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Jan. 8-11, 2018 UNICAMERAL UPDATE News published daily at Update.Legislature.ne.gov Vol. 41, Issue 2 / Jan. 8 - 11, 2018 Gov. notes challenges, calls for tax relief proposal also will include targeted investments to address specific problems, including a troubling increase in the number of children entering the state’s child welfare system. “In this budget, I am recom- mending an additional $35 mil- lion to Child Welfare and Public Assistance for this year and next,” Ricketts said. “We must take care of our children.” In addition, the governor said, Nebraska should focus on cutting and reforming taxes as a key to economic growth. The state has the 11th highest property taxes in the country, he said, and Nebraskans need and expect tax relief. Gov. Pete Ricketts delivers his State of the State address to senators and guests Jan. 10. Ricketts said his tax proposal ith a focus on encouraging economic develop- would restructure existing property tax credits as a refund- ment, providing tax relief and streamlining able credit on state taxes to ensure that Nebraskans – rather Wgovernment, Gov. Pete Ricketts delivered his than absentee landowners – benefit. The proposal also State of the State address Jan. 10. would permanently reduce the state’s individual and cor- Calling the state’s situation “strong and growing,” the porate income tax rates, he said, and provide $10 million governor pointed to several examples of the economy’s over two years for workforce development. strength. The state has seen significant foreign and domes- “We can bring relief to Nebraska’s families and busi- tic investment, he said, and reached record employment nesses and help continue to grow our state. It is critical last year. In addition, he said, Nebraska recently was ranked that we get the job done on tax relief this session.” the fourth best state for business. The governor said Nebraska also will continue to stream- “Last year, Nebraska won the Governor’s Cup for most line government services and reduce red tape in an effort economic development projects per capita of any state to make it more effective and efficient. Doing so signals in the country,” he said. “Nebraska had more qualified that the state is “open for business,” he said. projects than North Dakota, South Dakota and Kansas Ricketts noted that challenges remain, but said the combined.” state has a history of cooperating to overcome difficulties. In spite of these developments, Ricketts said revenues He praised senators for working together in the previous continue to lag behind forecasts. As a result, he said, session to address issues important to Nebraskans and lawmakers need to once again balance the state’s budget encouraged them to continue to do so. without raising taxes. “For over 150 years, Nebraskans have always come The governor said his mid-biennium budget proposal together for a cause bigger than themselves. We will draw will include across-the-board reductions of 2 percent in the upon their strength this year to address the priorities of current fiscal year and 4 percent in the next. However, the our people.” g INSIDE: Greater bankruptcy exemptions advanced • Meet Sen. Thibodeau • New bills • Hearing schedule January 8 - 11, 2018 legislators, it is imperative that we un- state college system from the bill’s pro- derstand the complexities that often visions. The amendment also clarified surround federal programs and foresee that the bill would require that plans any unintended consequences.” be submitted to DAS only. Federal fund reporting Under the bill, reports would Stinner said the amendment would requirement advanced include: reduce the bill’s fiscal note by approxi- • the aggregate value of federal mately $630,000, down to roughly Senators advanced a bill from funds received in the previous $130,000 in the first fiscal year and general file Jan. 8 that would require fiscal year and the amount of $156,000 in the second. annual reporting of federal funds those funds appropriated by the The university and state colleges received by state agencies that par- Legislature; receive thousands of federal grants, ticipate in the state budgeting process. • the percentage of the agency’s he said, and much of the information LB611, introduced last session by total budget constituted by outlined in the bill already is reported Gering Sen. John federal funds; by those entities. Stinner, would re- • any requirement for a state Bellevue Sen. Sue Crawford sup- quire that reports match or promises made by the ported the bill and the amendment, be submitted to the entity on condition of receipt of saying it is important to see where state Department federal funds; Nebraska could be missing out on of Administrative • the statutory objective that is available federal funds. The state Services (DAS) by being met by receipt of federal currently is 47th in per capita federal Sept. 15 of each Sen. John Stinner funds; spending, she said. year that a budget request is due. • an operating plan in the event “It is critical for us – for our plan- Stinner said that federal funds com- that federal funds are reduced ning – to make sure we understand the prised approximately 30 percent of the between 10 and 25 percent from sources of [federal] funds and obliga- state’s total budget in the last fiscal year. the previous year; tions of those funds,” Crawford said, Requiring state agencies to provide • a second operating plan if fed- adding that the state needs to be sure more complete information regarding eral funds are reduced by more that it is getting the “most bang for our those funds would improve lawmakers’ than 25 percent; and buck” when it comes to investments. ability to plan and prioritize, he said. • a detailed list of federal funds Columbus Sen. Paul Schumacher “The intent behind this legislation with a foreseeable end date. supported the bill’s provisions requir- is to provide a reporting mechanism to An Appropriations Committee ing state agency operational plans in the state to hedge against fiscal stress amendment, adopted 26-10, excluded the event of a loss of federal funds. further down the road,” he said. “As the University of Nebraska and the “The federal government has just UNICAMERAL UPDATE The Unicameral Update is a free, weekly newsletter published during the legislative session. It is produced by the Clerk of the Legislature’s Office through the Unicameral Information Office. For print subscriptions, call 402-471-2788 or email [email protected]. Visit us online at Update.Legislature.ne.gov, twitter.com/UnicamUpdate and facebook.com/UnicameralUpdate. Clerk of the Legislature: Patrick J. O’Donnell Editor: Heidi Uhing; Writers: Kyle Harpster, Kate Heltzel, Ami Johnson; Photographer: Bess Ghormley Printed copies of bills, resolutions and the Legislative Journal are available at the State Capitol room 1104, or by calling 402-471-2709 or 800-742-7456. Status of bills and resolutions can be requested at that number or can be found on NebraskaLegislature.gov. Live video of hearings and floor debate can be viewed on NET2 and at NetNebraska.org/capitol. Senators may be contacted by mail at this address: Senator Name, District #, State Capitol, P.O. Box 94604, Lincoln, NE 68509-4604 Assistance provided by the Clerk of the Legislature’s Office, the Legislative Technology Center, committee clerks, legal counsels, journal clerks, pages, transcribers, mail room and bill room staff and the State Print Shop. The Unicameral Update is available as an audio recording from the Nebraska Library Commission’s Talking Book and Braille Service. Call (800) 742-7691 for more information. THE NEBRASKA LEGISLATURE’S OFFICIAL NEWS SOURCE SINCE 1977 PAGE 2 • UNICAMERAL UPDATE • 105TH LEGISLATURE January 8 - 11, 2018 committed to $1.5 trillion less in Installment Loan Act. Omaha Sen. Ernie Chambers also revenue,” Schumacher said, “And we Currently, a licensee may charge a opposed the bill, saying individuals know that if sanity prevails in D.C. to borrower a maximum annual interest who avail themselves of installment any degree, they’re going to try to miti- rate of 24 percent on the first $1,000 loan companies already have con- gate that $1.5 trillion loss by cutting of an unpaid principal balance, and strained options. The bill’s 29 percent money that is flowing to the states.” 21 percent on the remaining unpaid interest rate would not be in the best Nebraska needs to be prepared, he balance. interest of the public at large, he said. said, and should have operating plans LB384, intro- “I could not, in good conscience, in place that will indicate to lawmakers duced by Omaha agree to a bill like this,” Chamber how big a cushion the state will need Sen. Brett Lind- said, before offering a motion to in- if those federal funds are cut. strom, would raise definitely postpone LB384. Sen. John Kuehn of Heartwell the cap to a single The motion was adopted on a 19-17 spoke in opposition, calling LB611 rate of 29 percent vote, ending consideration of the bill unnecessary. He said the information annually. Sen. Brett Lindstrom for the session. A simple majority of sought by the bill’s provisions is readily Lindstrom said the interest rate cap those voting was required. available through the Legislature’s fis- has not been changed in state law since cal office and the DAS website. 1984 and the number of installment If senators have questions and con- loan company locations in Nebraska has cerns about the use of federal funds, fallen from 39 in 2005 to 10 in 2016. he said, they should start by obtaining “State licensed and examined in- and aggregating existing information stallment loan lenders with ‘brick and State ban on ivory sales fails rather than creating another layer of mortar’ locations are disappearing to advance bureaucracy.
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