BILL ADVANCED TO FINANCE DEVELOPMENT OF 'GOOD LIFE' RETAIL DISTRICTS WITH LITTLE DEBATE

LINCOLN- State lawmakers gave first-round approval to a measure that would allow communities, by a public vote, to provide a generous tax benefit for unique retail developments. There was very little mention, however, of the “Good Life District Economic Development Act” during the debate over LB1317, a combination of several bills advanced from the Revenue Committee.

Instead, most of the discussion focused on one of the aspects of LB1317 that dealt with installing electric-vehicle charging stations. It has generated a fight between service stations and public power over fair competition and who should be allowed to build the stations. Sen. Brad von Gillern, a co-sponsor of the bill, said he will introduce an amendment during second-round debate to resolve some remaining issues surrounding the Good Life Districts.

Already, the state has OK’d two potential districts, one at Nebraska Crossing near Gretna and another at 192nd Street and West Dodge Road in Omaha called Avenue One. Bellevue and Grand Island are also seeking Good Life District designations. To qualify, a development must cost at least $500 million, attract new-to-market retailers, like Crate & Barrel and IKEA, lure 600,000 visitors a year and generate at least 20% of its sales from out-of-state shoppers.

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BATHROOM, SPORTS TEAM RESTRICTIONS FALL SHORT IN LEGISLATURE

LINCOLN- Sen. Kathleen Kauth fell two votes short of advancing a proposal that would define K-12 school bathrooms and sporting teams as male or female based on students’ sex at birth. LB575 fell 31-15, after two conservative lawmakers who originally signed on to the bill when it was introduced last year did not vote for the measure: State Sens. Tom Brandt of Plymouth and Merv Riepe of Ralston.

Riepe, who had said his vote would be a “mystery” until the very end, condemned Friday’s last-minute effort on a bill that was advanced to the floor just one day prior, while Brandt questioned how the bill’s policies would be enforced and paid for. With the failed vote, the bill is effectively dead for the year. Speaker John Arch said there is not enough time to try to combine bills, which could have been a next step to give LB575 another chance on a different bill in the final week.

Kauth said the measure will return in 2025 and could include restrictions on collegiate athletics. Kauth said her bill was about protecting women’s sports and protecting the dignity and privacy of all school-aged children in the most intimate places. “Women and girls are going to start refusing to participate in sports knowing that the deck is stacked against them,” Kauth said.

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FIRST STEPS TO BUILD NEW PRISON IN NORTHEAST LINCOLN SAIL THROUGH

LINCOLN- On Wednesday, the first steps necessary to build a new prison in northeast Lincoln were approved with little drama. The Lincoln-Lancaster County Planning Commission voted unanimously to recommend the approval of zoning, annexation, and three other administrative changes on city-owned land in northeast Lincoln.

The Lincoln City Council is scheduled to hear those proposals on April 15, as well as one seeking to initiate a land swap agreement with the state. The low-key hearing held to approve these changes was a stark contrast to last summer's announcement by state officials that they'd bought roughly 305 acres of land in northeast Lincoln to build a prison.

The announcement caught city officials by surprise, and even sparked intense backlash by residents living in the area. The land where the prison is to be built currently houses a windmill, which LES will remove under the agreement. A holding lagoon for in-ground liquid biosolids, which was built in the 1980s, also rests on the land.

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A TALE OF COMPETING PROJECTIONS: GOVERNOR'S OFFICE, OPENSKY FIGURES DIFFER

LINCOLN- Nebraskans have been presented with two starkly different projections on whether taxpayers will be paying more of less should Gov. Pillen's proposed property tax plan be adopted. Currently, Pillen is calling for up to a 1-cent hike in sales tax and a newer, higher sales tax on some purchases to offset property taxes.

On Wednesday, Sen. Lou Ann Linehan, the sponsor of the tax plan, and Pillen administration officials held a briefing for legislators. They provided projections that seem to indicate that many Nebraska households would see net tax savings of between $1,036 and $2,137. However, those projections differ significantly from those released by the OpenSky Policy Institute.

OpenSky projected that the top 5% of taxpayers, those with household incomes of more than $252,600, would pay slightly less in overall taxes, while low- and middle-income families will end up paying slightly more than they do now. "Overall, this tax shift makes Nebraska's tax system more regressive," said Rebecca Firestone, executive director of OpenSky.

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LAWMAKERS ADVANCE MURMAN BILL REQUIRING AGE VERIFICATION FOR CERTAIN WEBSITES

LINCOLN- On Wednesday, lawmakers gave first-round approval to Sen. Dave Murman's LB1092, which would require commercial businesses that display a "substantial portion" of material harmful to minors, defined as more than one-third of a website's total material, to have a reasonable age verification method in place.

Murman, chair of the Education Committee, said during debate on a separate proposal relating to obscenity that children have "unfettered access" to "endless hours of unlimited graphic materials." Murman pointed to research conducted by the American Psychological Association as a reason why his bill is important.

In it, researchers found that pornography can lead to increased sexual aggression, relationship problems, and reinforce harmful gender stereotypes. "Every additional step which we put in front of our teens prior to accessing pornography is a second chance to stop and consider what they are accessing," said Murman during debate.

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BUDGET PACKAGE PASSES, LEAVING $20 MILLION FISCAL RECKONING FOR OTHER BILLS

LINCOLN- On Tuesday, the Nebraska Legislature passed its budget adjustment package, despite concerns over cost. Current estimates from the Legislative Fiscal Office show that if every bill currently introduced were to pass, the state's budget would be $272 million in the hole during the next two-year budget period.

"Every bill we pass that has a cost is adding to what we're spending," warned Sen. Tony Vargas during debate over the proposal. Despite concerns, however, Sen. Lou Ann Linehan, chairwoman of the Revenue Committee, expressed confidence that the potential budget crunch could be dealt with through negotiation and compromise. By the end of this week, lawmakers will only have eight days left in the session.

In previous session, lawmakers have met following the passage of the budget to talk through other bills and determine what costs could be scaled back. Sen. Rob Clements, chair of the Appropriations Committee, said he expected a similar process this year. The budget bills passed this week provide for an average increase in state spending of 2.7% over the two-year budget period, up slightly from the 2.3% approved last year

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STATE AUDITOR EXPOSES QUESTIONABLE HANDLING BY DHHS OF TENS OF MILLIONS OF FEDERAL DOLLARS

LINCOLN- According to a newly released statewide audit report, more than $21 million in questionable spending of federal pandemic funds was undertaken by the Nebraska Department of Health and Human Services. State Auditor Mike Foley highlighted several suspect expenditures, including funds used for talent recruitment services for nursing homes.

Foley noted that the examples cited in the audit are "far from comprehensive," and said the mishandling of pandemic dollars is but a small part of ineffective oversight by DHHS. However, Foley said that he has faith that the newly confirmed DHHS CEO Steve Corsi can implement corrective action based on the findings of the audit.

"He inherited an agency with some major issues," said Foley, calling Corsi a "no-nonsense" kind of person. According to a statement released by Corsi responding to the findings, his intention is to correct internal safeguards on monitoring and using tax dollars. "DHHS can and will resolve these issues," he said, "We will do the work and make the changes necessary to ensure tax dollars are spent both wisely and appropriately."

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LAWMAKERS ADVANCE INLAND PORT BILL THAT SEEKS MORE PUBLIC INPUT IN NORTH OMAHA DEVELOPMENT

LINCOLN- LB164, a modified version of a 2021 law that created inland port districts, was advanced on Tuesday with the intention of garnering more community input for the multimillion-dollar economic development project planned for North Omaha. Before being advanced on a 31-0 vote, the bill was amended to include a transfer of $20 million for an innovation hub in North Omaha.

The bill, as amended, will also create child care grant programs that had been part of another lawmaker's proposal. However, Sens. Terrell McKinney and Justin Wayne said the gist of the proposal is to provide more oversight for the unprecedented amount of funding being diverted to North Omaha.

"If we're going to invest this much into an area, we should have some transparency and oversight to see things through, to make sure they're done properly," said McKinney, referencing the $90 million that lawmakers allocated for a business and industrial park near Eppley Airfield. LB164 lays out rules for who can serve on a nine-member board that will govern the North Omaha inland port authority district.

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IN UNUSUAL MOVE, MAJOR TAX BILL RE-ADVANCED FROM COMMITTEE AFTER CONCERNS RAISED

LINCOLN- Last Thursday, LB388, a major tax relief proposal introduced at the request of Gov. Pillen, was voted out of the Revenue Committee. However, after concerns were raised by Sen. John Cavanaugh over the fact that an actual draft of the bill was not available, it was pulled back into committee.

On Tuesday, Sen. Lou Ann Linehan and the Revenue Committee re-advanced the bill on a 7-1 vote, this time with a 62-page amendment. The new amendment corrected several errors in the original proposal that committee members said appeared during the bill-drafting process. The updated proposal, which would shift funding for K-12 education onto state sales taxes to lower property taxes, is to be debated upon Wednesday.

Several school groups, including Omaha Public Schools, said they are still digesting the content of LB388. Liz Standish, associate superintended of Lincoln Public Schools, said the newest version of the proposal appears to address concerns about the new revenue cap being too restrictive for school districts.

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OMAHA MAYOR JEAN STOTHERT WILL RUN FOR A FOURTH TERM

OMAHA- Mayor Jean Stothert announced this week that she intends to run for a fourth term. She was first elected in 2013, becoming the first female mayor of Nebraska's largest city, and was reelected twice. She had served on the Omaha City Council before she was elected mayor. She acknowledged that the city has "challenges. Every growing city does.”

“We really have a record of progress, determination and success. And together, we do have the momentum to build Omaha into the city of the future," Stothert said. “We are focused on public safety, employment and business growth, investment in our urban core and historic neighborhoods, strong financial management and creating opportunities for everyone.”

The mayor also said that the city's tax levy is at its "lowest rate since 2010" and that hotel occupancy is now at the highest level the city has seen for 16 years. Joining Stothert at her announcement event was Former Nebraska Gov. Dave Heineman. The election for mayor and other city offices is in 2025.

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PILLEN TO SEND NEBRASKA NATIONAL GUARD, STATE TROOPERS TO SOUTHERN BORDER

LINCOLN- As promised, Gov. Jim Pillen will be sending another group of Nebraskans to patrol the southern border. In early April, 35 members of the Nebraska National Guard will deploy for 90 days in Eagle Pass, Texas, in support of counterparts with the Texas National Guard, the Governor’s Office announced this week. Last year, Pillen sent two separate deployments to the southern border.

As he did last year, Pillen defended the deployment as a necessary step to address an “ongoing crisis” at the U.S.-Mexico border.

“Every state is a border state, and what happens along our nation’s southern border affects us right here in Nebraska,” Pillen said in a press release. He said the group will help stop illegal immigration and keep deadly drugs off Nebraska streets.

The deployment is in response to a request from the State of Texas through the Emergency Management Assistance Compact, which is used by states to request assistance from other states in the case of disasters. Major Gen. Craig Strong, the adjutant general of the Nebraska National Guard, said that Nebraska troops are “always ready to respond.”

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CORSI CONFIRMED AS CEO OF NEBRASKA DHHS DESPITE LAWMAKER QUESTIONS

LINCOLN- The Nebraska Legislature on Monday confirmed Steve Corsi as CEO of the State Department of Health and Human Services, accepting Gov. Jim Pillen’s controversial pick. The vote came after several senators led an organized opposition that raised questions about his past employment and concerns about where he draws the line between his private beliefs and his public job.

State Sen. Machaela Cavanaugh and her brother, John, led the questions about Corsi, including many raised from a packet she shared with senators about the nominee’s past actions while in public jobs. The senators discussed Corsi's past employment connections as well as concerns about payment reception in the state of Missouri.

Opposing senators also discussed Corsi’s social media posts, including some he liked or shared that LGBTQ advocates and others described as condescending, rude or hateful. Multiple senators said they would've liked the chance to meet with Corsi prior to the confirmation vote. In the end, Corsi was confirmed with few votes to spare and will be paid a salary of $257,000.

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INCUMBENT U.S. SEN. FISCHER A HEAVY FAVORITE IN GOP PRIMARY; OSBORN LIKELY AWAITS

LINCOLN- Nebraskans could face an unusual choice this November, between Republican U.S. Sen. Deb Fischer, and a nonpartisan instead of a Democrat, barring an earthquake upset during a mismatched GOP primary election in May. Omaha union leader Dan Osborn has raised $500,000 for his outside bid and has the most cash on hand of anyone in the Nebraska congressional delegation.

The 2024 race has no Democratic candidate and only a last-minute Republican challenger, perennial candidate Arron Kowalski. Fischer is seeking a third term despite saying during her first run for Congress that she would stop at two terms. “I served under term limits in the Nebraska Legislature, but that’s not how the Senate works,” said Fischer. Fischer stressed the need for seniority representation.

Most observers expect Fischer, a former Nebraska state senator and Valentine Community Schools board member, to advance in the May primary over Kowalski, a central Nebraska farmer. Osborn will not be on the primary election ballot and must petition his way onto the general election ballot. His campaign said Osborn expects to turn in the more than 4,000 signatures necessary long before the Sept. 1 deadline.

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WORKFORCE PROGRAM THAT GREW UNDER THE GREATER OMAHA CHAMBER TAKES FLIGHT AS ITS OWN ENTITY

OMAHA- A program, previously connected to the Greater Omaha Chamber, that seeks to offer a different twist to addressing the state's workforce woes has gone solo, in part to try and reach farther across Nebraska. Known previously as GrOW, the program, which began in 2019, has grown to a team of eight and is now an independent entity called The Work Lab Inc.

According to Chad Mares, a former Coca-Cola human relations director who helped launch the program, and who currently still exists as the entity's executive director, Work Lab services are distinct because they focus on attending to more personal challenges for employees rather than those directly related to their job.

The program uses trained "WorkLife Coaches," who meet with employees at the job site to talk through matters that can range from family and friend relationships to money demands and housing needs. Mares described the coaching services as providing a "bridge" between employee's personal and professional life.

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JACOBSON BILL PASSED TO BRING IN MORE THAN $1.4 BILLION FEDERAL BOOST FOR NEBRASKA HOSPITALS

LINCOLN- Last Thursday, state lawmakers voted 45-0 to pass LB1087, a bill that could bring in more than $1.4 billion in federal funds to boost payment rates to hospitals in the state. The bill now awaits a signature from Gov. Jim Pillen. Nebraska hospitals proposed the legislation to address growing financial struggles, created in part by below-cost Medicaid payment rates.

Under the bill, hospitals would pay an assessment of up to 6% of net patient revenue, with money collected from these being utilized by the state to match federal funds. Updated numbers from the Legislative Fiscal Office show that the hospital assessments generated from LB1087 could net around $1.425 billion in federal matching funds.

Jeremy Nordquist, president of the Nebraska Hospital Association, said that such an increase in federal funding could increase Medicaid rates to nearly the cost of services for Nebraska's 98 hospitals, helping facilities fight financial struggles. LB1087 would also set aside 3.5% of the assessments to boost Medicaid payment rates for doctor, dental, nursing home, and other services.

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BREWER MEASURE TO EXPAND VETERANS COURTS IN NEBRASKA ADVANCED BY LEGISLATURE

LINCOLN- Last Thursday, the Nebraska Legislature advanced Sen. Brewer's LB253, which would give judges across the state the authority to connect with veterans who wind up in court with services to help them deal with their underlying traumas. The bill would also direct the Nebraska Probation System to create a veteran justice program in each district in the state.

"I do not think being a veteran should be a permit to commit crimes, but I think we need to make sure the system works to address those issues," said Brewer, who spent 37 years in the military. Under the bill, veterans who commit crimes a judge deems unqualifying for the program would not be allowed to participate, and a victim of the veteran's crimes would also be given a chance to address the court during the process.

However, if assigned a case plan, veterans would receive supervision and treatment to help address post-traumatic stress disorder, traumatic brain injuries, military sexual trauma, and other conditions tied to service in the armed forces. Should a veteran complete a case plan, their case would be dismissed.

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MALCOLM X ANNUAL RECOGNITION DATE IS ON TRACK, AS STATE HOLIDAY OPTION POSED FINANCIAL CONCERNS

LINCOLN- The effort to establish a state holiday in honor of Omaha-born Malcolm X has been derailed amid concerns over cost, but an annual state recognition of the slain human rights leader on his birthday appears to be on track. This compromise, spearheaded by Sen. Terrell McKinney, is moving its way through the Legislature and is expected to meet no resistance.

An amendment recognizing Malcolm X was attached to a bill introduced by Sen. Danielle Conrad that seeks to declare October 17th as Nebraska Missing Persons Day, which passed to its final step of date and is awaiting adoption by the Legislature. McKinney's amendment calls for the day to be "set apart for holding suitable exercises in the schools of the state in recognition of the sacrifices of the late Nebraska Hall of Fame inductee...and his contributions to the betterment of society."

JoAnna LeFlore-Ejike, executive director of the Malcolm X Memorial Foundation, said supporters stand proud at the thought of a Nebraska law creating a day of recognition for the "iconic native Nebraskan," and highlighted how pleased she was that this was a bipartisan endeavor.

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LAWMAKERS ADVANCE CRIME PACKAGE TARGETING DECEPTIVE TRADE, CHILD EXPLOITATION

LINCOLN- On Thursday, Nebraska lawmakers took a first step in advancing two portions of a three-part crime package that Attorney General Mike Hilgers previewed earlier this year. The bill, Sen. Bosn's LB935, would allow the Attorney General's Office and defendants to demand jury trials in response to alleged consumer protection violations or deceptive trade practices.

The Attorney General would also be granted the authority to freeze a bad actor's assets and prevent them from expending stolen funds. Bosn, a former prosecutor, pointed to two cases in the past year in which Nebraskans fell victim to elaborate scams. In one, a fraudulent farm equipment company scammed an Omaha family out of $9,200. In another, Hilgers sued a private Husker ticket package seller for allegedly scamming $87,000 from donors.

"I'm asking you to help give Nebraskans hope when they fall victim to these circumstances," said Bosn to her colleagues. Sen. Christy Armendariz's LB1096, which is designed to combat online child exploitation and human trafficking beyond the geographic limits of Nebraska, was also amended into the package. LB1096 would expand the definition of deceptive trade practice to include publicly available visual depictions of sexually explicit conduct, obscene material, or material harmful to minors.

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NPPD EXECS' SIX-FIGURE BONUSES PUT EARNINGS FAR ABOVE RANK-AND-FILE SALARIES

OMAHA- A report released this week noted large bonuses being paid to leaders of NPPD, in some cases doubling their salaries. “John Dent, Nebraska Public Power District’s chief nuclear officer, made a base salary of $646,000 in 2023, an amount similar to other public power executives in Nebraska. But after a bonus of $640,280, his total compensation doubled his salary to $1.3 million,” the report states.

His bonus alone is nearly double the salary of the governor, and his total pay pushes Dent into a pay bracket higher than even his boss. Sen. Tom Brewer called the increases shocking.  Because Nebraska is the only state in the country served entirely by publicly owned utilities, NPPD says the high pay is necessary in order to be able to fill those key jobs — and keep them filled — while maintaining high performance for services that Nebraskans depend on. 

Still, advocates say that those kinds of decisions — like making Dent’s 2023 bonus nearly 100% of his base salary, even if it’s awarded under a nuclear-focused incentive program — deserve transparency. Meanwhile, in a program rolling out this year, most NPPD employees below the supervisor level will be eligible to receive bonuses at either 2.5% or 5% of their salaries; and those at the vice president level will be eligible for a 30% bonus. 

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INCOME TAX CREDIT FOR NEBRASKA CRISIS PREGNANCY CENTER DONATIONS SURVIVES VOTE

LINCOLN- Nebraska lawmakers included a dose of abortion politics in a package of tax cut bills this week, voting to offer income tax credits to people donating to crisis pregnancy centers. But it remains to be seen if LB937 can survive the next two rounds of consideration, given the state’s fiscal constraints. In regard to the first round of debate, the bill advanced 40-0.

Legislators said they would vote to keep the package alive until the Legislature gets an updated cost estimate for it, then start the process of deciding what measures the state can afford. Lawmakers have room to increase spending or cut taxes by about $20 million per year before sending the budget into the red.

If every bill that has cleared at least one round of debate were to pass, the state general fund would be nearly $370 million in the hole by June 30, 2027, according to the Legislative Fiscal Office. That total does not include the cost of LB 937 or bills awaiting first-round debate. The bill includes 12 other bills, with the biggest concern being $2 million for tax credits to benefit people who donate to crisis pregnancy centers.

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