We are halfway through May with only 11 legislative days left after finishing the 79th day of a 90-day session last Thursday. Much was discussed last week including the budget, recreational liability (a response to the Nebraska Supreme Court’s ruling in Bronsen vs. Dawes County), and the Metro schools issues just to name a few. In addition, last Thursday the Legislature passed more than three dozen bills on Final Reading ranging from state’s employee suggestion system, to accumulation of junk, to notaries public, to prohibiting hunting through the Internet, and sent them to the Governor for approval.
I would like to give you an update on the status of the budget and the changes that occurred last week. Tuesday of last week, the budget advanced to Final Reading without changing much from the proposed budget of the Appropriations Committee. Instead of the quick advancement from the first to second round of debate, the Legislature debated over a two-day period several amendments to add or subtract funds from LB 321.
One of the first major discussions revolved around an amendment to reduce funding to the Department of Roads by $19 million in the second year of the biennial budget, FY2008-09. The stated purpose was to avoid a 1.8 cent increase in the variable portion of the state gas tax. Construction costs have had an estimated 36.2 percent increase between 2004 and 2006, while state revenue for roads has increased only 3.25 percent. This squeeze on road funding has caused us to look at how we appropriately fund the necessary maintenance and construction of roads in Nebraska. I personally favored another amendment that would have transferred the $19 million from the Cash Reserve Fund (the State’s “checking account”) to the Highway Trust Fund that would still leave $405 million in the Cash Reserve Fund to prevent a hike in the gas tax. Neither of these amendments were adopted and the budget remained as it was.
Another area of the budget that attracted the attention of senators was funding for economic development programs. One amendment that failed, of which I also favored, attempted to restore $113,850 in each year of the biennium for the Lied Main Street Program, which has helped several communities in the 44th District. In addition, three amendments tried to reduce job training funds to the Department of Economic Development. All failed and the additional appropriations of $10 million stayed intact.
Restoring certain healthcare funds for Eastern Nebraska Office on Aging, and Area Health Education Centers (AHECs) were two other major discussion points, both were adopted. Eastern Nebraska Office on Aging had $290,000 restored for both fiscal years and $250,000 first year and $500,000 second year were restored to the AHECs to help recruit young people into the medical field. Both programs were attempting to replace federal funds lost.
This week we will be addressing the budget for the third and final time, while revisiting a somewhat controversial bill providing an increase in sales tax revenue under the Convention Center Facility Financing Assistance Act. Omaha and the Qwest Center are the primary benefactors, while some money would be distributed throughout the state for similar community facilities.
Many of you contacted me regarding several of these issues and I was glad to get your insight and expertise. As always, please contact me with any questions or concerns.
