UNICAMERAL UPDATE News published daily at Update.Legislature.ne.gov Vol. 42, Issue 7 / Feb. 19 - 22, 2019 Automatic cuts to top state income tax rates proposed uts to Nebraska’s top indi- vidual and corporate income Ctax rates would be tied to projected economic growth under a bill heard Feb. 20 by the Revenue Committee. LB615, introduced by Lincoln Sen. Mike Hilgers, would require the state tax commissioner to cut the top individual income and corporate tax rates—currently 6.84 percent and 7.81 percent, respectively—if projected state revenue growth is at least 3.5 percent and the state’s cash reserve fund holds at least $500 million. The cuts would occur in four annual steps until the rates reach 5.99 percent. Each time the conditions for a rate cut are met, the state treasurer would Sen. Mike Hilgers said cuts to the state’s top individual and corporate income tax rates would transfer $75 million from the cash grow Nebraska’s economy and could be included in a larger tax reform proposal. reserve to the property tax credit cash fund. Hilgers said the bill would provide additional property tax Assuming the bill’s requirements for a rate cut are met credits to agricultural producers and homeowners while also each year, the state Department of Revenue estimates that making the state’s top tax rates more attractive to individu- LB615 would reduce state income tax revenue by $15.7 als and businesses. He said elements of LB615 should be million in fiscal year 2019-20, an additional $71.6 million considered along with other proposals to reform the state’s in FY2020-21 and a further $158.3 million in FY2021-22. tax code this session. (continued page 2) Update to American civics requirements debated fter several hours of first- law requires school to hold at least two public meetings round debate spanning three boards to appoint annually and ensure that the district’s A days, lawmakers ended the three members social studies curriculum is accessible week without voting on a bill that to a committee to the public. would update social studies require- on Americanism, It also would ensure that the dis- ments for Nebraska schools. which approves trict’s curriculum aligns with state Peru Sen. Julie Slama, sponsor of textbooks used social studies standards and “teaches LB399, said the bill would be the first in the teaching of Sen. Julie Slama and assesses foundational knowledge major revision to the state’s civic edu- American history and government. in civics, history, economics, financial cation standards since the American- The newly named committee on literacy and geography.” ism statutes’ adoption in 1949. The American civics would be required Slama said some Nebraska stu- (continued page 3) INSIDE: Meet Sen. DeBoer • Sexual assault survivor protections sought • Committee hearing schedule February 19 - 22, 2019 Automatic cuts to top state income tax rates proposed (continued from front page) Joseph Young testified in support committee [against] using triggers “This [bill], in our view, makes an of the bill on behalf of the Nebraska based on expected growth and would already unfair and regressive state tax Chamber of Commerce and Industry, rather see triggers based on actual system worse,” Hansen said. the National Federation of Independent receipts to ensure a safeguard against The committee took no immediate Businesses in Nebraska, the Nebraska an overly optimistic forecast,” Fox said. action on the bill. g Bankers Association and the Lincoln Testifying in opposition to the bill Chamber of Commerce. He said Ne- was Renee Fry, executive director of Search for Bills braska’s high corporate and individual OpenSky Policy Institute. Fry said income tax rates make it uncompetitive LB615 would deplete the state’s cash Learn more about bills considered with other states when trying to retain reserve and cut state tax revenue at a by the Unicameral by logging on and attract people and businesses. time when economists are predicting to www.NebraskaLegislature.gov. “We are in a fierce battle, obviously, a recession. Similar automatic tax cuts for people and jobs in the state of led to a budget crisis in Oklahoma after The Legislature’s website offers Nebraska,” Young said. “The more we falling oil prices caused an unexpected a bill search on the upper-right can do to make Nebraska competitive, reduction in tax revenue, she said. portion of the home page. Entering a bill number will retrieve the bill’s the better off we will be in years to Most of the bill’s benefits would text, fiscal note, statement of come, even if it’s at a slower rate than accrue to the wealthiest Nebraskans, intent, votes, transcripts and more. all of us would like.” Fry added. Once fully implemented, Nicole Fox, director of government she said, the bill would give an average You also can search current laws relations at the Platte Institute, also tax cut of $7,800 per year to the top using the keyword search found testified in support, saying the bill is 1 percent of income earners, $94 per below the bill search. a fiscally responsible solution to the year to those with middle incomes and state’s “detrimentally high” tax rates. $11 per year for the lowest earners. She said the rate cut triggers in LB615 John Hansen, president of the Ne- do not guarantee tax cuts but only en- braska Farmers Union, also testified able rate reductions when projections in opposition. By cutting state income show that economic growth would tax revenue, he said, LB615 would offset a reduction in tax revenue. increase Nebraska’s overreliance on “We would, however, caution the property taxes to fund K-12 education. 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: Kate Heltzel; Writers: Kyle Harpster, Ami Johnson, Mike Malloy; Photographer: Bess Ghormley Printed copies of bills, resolutions and the Legislative Journal are available at the State Capitol room 1023, 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 • 106TH LEGISLATURE February 19 - 22, 2019 Update to American civics requirements debated (continued from front page) dents graduate from high school not Lincoln Sen. Patty Pansing Brooks form of government.” She said vetting knowing basic facts about the nation’s thanked Slama for addressing Educa- of teachers is best handled through the history or government, such as the tion Committee members’ concerns existing contracting process. three branches of government or the about requiring schools to administer Another Bolz amendment would difference between a state senator and the naturalization exam. The commit- have removed a provision in current a U.S. senator. tee amendment would improve the law stating that neglect of the Ameri- “I’m not saying with this bill that all social studies statutes by removing the canism statutes is a dereliction of duty school districts in Nebraska are doing existing criminal penalty and includ- and cause for dismissal of any school a bad job of civics education—far from ing curriculum options that encourage employee or appointed official. It it,” she said. “Most schools are doing civic engagement, she said. failed on a vote of 19-27. an excellent job, but there are some “Is it perfect? No … but the beauty Omaha Sen. Ernie Chambers filed where other subjects have forced civics of what we do is to strive to make a series of amendments and motions education into the background.” something better,” Pansing Brooks in order to delay a vote on the bill. LB399 also would add to the list said. Chambers said the Americanism of days on which schools are required Bennington Sen. Wendy DeBoer statutes should be repealed because to conduct patriotic exercises, such as said she would support the bill on they require teaching a version of Dr. Martin Luther King, Jr.’s birthday general file but would work with American history that does not em- and Native American Heritage Day. Slama to change some of its language brace all Americans, especially black The bill would eliminate the cur- before the second round of debate. Americans. rent criminal penalty for violating the It is “vitally important” that students Sen. Megan Hunt of Omaha also Americanism statutes’ provisions. learn about American history and opposed the committee amendment As introduced, LB399 would re- government, DeBoer said, but those and the bill. She expressed skepticism quire school districts to administer the lessons should be nuanced and clear about requiring the teaching of patri- 100-question civics portion of the U.S. about the nation’s flaws.