STUNNING LAST-MINUTE DEFEAT OF PILLEN TAX SHIFT BILL LIKELY ENSURES SPECIAL SESSION

LINCOLN- Gov. Pillen's much-amended and contentious plan to raise sales tax in an attempt to decrease property taxes went down in flames on Thursday, the final day of the 2024 legislative session. Sen. Julie Slama had led the final-round filibuster of the plan, which was housed in Sen. Linehan's LB388, and argued that it was a tax increase that Nebraskans overwhelmingly opposed.

On top of that, Slama argued, the bill might've contained an unconstitutional clause related to taxes on digital advertisements. She continued by stating that the only Nebraskans who would see tax reductions under LB388 are those who aren't already taking a tax credit on their property taxes. "I would much rather handle this particular issue, the state tax code, in a special session," she said.

Sen. Steve Erdman was far more blunt in his opposition. "This bill doesn't mean squat for anybody...bring on a special session," he said. Pillen had previously promised to keep lawmakers in session until Christmas, if need be, to reach his goal of reducing property taxes by 40%. Because LB388 failed, a special session is almost guaranteed later in the year.

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NEBRASKA LAWMAKERS ADJOURN, BUT BREAK WILL BE SHORT-LIVED AS SPECIAL SESSION LOOMS THIS SUMMER

LINCOLN- Lawmakers are gearing up for a special session later this year but on Thursday they celebrated the end of a session in which they “successfully hit the reset button,” according to Speaker Arch. The Legislature sent more than 370 bills to Gov. Jim Pillen this year, including “good government policies” to grow Nebraska’s workforce, economy and communities; support families and K-12 education; reform the criminal justice system; and improve Nebraskans’ physical and mental well-being.

Pillen similarly applauded lawmakers for approving a health care proposal that could bring about $1.4 billion to Nebraska hospitals as well as enhancing child care options, creating incentives for businesses to attract out-of-state workers and authorizing small school districts to better protect students “by training good guys with guns to stop bad guys with guns.”

Much of Pillen’s speech to the full Legislature, however, focused on what he described as late-stage failures in declining to take a final vote on property tax relief. He said senators offered “not a penny” more of relief; the bill was pulled from the floor earlier in the day after it appeared to be in jeopardy of failing. The governor sought to reduce property taxes by 40% this year, and he said that’s still the goal, vowing to call “as many sessions as it takes” to get tax relief in 2024. He marked the period as halftime, with the second half to go.

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STATE LAWMAKERS PASS UPDATED 'OPPORTUNITY SCHOLARSHIP' BILL

LINCOLN- Lawmakers gave final approval to an updated bill that will devote $10 million a year in state funds for scholarships to attend K-12 private or parochial schools. The 32-15 approval of LB1402 on the final day of the 2024 legislative session would end Nebraska’s distinction as one of only two states that don’t allow some form of school choice. Gov. Pillen has pledged to sign the bill into law, but the measure faces an almost certain challenge, either in the courts or at the ballot box.

LB1402 has been described as “an end run” around a planned referendum on the November ballot over a school choice law passed last year, LB 753. Jenni Benson, the president of the Nebraska State Education Association, called the passage of LB 1402 “a slap in the face to voters,” who signed petitions to place the issue of school choice, as designed under LB 753, on the November ballot.

The NSEA, in a press release after Thursday’s vote, pledged to either challenge the new law in court or mount another petition drive to force a referendum on it.“We will continue the fight to ensure voters’ wishes on this issue are heard and respected,” Benson said. If LB1402 is challenged in court and ruled unconstitutional because it allocates public funds to non-public education, it would render the entire bill void, and thus leave LB 753 in place.

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U.S. SEN. RICKETTS CALLS FOR STRONGER IRAN SANCTIONS, DEFENDS OPPOSITION TO UKRAINE AID

WASHINGTON D.C.- U.S. Sen. Pete Ricketts called for stronger enforcement of American sanctions against Iran in the wake of its unprecedented air assault on Israel last weekend. “When (Iranians) chant ‘Death to Israel’ and ‘Death to America,’ they mean it,” Ricketts said in a conference call with reporters. “So we should take them very seriously.”

Israel said it was able to intercept 99% of Iran’s rockets and drones. But Iran still has many more such weapons in its arsenal, Ricketts said. He said that’s why it’s important for President Joe Biden and his administration to strengthen sanctions as a deterrent against Iran’s leaders. Ricketts said Israel also needs to be measured in its response to Iran’s attack to avoid further escalation.

On another security matter, Ricketts continued to defend his opposition to additional U.S. defense aid to Ukraine in its war with Russia, despite recent Ukrainian territorial losses and lack of air defense missiles that led to the destruction of a major power plant serving Kyiv. Like many Republicans, Ricketts argues that the United States needs to first shore up its own southern border with Mexico to stop illegal crossings.

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NEBRASKA REGENTS APPROVE SALE OF ALCOHOL AT HUSKER BASEBALL, SOFTBALL GAMES

LINCOLN- The University of Nebraska Board of Regents approved the sale of alcohol during Husker baseball and softball games this week. Following the 5-2 vote, the taps will be turned on in time for the Huskers' first pitch against the University of Maryland. Omaha Regent Barb Weitz and Regent Kathy Wilmot of Beaver City voted against the proposal.

Regent Rob Schafer of Beatrice, the board chair, repeated what he has said when the issue of alcohol sales at Husker contests have come before other regents. "I believe strongly in treating adults like adults," Schafer said. And Lincoln Regent Tim Clare said putting the profits from alcohol sales into improvements at Haymarket Park was a "positive thing."

The board's vote to allow for the sale at alcohol at baseball and softball games is the latest expansion of the amenity at Husker events following a two-decade prohibition. Interim NU President Chris Kabourek said the revenue will help "chip away" at a list of facility needs at the Huskers' home fields.

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LAWMAKERS REJECT TAX CUTS FOR FEDERAL RETIREES, PARTIALLY DISABLED VETERANS

LINCOLN- On Wednesday, state lawmakers voted to reinstate income taxes on federal retirees, saying that they made a mistake in eliminating them last year. They also ditched a proposal to provide homestead exemptions for partially disabled veterans, a move made to reduce the budget impact of a large tax package.

These actions came as lawmakers debated Sen. Linehan's LB1317, which brought together ten tax-related bills. The repeal of the federal retiree tax exemptions is expected to increase state revenues by $12 million annually. Sen. Carol Blood attempted to revive the exemptions, but her amendment failed.

Blood said lawmakers were sending the message to voters that "we're going to give you something, then take it back." Sen. Linehan argued that her intent last year had been to exempt retirement income only for federal employees who had started before 1984 and were not able to participate in Social Security. However, the actual law that passed applied to every federal retiree in the state.

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PILLEN STAFFER CONFIRMS CHARLIE KIRK'S TALK OF WINNER-TAKE-ALL SPECIAL SESSION

LINCOLN- According to a spokeswoman from Gov. Pillen's office, a special session will be called later this year if the Nebraska Legislature says it has enough votes to shift the state into a winner-take-all system, which would allow all five of the state's Electoral College votes to be awarded to the winner of the popular vote.

"The Governor looks forward to partnering with legislative leaders to move winner-take-all forward in a special session when there is sufficient support in the Legislature to pass it," said Laura Strimple, a Pillen spokeswoman, "Gov. Pillen is an enthusiastic supporter of winner-take-all, has been from the start, and will sign it into law the moment the Legislature puts it on his desk."

Pillen's now-public embrace of a winner-take-all system were prompted by comments made by Charlie Kirk, a conservative pundit who spoke in Omaha on Tuesday. Kirk called for every Republican in Nebraska who supports former Pres. Donald Trump to call and write to their state senators. "You have to just keep the pressure on to the Legislature," said Kirk, "Once we get this taken care of in Nebraska, we have a much easier path to the presidency."

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STATE LABOR DEPARTMENT APPEARS AFFLICTED WITH 'LONG COVID,' SAYS STATE AUDITOR

LINCOLN- According to a recent state audit, the Nebraska Department of Labor may have mishandled unemployment insurance benefits that put as much as $13 million at risk over the past fiscal year. State Auditor Mike Foley said the department is likely still adjusting to the deluge of work and unemployment claims it handled during the height of the pandemic.

"The Labor Department still has Long COVID," said Foley, "The symptoms have not been fully resolved." According to the report, Foley and his team tested a random sample of unemployment insurance payments made by the department in 2023, and found that, of the $62.5 million paid out, up to $12.67 million might have put "potential dollars at risk."

This was due to the fact that the department either did not follow up with an employer to get necessary information about a termination or did not document such follow-ups. In one situation, highlighted in the Auditor's report, an insurance claimant got another job while receiving unemployment benefits and apparently underreported wages.

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SOURCES SAY TRUMP SOUGHT TO DIRECTLY PRESSURE BREWER OVER WINNER-TAKE-ALL PROPOSAL

LINCOLN- According to anonymous sources, former Pres. Donald Trump picked up a phone last week to personally pressure Sen. Tom Brewer, chair of the Government, Military, and Veterans Affairs Committee, to revive a bill that would implement a winner-take-all electoral system in Nebraska. Trump, according to the sources, urged Brewer to take action on the bill before the Legislature adjourns for the year.

Brewer allegedly responded that it doesn't work that way, as the deadline to vote a bill out committee and advance it through the Legislature has passed. In addition, Speaker of the Legislature John Arch said Friday that it's too late to amend a bill into a package. Trump then reportedly told Brewer that his political career was over.

When asked about the call, Chris LaCivita, the co-manager of Trump's campaign, said Trump "absolutely, 110% did not speak with anyone in the State of Nebraska in the last six weeks." Brewer, when asked, said it was a private conversation and that he would not comment on it. Three state senators, who asked to remain anonymous, said they heard the story of the call directly from Brewer.

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FROM RED CLOUD TO FREMONT, SEVEN NEBRASKA TOWNS SHARE $4M IN AWARD TO PERK UP COMMUNITY APPEAL

LINCOLN- Seven Nebraska cities are poised to share around $4 million in state grants to help develop recreation and civic improvement projects in their communities. Selected and announced by the Department of Economic Development, the recipients' awards come from the Civic and Community Center FinancingFund, which was created from a turnback of state sales tax generated by arenas and retailers.

"People attraction is a top priority for Nebraska, and these awards are helping communities strengthen their appeal," said K.C. Belitz, director of the Economic Development Department, "We're investing funds to support the development of state-of-the-art recreation." Belitz added that the projects will help create gathering places that enhance local quality of life and pride.

The recipients include, McCook, Beatrice, Fremont, Norfolk, North Platte, Red Cloud, and Seward. While several of these cities plan to build new recreation projects, the funds can also be utilized to convert or rehabilitate historic structures.

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NEBRASKA'S ECONOMY COULD GROW RAPIDLY THIS SUMMER, ACCORDING TO UNL ECONOMIST

LINCOLN- According to a metric developed by UNL's College of Business, Nebraska's economy would see a boom this summer. This leading indicator showed a 3.48% rate of growth in February of this year, up substantially from December 2023's 1% and January's 0.58%. UNL economist Eric Thompson said the indicator is designed to predict economic growth six months out.

The February increase is one of the largest indicators of growth seen since the metric was established in 2021. "This sharp increase suggests that Nebraska's economy will be growing rapidly in the summer of this year," said Thompson, adding that a variety of economic changes contributed to these projections.

In a February survey of 100 Nebraska businesses, 42% of those responding expected sales to increase and about 20% expected to hire more employees. Thompson called those percentages "larger than normal." Thompson also noted that manufacturing is up and the state is seeing more airline passengers coming in and out of Nebraska, reflecting the confidence people and companies have with their financial situations.

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FIRST EARLY BALLOTS MAILED OUT IN NEBRASKA'S FIRST ELECTION WITH VOTER ID

LINCOLN- Nebraska’s May 14 primary election is quickly approaching, and voters must remember they need an accepted ID to participate. County election officials mailed out the first ballots early this week. In-person early voting at county offices starts April 15. New this year is a requirement to provide a driver’s license number or state ID number to apply for an early voting ballot. There are also photocopy options.

Secretary of State Bob Evnen praised election officials Monday in all 93 counties for educating voters on the process. “They are ensuring every voter can cast their ballot securely and independently while adhering to the new voter ID law,” he said. So far, Evnen’s office said, counties are reporting a “smooth process” in applying for early voting ballots.

Most voters are choosing to write down their driver’s license or state ID number on the ballot application, election officials said. Thus far, the number of applications appears on pace to continue the long-term upward trajectory of early voting for a primary race. As of Monday, officials were set to mail 105,000 early primary ballots to registered Nebraska voters, second only to the 121,000 in 2022, during a heated GOP gubernatorial primary election.

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ROBERT F KENNEDY JR. QUALIFIES FOR NEBRASKA BALLOT

LINCOLN- Nebraskans will be able to cast their vote for Robert F. Kennedy Jr. as an Independent Candidate for President, as the Kennedy campaign announced they have collected the necessary 2,500 signatures needed to qualify for the 2024 November general election ballot. In fact, according to the Kennedy campaign, they have nearly doubled the required amount.

In mid-December, Kennedy rallied hundreds of voters in northwest Lincoln, producing a likely-bulk of these signatures and sharing his campaign vision/thoughts on a variety of issues he’s become known to canvass, such as corporate consolidation, government corruption and the proliferation of chronic disease.

The addition of Nebraska puts Kennedy one state closer to nation wide ballot access. Kennedy has also qualified via signature petition in Utah, New Hampshire, Nevada, Hawaii, North Carolina, and Idaho. In late-March, Kennedy named attorney and tech entrepreneur Nicole Shanahan as his vice presidential running mate. The duo is actively collecting signatures in an attempt to be on the ballot in all states.

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NEBRASKA 'IN A GOOD POSITION' TO DELIVER INTERNET FOR ALL, OFFICIAL SAYS

LINCOLN- The state is “in a good position” funding-wise to deliver broadband internet to the state’s unserved and underserved areas, opening opportunities in telehealth and precision agriculture, a federal official said last week. Brendan Carr, a member of the Federal Communications Commission, spoke after attending a roundtable meeting on hosted by Sen. Deb Fischer.

“A lot of other states are actually struggling,” Carr said. “They’re going to fall short of infrastructure dollars to deliver on the goal that we all have.” But even if Nebraska is on the right track, extending internet across the state via fiber, fixed wireless and satellite systems could take several years, Fischer said. Nebraska last year learned it would receive $405.3 million in federal money to extend broadband internet to areas where it’s not available or too slow.

The money comes from the $42.45 billion Broadband Equity, Access and Deployment program, which Congress authorized in the Infrastructure Investment and Jobs Act of 2021. The BEAD Program provides money for states, territories, the District of Columbia and Puerto Rico to utilize for broadband deployment, mapping, equity and adoption projects.

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ONCE THOUGHT DEAD, CLEMENTS EFFORT TO PHASE OUT INHERITANCE TAX GETS NEW LIFE

LINCOLN- On Tuesday, Sen. Rob Clements' LB1067, which seeks to eliminate the state inheritance tax and establish a source of replacement revenue, was amended into Sen. McDonnell's LB1363. The amendment would replace lost inheritance tax revenue by sending roughly $11 million per year to counties from the documentary stamp tax charged on sellers of homes and property.

Only six states currently impose an inheritance tax, which Sen. Clements argued unfairly penalizes those who inherit farms and forces some retirees to move away to avoid the tax on their assets. Clements' original LB1067 faced fierce opposition from the Nebraska Association of County Officials.

NACO maintained that the state's counties would have to raise property taxes to replace the $65 million or more that they get yearly from the inheritance tax. According to Clements, the new stamp tax increase would more than offset the annual revenue the counties expected to lose if his original proposal had passed.

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SLIMMED-DOWN PROPERTY TAX RELIEF BILL MOVES FORWARD AS SPECIAL SESSION PROSPECTS RISE

LINCOLN- Late Tuesday night, a new 63-page amendment was filed on Gov. Pillen's property tax reduction plan that ditches his idea of raising state sales tax by 1 cent. The slimmed-down proposal, which is intended to help the bill pass this session, opens the door for a special session this summer to more fully accomplish the ambitious goal of reducing property taxes by 40%. 

The amendment, made to LB388, would hike taxes on cigarettes to $1, impose a 100% tax on edible hemp products, impose a 20% tax on vaping products and skill games, and eliminate sales tax exemptions on products including pop, candy, and veterinary services for pets. The bill would also impose a 3% cap on revenue growth by local government. 

Pillen's initial proposal to raise the state sales tax was pilloried by conservative and progressive groups alike. Conservatives in particular condemned it as a "tax shift" that didn't actually result in a meaningful tax decrease, while progressive groups argued it would negatively impact low-income Nebraskans. On Wednesday night, the amendment was adopted.

During debate Wednesday, the proposal was slimmed down even further, and is now expected to reduce property taxes by 22% rather than Gov. Pillen's desired 40%. However, because of this reduction, lawmakers believe a special session to tackle property taxes is almost assured. 

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LAWMAKERS SEEK TO HOLD PUBLIC SCHOOLS, STATE EMPLOYEES LIABLE FOR CHILD SEXUAL ASSAULT AND ABUSE

LINCOLN- LB25, introduced by Sen. Wayne, was the subject of multiple days of debate and negotiations in the Nebraska Legislature. An amended version of the bill, which is currently inching forward in the Legislature, would allow lawsuits to be filed against political subdivisions or their employees if they fail to protect children form abuse or sexual assault.

The harm done to any child must be a "proximate result" of the political subdivision's failure or an employee's failure to exercise "reasonable care" over a child in their custody. "Nothing is going to make these individuals completely whole," said Wayne," We're just trying to provide the best remedy we can under the law."

Sen. Carolyn Bosn, a former prosecutor, led the opposition to the measure on Tuesday night, arguing that if school officials have knowledge of wrongdoing and fail to investigate it, they can already be held accountable. Sens. Dungan and Wayne, both attorneys, disagreed with Bosn, arguing that the current law surrounding this issue is inadequate.

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LAWMAKERS PASS WALZ BILL ON COMPUTER SCIENCE, SPECIAL EDUCATION, READING

LINCOLN- On Thursday, a package of education-related bills housed in Sen. Lynne Walz's LB1284 was passed in the Legislature. The proposals contained within it include one to recruit special education teachers, and another to provide training programs in reading and computer science. The final proposal advanced on Tuesday also significantly reduced the fiscal impact of the original proposal.

"This bill is so important to make sure that we are meeting the ever-changing needs of our students, teachers, and parents," said Walz during debate. The original proposal, which included nine other bills, was expected to cost $1.25 million this year and roughly $28 million the next. 

However, because lawmakers are running out of funds, lawmakers adopted two amendments reducing the General Fund impact of LB1284. The new impact is just under $150,000 this year and $80,000 the next. Other programs in the bill would be funded through the Education Future Fund created last year.

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MORE THAN 100 BILLS SENT TO GOV. PILLEN FOR APPROVAL IN LEGISLATIVE VOTING SPREE

LINCOLN- After a marathon voting spree Thursday on the second-to-last day of the 2024 session, Nebraska lawmakers sent more than 100 bills to the governor for his signature. State senators approved 103 proposals, striking down only one at the introducer’s request. Lawmakers will return for one final legislative day next Thursday, April 18, and will have eight bills to consider.

The final day is largely ceremonial but could include veto overrides if the governor rejects any bills. It will mark the end of an extremely busy 60-day session. Bills being sent to Gov. Pillen fall within a number of categories. They include voter rights, foreign adversary, child care, criminal justice, North Omaha development, and a plethora of miscellaneous bills.

One bill, LB20, would allow people convicted of a felony to have their voting rights restored immediately after completing their sentence, including parole or probation. Another bill of note, LB874, would modify and simplify various childcare licensing regulations. Finally, LB870 would require law enforcement to notify sexual assault survivors at least six weeks before the destruction or disposal of their sexual assault kits.

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TRIBUTES PAID TO 15 DEPARTING STATE SENATORS AS SESSION NEARS END, 13 LEAVING DUE TO TERM LIMITS

LINCOLN- An often funny and sometimes teary tradition in the Nebraska Legislature is paying tribute, in floor speeches, to departing state senators near the end of the two-year session. Lawmakers gave short testimonials to their 15 colleagues who are serving their final regular session in the one-house Unicameral. Thirteen are departing due to term limits, two chose not to seek re-election.

Of the departing, 10 are registered Republicans, and five are Democrats in the officially, non-partisan Legislature, where 33 of its current 49 members belong to the GOP. The 2024 elections will determine if Republicans retain a filibuster-proof majority. Members of this group navigated the state through COVID-19, as well as the contentious 2023 session.

Those who are term-limited include Senators Joni Albrecht, Carol Blood, Bruce Bostelman, Tom Brewer, Steve Erdman, Steve Halloran, Lou Ann Linehan, John Lowe, Mike McDonnell, Tony Vargas, Lynne Walz, Justin Wayne, and Anna Wishart. Those opting out of running for reelection include newly appointed Senator Fred Meyer and Senator Julie Slama.

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