hardin also said that he knows of at least seven purchases in which buyers from different states offered up to four times the market rate and paid for Nebraska land with "a briefcase full of cash." Those properties, argued Hardin, were located near the missile sites. The foreign adversaries on the federal government's current list include China, Cuba, Iran, North Korea, Russia, and the Venezuelan politician Nicolas Maduro.

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UPDATES ON LAST YEAR'S MOTORCYCLE HELMET LAW ADVANCE IN LEGISLATURE

LINCOLN- Two months after certain motorcyclists could take advantage of a new law allowing for helmetless riding on Nebraska highways, lawmakers advanced revisions to the law on Tuesday. Sen. Ben Hansen, who led the helmet law last year, brought forth LB1004 this session to address "all concerns" with last year's changes.

According to Hansen, the updates in the new bill come from discussions with the Nebraska Department of Motor Vehicles, law enforcement, experienced motorcyclists, and communities around the state. Under the new proposal, Nebraska motorcyclists with a Class M license can complete the Motorcycle Safety Foundation's three-hour online course to ride helmetless.

However, those who don't obtain a Class M license before May 1st must complete the 14-hour basic safety course. LB1004 would also allow out-of-state motorcyclists with a non-Nebraska license to ride helmetless, regardless of whether they have completed a safety course. Passengers over the age of 21 will also be able to ride helmetless if the motorcyclist is permitted to do so. These updates advanced on a 34-3 vote.

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RIEPE PROPOSALTO SHORTEN DURATION OF UNEMPLOYMENT BENEFITS RUNS INTO FILIBUSTER

LINCOLN- A proposal to shorten the maximum duration of unemployment benefits in Nebraska from 26 weeks to 16 weeks met tough opposition on Tuesday in the Nebraska Legislature. Several lawmakers argued that the state was aiming to cut benefits for the state's poorest while enacting policy that benefited corporations and the wealthy.

"We fight over nickels and dimes and pennies in this place when it comes to poverty," said Sen. Machaela Cavanaugh, who led the filibuster against Sen. Riepe's LB1170, "and we give money away like it's a free-for-all when it comes to the most wealthy." Riepe, however, portrayed the reduction as a way to get more people back into the workforce.

"While it's important to support Nebraskans in finding work that aligns with their experience and provides fair compensation, it's also crucial to recognize that, at a certain point, individuals may need to accept available work opportunities," said Riepe. According to the fiscal note for LB1170, such a change would reduce the total unemployment benefits provided by the state by roughly $23 million.

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QUESTIONS ABOUT LB574 REACH NEBRASKA SUPREME COURT

LINCOLN- Attorneys challenging and defending Nebraska's new law combining tighter restrictions on abortion and gender-affirming care made their case Tuesday before the Nebraska Supreme Court. The state's highest court heard arguments in Planned Parenthood's appeal of a Lancaster County District Court decision that it was legal for the Legislature to fold these two topics into one legislative bill.

At issue in the case is whether the Legislature acted beyond constitutional limits that require each bill to contain only a single subject, a provision intended to prevent deal-making to pass combined bills that have failed on their own. According to Planned Parenthood's attorney, the Nebraska Supreme Court could decide if LB574 does indeed contain two distinct subjects.

The state's attorney in the case argued that the court should grant the Legislature a wide berth to police itself on the single-subject rule, describing the issue as political rather than judicial. Furthermore, he argued that the decision would be beyond the court's authority. Nebraska Solicitor General Eric Hamilton told the court that it should follow the lead of the district court and defer to the Legislature to handle this issue.

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SEN. DORN SEEKS EXTRA FEDERAL FUNDS TO PREVENT CLOSING OF SKILLED NURSING CENTERS IN NEBRASKA

LINCOLN- Under an amendment drafted by Sen. Myron Dorn, Nebraska would be able to apply for higher reimbursements for patient care via the federal Hospital Quality Assurance and Access Assessment Act, an endeavor that could, according to Dorn, net the state nearly $24 million in additional funding for skilled nursing facilities.

The potential extra funding comes amid skilled nursing and assisted living facility worker shortages, especially in rural parts of the state. Higher costs and lagging income have also prompted 12 nursing homes and 17 assisted living facilities to close over the past three years. These closings have left 15 of the state's 93 counties without health care facilities of some kind.

"This will help keep some of our nursing homes open in rural Nebraska," Dorn said of the amendment. Sen. Rob Clements, who chairs the Legislature's Appropriations Committee, said the amendment fits right in with a recent call from Gov. Pillen to seek additional federal funds, where available, to fund services in the state.

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LOWE BILL ADVANCES TO ENHANCE OVERSIGHT OF NEBRASKA RACING AND GAMING COMMISSION

LINCOLN- A measure billed as strengthening oversight of the Nebraska Racing and Gaming Commission won quick, first-round advancement Monday. State Sen. John Lowe, who introduced LB839, said the seven-member commission has seen turmoil lately. That includes the resignation of its executive director, questions about the thoroughness of a gaming market study and controversy over the purchase of 10 assault-style rifles for its investigators.

Under the bill, the governor, who appoints members of the commission, would have the power to remove commissioners “for cause.” New executive directors hired by the commission would be subject to approval by the governor. One senator, Danielle Conrad, said that while the commission had seen some “growing pains,” she wasn’t a fan of ceding oversight from the Legislature to the executive branch.

The bill advanced from first-round debate Monday on a 39-0 vote after a brief floor debate. The measure comes as the commission is ramping up to regulate gambling casinos in the state, which were legalized by voters in 2020. The first temporary casino was opened in September 2022 in Lincoln.

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PILLEN PLAN TO SHIFT TAXES ONTO SALES TAX AND OFF PROPERTY TAX GETS SOME SUPPORT

LINCOLN- Judging from a handful of people who attended a town hall meeting, Gov. Jim Pillen might have some popular support for raising sales taxes to lower property taxes. Pillen held a trio of town halls Monday in northeast Nebraska, culminating with more than a hour-long discussion inside a cavernous metal-working business near Fremont, All-Metals Market Inc.

The sessions were part of a series of recent town halls scheduled by the governor over the past few weeks to discuss his legislative priorities, which are topped by an ambitious plan to deliver an additional $1 billion in property tax relief this legislative session. His proposal, which is still taking shape, has been criticized by both ends of the political spectrum because its key mechanism is raising the state’s sale tax by 1 cent, from 5.5 cents to 6.5 cents.

He told those attending the town hall meeting that a 1-cent increase in sales taxes would allow a $500 million shift, which means another half-billion dollars in new revenue is needed. A number of town hall attendees agreed with the plan or portions of the plan. “This is a living, breathing piece of legislation, but we have to solve it this year,” he said.

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PILLEN VETOES NEBRASKA SAFE SYRINGES PROGRAM LEGISLATION, AS EXPECTED; SEN. HUNT FILES MOTION TO OVERRIDE

LINCOLN- As expected, Nebraska Gov. Jim Pillen has vetoed a legislative proposal seeking to allow local municipalities and counties to adopt safe syringes programs. Pillen submitted a letter explaining his decision to veto Legislative Bill 307, which passed 30-7 last Thursday. Pillen pointed to the cost and a number of concerns he had with the bill as he delivered the veto.

According to the governor, syringe services programs, or SSPs: Have led to increased drug deaths where they have been implemented. Are not effective at decreasing drug usage or disease transmission compared to other means. Have the potential to expose citizens to unintended, “yet equally concerning” health and safety risks due to improperly disposed needles.

“Simply put, adoption of LB 307 has the potential to expose our communities to the same issues that others have experienced,” Pillen wrote. “We should support less deadly ways of combating drug usage and the spreading of diseases.” Hunt, who expected a veto, said in a Monday tweet that lawmakers will override it. An override requires at least 30 votes.

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ROD YATE'S MEGA DEVELOPMENT CREATING BUZZ, ISSUES FOR NEBRASKA LAWMAKERS

LINCOLN- While the Nebraska Legislature still molds the specific rules and incentives for Good Life development districts, Rod Yates, a Nebraska-based developer, is already eyeing a location south of Gretna. Some lawmakers even argue that the proposed incentives for these districts are too generous.

"We can't cut our feet out from underneath us by giving all this money away, by cutting our sales tax in these Good Life Districts," said Sen. Justin Wayne. Should the Gretna-area project be approved, the Nebraska Legislature's fiscal office estimated last year that the state would turn back $4.8 million in sales tax to developers. diverting half of the state's sales tax revenue to Good Life district development costs.

If Yates succeeds in his plan to develop the area south of Gretna, he estimates it would eventually generate $2.2 billion in retail sales per year. At that level, the state would be steering as much as $60 million a year to subsidize the development. However, those estimated amounts depend on whether Yates succeeds with his project, which has already been approved by the Nebraska Department of Revenue under the Good Life Transformational Projects Act passed last year.

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