STATE EMPLOYEES UNION APPEALS REMOTE WORK DECISION TO NEBRASKA SUPREME COURT

LINCOLN- The union that represents state employees, The Nebraska Association of Public Employees, has appealed a decision from the Nebraska Commission of Industrial Relations to the Nebraska Supreme Court. The Nebraska Commission of Industrial Relations (CIR), the state’s labor court, ruled against the union on July 11 when they sought to end Governor Pillen’s executive order to prohibit remote work for state employees.

In their ruling, the CIR found that the State has unilateral authority to set workplace locations and procedures. The Governor said the ruling provided “vindication” of the state’s right to determine that workers come into the office to work “where they can be the most productive.” However, Justin Hubly, executive director of the union, said in a statement that the union chose to appeal because they want “…to protect our members’ right to negotiate and to obtain clarity from Nebraska’s high court on when the state must negotiate the terms and conditions of employment.”

The CIR also found the union responsible for paying for the State’s legal fees because they found the union had engaged in a “disingenuous maneuver” when bringing the case. Hubly thinks the decision could “chill” future labor complaints from being brought forward because of high legal costs. Negotiations will start between the union and the State starting in September for the next two years with both sides hopeful they can work together.

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OMAHA’S NEW INLAND PORT AUTHORITY LOOKS TO FILL COMMUNITY ADVISORY POSTS

OMAHA- The newly appointed Omaha Inland Port Authority Board is working on filling the community advisory committee, required by state law passed this year. LB 164 from Senator McKinney was passed this past session and created the advisory committee due to concerns that the local community’s complaints were not being addressed. Applicants for the advisory committee can apply on the Omaha City Clerk’s Office website. LB 164 requires the committee to have:

• At least two residential property owners in the district.

• At least two business owners within the district.

• The City Council member and the Nebraska state senator who represents the area.

• A youth representative.

The original bill, the Nebraska Municipal Inland Port Authority Act, was passed in 2021 to increase economic development in the North Omaha area. The bill gave the board the authority to sell bonds and the ability to use other finance options to help with infrastructure and job creation. The updated version requires the board, which was filled in in April, to consult with their community partners.

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CORNHUSKER DELEGATION EXPECTS DIVIDENDS FROM TRADE MISSION TO SOUTHEAST ASIA’S INDONESIA

LINCOLN- The trade mission to Indonesia led by Lt. Gov. Joe Kelly and another 20 delegates from Nebraska concluded after 10 days. The trip included Nebraska meat scientist Chris Calkins teaching a workshop for over 70 culinary students as well as visiting the country’s largest movie chain to see popcorn imported from Chapman, Nebraska. The delegates including Sherry Vinton, director of the Nebraska Department of Agriculture, found the trip to be very beneficial for Nebraska’s ag producers.

The trip was originally to be led by Gov. Jim Pillen, but he stayed in Nebraska due to the special session. The aim of the trip was to promote Nebraska’s agricultural industry with Indonesia, which is one of the top 10 export markets for Nebraska, at $139 million. The delegation included representatives from Nebraska’s Departments of Agriculture and Economic Development, the University of Nebraska, and several businesses.

The delegation had many stops including meeting the U.S. ambassador to Indonesia, the U.S. Grains Council, feed mills, and the Istiqlal Mosque in Jakarta. At the Istiqlal Mosque, the delegation learned about creating products that align with halal certification standards. State officials said more than 87% of Indonesia’s population identifies as Muslim.

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NEBRASKA TREASURER ESTABLISHES CROWDFUNDING WEBSITE AS SAVINGS PROGRAM FOR PEOPLE WITH DISABILITIES

LINCOLN- State Treasurer Tom Briese and State Sen. Dave Murman along with other leaders announced that the Nebraska State Treasurer’s Office has a new crowdfunding website for Nebraskans with disabilities. The website, GiveToEnable.com, will allow for up to $10,000 in tax-deductible donations to be made to Nebraskans without risking the loss of their federal benefits. State Treasurer Briese called the plan a “win-win for everyone involved” because there are no fees or taxes for both parties.

The website is managed by the state through the “Enable Savings Plan”. It is Nebraska’s qualified ABLE program, referring to the federal Achieving a Better Life Experience Act of 2014. Assistant State Treasurer Stacy Pfeifer, director of the Enable Savings Plan, discussed how people with disabilities face increased costs — on average, about 28% for someone with a disability compared to someone without a disability, just to live their daily lives. The program can be used to pay for qualified disability expenses including housing, transportation, legal fees, and other expenses that improve the quality of life.

Edison McDonald, executive director of The Arc of Nebraska, which advocates with and for people with intellectual or developmental disabilities, echoed how a “couple of cents” can determine if an individual receives or loses benefits. The additional funds allow people like Josh Swanson to save up for the future for things like service dog training. Swanson is able to be proactive with his savings and not have to worry about losing his federal benefits due to this program.

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NEBRASKA SUPREME COURT SETS AUG. 28 ORAL ARGUMENTS FOR LAWSUIT ON FELON VOTING RIGHTS

LINCOLN- The Nebraska Supreme Court will hear a lawsuit brought forth by Civic Nebraska and voting rights advocates to for Secretary of State Bob Evnen to register voters with past felony convictions under a new state law. The Court will hear arguments on August 28th and will decide if the Legislature can remove the voting rights disqualifications for felons after they’ve completed their sentence.

LB 20, from State Sen. Wayne, passed in the 2024 session, removes the disqualification as soon as the individual has served their sentence. This changed state law that had previously been set by LB 53 in 2005, which created a two-year waiting period after felons completed their sentence.

On July 17, two days before LB 20 took effect, Secretary Evnen directed county election officials not to register new voters unless they had completed the two-year waiting period. After consultation with Attorney General Mike Hilgers, an opinion was written arguing that the restoration, either immediately or after two years, was unconstitutional. He said it was the sole constitutional authority of the executive branch’s Pardons Board to restore a felon’s “civil rights.” The lawsuit argues that only the judicial branch can stop a law, not an executive branch official.

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NEBRASKA, IOWA AGs PART OF 11-STATE PUSH FOR EPA RULE ON FARM CHEMICALS

OMAHA- Nebraska Attorney General Mike Hilgers and Iowa Attorney General Brenna Bird, along with officials from 11 other states, urged the U.S. Environmental Protection Agency to standardize farm chemical labeling. They aim to prevent state-by-state regulations, particularly opposing California’s push to label glyphosate, known as Roundup, as a carcinogen. The coalition of states argues that glyphosate has been deemed safe by the EPA for agricultural use and that conflicting labels could lead to logistical challenges and increased costs.

The attorney generals emphasize the necessity of glyphosate for effective and affordable weed control, citing EPA studies supporting its safety when used correctly. They fear different state regulations could increase farming costs and complicate compliance, ultimately harming the sector. Nebraska and Iowa officials argue that a consistent, national standard is needed to avoid these issues and to protect farmers from potential legal and financial repercussions.

Farmers and agricultural leaders, such as Sherry Vinton from the Nebraska Department of Agriculture and Kevin Ross, a past president of the National Corn Growers Association, support the call for a national rule. They highlight glyphosate's cost-effectiveness and critical role in farming, warning that alternatives are less effective and more expensive. Constituents insist that national regulations grounded in science are essential to maintain competitive farming practices and ensure fair and consistent labeling across the country.

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STATE AUDITOR ACCUSES FORMER HOUSING AUTHORITY HEAD OF 'BIZARRE ABUSE OF THE PUBLIC TRUST'

LINCOLN- Krystal Freeseman, the former executive director of the Rushville Housing Authority in Sheridan County, faces potential criminal charges for allegedly misappropriating tens of thousands of dollars from the agency. State Auditor Mike Foley detailed the accusations, which include using agency funds for personal expenses such as carpeting for her home, property tax payments on a house owned by her husband, and questionable transactions at various retailers. Foley's office launched an audit after receiving tips about wrongdoing, ultimately identifying $31,016 that Freeseman allegedly took, of which she reimbursed about $13,000 shortly before her dismissal in February.

The Rushville Housing Authority, primarily funded by federal government aid and rent payments, serves low-income residents in the Sandhills area. The housing board became suspicious of Freeseman in January 2024 and conducted an internal investigation, uncovering irregularities in bank statements. Following her termination, the board hired an interim director and a certified public accountant firm to help reconcile accounts and implement new safeguards, including removing the executive director's authority to sign agency checks.

The 26-page audit report released Monday includes numerous allegations against Freeseman, such as providing false information to the accounting firm, manipulating the accounting system for personal gain, and forging board members' signatures on checks. Foley is collaborating with multiple authorities, including the Nebraska State Patrol and the U.S. Department of Housing and Urban Development, to pursue further action against Freeseman, who declined to comment on the matter.

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NE LAWMAKERS CONFIRM APPOINTMENT OF STATE CHIEF INFORMATION OFFICER, DESPITE CONTROVERSIAL EMAIL

LINCOLN- Nebraska lawmakers confirmed Governor Jim Pillen’s appointment of Matthew McCarville as the state’s chief information officer, despite concerns raised by a controversial email sent on his behalf. State Senator Tom Brewer acknowledged that McCarville made a "mistake" by asking an assistant to send an email encouraging participation in a legislative hearing on Pillen’s property tax relief plan, but defended McCarville’s qualifications for the position. The confirmation vote passed 36-0, with nine senators abstaining, and Brewer emphasized the importance of having public servants who can admit their errors.

During the confirmation process, some senators, including State Senator Danielle Conrad, expressed concerns about the timing of the email and its impact on the discussion of McCarville’s qualifications. McCarville had self-reported the incident to the Nebraska Accountability and Disclosure Commission and was informed that no state laws appeared to be violated, though the commission could not comment further due to a possible ongoing investigation. Despite McCarville’s strong qualifications, some legislators, like Megan Hunt and Machaela Cavanaugh, criticized the email as a serious mistake, raising concerns over the culture of the state's administration.

McCarville was still acknowledged for his impressive technical skills and service record but critics voiced concerns about the pressure the email placed on employees. Hunt described the email as creating a "serious chilling effect" and questioned the environment within Pillen’s administration that might lead qualified individuals like McCarville to send such emails. Despite these reservations, McCarville was confirmed, reflecting a balance between recognizing his mistake and valuing his professional expertise.

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GOV. PILLEN PUSHES BACK AGAINST LEGISLATIVE CRITICISM OF HIS PROPERTY TAX APPROACH

LINCOLN- Nebraska Governor Jim Pillen defended his property tax relief proposals, commending senators who are working towards tax relief while criticizing a group of lawmakers for using obstructionist tactics. He dismissed accusations that his tax plan would disproportionately benefit him and wealthy landowners, urging lawmakers to focus on creating a bipartisan solution to the issue of property taxes. Pillen emphasized that doing nothing is not an option and that any final plan will likely involve compromises.

In response, several senators, including Danielle Conrad, Megan Hunt, and Julie Slama, expressed frustration with Pillen's approach, arguing that his plan unfairly raises sales taxes on essential items, hurting working families and seniors. Conrad and others called for alternative revenue sources, such as gambling or marijuana legalization, to offset the costs instead of burdening ordinary Nebraskans. Slama criticized him for pushing a tax plan that she believes primarily benefits the wealthy while ignoring other viable options.

Senator Lou Ann Linehan, a key ally of Pillen, defended the governor's efforts, praising his willingness to take political risks to address property tax relief. She acknowledged the challenges ahead, noting that the bill's language must be perfect to withstand opposition and ensure passage. The Revenue Committee, led by Linehan, postponed a vote on the latest tax proposal due to the need for technical revisions, recognizing that the legislative process will be a tough battle with numerous motions and amendments already filed.

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ANGER AT GOV. JIM PILLEN'S PROPERTY-TAX PUSH SPILLS INTO LEGISLATIVE DEBATE

LINCOLN- Frustrations over Nebraska Governor Jim Pillen's push for property tax relief have led to heated debates among state senators, with several lawmakers criticizing the governor's approach. Senators like Danielle Conrad and Megan Hunt have openly challenged Pillen's tactics, accusing him of abusing power by calling a special session for an issue typically addressed during regular sessions. They argue that Pillen's property tax relief proposals disproportionately benefit his own business interests and lack transparency, with Conrad calling out the governor's enablers in the Legislature for facilitating his agenda.

Despite the criticism, some senators are working to salvage parts of Pillen's plan by incorporating them into Legislative Bill 9, which is being revised by the Revenue Committee. However, the process has been met with resistance, with opponents expressing concerns over the lack of deliberation and the potential negative impacts on Nebraskans. They argue that the proposals being considered could lead to higher living costs without delivering meaningful property tax relief and that the rushed process disrespects the need for careful legislative work.

In contrast, supporters of Pillen, including Senators Lou Ann Linehan, Ben Hansen, and Kathleen Kauth, have defended the governor's efforts, arguing that structural changes are necessary to address the state's property tax issues. They contend that the Revenue Committee has been thoughtful in its approach and that the proposed tax changes are essential for achieving long-term relief. These supporters criticize their colleagues for slowing down the legislative process and emphasize the importance of focusing on the issue of high property taxes, which they see as a longstanding problem in need of urgent resolution. “Stalling an important issue is not ethical,” Kauth said.

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THIRD ATTEMPT MADE TO PROHIBIT STATE-LED 'UNFUNDED MANDATES' ON NEBRASKA'S LOCAL GOVERNMENTS

LINCOLN- Nebraska State Senator Carol Blood of Bellevue has introduced Legislative Resolution 1CA, a constitutional amendment aimed at preventing future unfunded or underfunded mandates on local governments by requiring state reimbursement for new programs or increased levels of service. This resolution, which is Blood's third attempt at such legislation, has received unanimous support from the Government, Military and Veterans Affairs Committee. Blood argues that without state reimbursement, local governments are forced to raise property taxes to cover these mandates, citing examples such as election administration and student health exams.

Supporters of LR 1CA, including Jon Cannon, executive director of the Nebraska Association of County Officials, and Tim Gay, a lobbyist for Sarpy County, emphasize the financial burden these mandates place on local governments, estimating significant costs like Sarpy County’s $15 million annual unfunded mandates. They believe the resolution could lead to better fiscal planning and cooperation with lawmakers. Despite broad support, the measure faces scheduling challenges, with Speaker John Arch prioritizing other legislature, delaying debate on LR 1CA until potentially later in the session.

Historically, local governments have faced numerous unfunded mandates, with minimal state reimbursement, as noted by Lynn Rex, executive director of the League of Nebraska Municipalities. The proposed amendment aims to eliminate this by ensuring future mandates are fully funded by the state, preventing the financial strain on local entities. Blood, in her final legislative term, urges constituents to advocate for the resolution, expressing frustration at the lack of progress and emphasizing the importance of allowing voters to decide on this critical issue.

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NE LAWMAKER COMPILES 'SMART ACT' PROPERTY TAX RELIEF PLAN

LINCOLN- State Senator Justin Wayne of Omaha has proposed the “Saving Money and Reducing Taxes (SMART) Act” as an amendment to Legislative Bill 63, focusing on property tax relief. His plan involves the state covering a smaller portion of local property tax burdens compared to Governor Jim Pillen's proposal, reducing school tax rates, and allowing school boards to opt out of the program. Wayne's comprehensive approach also includes ideas from other bills he's proposed, such as legalizing and taxing online sports betting and recreational marijuana, and providing state aid to local governments.

Wayne's proposal suggests the state should cover 65% of local K-12 property taxes, unlike Pillen's proposed 80%, and would reduce maximum school tax rates significantly. His plan also emphasizes the need for a sustainable, long-term solution for property tax relief, incorporating targeted exemptions, protecting renters, and introducing new revenue sources to maintain critical funding for public services. Wayne's take on tax relief is a comparatively more comprehensive approach to the issues Nebraska is facing.

Additionally, Wayne advocates for eliminating fewer sales tax exemptions, raising certain “sin” taxes at smaller levels, and implementing other possible funding sources like an excise tax on high-net-worth individuals. He aims to provide the Revenue Committee with multiple options to formulate a comprehensive tax relief plan, ensuring it is not solely focused on education but includes broader financial stability measures for the state. “I am trying to present as many options as we can to this committee to formulate a comprehensive tax relief plan,” Wayne stated.

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PROPERTY VALUATIONS FREEZE COULD BE 'BACKUP PLAN' DURING NEBRASKA'S TAX-FOCUSED SPECIAL SESSION

LINCOLN- Nebraska lawmakers are considering a freeze on property valuations as a backup plan during a special legislative session focused on tax reform. This measure, proposed by State Senator Tom Brewer, aims to temporarily halt increases in property valuations for four years to provide immediate relief and buy time for more comprehensive tax solutions. Another proposal by State Senator Tom Brandt would significantly increase income tax credits, adding up to $1.16 billion in refundable credits to ease the burden on taxpayers.

Omaha legislators, such as State Senators Mike McDonnell, John Cavanaugh, and Kathleen Kauth have all drafted more targeted bills to address the drastically rising property valuations in the state. McDonnell's Legislative Resolution 24CA would create a different method of taxing residential property, similar to how agricultural land is valued. Cavanaugh's Legislative Bill 22 would exempt the first $100,000 of a homestead's valuation, providing direct and immediate relief to the state.

If the primary proposals in the special session fail, backup plans, such as Brewer's property valuation freeze, are seen as essential stopgap measures. These interim solutions aim to prevent the session from ending without any actionable relief for taxpayers. Brewer, who will be leaving the legislature due to term limits, views these measures as necessary to maintain momentum for future legislative efforts in property tax reform. “Do we want to leave the session with nothing? Or do we want to have something that might get us closer?” said Brewer.

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HEARING AIRS VIEWS ON LEGALIZING MARIJUANA TO OFFSET NEBRASKA PROPERTY TAXES

LINCOLN- The Nebraska Legislature’s Judiciary Committee heard testimony on two bills, LB 52 by State Senator Justin Wayne and LB 71 by State Senator Terrell McKinney, both aiming to legalize and tax marijuana to help offset property taxes. Supporters argued that criminalizing cannabis has disproportionately harmed marginalized communities and emphasized the potential revenue benefits from cannabis sales, with projections suggesting at least $95 million that could aid in property tax relief. The bills would legalize cannabis for those 21 and older, create a regulatory framework, and provide expungement procedures for past cannabis-related convictions, with Wayne's bill proposing a 25% tax on growers and retailers, and McKinney's suggesting 16%.

Law enforcement and other opponents, including Nebraska State Patrol Colonel John Bolduc and Douglas County Sheriff Aaron Hanson, testified against the bills, citing concerns about increased crime, enforcement costs, and negative societal impacts observed in other states that have legalized marijuana. Governor Jim Pillen also opposed the legislation, with representatives from state agencies under his control and Nebraska Attorney General Mike Hilgers expressing concerns about the potential harms of marijuana use. Despite these objections, proponents like Jason Witmer from ACLU Nebraska and parents seeking medicinal marijuana for their children argued that the criminalization of cannabis drains resources and doesn't enhance public safety.

During the hearing, frustrations emerged, with McKinney expressing a desire to introduce a bill to prohibit alcohol sales to highlight perceived inconsistencies in the opposition's stance. The committee received a mix of letters both in support and against the bills, with opponents warning of potential risks to children and increased public health costs. As the Legislature considers property tax relief measures, the debate over marijuana legalization highlights the broader discussion on how to generate revenue and address social justice issues in Nebraska.

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SLAMA PITCHES COLORADO'S 'TAXPAYER BILL OF RIGHTS' FOR NEBRASKA

LINCOLN- State Senator Julie Slama of Dunbar criticized Governor Jim Pillen’s property tax relief plan for disproportionately benefiting him and proposed her own package of constitutional amendments. Her proposal, inspired by Colorado’s Taxpayer Bill of Rights (TABOR), sets hard limits on state, local, and school taxing and spending. She split her proposal to comply with Nebraska's single-subject rule and presented it to the Revenue Committee, emphasizing it as a long-term solution to rising taxes driven by increased government spending.

Slama's amendments aim to cap spending and taxing authority at all government levels unless approved by a public vote. The proposal includes provisions for constituents to sue the government to enforce the caps, requires public votes for major government debt issuance, and mandates a baseline rainy day fund of 3%. Slama believes this approach empowers voters and prevents large projects without voter approval. Despite a lack of support from other testifiers, State Senators Brad von Gillern and Kathleen Kauth showed interest, noting the potential durability of a constitutional amendment.

Critics, including State Senator George Dungan and experts from Colorado, raised concerns about the negative impacts on school and local funding. They cited Colorado's low teacher pay, insufficient school funding, and poor infrastructure conditions as consequences of TABOR. Colorado representatives Jon Cannon and Lynn Rex warned that Nebraska could face similar issues, with restricted government spending leading to competitive wage issues and underfunded public services. Despite the criticisms, Slama maintained that her proposal would give Nebraskans a direct say in tax policy, emphasizing its potential to complement short-term property tax fixes from the Legislature.

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ORAL TOBACCO TAX, RESIDENTIAL ELECTRICITY EXEMPTION TO BE CONSIDERED AT WEDNESDAY HEARING

LINCOLN- The Legislature’s Revenue Committee held two final hearings on Wednesday morning to discuss potential amendments to Legislative Bill 9. The hearings focused on new taxes for flavored nicotine pouches and the tax exemption for residential electricity. The amendments under consideration are AM 62, which proposes a 10 cents per ounce tax on "alternative nicotine products," and AM 63, which seeks to exempt residential electricity from sales taxes.

State Sen. Jana Hughes, who introduced LB 9, supports the new nicotine tax as part of her broader efforts to address vaping and teen usage. Hughes plans to explore further regulation of oral nicotine pouches in the 2025 session. The committee's hearings will help finalize the amendment proposal, which aims to reduce the number of sales and use tax exemptions and slightly increase certain "sin" taxes.

Additionally, the revised LB 9 aims to lower the maximum school tax rates for operational expenses to 25 cents, with the state covering the difference and potentially taking on substantial property tax burdens for natural resources districts and county jails. After the hearings, the committee will determine whether to advance the amended LB 9 to the floor for debate.

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PILLEN PIVOTS FROM HIS OWN PROPERTY TAX PLAN TO EMBRACE EMERGING LEGISLATIVE PLAN

LINCOLN- Nebraska Governor Jim Pillen announced a shift from his original property tax relief proposal to a new plan developed by State Senator Lou Ann Linehan and the Revenue Committee. This new plan, which replaces Pillen's original proposal with Legislative Bill 9 introduced by State Senator Jana Hughes, aims to offset $1.8 billion in school-related property tax revenue by expanding the state sales tax base and including new taxes on items such as alcohol, candy, and gambling. The plan also removes caps on local spending for public safety and proposes using state tax dollars to reduce property tax burdens for natural resources districts and county jails.

The new proposal diverges from Pillen's original plan by maintaining sales tax exemptions for home and auto repairs, legal, and accounting services while introducing a 2% sales tax on new agricultural or manufacturing machinery and equipment. Supporters argue the plan addresses concerns about funding public safety and local government responsibilities, while opponents like State Senator Danielle Conrad criticize it as a "reverse Robin Hood scheme" and plan to fight what they call one of the largest tax increases in history. Despite differing views, the plan emphasizes a broader sales tax base to provide property tax relief and aims to be more acceptable to various stakeholders.

The Revenue Committee plans to consolidate multiple property tax relief bills into LB 9, seeking to reduce the maximum school district tax rate more rapidly than originally proposed by Hughes and offering immediate property tax relief. Although the plan has faced resistance, Linehan believes it will gain support across Nebraska, as it shifts the tax burden from property taxes to sales taxes, giving consumers more control over their expenses. Governor Pillen emphasizes the need for structural relief and spending caps to ensure long-term benefits, indicating his willingness to adapt for the purpose of legislative progress.

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NE LAWMAKERS ADJOURN FOR THE WEEKEND, WILL CONTINUE WORK ON PROPERTY TAX RELIEF BEHIND THE SCENES

LINCOLN- The Nebraska Legislature will be finalizing its plan for property tax relief over the weekend as adjournment until Monday was called for on Wednesday. This is because the Revenue Committee needs more time to craft its new approach to tax reform. After State Senator Lou Ann Linehan motioned for adjourning until Monday, it passed on a 33-11 vote.

The new tax relief plan is intended to be a rewrite of Legislative Bill 9, which was planned to be the subject of debate this week. In addressing an amendment, lawmakers require more time to present a sufficient approach. Although it may seem like legislators are taking the weekend off, they are working diligently to provide property tax relief to Nebraskans.

Linehan has said that she will spend time meeting with key senators to negotiate her plan and try to earn the votes needed to get reform passed into law. Many legislators have expressed frustrations with the process, but want to achieve something and not waste the state's resources while in session. “We’re to the point where we can’t just come and complain about the bill,” Linehan said.

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PILLEN'S PICK FOR NE'S TOP INFORMATION OFFICER APOLOGIZES FOR CONTROVERSIAL EMAIL

LINCOLN- During the confirmation hearing for Governor Jim Pillen's appointee, Matthew McCarville, as the state’s chief information officer, lawmakers scrutinized his ability to remain politically neutral following a controversial email. McCarville, who previously worked in information technology at the University of Colorado, apologized for the email, which encouraged state employees to participate in a legislative hearing on Pillen’s tax plan, calling it an accidental mistake. Despite his self-reporting to the Nebraska Accountability and Disclosure Commission and assurances that such an incident would not recur, concerns about political favoritism and potential misuse of public resources were raised, with the committee taking no immediate action on his nomination.

State Senator Danielle Conrad filed a complaint, accusing McCarville of using public resources to distribute campaign materials, which she argued was part of a series of inappropriate actions by Pillen's administration. The email, which shared a social media post from Pillen’s campaign and encouraged employee participation in the tax plan hearing, was seen by some committee members as potentially pressuring staff. McCarville maintained that the intention was simply to inform staff about the hearing due to office chatter, not to advocate a position, and emphasized that he would avoid any conflicts of interest in his role.

Committee members, including State Sens. Megan Hunt and Jane Raybould, expressed skepticism and concern over the implications of the email for employee treatment and contract award processes. McCarville reassured the committee that he would ensure no partisan bias influenced his decisions and highlighted his goals of modernizing state websites, improving data-sharing, and updating state systems. His appointment remains pending formal legislative approval, with his past work and qualifications discussed alongside the contentious email incident.

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EPIC OPTION HEARD AGAIN IN COMMITTEE, DESPITE VOTERS DENYING IT PLACE ON BALLOT

LINCOLN- State Senator Steve Erdman proposed Legislative Bill 16 and complimentary constitutional amendments to allow Nebraska voters to weigh in on the EPIC Option consumption tax after a petition drive fell short of signatures for the November ballot. The EPIC tax plan seeks to replace state and local property, income, corporate, and inheritance taxes with a broader consumption tax, but it faces significant legislative hurdles despite support from the Nebraska Republican Party. At a recent hearing, most testimonies favored the proposal, but organized opposition was minimal.

EPIC supporters argue the current three-legged tax system, which includes income, sales, and property taxes, has been broken since its inception in the 1960s. They believe a consumption tax would be fairer and protect property rights, with testimony from farmers, ranchers, and homeowners highlighting the burden of rising property taxes. Despite this support, opponents, including Governor Jim Pillen and several organizations, argue that a consumption tax rate of 22% would be required to fund state and local services, a claim proponents dispute by suggesting a 7.5% rate would suffice.

With significant political and logistical challenges ahead, the future of the EPIC tax proposal remains difficult for supporters.

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