THE SHORTCOMINGS OF NEBRASKA'S EPIC OPTION

LINCOLN- A recent analysis of the EPIC Option Consumption Tax Initiative has noted a number of key inaccuracies in the proposal. The analysis, released by the Tax Foundation, reported that a consumption tax rate of 21.6% percent would be required to totally replace other state taxes — much higher than the 7.5% stated by EPIC backers. The report noted that there are several better ways to achieve relief. 

The report further said that the EPIC Option does not prevent local governments from enacting consumption taxes, meaning the total rate could be much higher than advertised. The burden would likely result in substantial cross-border shopping, allowing Nebraskans close to a border with a lower sales tax state to avail themselves of the lower rates while leaving taxpayers in the interior of the state to bear the brunt of the newly established consumption tax. 

Due to the high consumption tax rate, the anticipated economic benefits of the proposed tax overhaul are unlikely to materialize. The Tax Foundation warns that the proposal only notes a tax exemption for groceries. This means Nebraskans will be forced to pay new taxes on

medicine, health care, legal advice, dental work, food and dozens of other everyday necessities. The fate of EPIC is currently unclear as it seeking to be placed on the 2024 ballot. 

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STATE BOARD OF ED REJECTS MEASURE DEFINING AND BANNING SEXUALLY EXPLICIT MATERIALS IN SCHOOL LIBRARIES

LINCOLN- The Nebraska State Board of Education rejected a push Friday to define and ban sexually explicit books and materials from school libraries. Board Member Kirk Penner, who introduced the proposal, previously told the Douglas County Republican Party that he expected the changes to the Board of Education's Rule 10 to fail.

In failing, however, Penner said he hoped such an outcome would lead to the election of more conservative State Board of Education Members. During discussion before the vote, Penner asked other members to explain the educational value of school libraries offering books and graphic novels that depict sex acts.

"Ultimately, the question is why do adults feel the need to present this type of content to minor children?" asked Penner, garnering applause from the audience. Board members who voted in opposition to the proposal said they agreed that pornography shouldn't be in schools, but disagreed over what steps should be taken to address these materials.

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FIVE NEBRASKA LEGISLATIVE CANDIDATES HAVE ALREADY RASIED MORE THAN $100K

LINCOLN- The price of mounting a credible bid for the Nebraska Legislature continues to rise, with 2023 fundraising tallies hinting at 2024 being another big year for six-figure races. In 2023, five candidates for the $12,000-per-year job had already raised over $100,000, a number that is in line with accelerating trends in fundraising seen in recent years.

Sen. Eliot Bostar, a Democrat, leads the pack, raising $205,000 in 2023 and bringing his campaign cash on hand to $255,000. Sen. Carolyn Bosn, who was appointed by Gov. Pillen, leads the newcomers to the Nebraska Legislature with $140,000. Incumbents expected to face tough elections, like Sens. Jen Day and Ray Aguilar, both raised $113,000 and $110,000 respectively.

The final member of the six-figure fundraising club is Sen. Kathleen Kauth, who raised $101,000 in 2023. Kauth estimated that her race, when all is said and done, will likely cost between $180,000 and $220,000. "That is an astonishing number," she said. Her top Democratic opponent, Mary Ann Folchert, has raised $51,000.

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WATCHDOG RAISES CONCERNS ABOUT 'SCREENING TESTS' USED IN STATE PRISON TO DISCIPLINE INMATES

LINCOLN- A 25-page report released last week by the Inspector General for Corrections is raising concerns about the use of 'field' drug tests to punish inmates, including extending their time behind bars, without confirming such tests with an accredited lab. The lack of adequate testing and confirmation, according to the IG report, raises questions about "fairness."

In the report, the Inspector General recommended that prison staff be educated about the limitations of field drug tests and that a process for providing confirmation lab tests be established, as is currently required by law for urine drug tests. The penalties for a drug offense in prison range from loss of "good time" reductions in sentences and removal from work release, and can even require that inmates be transferred to a higher security prison.

The Nebraska Department of Corrections, in an official response, said it would take the IG's recommendations "under consideration." However, in an email, State Corrections Director Rob Jeffreys said that blocking the flow of synthetic marijuana and other drugs presents a huge challenge. "We need to be proactive, vigilant, and steadfast in our drug interdiction strategies," said Jeffreys.

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NEBRASKA FATAL FETAL ANOMALY EXCEPTION FOR ABORTIONS STALLS IN LEGISLATURE

LINCOLN- Last week, the Nebraska Legislature's Judiciary Committee voted 3-2 to advance Sen. Riepe's LB1109, which would add an exception for fatal fetal anomalies to the state's 12-week abortion ban, out of committee, but five votes were needed to progress the bill from committee.

Riepe said he was disappointed by the outcome, but not surprised. "It is what it is," said Riepe of the vote. Despite naming LB1109 as his priority bill this year, Riepe said he expected heavy resistance. Indeed, the bill's public hearing drew overwhelming opposition, with just three individuals testifying in support.

LB1109 would allow a woman in the state to receive an abortion beyond 12 weeks of pregnancy if at least two physicians determined that the fetus had a condition that would result in death outside the womb. It would also clarify that medical professionals who perform abortions could not be charged with criminal penalties.

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AS SEARCH FOR NEXT NU PRESIDENT CONTINUES, EXPERTS SAY HIGHER ED LEADERSHIP IS CHANGING

LINCOLN- The University of Nebraska Board of Regents has met in closed sessions four times since January as they search for the next president of the NU System. While the board has yet to indicate where they are in the process, many believe they are closing in on the selection of a priority candidate.

"It's proceedings very well," said Regent Tim Clare in early February. Later this month, NU will cross the seven-month threshold from the time former President Ted Carter left to become president of Ohio State University. Clare said that while he intended the search to proceed expeditiously, the regents would take as long as they need to find the right person for the job.

"College presidencies are very complicated, complex jobs," said Hironao Okahana, assistant vice president of research at the American Council of Education. Okahana, citing several of the issues the next NU president will need to overcome, like a $58 million budget shortfall, said college administrators are being asked to think more holistically about educational institutions than they ever have before.

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FISCHER, FLOOD SECURE $25M MORE FOR NU INNOVATION CAMPUS AG RESEARCH CENTER

LINCOLN- Funding for a U.S. Department of Agriculture research facility, which is set to be built on the Nebraska Innovation Campus, was included in a federal spending bill approved by Congress and signed by President Biden last week. The appropriations package included $25 million for the National Center for Resilient and Regenerative Precision Agriculture, which is set to break ground this spring.

"This is a remarkable investment that will further Nebraska's status as a world leader in agriculture," said University of Nebraska Interim President Chris Kabourek. Sen. Deb Fischer, a member of the Senate Appropriations Committee, sponsored the funding bill in the Senate, while Rep. Mike Flood guided it through the House of Representatives.

"The investments we make today will ensure Nebraska is well positioned to seize the opportunities ahead," said Fischer in a statement. This additional funding was among $48.1 million in Community Projected Funding requested by Rep. Mike Flood. "All but one of our original funding requests received funding, which is an incredible result," said Flood.

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NEBRASKA UNVEILS FIRST CLIMATE ACTION PLAN, AIMING TO REDUCE EMISSIONS BY OVER 30%

LINCOLN- Earlier this month, the Nebraska Department of Environment and Energy submitted the state's first Climate Action Plan to federal regulators, outlining voluntary and incentive-based programs aimed at reducing greenhouse gas emissions and other harmful air pollutants.

The 84-page plan, which the state submitted to the EPA, highlights the first steps Nebraska will take in its efforts to reduce emissions in six economic sectors across the state. Officials will eventually work to develop a Comprehensive Climate Action Plan targeting more long-term reductions in emissions.

The Department of Environment and Energy, which was given a grant of $3 million to develop the priority and comprehensive plans, proposed more than a dozen measures aimed at reducing greenhouse gases in agriculture, energy production, transportation, industry, commercial and residential buildings, and waste and water.

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SPECIAL EDUCATION, READING, COMPUTER SCIENCE AND OTHER BILLS ADVANCE FROM EDUCATION COMMITTEE

LINCOLN- Sen. Lynne Walz, a member of the Legislature's Education Committee, hailed the advancement of LB1284 from the committee, a package of nine bills geared toward training teachers in reading instruction, computer science and technology, dyslexia research, and special education.

"We, as the Education Committee, just put together a package of bills that will really provide good solutions for kiddos, for families, for people who may be going into the teacher profession," Walz said. The State Board of Education is in favor of nearly every bill in the package, having appeared in a neutral capacity on just LB985.

A tenth bill, Sen. Danielle Conrad's LB1050, is being considered for the package. LB1050 would require schools to provide access to menstrual products in school bathrooms, an endeavor that advocates say would reduce "Period Poverty" in the state. The committee voted 4-1 to advance the bill, falling just one vote short of placing it on the floor of the Legislature for broader debate.

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JIM MACY, STATE ENVIRONMENTAL CHIEF FOR NINE YEARS, TO RETIRE NEXT MONTH

LINCOLN- Effective April 19th, Jim Macy, the nine-year director of the Nebraska Department of Environment and Energy, will retire from his post. Macy worked 28 years with the Missouri Department of Natural Resources before being hired by then-Gov. Pete Ricketts for the top job at the Nebraska Department of Environmental Quality, which later merged with the state's energy department.

In a press release, Gov. Pillen thanked Macy for his years of public service and wished him well. Macy's tenure at the department was marked by criticism over the department's handling of an ethanol plant near Mead that had failed to comply with agency orders and state regulations with its use of pesticide-coated seed corn.

Last year, during debate over Macy's reconfirmation to the department in the Nebraska Legislature, Sen. Carol Blood criticized the director for not acting more quickly to shut down the ethanol plant. Pillen announced that Thad Fineran will serve as interim director of NDEE starting April 1st. Fineran is the current chief of staff to Maj. Gen. Craig Strong, the adjutant general of the Nebraska National Guard.

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NEBRASKA RANKED FIFTH IN THE NATION FOR LOW UNEMPLOYMENT RATE

LINCOLN- On Monday, the federal Labor Bureau released data indicating that Nebraska was ranked fifth in the nation for low unemployment, with the state sitting just behind North Dakota, South Dakota, Maryland, and Vermont. Nebraska's current unemployment rate sits at 2.5%, while the national average is 3.7%.

Nebraska Labor Commissioner John Albin said the state's labor force grew by about 5,111 last year, with the state's current workforce resting at 1.05 million people. "The number of employed workers increased by 1,019 over the year," Albin said. However, despite being quite low nationally, Nebraska's 2.5% unemployment rate was up from last year's 2.1% rate in January of 2023.

Additionally, the state's number of filled nonfarm jobs was 1.038 million in January 2024, down about 23,840 over the month before. This year, the Labor Bureau's date was delayed due to an annual benchmarking revision process, which will also push back February's employment data.

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LAWMAKERS FAIL TO OVERRIDE PILLEN VETO AS CONSERVATIVES FLIP VOTES, SIDE WITH GOVERNOR

LINCOLN- On Tuesday, the Nebraska Legislature failed to approve a veto override that would have allowed pharmacies and other entities in the state to distribute hypodermic needles to drug users to stave off the spread of communicable diseases. In a dramatic vote, the body voted 27-20, falling short three votes to override the veto. 

Seven lawmakers who had supported the original proposal, LB307 introduced by Sen. Megan Hunt, ultimately reversed their votes on Tuesday. Sens. Christy Armendariz, Carolyn Bosn, Tom Brewer, Rick Holdcroft, Jana Hughes, Fred Meyer, and Mike Moser all flipped their votes after supporting the bill just two weeks ago. 

Sen. Hunt argued that Pillen's veto came not because of the content of the proposal, but because of the governor's personal distaste for the Omaha lawmaker. "What happens on the board today is not because of policy," said Hunt. Several conservative lawmakers, including Speaker John Arch and Sens. Tom Brewer and Mike Jacobson, supported the override motion and the underlying bill.

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GOV. PILLEN APPROVES NEBRASKA GENDER CARE REGULATIONS

LINCOLN- Gov. Jim Pillen approved the final rules and regulations for Nebraska’s gender care law, ending the administrative process as a legal challenge continues to play out. Pillen, in a news release, announced the approval of Nebraska DHHS regulations for puberty blockers and cross-sex hormones. The restrictions apply to Nebraska minors under 19 years old and will take effect in a week.

Pillen said the state must protect children from “potentially irreversible and regrettable decisions — decisions for which they may not completely understand the consequences” — and thanked lawmakers for passing Legislative Bill 574 last year to enact the requirements. Multiple doctors have disagreed with the regulations calling them unclear.

Under the final regulations, youths must receive at least 40 hours of “gender-identity-focused contact hours of therapy” before the prescription of puberty blockers or cross-sex hormones. The ACLU are challenging LB 574 in court, arguing that the bill, after lawmakers attached a 12-week abortion ban, violated the Nebraska Constitution’s “single subject” provision.

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ADVOCATES FOR DEVELOPMENTALLY DISABLED RALLY FOR MORE THAN 'GOOD ENOUGH FOR YOU' FUNDING

LINCOLN- Advocates for the developmentally disabled filled the Capitol Rotunda this week to rally for adequate funding for service providers. Multiple service providers said their agencies have been forced to close locations and stop offering services due to inadequate state reimbursement for services. The rally came as floor debate began in the Nebraska Legislature on the state budget.

The budget calls for a $27.5 million increase in funding for services for the developmentally disabled, of which $10 million comes from state funds and the rest from federal funds. Advocates, during the noisy rally, called for an increase in that funding to $52 million, with $25 million in state funds attracting $27 million in matching federal funds. Proponents said the increase would address the state's DD waitlist.

State Sens. Ben Hansen of Blair, Tony Vargas of Omaha, Myron Dorn of Adams and Danielle Conrad of Lincoln attended the rally. Advocates are backing a bill introduced by Lincoln Sen. George Dungan that would provide $52 million in funding for DD services, about double what is in the proposed budget currently.

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PUBLIC SERVICE COMMISSION REJECTS RECONSIDERATION OF OVERLAPPING BROADBAND GRANTS

LINCOLN- A state commission that hands out grants to expand high-speed internet services decided to reject a request to reconsider a $535,500 grant that overlapped with another broadband project. Dan Watermeier, the chair of the Nebraska Public Service Commission, said Nextlink Internet failed to follow proper procedure by not challenging the grant given to a competitor, Pinpoint Communications, to deliver high-speed internet to the same area near Beatrice.

In its order denying the reconsideration, the PSC stated that Nextlink did not meet the deadline to challenge the Pinpoint grant and that the commission lacked specific, detailed information to determine whether Nextlink could serve the contested locations within 18 months, as required by the state-funded Broadband Bridge program.

During the 2023 grant cycle, the PSC received 51 applications for Broadband Bridge grants and approved 22 projects at a cost of $19.7 million. Those projects must be completed by July 9, 2025. Last year, as part of the Biden administration’s “internet for all” initiative, Nebraska received $405 million in federal funds to expand affordable, reliable high-speed internet service.

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PLATTE INSTITUTE, OTHER ADVOCATES CELEBRATE NEW NEBRASKA OCCUPATIONAL LICENSING REFORMS

LINCOLN- Advocates behind an overhaul of Nebraska occupational licensing celebrated the passage of a new law Wednesday, one week after Gov. Jim Pillen approved the measure. State Sen. Danielle Conrad of Lincoln, who spearheaded LB16 this year, described the proposal as a “comprehensive rewrite” of the state’s occupational licensure laws. “After many, many years of hard work, we were able to finally bring it across the finish line this year,” Conrad said.

Laura Ebke, senior fellow for the Platte Institute, which advocates to remove barriers in the state, pointed to a handful of states, such as Arizona, that have advanced universal recognition of licenses and seen success. “If we can have a portion of that success, that’ll be wonderful,” Ebke said. LB 16 proves that good policy is cross-partisan and cross-ideological, Ebke said.

The legislation provides additional ways to license experienced workers coming from out of the state. Conrad said the bill removes red tape and barriers at a minimal cost with specific relief. The legislation is also part of “proven strategies” allowing second chance employment for people who have been involved with the criminal justice system but can then reenter society and the workforce successfully, Conrad explained.

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PARTS OF TAX-RELIEF PACKAGE START TAKING SHAPE

LINCOLN- The Nebraska Legislature’s Revenue Committee started shaping two of the six bills Wednesday that leaders say will contain the group’s broader tax-relief package. The committee spent much of the morning in an executive session combining tax credits, tax deductions and tax tweak proposals into Legislative Bills 937 and 1023.

That proposal from Revenue Chairwoman State Sen. Lou Ann Linehan of Omaha comes after Gov. Jim Pillen has discussed reducing sales tax exemptions to provide property tax relief. Most of the measures added to the committee bills were folded in unanimously. Albrecht’s received no votes from State Sens. George Dungan and Eliot Bostar, both of Lincoln.

Thus far, the proposal includes portions of Legislative Bills 606, 1158, 1184, 1400, and 1049. The committee started discussing the potential to reduce some separate tax incentives for businesses now that the state has cut income taxes. They said they needed more time to talk. The Committee spent the remainder of the week discussing plans to increase the state sales tax to offset property taxes.

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MORE SCRUTINY COMING OVER USE OF STATE LEGISLATIVE SPACE AFTER BIBLE STUDY HELD IN HEARING ROOM

LINCOLN- A Bible study group that ministers to the State Capitol is in hot water after using a state legislative hearing room for an unauthorized purpose. Public spaces in the Capitol are reserved for meetings that “have a reasonable relationship to the legislative process,” according to policy. However, a meeting by a group called Capital Studies was deemed a religious event.

“I got lied to,” said Brandon Metzler, the clerk of the Legislature, whose office approves requests to use legislative hearing rooms and other “public” spaces in the building. The Capital Studies meeting had about eight attendees, including three state senators, at least one legislative staffer and Arin Hess, a former minister who serves as the chaplain and president of Capital Studies.

“It’s not an open forum for any group that wants space,” Metzler said. State Sen. Loren Lippincott of Central City, in his written request for the use of the hearing room, listed the purpose as “hosting district community leaders” and stated that 10 state senators and a total of 40 people would be attending. It did not list Capital Studies as leading the meeting. Metzler said requests will be under additional review in the future.

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SENATORS GIVE FIRST-ROUND APPROVAL FOR STATE BUDGET ADJUSTEMENTS WITH FEW CHANGES

LINCOLN- State lawmakers gave first-round approval Wednesday to the mid-biennium budget bill that made few changes from the spending proposals of Gov. Jim Pillen. The budget calls for a spending increase of 3.1%, which is slightly higher than the 2% increase called for by the governor because of an unexpected, $94 million increase in state aid to K-12 schools.

The “good news,” according to State Sen. Rob Clements of Elmwood, the chair of the budget-writing Appropriations Committee, is that $904 million will be left in the state’s cash reserve fund at the end of the two-year budget in June 2025, and the budget should show excess funds of nearly $575 million. During the debate, concerns were voiced about various spending cuts such as in developmental disabilities.

Concerns were also raised about whether the state can sustain the deep cuts in state income taxes passed a year ago, but there was also talk of amendments during second-round debate. State budget figures indicate that the excess $575 million in cash will shrink to $68.5 million at the end of the 2026-27 fiscal year, as the reduction in income tax revenue takes effect.

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HOUSING ADVOCATES CONVERGE AT STATE CAPITOL, HEAR GRIM UPDATE ON AFFORDABLE HOUSING EFFORTS

LINCOLN- The Nebraska Legislature gets a “low” score for progress so far this year on improving affordable housing options, State Sen. Tony Vargas of Omaha said Wednesday during an annual housing justice and lobbying event that drew about 100 advocates to the Unicameral. “We are not keeping up,” Vargas said, adding that Iowa spends twice as much as Nebraska on affordable housing.

Carol Bodeen, director of policy for the Nebraska Housing Developers Association, was among others who offered a grim update: “We do feel concern.” Their remarks come on the heels of a recent survey in which state legislators boosted affordable housing to among the top two priorities warranting action, said Sen. Wendy DeBoer of Omaha, who chairs the Legislature’s Planning Committee.

Affordable housing, as defined by the federal government, is that in which the occupant is paying no more than 30% of gross income for housing costs, including utilities. Bodeen and others told the group that the increased cost to build new homes, low inventory of existing homes and out-of-state investors scooping up used houses to rent have put homeownership out of the reach of many Nebraska families.

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