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Yahoo
14-05-2025
- Politics
- Yahoo
Nebraska Legislature advances proposal to weaken paid sick leave
The Paid Sick Leave for Nebraskans group turned in more than 138,000 signatures from voters last year to reach the ballot. (Aaron Sanderford/Nebraska Examiner) LINCOLN — State lawmakers advanced a proposal Tuesday adding new restrictions to a paid sick leave law Nebraska voters approved last year and which has yet to be implemented, moving the proposed changes to the final round of debate. The way the voter-approved law is written, businesses with fewer than 20 weekly employees would allow those employees to accrue up to five days' worth of paid sick leave a year, or up to seven days a year for larger businesses. An hour of leave could be earned for every 30 hours worked. Employees, under the ballot measure law, can use paid sick leave for themselves or a family member for mental or physical illness, injury or a health condition or for a medical diagnosis or preventive medical care. Paid sick time also could be used during a public health emergency. LB 415 would remove the current law's blanket sick leave requirements, letting employers offer no paid sick leave to young teens, ages 14 and 15, or to temporary, seasonal agricultural workers and workers at the state's smallest businesses, those with 10 or fewer employees. Sponsoring State Sen. Beau Ballard of Lincoln said the proposed legislation intends to clarify and make the ballot measure 'more feasible' and workable for businesses. His bill would clarify that businesses that meet or exceed the new law would not need to change their existing leave policies, including accrual or carryover components. It also would clarify how leave can be requested and when employees could begin to accrue sick leave. Worker advocates and union leaders have spoken out against the proposed changes as attempts to undermine the will of Nebraska voters throughout this session. Tuesday's debate followed an underlying theme of the session in the officially nonpartisan but GOP-dominated statehouse of lawmakers pushing back against a handful of ballot measures passed by Nebraska voters. That push has left Democratic-aligned lawmakers in the role of defending what they call the 'will of the people.' The GOP has built a 33-member supermajority that sometimes makes the filibuster less effective. 'For as long as I can remember,' State Sen. Machaela Cavanaugh of Omaha said during the debate, 'Nebraska has been doing as well as it has because you had just enough Democrats to save us from ourselves.' Other Republican lawmakers said that they were trying to protect small businesses that could not afford paid sick leave in its voter-approved form. State Sen. Mike Jacobson of North Platte said he had received emails from small business owners in his district about the recent ballot initiatives. 'We do live in a capitalistic society, and we are competing for employees, but there are smaller businesses out there,' Jacobson said. 'In my district, they are being strapped. They can't continue to employ people if we're going to raise the minimum wage, have paid sick leave.' Throughout the debate, lawmakers, some begrudgingly, approved an amendment that would have reduced the carve-outs to businesses with five workers instead of 10 employees, and add back in the ability to sue to enforce provisions requiring paid sick leave. It was viewed as a compromise to get some lawmakers, including State Sen. Dave 'Woody' Wordekemper of Fremont and others, to vote for LB 415. As some Democratic-aligned lawmakers continued their filibuster of the proposal after the amendment's approval, Republicans stopped negotiating, reconsidered the amendment and voted it down. Jacobson led the successful push to reconsider the amendment. 'When we cast votes here, we're not taking away what the voters said they wanted,' Jacobson said. 'We're making it so that it will work for small businesses and for their employers.' Jacobson said during the debate that Republicans are willing to bringLB 415 back to select file to add an amendment that would bring some of the ability to sue back into the bill but that lowering the size of business required to pay sick leave to five is off the table. Democrats speaking in opposition to the changes said more than 30,000 Nebraskans would lose paid sick leave, highlighting the political reality facing the majority. Wordekemper said his continued support for the measure depends on the amendments proposed, if senators decide to bring LB 415 back to select file. Wordekemper voted present on cloture for the bill this round, but the bill advanced with the support of State Sen. Jane Raybould of Lincoln, a Democrat who voted for the bill and cloture. His vote is unlikely to affect the outcome. Ballard said after the vote that he has enough votes for passage during final reading despite the compromise amendment blowing up. Voters adopted the paid sick leave ballot measure with nearly 75% of the vote in November, including majority support across all 49 legislative districts. The measure was heavily supported by Nebraska labor groups. The voter-approved paid sick leave law is set to go into effect on Oct. 1. State Sen. George Dungan of Lincoln said lawmakers should be ashamed, adding they just 'told 30,000 Nebraskans that they don't get the opportunity for paid sick leave.' 'You didn't like the way that people were talking after that was adopted. It sounds like perhaps you decided to gut it and strip it,' Dungan said. 'That's being vindictive.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
30-04-2025
- Business
- Yahoo
School retirement, tax incentive reductions pass, narrow Nebraska deficit by $136 million
State Sen. Brad von Gillern of Elkhorn, center, flanked by State Sens. Beau Ballard of Lincoln and Mike McDonnell of Omaha. Aug. 20, 2024. (Zach Wendling/Nebraska Examiner) LINCOLN — Lawmakers gave wide final approval Wednesday to two measures designed to shrink the state's looming budget deficit by $136 million. The two bills are Legislative Bill 650, from State Sen. Brad von Gillern of the Elkhorn area, related to trimming business incentives, and LB 645, from State Sen. Beau Ballard of Lincoln, related to scaling back school retirement contributions based on how well funded the pension plan is. LB 650 passed 40-7. LB 645 passed 45-2. LB 650 from von Gillern, who chairs the Legislature's Revenue Committee, would reduce or defund various tax incentives with savings this biennium, including: Buyer-based exemption for construction contractors to purchase materials tax-free if appointed to do so by a client ($12.9 million). Credit for retailers collecting sales taxes (reduced, $11.7 million savings). Renewable Chemical Production Tax Credit Act for local businesses producing renewable chemicals (defunded after 2025, $8.5 million savings). Nebraska Relocation Incentive Act offering tax incentives for relocation expenses (reduced, $8 million savings). Nebraska Advantage Rural Development Act for individuals or companies that increase economic activities intended to benefit rural Nebraska (reduced, $6.8 million savings). Nebraska Biodiesel Tax Credit Act for retail dealers who sell and dispense biodiesel at a taxpayer's retail gas station (reduced, $1 million savings). Creating High Impact Economic Futures (CHIEF) Act for charitable contributions to community assistance or services helping to alleviate areas of chronic economic distress (defunded after 2025, $900,000 savings). Nebraska Shortline Rail Modernization Act to offset railroad infrastructure maintenance and capital improvements for Class III railroads (reduced, $500,000 savings). Food donation income tax credit for grocery stores, restaurants or agricultural producers that donate food to a food bank, food pantry or food rescue (defunded after 2025, $500,000 savings). Cast and Crew Nebraska Act for qualifying film companies, productions and actors (defunded after 2025, $500,000 savings). Reverse Osmosis System Tax Credit Act for the one-time installation of a reverse osmosis system at a taxpayer's primary residence (reduced, $250,000 savings). Urban Redevelopment Act designed to grow small businesses and generate investment in Nebraska's urban cores (defunded after 2025, $101,000 savings). LB 645 from Ballard, who chairs the Legislature's Nebraska Retirement Systems Committee, would reduce annual contributions to the state's school retirement pension plan — for all employees outside Omaha Public Schools, who have a separate retirement plan — depending on the actuarial funding level of the pension plan. The school plan is currently 99.91% funded. The state currently gives 2% of statewide payroll for employees covered under the plan. School employees contribute 9.78% of their monthly payroll, while school districts match that at 9.88% of the eligible employees in their district. Under the amended LB 645, contribution rates would change each July 1 for all three groups depending on whether the plan is: Less than 96% funded (employees 9.75%, employers 9.85%, state 2%). Between 96% and 98% funded (employees 8.75%, employers 8.84%, state 0.7%). Between 98% and 100% funded (employees 8%, employers 8.08%, state 0.7%). 100% funded or more (employees 7.25%, employers 7.32%, state 0%). Multiple senators said the tiered system could offer a 'cushion' in hard economic times. Teachers and other school employees could see an immediate take-home pay increase, and school districts could have a property tax reduction. However, if the plan's funding level falls, closing the gap would fall back to the state, employees and school districts. Ballard, at the urging of State Sen. Danielle Conrad of Lincoln, earlier this week put in language to LB 645 protecting the state's continued contributions of 2% of payroll for Omaha Public Schools employees to the separate district retirement plan each year. That amendment also said it isn't the Legislature's intent to pick up 'any financial responsibility or liability' for the OPS pension, which the state now manages. With the passage of LB 650 and LB 645, and with Gov. Jim Pillen's expected support — he included both measures in his January budget proposal — the state's projected budget deficit would fall by $136 million. The state also would save $187.24 million in the following two-year budget cycle, based on current projections. Lawmakers still would need to find $259.4 million over the next two weeks to balance the budget and meet a statutorily required reserve limit, according to estimates from the Legislative Fiscal Office. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
17-04-2025
- Business
- Yahoo
Lawmakers advance changes to Nebraska school retirement plan to help close budget hole
State Sen. Beau Ballard of Lincoln, center right, talks with Clerk of the Legislature Brandon Metzler, Speaker John Arch of La Vista and State Sen. Danielle Conrad of Lincoln. April 17, 2025. (Zach Wendling/Nebraska Examiner) LINCOLN — Despite earlier statements that changes to annual school retirement contributions would not be used to balance Nebraska's budget, lawmakers confirmed Thursday that the reductions will go toward that goal. State senators gave 38-0 first-approval Thursday to Legislative Bill 645, from State Sen. Beau Ballard of Lincoln at the request of Gov. Jim Pillen, to lower employer, employee and state contributions to the statewide school retirement plan based on its funding level compared to obligations to members. The plan is currently 99.91% funded. The state retirement plan covers all eligible school employees, notably teachers, outside Omaha Public Schools, which has a separate retirement plan and is not as highly funded. Currently, employees contribute to the group plan 9.78% of monthly payroll and school districts give 9.88% of the payroll paid to covered district employees. The state annually gives 2% of the statewide payroll for covered members. Payroll was about $2.5 billion in the past year. Under Ballard's bill, and an amendment adopted 41-0, contribution rates would change as follows: Less than 96% funded — 9.75% employees, 9.85% employers, 2% state. Between 96% funded and 98% funded — 8.75% employees, 8.84% employers, 0.7% state. Between 98% and 100% funded — 8% employees, 8.08% employers, 0.7% state. 100% funded or more — 7.25% employees, 7.32% employers, 0% state. 'Importantly, these agreed-upon reductions in contributions have built-in protections to ensure the long-term sustainability of the fund,' said Ballard, chair of the Legislature's Nebraska Retirement Systems Committee. The amended LB 645 could save the state at least $80 million in the next two fiscal years, which multiple senators celebrated as helping to close the state's projected budget shortfall of $457 million for the next two years. That is prior to ongoing work by the Appropriations Committee, which has whittled the deficit down to about $100 million with continued negotiations. The budget bills must be presented to the Legislature by the end of the month for debate. Opponents of Ballard's measure, chiefly State Sen. Danielle Conrad of Lincoln, said 'political games' should not be played with teacher retirements, especially with what she said is 'incredible economic volatility and uncertainty' under President Donald Trump. 'Playing Russian roulette with their retirement is wrong,' Conrad said Thursday. If annual contributions in any year are not enough to keep the plan adequately funded under state law, such as if investment returns come up short or stock market returns are too volatile, the state is on the hook for additional funding outside of annual contributions. That happened in the late 2000s, leading to the current funding contribution levels in 2013 negotiations. State Sen. Rob Clements of Elmwood, chair of the Appropriations Committee and a member of the Retirement Committee, described Ballard's LB 645 as a 'reasonable compromise.' He said opponents blasting the bill as a 'serious threat' to the plan is just 'not true' and that employees would see no benefit reductions. Clements said it's 'the right thing to do at this time.' 'The plan is in good shape, and the state's contribution would go back to a full amount if it's below 96% [funded],' Clements said. State Sens. Mike Moser of Columbus and Jana Hughes of Seward said the contribution rates should have been examined without regard to the state budget, even if there was a surplus. 'If this retirement fund is funded at 100%, we should all raise our hands and say, 'Halleluja,'' Moser said. 'Funding it beyond 100% just does not make sense.' Throughout the 2025 session, LB 645 has faced significant changes since it was first introduced in January. At that time, only the state government would have seen a lowered contribution rate. Then, prior to a March hearing on LB 645, Ballard offered an amendment to change employee contribution rates. Now, employers who opposed the bill would also see lowered contribution rates. School advocates have said the freed-up funds could lead to possibly lower property taxes or increased teacher pay, and many school advocacy groups are now in favor of the bill. Ballard shared data from the Nebraska State Education Association estimating that the average school teacher could receive $1,000 more in take-home pay when the retirement plan is more than 98% funded, under LB 645. If the plan is fully funded, the take-home pay could be $1,500 each year. State Sens. George Dungan of Lincoln, of the Legislature's Revenue Committee, and Machaela Cavanaugh of Omaha, on the Appropriations Committee, said the budget deficit is self-inflicted. Dungan described it as an online meme where a young child puts a stick in the spike of his bicycle and flips over, asking, 'Oh my God, who did this?' 'This kind of feels like we've done something to ourselves and now we are operating under this structure where we feel like our hands are tied and we have to do these things,' Dungan said. State Sen. Tony Sorrentino of the Elkhorn area, a member of the Revenue and Retirement Committees, described the situation as paying a bill twice. 'You don't overfund pensions. You don't overpay bills,' Sorrentino said. But you do have to have the wherewithal to make up for that when and if it gets to a certain level of funding.' Conrad blamed 'unsustainable, inequitable, reckless tax cuts,' and Cavanaugh said the Appropriations Committee 'not once' discussed using the freed-up state retirement contributions to invest in education, contrary to earlier statements from the governor's staff that the funds would not be used toward balancing the budget. Kenny Zoeller, director of the governor's policy research office, who made those commitments earlier this year, did not respond to a request for comment on what had changed. Ballard said he would like to balance the budget without raising taxes, such as by limiting spending. State Sen. Myron Dorn of Adams, a seven-year member of the Appropriations Committee, said that as of Wednesday the committee still had $100 million to find to balance the budget. He has often described the budget as a 'giant puzzle,' stating Thursday that retirement contributions is one piece. If his colleagues chose not to adopt the retirement changes, Dorn said that would lead to cuts somewhere else. 'This is just one part of that puzzle,' Dorn said. The Retirement Committee will have a new hearing on an amendment to LB 645 next week that could expand retirement eligibility for employees hired after July 1, 2018. Currently, retirement eligibility is when age plus years of service meets or exceeds 85 years — 'Rule of 85.' Workers hired before July 2018 can retire as early as age 55. Newer employees have to wait until at least age 60. As a trade-off, the state would not provide any annual contributions to the retirement plan in the next two years, potentially saving nearly $20 million more, before contributions are set as now outlined in LB 645. Tim Royers, president of the NSEA, said the organization was happy that LB 645 advanced, and is looking forward to next week's hearing on correcting a 'serious wrong.' 'We have a chance to make them whole, and that's important,' he told the Nebraska Examiner. Ballard said he's unsure how the amendment would be received the Legislature before the hearing. Conrad, the dean of the Legislature who competed against Ballard for chair of the Retirement Committee in January, losing 25-24 after a tied vote, said the amended LB 645 could very well be a 'good deal' for school employees, but she urged caution. 'If indeed we can find a path forward, we shouldn't rush,' Conrad said. 'We shouldn't rush with something this important.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
14-04-2025
- Business
- Yahoo
Changes to school retirement plan advance to full Nebraska Legislature
School employees engaged in the retirement changes process with State Sen. Beau Ballard of Lincoln. (Aaron Sanderford/Nebraska Examiner) LINCOLN — The full Nebraska Legislature appears likely to debate a governor-backed bill to reexamine contributions for school employees' retirement plans, which the sponsor described as a 'win-win-win.' The Nebraska Retirement Systems Committee on Monday morning voted 4-0 to advance Legislative Bill 645 by State Sen. Beau Ballard of Lincoln, the committee chair. State Sens. Brian Hardin of Gering and Danielle Conrad of Lincoln were absent from the vote, but Ballard left the vote open through at least the end of the day for both to weigh in if they choose to. 'This is a win for state tax dollars, a win for teachers and also, I believe, a win for property taxpayers as well,' Ballard told the Nebraska Examiner of his amended bill. The school retirement plan at center stage applies to eligible school employees outside of the Omaha Public Schools, which has a separate retirement plan. Currently, teachers and other eligible school staff contribute 9.78% of their monthly payroll to the pooled retirement plan. School districts match this at 9.88% of the amount they pay their employees, while the state contributes 2% of statewide school employee payroll each year. The estimated payroll for teachers in Nebraska, as of July 1, 2024, was $2.5 billion annually. That means the plan took in $543 million in direct contributions — about $50 million from the state, $245 million from employees and $248 million from school districts in the most recent year. The amended LB 645 is significantly different from when it was introduced in January, which at the time would have reduced state contributions to 0% depending on the plan's actuarial funding status, but left contribution rates for employees and school districts the same. The plan is currently 99.91% funded. If LB 645 moves forward, contribution levels of all three groups would change at four stages based on the actuarially funded level — less than 96% funded, between 96% and 98% funded, between 98% and 100% funded and fully funded. The state would fall to 0.7% of annual contributions at the two intermediate stages, retaining the 2% contribution level when the retirement plan is underfunded and paying zero when the plan is fully funded. State Sen. Rob Clements of Elmwood, chair of the Legislature's Appropriations Committee, and a member of the Retirement Committee, said LB 645 could save the state $77 million over the next biennium. The governor's office maintains that the freed-up funds should not be used to balance the state's projected budget deficit but instead to invest in education. Under the latest version of Ballard's bill, school employees would contribute 9.75% of payroll if the plan is less than 96% funded. This would lower to 8.75% and 8%, respectively, at the intermediate stages. When fully funded, employees would contribute 7.25% of their individual pay to the plan. Employees were brought to the table for negotiations prior to LB 645's public hearing last month. Ballard's staff provided data estimating that the average school teacher could receive $1,000 in more take-home pay if the retirement plan is more than 98% funded, as it is now, because of lower monthly contributions. When the plan is fully funded, take-home pay for the average teacher could rise by up to $1,500 each year. Employers would continue to contribute 101% of what their employees do, which is a first for the continued negotiations. Before, LB 645 would have locked the employer contribution rate at 9.88% of what employees are paid. Ballard said allowing lowered contributions when the retirement plans are flush could lead to reduced property taxes. Lowered contributions at full funding would lower contributions for both employers and employees by 2.5%, potentially freeing up funding for a priority of the Nebraska State Education Association — funding more long-term substitutes so teachers can take paid time off around significant life events. That bill, LB 440 from State Sen. Ashlei Spivey of Omaha, is planned to be advanced through the Education Committee's LB 306. An amended version of her bill seeks a 0.35% payroll tax, for both employees and employers, to fund four weeks of long-term substitutes, rather than her original proposal's idea for six weeks. Excess funds collected under the Spivey proposal above what's needed to cover subs would be steered toward teacher retention or recruitment, such as forgivable loans for special education teachers as provided in Lincoln State Sen. George Dungan's LB 408. Before structural changes to state retirement plans can be made, an actuarial study must assess the feasibility. The latest study came back last Thursday indicating the plan would still receive about 0.27% more funds each year than required under state law at full funding. The actuaries said this provides 'little cushion … to absorb adverse experience.' State law currently requires that the state is on the hook for additional funding in any given year if the plan requires more funds outside of annual contributions. The actuaries wrote that part of the 'challenge' in the future will be adjusting to the varied contribution rate, which could eat into state funds, property taxes or employee pay. The study also takes into account a phased-in slightly lower assumed return on investment for the retirement plan. State Sen. Tony Sorrentino of the Elkhorn area, vice chair of the Retirement Committee, said normally contributions would increase in that case. The actuaries agreed this could increase risk to the retirement plan. However, Ballard and Clements noted that one built-in fail-safe is increased contributions if the funding status of the retirement plan lowers. The actuaries predicted the probability that the retirement plan would be fully funded about 56.4% of the time over the next 20 years, while it could be less than 96% funded about 31.5% of the time. Ballard, who introduced LB 645 more than 50 legislative days ago, said he appreciated the feedback that he received from teachers, administrators, school boards, the Governor's Office and more, all of which he said are now on board. Conrad clashed with Ballard at LB 645's public hearing in March in part over the bill's negotiations. She could not immediately be reached for comment Monday on the advanced bill, nor could the NSEA. Ballard said he took the feedback of teachers and other employees with 'high consideration.' 'This is their livelihood, this is their retirement plan,' Ballard said. 'We want to make sure that they are protected because they do so much for our state, and we just really appreciate their feedback.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
