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Floor Debate April 19, 2017

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Floor Debate April 19, 2017 Transcript Prepared By the Clerk of the Legislature Transcriber's Office Floor Debate April 19, 2017 [LB68 LB97 LB145 LB152 LB159 LB167 LB172 LB203 LB223 LB244 LB255A LB257 LB259 LB268 LB323 LB346 LB395 LB409 LB441 LB461 LB478 LB481 LB487 LB509A LB509 LB526 LB578 LB605 LB622 LB661 LR99 LR100 LR101] SPEAKER SCHEER PRESIDING SPEAKER SCHEER: Good morning, ladies and gentlemen. Welcome to the George W. Norris Legislative Chamber for the sixty-seventh day of the One Hundred Fifth Legislature, First Session. Our chaplain for today is Father Gary Coulter from Our Lady of Good Counsel Retreat House in Waverly, Nebraska, Senator Geist's district. Would you please rise. FATHER COULTER: (Prayer offered.) SPEAKER SCHEER: Thank you, Father Coulter. I call to order the sixty-seventh day of the One Hundred Fifth Legislature, First Session, Senators please record your presence. Roll call. PRESIDENT FOLEY PRESIDING PRESIDENT FOLEY: Mr. Clerk, please record. ASSISTANT CLERK: There is a quorum present, Mr. President. PRESIDENT FOLEY: Thank you, Mr. Clerk. Are there any corrections for the Journal? ASSISTANT CLERK: No corrections this morning. PRESIDENT FOLEY: Thank you, sir. Are there any messages, reports, or announcements? ASSISTANT CLERK: I have no messages, reports, or announcements. PRESIDENT FOLEY: While the Legislature is in session and capable of transacting business, I propose to sign and do hereby sign LR99, LR100, and LR101. We'll now proceed to the first item on the agenda, General File, 2017, committee priority bill. Mr. Clerk. [LR99 LR100 LR101] 1 Transcript Prepared By the Clerk of the Legislature Transcriber's Office Floor Debate April 19, 2017 ASSISTANT CLERK: Mr. President, LB409, introduced by Senator Groene. (Read title.) Bill was introduced on January 13, referred to the Education Committee. That committee placed the bill on General File with committee amendments. (AM955, Legislative Journal page 959.) [LB409] PRESIDENT FOLEY: Thank you, Mr. Clerk. (Doctor of the day introduced.) We'll now proceed to LB409. Senator Groene, you're recognized to open on the bill. [LB409] SENATOR GROENE: Thank you, Mr. President. Mr. President, members of the Legislature, LB409 as amended by AM955 is simply...in simple terms, would revise the Tax Equity and Education Opportunities Support Act, TEEOSA, by setting the base limitation rate, as known as the budget growth rate, at 1.5 percent and sets the local effort rate at 1.203 cents and funding that option at 95.5 percent. The net effect of these changes would be to increase our state aid obligation to roughly $999.9 million. I say that because I don't want to be the first Education Chairman that had a billion-dollar state aid bill. Appropriations Committee estimations that we can fund the 2.1 percent, $20.8 million increase over '16-17 state aid funding to Nebraska public schools. LB409 matches what the Appropriations Committee has appropriated. It adjusts the TEEOSA formula so it matches the $21 million increase. AM955 also contains a request by the Nebraska Department of Education to ensure that the transition aid is to be provided to those members of the Learning Community who was going to be financially harmed by the common levy going away beginning in '17-18 school fiscal year will be calculated properly. The intent of the transition aid was to soften the landing for those Learning Community schools that suffered a loss of resources from the common levy going away, but the consideration of those resources was intended to include the provision of community achievement plan aid which was accidentally excluded from the consideration as a resource. This amendment would recognize community achievement plan aid. The change to the base limitation rate, local effort rate, and the net option adjustment would be for the 2017-18 and 2018-19 school fiscal years. It also should be apparent that at our current fiscal climate is still on the fluid nature. We may need to make additional changes in the overall state aid amount if deemed necessary between now and the final passage. In that I would ask for a clean bill. This bill is really coming from the Education Committee. It has my name on it because we had to throw it in early to make sure it was there. But it really should be considered an Education bill. I believe it was an 8-0 vote from the committee to send it forward. Let's approve it cleanly. Let's not play games with it. Let's send this on so we can get on to the bigger task of debating the budget. Thank you, Mr. President. [LB409] PRESIDENT FOLEY: Thank you, Senator Groene. As the Clerk indicated, there are amendments from the Education Committee. Senator Groene, you're recognized to open on the committee amendment. [LB409] 2 Transcript Prepared By the Clerk of the Legislature Transcriber's Office Floor Debate April 19, 2017 SENATOR GROENE: First I believe...what's the name of the amendment I'm dropping? We are...we pulled AM474. Apparently you already did that. [LB409] PRESIDENT FOLEY: You've got Education Committee AM955 committee amendment. [LB409] SENATOR GROENE: Right. There was another amendment. I believe it got pulled. AM955 is the bill. It's basically what I discussed earlier. Like I said, the original bill was dropped early with obscure language, basically a shell bill, so that when the Appropriations Committee came up with a number, then at that point it was the duty of the Education Committee to match TEEOSA formula to that number. AM955 replaces the original language and it is the bill and it is what I described earlier. So I appreciate a green vote on AM955. [LB409] PRESIDENT FOLEY: Thank you, Senator Groene. Debate is now open on LB409 and the committee amendments. Senator Morfeld. [LB409] SENATOR MORFELD: Thank you, Mr. President. I rise in support of LB409 and AM955. That being said, I rise in support understanding the financial situation that we are in and that LB409 represents I think a middle ground and a good balance of the interests of making sure that we balance the budget while still maintaining strong education funding for the state of Nebraska. I will state, though, that I believe that with the tax cuts that have been proposed, that this course is unsustainable ensuring that we have high-quality education, good funding, and keeping in mind that we cannot sustain just 1 or 2 percent increases in education spending and maintain the high- quality education that we've been able to provide our children. Now I also understand, and I have stated time after time that we are too reliant on property taxes when it comes to education and that we need to find other funding streams to be able to balance or right the three-legged stool to ensure equity and fairness among all taxpayers. That being said, I think LB409 represents good middle ground despite my concern that it's not enough. And I think that we should advance LB409 and AM955. Thank you, Mr. President. [LB409] PRESIDENT FOLEY: Thank you, Senator Morfeld. Senator Stinner. [LB409] SENATOR STINNER: Thank you, Mr. President. Members of the Legislature, I rise today in support of LB409 and the accompanying amendment. I want to thank Senator Groene and the Education Committee for their hard work on this bill. It did come out of the committee 8-0, so it had unanimous support. I do want to say also that LB409 is a necessary part of our budget. It is the modification to TEEOSA that is necessary in order to get to a 2.1 percent increase in the biennium. K-12 is still the most significant increase that we have and our support of K-12 and school funding is still the most significant increase in our budget, so it remained a top priority. 3 Transcript Prepared By the Clerk of the Legislature Transcriber's Office Floor Debate April 19, 2017 Because of its importance, I would ask and urge that we don't get into an extended debate, that we have a clean bill, that we pass it as is. Therefore, I would urge you to vote green both on the amendment and LB409. Thank you. [LB409] PRESIDENT FOLEY: Thank you, Senator Stinner. Senator Linehan. [LB409] SENATOR LINEHAN: Thank you, Mr. President. I want to thank Senator Groene and the other Education members too. This is a tough bill to get through and I know lots of people had to give and it was take and Senator Groene did a great job of keeping his focus, getting the bill out of committee. I plan on supporting both AM955 and LB409. It does fit within the budget. I, like others on the committee and I think throughout the body, realize that we need to take a serious look at the way we're funding public education, including doing something about what seems somewhat inequitable about how much money goes to a certain group of schools and then a huge group of schools get very little money. So supporting this today does not mean that we don't need changes. We do need changes. We need to look at this between now and next session. But I think this is as good as we can...excuse me. I think Senator Groene worked extremely hard to try to be fair as to many schools as he can. There are some at the end, including my largest district in my...or largest school district in my district, that is probably taking a harder hit than I would like to see it take. But he...I agreed with him that, you know, we tried to do fair...be fair to the largest percentage of people.
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