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4 days ago
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Nebraska college savings accounts expand to cover private K-12 tuition
A proposal to expand tax-advantaged Nebraska college savings accounts to cover the costs of private K-12 tuition passed as part of a larger bill related to property taxes. (Camilla Forte/The Hechinger Report) LINCOLN — A proposal to expand tax-advantaged Nebraska college savings accounts to cover the costs of private K-12 tuition passed Friday as part of a larger bill related to property taxes. The passage of Legislative Bill 647 was delayed because State Sen. Machaela Cavanaugh of Omaha wanted to remove State Sen. Tony Sorrentino's proposal due to what she called a broken 'agreement' regarding State Sen. Ashlei Spivey of Omaha, which would have helped schools fund long-term substitutes so teachers could take paid time off around significant life events. State Sen. Brad von Gillern of the Elkhorn area said there was no 'agreement' with the Legislature's Revenue Committee. 'There was no deal,' he said. 'I was invited into a conversation to talk about the bills that were at play, including Senator [Ashlei Spivey]'s bill. I told the participants in that meeting clearly that I will not make a deal. Each bill needs to stand on its own.' The 'deal' involved a bipartisan group on the Education Committee and the state's largest teachers' union — which led to a month-long effort to get a package of proposals out of committee. That package is dead, replaced by a watered-down clean-up bill. LB 647 advanced 35-13. That tally included the support of two Democrats, State Sen. Eliot Bostar of Lincoln and Dan Quick of Grand Island. Bostar said that he voted against including Sorrentino's proposal during the last round of debate but decided to vote for LB 647 as a whole because it was needed to balance the budget. State Sen. Dan Quick of Grand Island said his constituents have asked to be in favor of Sorrenino's proposal. At least 42 states already allow such savings accounts to cover tuition at K-12 private schools, which was first allowed federally in 2018 after congressional passage of the Tax Cuts and Jobs Act, for up to $10,000 per beneficiary per year. A 529 savings plan — in Nebraska, NEST 529 — offers tax breaks to encourage families or students to donate and allows the savings to grow tax-free and be used for an approved educational purpose. Nebraska voters in November repealed the state's new school voucher or scholarship program that was set to steer public dollars to private schools, though conservative lawmakers and Gov. Jim Pillen have pledged to keep trying to pass a replacement. Public school advocates have argued against using public funds for that purpose and said voucher programs in other states have bled public money needed for public education. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
5 days ago
- Business
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Another merger attempt fails for slowing Nebraska's minimum wage increases
State Sen. Jane Raybould of Lincoln speaks in favor of gun reforms on March 16, 2023, in Lincoln. In her hand is a cut-out of a pre-schooler in Raybould's district, Octavia, who Raybould said the suggested reforms would support. (Zach Wendling/Nebraska Examiner) LINCOLN — Another last-minute attempt by State Sen. Jane Raybould of Lincoln to force a vote this session on a legislative proposal to slow Nebraska's voter-approved minimum wage increases failed Thursday to join an unrelated bill. This time, she tried attaching the amendment to State Sen. Tony Sorrentino of the Elkhorn area's Legislative Bill 265, a budget bill with business overtones that dealt with unemployment insurance tax rates and the Workforce Development Program Cash Fund. Opponents trying to stop the effort by Raybould, a Democrat in the officially nonpartisan Legislature, filed motions to filibuster the amendment and keep it from being considered — a tactic her fellow Democrats used to successfully block it from becoming part of a bill Wednesday weakening Nebraska's paid sick leave protections, LB 415, which is heading to the governor's desk. Raybould said before withdrawing her amendment that she 'was going to do everything' to work within the rules and follow the regulations of the body. She emphasized that if the rules had been followed, her bill would not have failed after Sorrentino missed the vote on final reading, because lawmakers would have been able to reconsider it on the same day and pass her standalone bill. 'I made a commitment to all the business leaders out there that are in the lobby [and] to the small businesses, daycare centers, dog groomers and yoga studios,' Raybould said. Raybould also emphasized that she wants to act now, saying the political dynamics facing her bill change if lawmakers wait. She said it would be harder to reduce pay for young people after the voter-approved law has taken effect. Her revived proposal, in its current form, would shrink the wage increases by setting the annual increase for adults at 1.75%. It also would create a youth minimum wage and amend a separate state training wage for people ages 16 to 19 in the first 90 days on the job. Raybould and supporters of her changes said they would protect small businesses that could not afford to pay more. Lawmakers against slowing wage growth said they were defending the people's will. State Sen. Megan Hunt of Omaha said Sorrentino's bill was 'hijacked by the Senator Raybould show' during the debate as she was taking a 'third bite of the apple.' 'What troubles me about small business owners like Senator Raybould … is that they have more solidarity with large corporations than they do with the workers themselves,' said Hunt, who runs a small store in Omaha. Raybould withdrew her amendment after it looked like lawmakers wouldn't have the time to consider the amendment, which many believe had the votes needed to pass. But before she pulled her amendment, she pushed back on what she called 'misrepresented dialogue' from Democratic-aligned lawmakers against her proposal. 'It's not something that we're doing to save money, as some have alleged; it's really to be an incentive to hire young people,' Raybould said. 'I think there are several things that the Legislature can do to strike a balance on the [wage] increase approved in November and not forcing our small and medium businesses to shutter or sell out.' Opposed lawmakers eventually pulled amendments related to the filibuster of Raybould's minimum wage amendment, but only after responding to her speech, letting the base bill, LB 265, eventually advance. One state senator, speaking privately, said the drama from Thursday showed the statehouse is 'not a serious place,' and that lawmakers are not 'serious people.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
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6 days ago
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Nebraska advances bill codifying legislative oversight role dealing with executive branch agencies
Speaker John Arch of La Vista listens to State Sen. Danielle Conrad of Lincoln. Aug. 2, 2024. (Zach Wendling/Nebraska Examiner) LINCOLN — The Nebraska Legislature inched Wednesday toward clarifying the legislative branch's legal authority to provide oversight of how the executive branch spends the people's money, including how it handles children and adults under state supervision. Lawmakers advanced Legislative Bill 298 by voice vote. The measure, sought by Speaker John Arch, would create a new Division of Legislative Oversight and a new Legislative Oversight Committee. LB 298 would place the Ombudsman's Office, also known as the Office of Public Counsel, in the new division. 'We need information in this Legislature to legislate and appropriate,' Arch said, adding that senators require more information to do its job well than relying on news reports. State Sen. Eliot Bostar of Lincoln emphasized the need to dig deeper independently of reporters and the state auditor. He had wanted to add new employees who monitor spending by all levels of government as a job, an amendment that failed 7-22. 'We do not have adequate oversight over all of the levels of government, over all of the governmental bodies, over all of the political subdivisions in the State of Nebraska,' Bostar said. Senators spent much of the debate arguing about how specific the bill should be about response times for requested records from the agencies under the governor's control. Some also discussed the origins of the debate, whether senators need to pass a new law in response to a non-binding legal opinion in 2023 from Attorney General Mike Hilgers. State Sen. Danielle Conrad of Lincoln has argued the Legislature should have sued the executive branch and let the courts decide the limits of legislative oversight. Conrad has argued that Arch and the Legislature should not accept an executive branch interpretation of the limits of legislative power that lacks the power of law. It is, she said, an opinion. Evolving fix for Nebraska legislative oversight faces continued resistance 'I strongly disagree with how legislative leadership reacted to the attorney general's political opinion, which undermined our undeniable ability to conduct legislative oversight,' she said. On Wednesday, Conrad argued that if the Legislature was going to proceed on codifying its oversight role, it should specify a timeline for record requests and responses. She said her overarching goal was making sure that the state agencies that the Legislature funds understand that lawmakers are watching how they work, that 'the agencies are on notice.' Arch responded that he agreed with her that a time may come when the Legislature has to set a number of days but that the experience under a memorandum of understanding has been good. He said the inspectors general for corrections and child welfare tell him that the offices are getting information in a timely manner, often four to seven days, so deadlines aren't needed yet. But State Sen. Machaela Cavanaugh of Omaha, who has long fought with the Nebraska Department of Health and Human Services for timely information, said agencies should not have the option. Cavanaugh and Conrad pointed to an Ombudsman's Office report that argued the administration has been less accessible and slower in responding to the child welfare questions. 'I appreciate Speaker Arch's comments … that it hasn't been a problem recently, but that's part of the reason that we put things in statute,' Cavanaugh said. Under the bill, the Legislature's watchdogs would retain the subpoena power to demand documentation and answers. Using that power would require a majority vote of the Executive Board. Lawmakers seemed to agree that their oversight would need to pause during criminal investigations and that lawmakers might not be able to access every bit of executive information. Arch has said the Legislature and executive branch sought a balance to make sure state senators get the information they need and that the executive branch can carry out its work. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
7 days ago
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Nebraska lawmakers again advance ban of most THC, consumable hemp products
State Sen. Kathleen Kauth of the Millard area, left, talks with State Sen. Teresa Ibach of Sumner. Jan. 8, 2025. (Zach Wendling/Nebraska Examiner) LINCOLN — A legislative proposal that would ban most consumable hemp and other THC products in Nebraska advanced Tuesday without amendments as opponents blocked changes. Throughout a four-hour debate on Legislative Bill 316, from State Sen. Kathleen Kauth of the Millard area, only a handful of senators spoke. That's because of pointed opposition from State Sen. John Cavanaugh of Omaha, who filed nearly 30 motions or amendments throughout the bill's life, largely to push senators toward considering regulations instead of a ban. LB 316 advanced 32-15 with 32 of the 33 Republicans voting for it and all 15 Democrats voting against. The Legislature's one nonpartisan progressive was not in attendance. State Sen. Dan McKeon of Amherst, who was 'present, not voting' on advancing the bill, said he did so to wait for possible future changes. He said he recently toured a consumable hemp shop in his district and has concerns about whether the bill could freeze those operations. LB 316 would prohibit raw hemp above 0.3% tetrahydrocannabinol (THC) of any concentration and for processed hemp the lesser of 0.3% THC on a total weight basis or 10 milligrams per package, effective Jan. 1. The mature stalks of Cannabis sativa and its fiber, oil, cake and any other naturally derived products would not be considered hemp, leaving a narrow legal path for some products such as fibers and textiles. If the bill passed, it would include a 'consumer safe harbor period' through the end of 2025 to give consumers time to discard any 'illegal hemp' as newly defined under LB 316. Legal products would face an additional 10% wholesale tax at the time of purchase. Part of Cavanaugh's tactics included a regulatory-focused amendment that he termed a 'compromise.' It would have still banned 'synthetic' cannabinoids of any THC concentration but protected 'hemp-derived' cannabinoids, such as CBD lotions. The Cavanaugh amendment would have required ID checks before purchases, in-state testing, tamper-proof and child-resistant packaging and licensing similar to the Liquor Control Act. Cavanaugh and State Sen. George Dungan of Lincoln said most hemp-derived products require chemical processes, such as heat, to be manufactured. Cavanaugh said the 'synthetic' marijuana that opponents detest as a 'great evil,' including K-2 and spice, was already banned in Nebraska in 2011. 'This is a compromise that allows people, good actors, to continue to act and sell their product in the State of Nebraska, to collect taxes, collect revenue, create jobs, all of these sorts of things,' Cavanaugh said. Cavanaugh's regulatory amendment failed 16-27. State Sen. Stan Clouse of Kearney was the only eventual supporter of LB 316 who supported his proposal. Around Cavanaugh, Kauth is seeking to amend LB 316 to explicitly state her bill would not conflict with voter-approved medical cannabis legalization and regulations in the state, a request of State Sen. Ben Hansen of Blair. The other major change would allow consumers to prove via an 'affirmative defense' in court that they purchased what would become 'illegal hemp' under LB 316 for personal use before September 2025, when the law would take effect. That's a change made to appease State Sen. Tom Brandt of Plymouth. Brandt and Hansen, both Republicans, have so far supported LB 316 under the condition that it be amended in the future. Lawmakers have five legislative days left to do so and are set to adjourn by June 9. Kauth disagrees that most products would be banned and envisions a three-step process for products under her bill: Is the product cannabis? Is it free of any synthetic or modified cannabis? Does the product comply with THC limits of less than 0.3% any THC (the current law is 0.3% delta-9 THC)? If so, Kauth said the products would remain legal. She said the role of government is to put up guardrails and that LB 316 is about 'trying to keep our populace healthy.' 'We are essentially allowing consumers to play Russian roulette every time they go into a store and they can buy a product off the shelves,' Kauth said. 'They're assuming that it is legal. They're assuming that we've already done our jobs.' Kauth was the only supporter to speak in favor of the bill outside of an exchange with Hansen, during which he said promised changes would help protect medical cannabis access. Kauth and the Attorney General's Office, which is pushing LB 316, have said that the measure was never intended to conflict with the medical cannabis laws but worked with Hansen anyway. Hansen confirmed that if the amendment is not attached at the next stage of the debate, he won't vote for the bill. Dungan said that instead of taking a 'scalpel' to THC concerns, supporters approached with a 'hammer.' Part of the reason there are concerns about 'clean' products is the lack of regulations that Cavanaugh sought to add, Dungan said. He said some senators see the word 'chemicals' and 'get all freaked out and they think to themselves, 'Oh my goodness, this is all scary stuff.'' But Dungan said chemical reactions are normal, as simple as putting toast in the toaster. 'I know a lot of people in here have this perception of CBD or delta-8 or THC where it's a classic sort of 'Reefer Madness' idea, that it's a bunch of hippies sitting out on the hill smoking joints,' Dungan said. 'But really, what we're talking about are little old ladies putting cream on their joints.' Dungan, who sits on the Revenue Committee with Kauth, also raised concerns over the revenue loss from fewer sales if LB 316 passes. A fiscal estimate projects at least $2.9 million in lost revenue and about $530,000 in administrative costs over the next two fiscal years. Revenue losses would grow over time, with about $85,000 in annual administrative costs in the future. That's more than the state currently has in its piggy bank after filling, for now, a major projected budget deficit. The state has about $2.6 million left to work with, about $1.5 million of which is expected to be used to raise judges' salaries. LB 316 would require another bill to pass and generate revenue or cut spending. The new excise tax revenue raised by the bill would be directed toward property tax relief. State Sen. Jared Storm of David City, who selected LB 316 as his 2025 priority, has previously said 'effective regulation of this industry is impossible' and that the products are 'garbage' attached to a little bit of cannabidiol (CBD) to vape, smoke or eat. Storm said during the first-round debate he would never jeopardize 'the health or safety of our citizens of this state, especially children and young adults, for revenue.' Other opponents said the bill would enrich a 'felony factory' of the 2025 session, a phrase coined by State Sen. Wendy DeBoer of Omaha, vice chair of the Judiciary Committee. DeBoer said more Nebraskans could be charged with a felony if they possess products under the existing limits of 0.3% delta-9 THC, because the bill would count the 0.3% based on any THC concentration, not just delta-9. State Sen. Carolyn Bosn of Lincoln, a former prosecutor and chair of the Judiciary Committee, said defining hemp as 'marijuana' under LB 316 is about a 'clarification' and not new penalties. Instead, she said it would place hemp products above the legal THC limits on the same criminal scale as marijuana possession — an infraction for less than 1 ounce, a misdemeanor between 1 ounce and 1 pound and a felony for more than 1 pound. Bosn previously said the penalties were a 'clarification.' She had said trying to regulate the drugs was like 'playing Whac-a-Mole.' DeBoer said the 'affirmative defense' indicates that felony charges could be coming because the defense would need to be asserted in court. Cavanaugh said it's not a 'get out of jail free card,' such as in the case of a 'little old lady' who didn't save a receipt. State Sen. Danielle Conrad of Lincoln, as well as Cavanaugh and Dungan, said LB 316 would put Nebraskans out of business and that supporters of the measure weren't listening to Nebraskans who have said they could be harmed, including small business owners and farmers. 'Nebraskans feel like they're being gaslit by this Legislature, and that's because they are,' Conrad said. 'This is politics at its worst.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
15-05-2025
- Business
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Nebraska passes $11 billion two-year budget, closes major projected deficit for now
A budget book for Nebraska's fiscal years between 2025 and 2027 sits on a lawmaker's desk. April 29, 2025. (Juan Salinas II/Nebraska Examiner) LINCOLN — Lawmakers approved Nebraska's $11 billion mainline budget for the next two years Thursday, leaving themselves with $1.1 million in wiggle room while controlling spending and moving enough money to cover the first two years of a projected deficit. That figure includes $1.5 million in spending from LB 513, to give all state judges 1.5% salary increases in each of the next two years, which State Sen. Rob Clements of Elmwood, chair of the Legislature's Appropriations Committee, anticipates passing. On Thursday, no senators spoke during debate in favor of or to defend the budget bills — Legislative Bills 260, 261, 262, 263 and 265, as well as LB 534 to fund legal claims against the state — while multiple opponents said the budget was 'supposedly' but not really balanced. State Sen. Machaela Cavanaugh of Omaha, for example, predicted the bills wouldn't stop the deficit and that a special session would be needed. 'This budget is based on a number of sleight of hands,' said State Sen. Wendy DeBoer of Omaha. 'It is not actually balanced. We're just making it look like it's balanced.' Clements said 'there's nothing' to indicate a special session would be needed unless there are 'drastic actions' federally, hinting at possible congressional budget cuts. He said he was pleased with the result of the budget bills that funded salary increases and health insurance benefits for state employees and that state agencies were not 'slashed.' Clements said his committee's work put the state in 'good financial shape' for the next two years in a budget-writing year that required extra work and he described as stressful. He said he was proud to protect funding for the Perkins County Canal and a new state prison. 'It seemed like an insurmountable mountain to climb, but we did it, and we also did not cut essential services,' Clements said. LB 261, passed 37-11, and LB 264, passed 35-13, were the main budget bills. Because legislative rules required the budget to pass by the end-of-day Thursday, lawmakers made no last-minute changes, despite criticizing the bills for more than two hours. The bills now head to Gov. Jim Pillen, who can line-item veto any items. Overrides require at least 30 votes. Clements said he had not been in communication with the Governor's Office on whether to expect vetoes, or how many. General fund estimates for the current fiscal year and the following two are: Fiscal year 2024-25: $4.56 billion in net receipts, $5.48 billion in expenses. Fiscal year 2025-26: $5.36 billion in net receipts, $5.48 billion in expenses. Fiscal year 2026-27: $5.42 billion in net receipts, $5.52 billion in expenses. Net receipts for the 2025-26 and 2026-27 fiscal years include $57.6 million in interest, $216 million in cash fund transfers and $147 million from the state's 'rainy day' cash reserve fund, which were used to help close the projected deficit. DeBoer compared the budget bills to the fairy tale 'The Emperor's New Clothes,' where the ruler is naked but his subjects pretend he has extravagant clothing. 'They talked about how great it is because they don't want to be seen as unworthy,' DeBoer said, noting a young boy in the story called out the facade. DeBoer and Cavanaugh argued the budget bills were littered with mistakes and unconstitutional provisions that were largely strewn together with sweeps of various cash funds in a budget that offered a two-year average spending growth of 0.9%. The two said some of the sweeps included funds from increased fees on Nebraskans. Cavanaugh criticized moves to take about $2 million in interest from the administrative account for the Board of Educational Lands and Funds and $15 million in transfers from the Environmental Trust Fund. She proposed taking the amounts from the state's 'rainy day' cash reserve fund to avoid lawsuits for transfers she called unconstitutional. She said officials overseeing the educational lands have said they might need to sue, and a former state official has suggested a lawsuit to protect the Environmental Trust. At least $24 million of the budget gap is expected to be filled by seizing unspent agency funds after June 30, the end of the fiscal year. State Sen. Ashlei Spivey of Omaha said at least $7 million of that is contractually obligated in the Nebraska Department of Education. Some senators have also said the budget doesn't fully consider federal changes, such as in efforts to take away state-dedicated dollars for broadband expansion, because similar dollars came from the federal government. Some of those federal dollars are now at risk. State Sen. Ben Hansen of Blair, who supported the budget, suggested lawmakers should have been looking at more cuts to prepare for major federal spending cuts, such as to Medicaid. 'It's not about tightening our belt, as it is, we might be having to lop off limbs in order to help pay for our budget,' Hansen said. Spivey, a freshman member of the Appropriations Committee with Cavanaugh, said it would be 'interesting' to see the budget implications, including for the years farther out, when lawmakers are projected to face a hole of at least $110 million under current projections. 'I hope, as we continue to work on our financial status and sustainability, that folks are more open to discourse and challenging ourselves around our decisions and our approach to how we create a responsible and responsive budget to our constituents,' Spivey said. DeBoer said cash funds don't sit around for no reason and expects a number of deficit requests next year that the Legislature might need to grapple with. Of the budget's passing, DeBoer, a senior member of the body, said: 'I guess we need to learn this lesson to do better next time.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
