CHIEF JUSTICE HEAVICAN TO RETIRE FROM NEB. SUPREME COURT

LINCOLN — Nebraska Supreme Court Chief Justice Michael Heavican will retire from his post effective Oct. 31, and Gov. Jim Pillen will eventually appoint his successor.

Heavican, in a Wednesday letter to employees of the Judicial Branch, said he was retiring after 18 years. He said that the accomplishments of his colleagues made him proud to serve as chief justice and that he’ll be forever grateful for their hard work and dedication.

Former Gov. Dave Heineman appointed Heavican to the high court in October 2006. Heavican previously served five years as Nebraska’s U.S. attorney, a pick by former President George W. Bush. Heavican, 77, also served as an assistant U.S. attorney and Lancaster County attorney from 1981 to 1990.

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PILLEN SAYS NEXT PROPERTY TAX PUSH CAN WAIT UNTIL JANUARY, AVOIDING SECOND SPECIAL SESSION

LINCOLN — Nebraska Gov. Jim Pillen says he has no plans to call the Legislature back into special session this year to consider additional property tax relief after final passage Tuesday of a pared-down proposal.

Rather than rush lawmakers back to Lincoln for more changes yet this year, as the governor discussed during bill negotiations, he said he would wait until the next regular session begins in January. Pillen pushed back on criticism by some senators who said he shouldn’t have called them into special session July 25 if he didn’t have the votes for his proposals. He said he understands his plans need more support.

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LEGISLATURE PASSES SLIMMED-DOWN PROPERTY TAX RELIEF PACKAGE, ENDS SPECIAL SESSION

LINCOLN — Nebraska taxpayers are likely to see a small bump in property tax relief on their tax statements for next year, but much less relief than Gov. Jim Pillen requested.

Legislative Bill 34, which passed 40-3 on the final day of the Legislature’s special session Tuesday, provides $185 million in new tax relief, or about 3.5% over the $5.3 billion in local property taxes collected in 2023. Some Nebraskans might see their first relief as LB 34 repurposes the existing income tax credit for property tax paid to appear on property tax statements, rather than requiring property owners to request a refund later.

Lawmakers have described that package as the “absolute minimum” and a “skinnied-down” proposal from one that sought to reduce K-12 school tax rates through increased sales taxes.

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NEBRASKA LAWMAKERS ADVANCE 'ABSOLUTE MINIMUM' PROPERTY TAX PACKAGE AFTER MONTHS OF BUILDUP

LINCOLN- Nebraska lawmakers advanced a scaled-back version of a property tax relief package, Legislative Bill 34, after months of debate and extensive proposals from Governor Jim Pillen and the Revenue Committee. The final bill focuses on three key provisions: front-loading income tax credits for property taxes, expanding school tax credits, and capping property tax-asking authority by local governments, though many legislators expressed disappointment with the limited scope of the bill. “This is an absolute minimum that I feel that we should do,” State Senator Brad von Gillern said.

The original, more ambitious 122-page tax relief plan was trimmed down after it became clear there was insufficient support, leading to a pivot towards a simpler, consensus-based approach. While some lawmakers viewed the package as a positive, albeit minimal, step toward addressing Nebraska's high property taxes, others criticized it for being inadequate and leaving vulnerable communities underserved.

The bill's passage was met with mixed reactions, with some lawmakers praising it as a necessary compromise, while others criticized it for not going far enough. The debate highlighted ongoing tensions between the need for tax relief and the concerns of local governments and citizens about the potential impact on public services and infrastructure. The Legislature will next consider funding mechanisms for the bill, including budget cuts and fee increases.

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TERM-LIMITED NEBRASKA LAWMAKERS MOUNT WHAT COULD BE LAST PUSH FOR MORE PROPERTY TAX RELIEF

LINCOLN- Nebraska lawmakers, led by State Sen. Justin Wayne, are pushing for more substantial property tax relief before their term ends. Wayne proposed three options to expand Legislative Bill 34, which initially offered modest tax relief. The options include targeted tax credits for different property types, new tax credits for natural resources districts, and significant property tax reductions funded by increased sales taxes and other measures.

Many term-limited senators, including Wayne, are pushing for these expanded options to leave a more significant impact on property tax relief before they exit the Legislature. Some lawmakers, like State Sen. Steve Erdman, advocate for more drastic measures, such as eliminating property, income, and sales taxes altogether, while others urge caution to avoid harming local services. The frustration among lawmakers stems from the narrowing of LB 34 from an original 30% tax cut proposal to just 3%, prompting demands for more comprehensive solutions.

Wayne's proposals aim to provide up to 40% total property tax relief by combining various tax credits, new taxes on goods and services, and adjustments to current tax policies. These proposals seek to balance immediate tax relief with long-term revenue generation, ensuring that Nebraska's property tax system is more equitable and sustainable. The final outcome of these debates will determine whether the Legislature can achieve meaningful property tax reform before the session concludes.

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CONSTITUTIONAL AMENDMENT REVIVED ON OWNER-OCCUPIED PROPERTY VALUATIONS

LINCOLN — It’s too soon to tell whether Nebraska voters can weigh in this fall on a constitutional amendment that would let future Legislatures set the valuations of owner-occupied residential properties differently from commercial.

But Gov. Jim Pillen’s office expressed openness to the idea, in response to a reporter’s question, and legislative leaders who had been searching for more pathways to property tax relief embraced the approach as giving the Legislature a future “tool” in its property-tax cutting toolbox.

If eventually approved by voters, the measure, proposed by State Sen. Tom Brandt of Plymouth, would eliminate a section of the state constitution that requires uniformity in how the state values residential and commercial properties.

Lawmakers cast aside colleagues’ questions about whether it was too late in an election year and wrong under their rules to revive the proposed amendment on residential valuations. Legislative Resolution 2CA advanced 32-14. Senators met on Saturday to consider the measure on Select File, eventually bracketing the measure until Monday, August 19th. LR2CA would be available for further consideration by the body on Tuesday, though the time remaining in the special session is quickly running out.

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BUDGET BILLS ADVANCE AFTER FILIBUSTER

LINCOLN- The Nebraska Legislature advanced a second budget bill, Legislative Bill 3, to help cover the costs of the property tax relief plan outlined in Legislative Bill 34, despite considerable debate and frustration among state senators. The bill reallocates $22 million in fees and interest from state agencies to the general fund, with the state’s cash reserves covering an additional $46 million, following the earlier passage of another bill that implemented $117 million in spending cuts. Although some senators, like State Senator Danielle Conrad, opposed the need for such funding during a special session, the Appropriations Committee, led by State Senator Rob Clements, defended their decisions, ultimately passing the bill with a 35-11 vote after eight hours of debate.

Throughout the day, lawmakers expressed dissatisfaction with the limited scope of property tax relief provided by LB 34 and sought ways to enhance the package. Despite efforts to filibuster the budget cuts, the Appropriations Committee maintained that their funding decisions were necessary to support the relief plan without harming individual state agencies. Amendments were considered, including one from State Senator Terrell McKinney to restore $250,000 in corrections funding which he got passed after much debate.

State Senators Conrad and Machaela Cavanaugh continued to argue against the urgency of the funding efforts, but the majority of senators pushed forward, aiming to finalize the budget adjustments necessary to implement the property tax relief measures. The debate highlighted the ongoing tension between providing immediate tax relief and ensuring long-term financial stability for the state, as lawmakers grappled with the limitations of the special session process.

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ONLINE SPORTS BETTING AUTHORITY FOR NEBRASKA LEGISLATURE ADVANCED FROM COMMITTEE; UNLIKELY TO MOVE FURTHER DURING SPECIAL SESSION

LINCOLN- The Nebraska Legislature’s General Affairs Committee advanced a measure allowing voters to decide if the Legislature should have the authority to regulate online sports betting, but it did not approve a companion bill that would have put this decision on the November ballot. This means any public vote on the matter is likely delayed until at least 2025. The amended proposal, supported by both Democratic and Republican senators, is seen as a way to enable the Legislature to more carefully craft regulations rather than leaving the rules to a potential petition initiative.

Supporters of the measure, including State Senators John Cavanaugh and Jana Hughes, argue that letting lawmakers address the issue would allow for more deliberate debate and regulation of online sports betting. They believe this approach is preferable to a well-funded initiative from casino interests that could overwhelm discourse. In contrast, opponents like State Senator John Lowe argue that expanding gambling could negatively impact financially distressed individuals and families and is not aligned with the current focus of the special session.

The fate of the proposal remains uncertain, as Speaker John Arch indicated that he does not plan to schedule the bill during the special session. Some legislators argued for the bill's potential to provide revenue for property tax relief in the state. If the Legislature adjourns without taking further action, the proposal could be considered during the regular session starting in January.

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NEBRASKA LEGISLATURE SIDESTEPS FILIBUSTER: APPROVES CUTS TO HHS, LEGISLATIVE COUNCIL

LINCOLN- A small group of senators attempted a filibuster to prevent more than $28 million in budget cuts from the Nebraska Department of Health and Human Services and the Legislative Council. LB 2 trims about $117 million from state agencies, including $25 million from HHS and $3.5 million from the Legislative Council. Senators Conrad and Machaela Cavanaugh led the charge arguing the importance of protecting legislative autonomy along with Senator Dungan who was concerned with what services would be disrupted at HHS due to the cuts.

The filibuster was met with opposition from Senator Clements, Chair of the Appropriations Committee, and Senator Linehan, Chair of the Revenue Committee, both echoing that the cuts proposed would not hinder services. They argued that the funding cuts are coming from inefficiencies within the agencies and are needed to support the property tax relief in LB 34.

However, Senator Vargas, a member of the Appropriations Committee, did not believe that the cuts to HHS were transparent and requested more information to see the impacts of cutting the funds. Senator Conrad saw the cuts as unnecessary and performative, saying that the legislature could consider cuts in the regular session in January. Ultimately, LB 2 advanced on a 33-11 vote.

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COMMITTEE ADVANCES PROPOSAL TO VALUE NE OWNER-OCCUPIED HOUSING DIFFERENTLY, SIMILAR TO AG LAND

LINCOLN- The Nebraska Legislature's Revenue Committee advanced Legislative Resolution 2CA, a proposal that would allow voters to decide whether owner-occupied housing should be valued differently than other residential property, similar to agricultural land. If passed and approved by voters in the 2024 election, this constitutional amendment would enable the Legislature to define "owner-occupied housing" and set its valuation rate, potentially offering more tax relief and parity with agricultural land valuations. The resolution, introduced by State Senator Tom Brandt, has garnered support from several lawmakers, but it would require at least 30 votes in the Legislature to advance and may face delays if not approved in time for the 2024 ballot, potentially pushing it to 2026. "This is written simply to give the Legislature another tool," Brandt said.

State Senator Justin Wayne, a proponent of LR 2CA, believes the amendment could significantly impact future tax relief efforts, allowing lawmakers to engage with their communities on property tax issues ahead of the 2024 election. While Speaker John Arch has prioritized this resolution for debate, it faces competition from other constitutional amendments and requires additional companion legislation to meet the deadlines for the November 2024 ballot. If the amendment doesn't pass this session, Brandt has committed to reintroducing it in 2025 to ensure it eventually reaches voters.

The proposal has received mixed reactions, with concerns raised about its potential impact on renters, but proponents argue it is a crucial step toward achieving more equitable tax relief. The outcome of this legislative effort will depend on garnering sufficient support in the Nebraska Legislature, as well as navigating the procedural hurdles required to bring the amendment to voters in the next election cycle.

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SASSE’S SPENDING SPREE: FORMER UF PRESIDENT CHANNELED MILLIONS TO GOP ALLIES, SECRETIVE CONTRACTS

GAINESVILLE, FL- Former Nebraska Senator Ben Sasse is coming under fire after his spending during his short tenure as President of the University of Florida was more than triple what his predecessor spent. As President, spending rose from $5.6 million to $17.3 million which included hiring his former staff for remote positions and bringing in consulting firms. During his 17 months, Sasse hired six former staffers and two former GOP officials for remote jobs.

Sasse’s former chief of staff was appointed to a brand new position as UF’s vice president for innovation and partnerships, his starting salary was $396,000 more than double that of what he made in D.C. Sasse also demoted UF’s vice president of communications who had over 30 years of experience to be the deputy to James Wegmann, Sasse’s former Senate communications director. Wegmann’s starting salary was more than $150,000 his predecessor’s salary.

In addition to questionable hiring decisions, Sasse’s travel expenses and consulting contracts are under examination. In his first fiscal year, Sasse’s travel expenses exceeded $633,000, 20 times more than his predecessor’s annual average of $28,000. UF signed a contract with McKinsey for $7.2 million, 40 times what his predecessor spent in his eight-year tenure on consultants. Most of the invoices and work products are redacted from the public view, leaving many questions still unanswered about what UF was paying for.

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COVID CASES TICKING BACK UP IN NEBRASKA, WASTEWATER DATA SHOWS

LINCOLN- COVID-19 cases in Nebraska are rising again, with increased virus concentrations in wastewater and a 20% jump in reported cases in Douglas County. While the surge is less severe than previous winter spikes, hospitalizations have ticked up, and health officials are closely monitoring the situation. New COVID vaccines tailored to current variants are expected this fall, and health experts recommend that everyone, including younger and healthier individuals, get vaccinated and seek treatment if they test positive, as long-term health risks remain a concern.

The rise in cases is part of a broader trend across the U.S., particularly in the West and South, with new variants contributing to the increase. Although the current case numbers and hospitalizations are far lower than past peaks, the positivity rate and symptoms severity suggest the virus is still a significant threat. Health officials stress the importance of staying vigilant, getting tested, and following updated CDC guidelines, which now recommend isolation until symptoms improve and taking extra precautions for five days afterward.

The Nebraska Department of Health and Human Services has noted the sharpest increase in virus concentrations at Omaha’s Missouri River Wastewater Treatment Plant, reflecting the broader statewide trend. Despite the rise in cases, health experts like Dr. James Lawler remain hopeful that the upcoming vaccines will help reduce complications from the virus. In the meantime, individuals are urged to consider their personal risk factors, consult with their doctors about current vaccines, and take prompt action if they test positive to minimize the potential for long-term health effects.

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STORM LOSSES GIVE NEBRASKA 2ND-HIGHEST HOME INSURANCE RATE SPIKE, ANALYSIS SAYS

LINCOLN- Nebraska experienced a 61% increase in homeowners' insurance rates over the past year, making it the second-highest spike in the nation. The state, already prone to severe weather like hail and tornadoes, now has the highest home insurance rates in the country, with an average annual premium of $5,655 for a $300,000 home, significantly above the national average. Recent weather events have exasperated this trend in the state.

Insurance companies, facing substantial storm-related losses, have raised rates and, in some cases, stopped taking on new policies in Nebraska. Independent insurance agents like Pat Lemmers noted that companies could no longer absorb the losses and have also started excluding cosmetic damage from coverage.

In response to this crisis, Rep. Mike Flood announced plans to form a state working group this fall, including insurance industry leaders, home builders, and other stakeholders. “We need to tackle this problem and do so quickly,” Flood said. The group's goal is to find ways to support Nebraska homeowners who are struggling with the rising costs of insurance and property taxes, which are making it increasingly difficult for them to afford their homes.

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STATE EMPLOYEES UNION APPEALS REMOTE WORK DECISION TO NEBRASKA SUPREME COURT

LINCOLN- The union that represents state employees, The Nebraska Association of Public Employees, has appealed a decision from the Nebraska Commission of Industrial Relations to the Nebraska Supreme Court. The Nebraska Commission of Industrial Relations (CIR), the state’s labor court, ruled against the union on July 11 when they sought to end Governor Pillen’s executive order to prohibit remote work for state employees.

In their ruling, the CIR found that the State has unilateral authority to set workplace locations and procedures. The Governor said the ruling provided “vindication” of the state’s right to determine that workers come into the office to work “where they can be the most productive.” However, Justin Hubly, executive director of the union, said in a statement that the union chose to appeal because they want “…to protect our members’ right to negotiate and to obtain clarity from Nebraska’s high court on when the state must negotiate the terms and conditions of employment.”

The CIR also found the union responsible for paying for the State’s legal fees because they found the union had engaged in a “disingenuous maneuver” when bringing the case. Hubly thinks the decision could “chill” future labor complaints from being brought forward because of high legal costs. Negotiations will start between the union and the State starting in September for the next two years with both sides hopeful they can work together.

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OMAHA’S NEW INLAND PORT AUTHORITY LOOKS TO FILL COMMUNITY ADVISORY POSTS

OMAHA- The newly appointed Omaha Inland Port Authority Board is working on filling the community advisory committee, required by state law passed this year. LB 164 from Senator McKinney was passed this past session and created the advisory committee due to concerns that the local community’s complaints were not being addressed. Applicants for the advisory committee can apply on the Omaha City Clerk’s Office website. LB 164 requires the committee to have:

• At least two residential property owners in the district.

• At least two business owners within the district.

• The City Council member and the Nebraska state senator who represents the area.

• A youth representative.

The original bill, the Nebraska Municipal Inland Port Authority Act, was passed in 2021 to increase economic development in the North Omaha area. The bill gave the board the authority to sell bonds and the ability to use other finance options to help with infrastructure and job creation. The updated version requires the board, which was filled in in April, to consult with their community partners.

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CORNHUSKER DELEGATION EXPECTS DIVIDENDS FROM TRADE MISSION TO SOUTHEAST ASIA’S INDONESIA

LINCOLN- The trade mission to Indonesia led by Lt. Gov. Joe Kelly and another 20 delegates from Nebraska concluded after 10 days. The trip included Nebraska meat scientist Chris Calkins teaching a workshop for over 70 culinary students as well as visiting the country’s largest movie chain to see popcorn imported from Chapman, Nebraska. The delegates including Sherry Vinton, director of the Nebraska Department of Agriculture, found the trip to be very beneficial for Nebraska’s ag producers.

The trip was originally to be led by Gov. Jim Pillen, but he stayed in Nebraska due to the special session. The aim of the trip was to promote Nebraska’s agricultural industry with Indonesia, which is one of the top 10 export markets for Nebraska, at $139 million. The delegation included representatives from Nebraska’s Departments of Agriculture and Economic Development, the University of Nebraska, and several businesses.

The delegation had many stops including meeting the U.S. ambassador to Indonesia, the U.S. Grains Council, feed mills, and the Istiqlal Mosque in Jakarta. At the Istiqlal Mosque, the delegation learned about creating products that align with halal certification standards. State officials said more than 87% of Indonesia’s population identifies as Muslim.

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NEBRASKA TREASURER ESTABLISHES CROWDFUNDING WEBSITE AS SAVINGS PROGRAM FOR PEOPLE WITH DISABILITIES

LINCOLN- State Treasurer Tom Briese and State Sen. Dave Murman along with other leaders announced that the Nebraska State Treasurer’s Office has a new crowdfunding website for Nebraskans with disabilities. The website, GiveToEnable.com, will allow for up to $10,000 in tax-deductible donations to be made to Nebraskans without risking the loss of their federal benefits. State Treasurer Briese called the plan a “win-win for everyone involved” because there are no fees or taxes for both parties.

The website is managed by the state through the “Enable Savings Plan”. It is Nebraska’s qualified ABLE program, referring to the federal Achieving a Better Life Experience Act of 2014. Assistant State Treasurer Stacy Pfeifer, director of the Enable Savings Plan, discussed how people with disabilities face increased costs — on average, about 28% for someone with a disability compared to someone without a disability, just to live their daily lives. The program can be used to pay for qualified disability expenses including housing, transportation, legal fees, and other expenses that improve the quality of life.

Edison McDonald, executive director of The Arc of Nebraska, which advocates with and for people with intellectual or developmental disabilities, echoed how a “couple of cents” can determine if an individual receives or loses benefits. The additional funds allow people like Josh Swanson to save up for the future for things like service dog training. Swanson is able to be proactive with his savings and not have to worry about losing his federal benefits due to this program.

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NEBRASKA SUPREME COURT SETS AUG. 28 ORAL ARGUMENTS FOR LAWSUIT ON FELON VOTING RIGHTS

LINCOLN- The Nebraska Supreme Court will hear a lawsuit brought forth by Civic Nebraska and voting rights advocates to for Secretary of State Bob Evnen to register voters with past felony convictions under a new state law. The Court will hear arguments on August 28th and will decide if the Legislature can remove the voting rights disqualifications for felons after they’ve completed their sentence.

LB 20, from State Sen. Wayne, passed in the 2024 session, removes the disqualification as soon as the individual has served their sentence. This changed state law that had previously been set by LB 53 in 2005, which created a two-year waiting period after felons completed their sentence.

On July 17, two days before LB 20 took effect, Secretary Evnen directed county election officials not to register new voters unless they had completed the two-year waiting period. After consultation with Attorney General Mike Hilgers, an opinion was written arguing that the restoration, either immediately or after two years, was unconstitutional. He said it was the sole constitutional authority of the executive branch’s Pardons Board to restore a felon’s “civil rights.” The lawsuit argues that only the judicial branch can stop a law, not an executive branch official.

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NEBRASKA, IOWA AGs PART OF 11-STATE PUSH FOR EPA RULE ON FARM CHEMICALS

OMAHA- Nebraska Attorney General Mike Hilgers and Iowa Attorney General Brenna Bird, along with officials from 11 other states, urged the U.S. Environmental Protection Agency to standardize farm chemical labeling. They aim to prevent state-by-state regulations, particularly opposing California’s push to label glyphosate, known as Roundup, as a carcinogen. The coalition of states argues that glyphosate has been deemed safe by the EPA for agricultural use and that conflicting labels could lead to logistical challenges and increased costs.

The attorney generals emphasize the necessity of glyphosate for effective and affordable weed control, citing EPA studies supporting its safety when used correctly. They fear different state regulations could increase farming costs and complicate compliance, ultimately harming the sector. Nebraska and Iowa officials argue that a consistent, national standard is needed to avoid these issues and to protect farmers from potential legal and financial repercussions.

Farmers and agricultural leaders, such as Sherry Vinton from the Nebraska Department of Agriculture and Kevin Ross, a past president of the National Corn Growers Association, support the call for a national rule. They highlight glyphosate's cost-effectiveness and critical role in farming, warning that alternatives are less effective and more expensive. Constituents insist that national regulations grounded in science are essential to maintain competitive farming practices and ensure fair and consistent labeling across the country.

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STATE AUDITOR ACCUSES FORMER HOUSING AUTHORITY HEAD OF 'BIZARRE ABUSE OF THE PUBLIC TRUST'

LINCOLN- Krystal Freeseman, the former executive director of the Rushville Housing Authority in Sheridan County, faces potential criminal charges for allegedly misappropriating tens of thousands of dollars from the agency. State Auditor Mike Foley detailed the accusations, which include using agency funds for personal expenses such as carpeting for her home, property tax payments on a house owned by her husband, and questionable transactions at various retailers. Foley's office launched an audit after receiving tips about wrongdoing, ultimately identifying $31,016 that Freeseman allegedly took, of which she reimbursed about $13,000 shortly before her dismissal in February.

The Rushville Housing Authority, primarily funded by federal government aid and rent payments, serves low-income residents in the Sandhills area. The housing board became suspicious of Freeseman in January 2024 and conducted an internal investigation, uncovering irregularities in bank statements. Following her termination, the board hired an interim director and a certified public accountant firm to help reconcile accounts and implement new safeguards, including removing the executive director's authority to sign agency checks.

The 26-page audit report released Monday includes numerous allegations against Freeseman, such as providing false information to the accounting firm, manipulating the accounting system for personal gain, and forging board members' signatures on checks. Foley is collaborating with multiple authorities, including the Nebraska State Patrol and the U.S. Department of Housing and Urban Development, to pursue further action against Freeseman, who declined to comment on the matter.

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