STATE AUDITOR EXPOSES QUESTIONABLE HANDLING BY DHHS OF TENS OF MILLIONS OF FEDERAL DOLLARS

LINCOLN- According to a newly released statewide audit report, more than $21 million in questionable spending of federal pandemic funds was undertaken by the Nebraska Department of Health and Human Services. State Auditor Mike Foley highlighted several suspect expenditures, including funds used for talent recruitment services for nursing homes.

Foley noted that the examples cited in the audit are "far from comprehensive," and said the mishandling of pandemic dollars is but a small part of ineffective oversight by DHHS. However, Foley said that he has faith that the newly confirmed DHHS CEO Steve Corsi can implement corrective action based on the findings of the audit.

"He inherited an agency with some major issues," said Foley, calling Corsi a "no-nonsense" kind of person. According to a statement released by Corsi responding to the findings, his intention is to correct internal safeguards on monitoring and using tax dollars. "DHHS can and will resolve these issues," he said, "We will do the work and make the changes necessary to ensure tax dollars are spent both wisely and appropriately."

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LAWMAKERS ADVANCE INLAND PORT BILL THAT SEEKS MORE PUBLIC INPUT IN NORTH OMAHA DEVELOPMENT

LINCOLN- LB164, a modified version of a 2021 law that created inland port districts, was advanced on Tuesday with the intention of garnering more community input for the multimillion-dollar economic development project planned for North Omaha. Before being advanced on a 31-0 vote, the bill was amended to include a transfer of $20 million for an innovation hub in North Omaha.

The bill, as amended, will also create child care grant programs that had been part of another lawmaker's proposal. However, Sens. Terrell McKinney and Justin Wayne said the gist of the proposal is to provide more oversight for the unprecedented amount of funding being diverted to North Omaha.

"If we're going to invest this much into an area, we should have some transparency and oversight to see things through, to make sure they're done properly," said McKinney, referencing the $90 million that lawmakers allocated for a business and industrial park near Eppley Airfield. LB164 lays out rules for who can serve on a nine-member board that will govern the North Omaha inland port authority district.

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IN UNUSUAL MOVE, MAJOR TAX BILL RE-ADVANCED FROM COMMITTEE AFTER CONCERNS RAISED

LINCOLN- Last Thursday, LB388, a major tax relief proposal introduced at the request of Gov. Pillen, was voted out of the Revenue Committee. However, after concerns were raised by Sen. John Cavanaugh over the fact that an actual draft of the bill was not available, it was pulled back into committee.

On Tuesday, Sen. Lou Ann Linehan and the Revenue Committee re-advanced the bill on a 7-1 vote, this time with a 62-page amendment. The new amendment corrected several errors in the original proposal that committee members said appeared during the bill-drafting process. The updated proposal, which would shift funding for K-12 education onto state sales taxes to lower property taxes, is to be debated upon Wednesday.

Several school groups, including Omaha Public Schools, said they are still digesting the content of LB388. Liz Standish, associate superintended of Lincoln Public Schools, said the newest version of the proposal appears to address concerns about the new revenue cap being too restrictive for school districts.

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OMAHA MAYOR JEAN STOTHERT WILL RUN FOR A FOURTH TERM

OMAHA- Mayor Jean Stothert announced this week that she intends to run for a fourth term. She was first elected in 2013, becoming the first female mayor of Nebraska's largest city, and was reelected twice. She had served on the Omaha City Council before she was elected mayor. She acknowledged that the city has "challenges. Every growing city does.”

“We really have a record of progress, determination and success. And together, we do have the momentum to build Omaha into the city of the future," Stothert said. “We are focused on public safety, employment and business growth, investment in our urban core and historic neighborhoods, strong financial management and creating opportunities for everyone.”

The mayor also said that the city's tax levy is at its "lowest rate since 2010" and that hotel occupancy is now at the highest level the city has seen for 16 years. Joining Stothert at her announcement event was Former Nebraska Gov. Dave Heineman. The election for mayor and other city offices is in 2025.

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PILLEN TO SEND NEBRASKA NATIONAL GUARD, STATE TROOPERS TO SOUTHERN BORDER

LINCOLN- As promised, Gov. Jim Pillen will be sending another group of Nebraskans to patrol the southern border. In early April, 35 members of the Nebraska National Guard will deploy for 90 days in Eagle Pass, Texas, in support of counterparts with the Texas National Guard, the Governor’s Office announced this week. Last year, Pillen sent two separate deployments to the southern border.

As he did last year, Pillen defended the deployment as a necessary step to address an “ongoing crisis” at the U.S.-Mexico border.

“Every state is a border state, and what happens along our nation’s southern border affects us right here in Nebraska,” Pillen said in a press release. He said the group will help stop illegal immigration and keep deadly drugs off Nebraska streets.

The deployment is in response to a request from the State of Texas through the Emergency Management Assistance Compact, which is used by states to request assistance from other states in the case of disasters. Major Gen. Craig Strong, the adjutant general of the Nebraska National Guard, said that Nebraska troops are “always ready to respond.”

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CORSI CONFIRMED AS CEO OF NEBRASKA DHHS DESPITE LAWMAKER QUESTIONS

LINCOLN- The Nebraska Legislature on Monday confirmed Steve Corsi as CEO of the State Department of Health and Human Services, accepting Gov. Jim Pillen’s controversial pick. The vote came after several senators led an organized opposition that raised questions about his past employment and concerns about where he draws the line between his private beliefs and his public job.

State Sen. Machaela Cavanaugh and her brother, John, led the questions about Corsi, including many raised from a packet she shared with senators about the nominee’s past actions while in public jobs. The senators discussed Corsi's past employment connections as well as concerns about payment reception in the state of Missouri.

Opposing senators also discussed Corsi’s social media posts, including some he liked or shared that LGBTQ advocates and others described as condescending, rude or hateful. Multiple senators said they would've liked the chance to meet with Corsi prior to the confirmation vote. In the end, Corsi was confirmed with few votes to spare and will be paid a salary of $257,000.

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INCUMBENT U.S. SEN. FISCHER A HEAVY FAVORITE IN GOP PRIMARY; OSBORN LIKELY AWAITS

LINCOLN- Nebraskans could face an unusual choice this November, between Republican U.S. Sen. Deb Fischer, and a nonpartisan instead of a Democrat, barring an earthquake upset during a mismatched GOP primary election in May. Omaha union leader Dan Osborn has raised $500,000 for his outside bid and has the most cash on hand of anyone in the Nebraska congressional delegation.

The 2024 race has no Democratic candidate and only a last-minute Republican challenger, perennial candidate Arron Kowalski. Fischer is seeking a third term despite saying during her first run for Congress that she would stop at two terms. “I served under term limits in the Nebraska Legislature, but that’s not how the Senate works,” said Fischer. Fischer stressed the need for seniority representation.

Most observers expect Fischer, a former Nebraska state senator and Valentine Community Schools board member, to advance in the May primary over Kowalski, a central Nebraska farmer. Osborn will not be on the primary election ballot and must petition his way onto the general election ballot. His campaign said Osborn expects to turn in the more than 4,000 signatures necessary long before the Sept. 1 deadline.

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WORKFORCE PROGRAM THAT GREW UNDER THE GREATER OMAHA CHAMBER TAKES FLIGHT AS ITS OWN ENTITY

OMAHA- A program, previously connected to the Greater Omaha Chamber, that seeks to offer a different twist to addressing the state's workforce woes has gone solo, in part to try and reach farther across Nebraska. Known previously as GrOW, the program, which began in 2019, has grown to a team of eight and is now an independent entity called The Work Lab Inc.

According to Chad Mares, a former Coca-Cola human relations director who helped launch the program, and who currently still exists as the entity's executive director, Work Lab services are distinct because they focus on attending to more personal challenges for employees rather than those directly related to their job.

The program uses trained "WorkLife Coaches," who meet with employees at the job site to talk through matters that can range from family and friend relationships to money demands and housing needs. Mares described the coaching services as providing a "bridge" between employee's personal and professional life.

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JACOBSON BILL PASSED TO BRING IN MORE THAN $1.4 BILLION FEDERAL BOOST FOR NEBRASKA HOSPITALS

LINCOLN- Last Thursday, state lawmakers voted 45-0 to pass LB1087, a bill that could bring in more than $1.4 billion in federal funds to boost payment rates to hospitals in the state. The bill now awaits a signature from Gov. Jim Pillen. Nebraska hospitals proposed the legislation to address growing financial struggles, created in part by below-cost Medicaid payment rates.

Under the bill, hospitals would pay an assessment of up to 6% of net patient revenue, with money collected from these being utilized by the state to match federal funds. Updated numbers from the Legislative Fiscal Office show that the hospital assessments generated from LB1087 could net around $1.425 billion in federal matching funds.

Jeremy Nordquist, president of the Nebraska Hospital Association, said that such an increase in federal funding could increase Medicaid rates to nearly the cost of services for Nebraska's 98 hospitals, helping facilities fight financial struggles. LB1087 would also set aside 3.5% of the assessments to boost Medicaid payment rates for doctor, dental, nursing home, and other services.

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BREWER MEASURE TO EXPAND VETERANS COURTS IN NEBRASKA ADVANCED BY LEGISLATURE

LINCOLN- Last Thursday, the Nebraska Legislature advanced Sen. Brewer's LB253, which would give judges across the state the authority to connect with veterans who wind up in court with services to help them deal with their underlying traumas. The bill would also direct the Nebraska Probation System to create a veteran justice program in each district in the state.

"I do not think being a veteran should be a permit to commit crimes, but I think we need to make sure the system works to address those issues," said Brewer, who spent 37 years in the military. Under the bill, veterans who commit crimes a judge deems unqualifying for the program would not be allowed to participate, and a victim of the veteran's crimes would also be given a chance to address the court during the process.

However, if assigned a case plan, veterans would receive supervision and treatment to help address post-traumatic stress disorder, traumatic brain injuries, military sexual trauma, and other conditions tied to service in the armed forces. Should a veteran complete a case plan, their case would be dismissed.

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MALCOLM X ANNUAL RECOGNITION DATE IS ON TRACK, AS STATE HOLIDAY OPTION POSED FINANCIAL CONCERNS

LINCOLN- The effort to establish a state holiday in honor of Omaha-born Malcolm X has been derailed amid concerns over cost, but an annual state recognition of the slain human rights leader on his birthday appears to be on track. This compromise, spearheaded by Sen. Terrell McKinney, is moving its way through the Legislature and is expected to meet no resistance.

An amendment recognizing Malcolm X was attached to a bill introduced by Sen. Danielle Conrad that seeks to declare October 17th as Nebraska Missing Persons Day, which passed to its final step of date and is awaiting adoption by the Legislature. McKinney's amendment calls for the day to be "set apart for holding suitable exercises in the schools of the state in recognition of the sacrifices of the late Nebraska Hall of Fame inductee...and his contributions to the betterment of society."

JoAnna LeFlore-Ejike, executive director of the Malcolm X Memorial Foundation, said supporters stand proud at the thought of a Nebraska law creating a day of recognition for the "iconic native Nebraskan," and highlighted how pleased she was that this was a bipartisan endeavor.

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LAWMAKERS ADVANCE CRIME PACKAGE TARGETING DECEPTIVE TRADE, CHILD EXPLOITATION

LINCOLN- On Thursday, Nebraska lawmakers took a first step in advancing two portions of a three-part crime package that Attorney General Mike Hilgers previewed earlier this year. The bill, Sen. Bosn's LB935, would allow the Attorney General's Office and defendants to demand jury trials in response to alleged consumer protection violations or deceptive trade practices.

The Attorney General would also be granted the authority to freeze a bad actor's assets and prevent them from expending stolen funds. Bosn, a former prosecutor, pointed to two cases in the past year in which Nebraskans fell victim to elaborate scams. In one, a fraudulent farm equipment company scammed an Omaha family out of $9,200. In another, Hilgers sued a private Husker ticket package seller for allegedly scamming $87,000 from donors.

"I'm asking you to help give Nebraskans hope when they fall victim to these circumstances," said Bosn to her colleagues. Sen. Christy Armendariz's LB1096, which is designed to combat online child exploitation and human trafficking beyond the geographic limits of Nebraska, was also amended into the package. LB1096 would expand the definition of deceptive trade practice to include publicly available visual depictions of sexually explicit conduct, obscene material, or material harmful to minors.

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NPPD EXECS' SIX-FIGURE BONUSES PUT EARNINGS FAR ABOVE RANK-AND-FILE SALARIES

OMAHA- A report released this week noted large bonuses being paid to leaders of NPPD, in some cases doubling their salaries. “John Dent, Nebraska Public Power District’s chief nuclear officer, made a base salary of $646,000 in 2023, an amount similar to other public power executives in Nebraska. But after a bonus of $640,280, his total compensation doubled his salary to $1.3 million,” the report states.

His bonus alone is nearly double the salary of the governor, and his total pay pushes Dent into a pay bracket higher than even his boss. Sen. Tom Brewer called the increases shocking.  Because Nebraska is the only state in the country served entirely by publicly owned utilities, NPPD says the high pay is necessary in order to be able to fill those key jobs — and keep them filled — while maintaining high performance for services that Nebraskans depend on. 

Still, advocates say that those kinds of decisions — like making Dent’s 2023 bonus nearly 100% of his base salary, even if it’s awarded under a nuclear-focused incentive program — deserve transparency. Meanwhile, in a program rolling out this year, most NPPD employees below the supervisor level will be eligible to receive bonuses at either 2.5% or 5% of their salaries; and those at the vice president level will be eligible for a 30% bonus. 

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INCOME TAX CREDIT FOR NEBRASKA CRISIS PREGNANCY CENTER DONATIONS SURVIVES VOTE

LINCOLN- Nebraska lawmakers included a dose of abortion politics in a package of tax cut bills this week, voting to offer income tax credits to people donating to crisis pregnancy centers. But it remains to be seen if LB937 can survive the next two rounds of consideration, given the state’s fiscal constraints. In regard to the first round of debate, the bill advanced 40-0.

Legislators said they would vote to keep the package alive until the Legislature gets an updated cost estimate for it, then start the process of deciding what measures the state can afford. Lawmakers have room to increase spending or cut taxes by about $20 million per year before sending the budget into the red.

If every bill that has cleared at least one round of debate were to pass, the state general fund would be nearly $370 million in the hole by June 30, 2027, according to the Legislative Fiscal Office. That total does not include the cost of LB 937 or bills awaiting first-round debate. The bill includes 12 other bills, with the biggest concern being $2 million for tax credits to benefit people who donate to crisis pregnancy centers.

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SEN. MACHAELA CAVANAUGH ASKS COLLEAGUES TO UPHOLD 'JUSTICE AND DECENCY' AND CENSURE SEN. STEVE HALLORAN

LINCOLN- An emotional public hearing over a rare request to censure a state senator ended Thursday with the committee deferring action until after the four-day Easter weekend. That came despite a request by Sen. Machaela Cavanaugh for an “immediate” decision on whether to censure fellow Sen. Steve Halloran of Hastings for vulgar statements directed at “Senator Cavanaugh” during floor debate March 18 over an obscenity bill.

Sen. Ray Aguilar, who chairs the Exec Board, said after the half-hour hearing that events Thursday were “too emotional,” and he wanted members of the committee to consider their decisions over the weekend. Cavanaugh, the only testifier at the hearing, called on the committee to uphold “justice and decency” by issuing a censure, a formal expression of extreme disapproval.

The censure request was filed after Halloran, during floor debate on March 18, repeatedly inserted the name “Senator Cavanaugh” as he read a graphic description of a rape contained in the book, “Lucky.” Halloran, in an email to reporters, said he did not want to attend and “give credence” to a legislative hearing he maintained violated two legislative rules.

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LAWMAKERS APPROVE PRENATAL PLUS, VAPING REGULATIONS, HELMET REVISIONS AND MORE

LINCOLN- A host of Nebraska legislative proposals gained final approval this week, including expanded support for mothers, vape regulations and changes to the state helmet law. Should Pillen approve the measures, most proposals would become law three months after the Legislature adjourns. If Pillen vetoes any bills, the Legislature has the opportunity to seek an override. 

LB857 creates the Nebraska Prenatal Plus Program, expanding Medicaid coverage for at-risk mothers for six prenatal nutrition counseling visits and targeted case management. LB1204 carries a package of bills from the General Affairs Committee, such as bills regarding gambling, vaping and alcohol and spirits. LB1102 establishes Oct. 17 as Nebraska Missing Persons Day.

LB1004 seeks to clarify a new law that allows certain motorcyclists older than 21 to ride helmetless on Nebraska highways, which went into effect Jan. 1. LB906 increases the penalty for child labor violations from a Class II misdemeanor to a Class I misdemeanor. Also passing was a bill to recognize May 19, the birthday of the Omaha-born human rights leader Malcolm X, as El-Hajj Malik El-Shabazz, Malcolm X Day. 

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DEBATE BEGINS ON 'MASSIVE' TAX BILL PROPOSED BY GOVERNOR TO REDUCE PROPERTY TAXES

LINCOLN- Debate on Gov. Jim Pillen’s controversial property tax relief plan began Wednesday, with advocates saying it will result in a net tax savings and opponents saying it’s a tax shift that will hurt middle- and low-income families. The plan calls for up to a 1-cent increase in state sales taxes, hikes in taxes on cigarettes, vaping products and hemp gummies, and new taxes on soda pop and candy, state lottery tickets and veterinary bills for pets.

That would generate an additional $730 million in revenue, according to Pillen administration estimates, which would be sent to K-12 school districts to reduce local property taxes by an average of 30%, when coupled with other recent tax relief measures. After an initial four hours of debate, it wasn’t clear that the plan could generate the 33 votes to fend off a filibuster and advance LB388 from first-round debate.

Before debate ended Wednesday night, Elkhorn Sen. Lou Ann Linehan, the main sponsor of the governor’s bill, asked for a “pause” in the debate until next week so that some drafting errors in the bill could be corrected. “If you come up with some brilliant plan where we don’t have to raise sales taxes, I’m all in,” Linehan told her colleagues.

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LINCOLN JUDGE FINDS RETROACTIVE PORTIONS OF LB50 UNCONSTITUTIONAL; DECISION BEING APPEALED

LINCOLN- On Wednesday, Lancaster County Court Judge Susan Strong ruled retroactive portions of LB50, a comprehensive criminal justice reform bill passed last year by the Nebraska Legislature, unconstitutional. "The court emphasizes the narrowness of this declaration," said Strong in a 20-page order, which was prompted by a challenge by the Nebraska Attorney General's Office.

Strong declared two specific portions of Section 57, which retroactively applies to prison inmates whose sentences became final on or before September 2nd, 2023, unconstitutional. Secretary of State Bob Evnen, who has the authority to defend the constitutionality of state laws, filed a notice of appeal.

The appeal is expected to bypass the Nebraska Court of Appeals and go straight to the State Supreme Court, where Attorney General Mike Hilgers initially tried to file his challenge to LB50 last October. Deputy Solicitor General Zach Viglianco also previously argued that the two specific portions of Section 57 amounted to clemency, a power reserved for the executive branch and the Board of Pardons.

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UNMC'S JEFFREY GOLD NAMED PRIORITY CANDIDATE FOR NU PRESIDENT

LINCOLN- A commitment to stay for at least ten years was among three must-haves that Gov. Pillen conveyed to the NU Board of Regents for the person selected to fill the presidency, which has been vacant since the start of this year. The other two criteria were that the person has Nebraska ties and respect for conservative values.

On Wednesday, the Board of Regents selected Dr. Jeffrey Gold to lead the University of Nebraska System, seemingly fulfilling two of those three criteria. Gold, originally hailing from New York, has been a Nebraska resident for ten years now, and said that he is prepared to lead the NU System for as long as he is able.

However, when asked about his thoughts on diversity, equity, and inclusion, a contentious political topic that Pillen campaigned against in 2022, Gold said, "Frankly, we need to be a welcoming organization for all students and faculty and staff...where people feel they belong." Gold was selected unanimously by the Board of Regents, and will now go through a 30-day public vetting period before a confirmation vote is held.

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OBSCENITY BILL THAT COULD CRIMINALIZE LIBRARIANS, TEACHERS FAILS TO ADVANCE

LINCOLN- Sen. Joni Albrecht's LB441, which would have allowed for the prosecution of K-12 teachers or librarians if they provide obscenity to minors, failed to advance on Wednesday. Albrecht argued that the bill would close a "loophole" that leaves these school staff immune from prosecution.

"Who in their right mind would argue that criminal obscenity should be presented to our school children at school?" asked Albrecht during debate. The current penalty for providing obscenity to minors is a Class I misdemeanor, which carries up to a $1,000 fine or a year in jail. Multiple senators, including those for and against the proposal, pointed out that it was already possible to prosecute teachers and librarians for such offenses.

After three days of lengthy and heated debate, the bill failed to reach cloture on a 30-17 vote, falling just three votes short. Several opponents of the bill argued that the definition of obscenity is too broad, and that the line between obscenity and art is often gray. "The things which I think folks are saying they do not want to have in the schools--that is not legally obscene," said Sen. Wendy DeBoer, "That's a very specific term of art."

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