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5 days ago
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Former State Sen. Tony Vargas endorses Denise Powell in Nebraska's 2nd District
Denise Powell at her campaign event on June 4, 2025. (Courtesy of Denise Powell for Congress) LINCOLN — Former Omaha State Sen. Tony Vargas has endorsed nonprofit co-founder and business owner Denise Powell in her bid for Nebraska's 2nd Congressional District. The endorsement comes a day after Omaha State Sen. John Cavanaugh declared his candidacy for the seat on Wednesday, the same day Powell hosted a campaign kick-off event. The Vargas endorsement also followed Cavanaugh saying he has a 'stronger record of being a leader in the Legislature' than Vargas. Vargas, a Democrat who represented South Omaha in the Legislature and on the Omaha Public Schools board, narrowly lost twice to U.S. Rep. Don Bacon, R-Neb., with the 2024 margin being less than two percentage points. 'Denise's leadership and proven record of bringing people together to solve our toughest problems is why I'm proud to support her campaign for Congress,' Vargas said. Powell said she wants to build on the energy and enthusiasm Vargas brought to his House races. 'It is a tremendous honor to have the support of a dedicated public servant, leader and friend like Tony Vargas,' Powell said. Powell already has secured endorsements from some Cavanaugh colleagues in the Legislature from Omaha's State Sens. Margo Juarez and Dunixi Guereca, and other elected officials in the district, which includes all of Douglas and Saunders Counties and parts of suburban Sarpy County. Cavanaugh's new campaign has yet to announce any endorsements. Powell and Cavanaugh are the two highest-profile Democratic candidates in the race so far. Also running are Mark Johnston and Evangelos Argyrakis. Powell is running as an outsider, but she has the support of some top local Democratic donors from her time leading the nonpartisan nonprofit Women Who Run, a group that encouraged more women to consider running for office and equipped them with the tools to do so. Cavanaugh is part of a local political dynasty, seeking to follow his father into the same 2nd District seat he held in the late 1970s. His sister, State Sen. Machaela Cavanaugh, serves in the Legislature alongside him. In her statement responding to Cavanaugh's announcement, Powell didn't mention the senator by name but said, 'Nebraskans deserve better than lip service from career politicians.' 'I'm running to bring courage and common sense back to DC,' Powell said in the statement. She also received the endorsement from Square One Politics, a group focused on recruiting and discovering young, diverse, progressive candidates. Vargas became the group's executive director earlier this year. Whoever emerges from the 2026 Democratic primary will have to navigate Nebraska's most politically divided and diverse district, with a slight GOP tilt. National and state Democrats have been using the recent Omaha mayoral race as evidence of growing voter 'energy' against President Donald Trump and political fuel for the congressional midterms. Bacon has said both Democrats are too progressive to represent a purple district. Republicans are waiting on Bacon to decide whether to run again. Bacon has said he would announce this summer whether he would retire from Congress. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
17-04-2025
- Business
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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
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14-04-2025
- Business
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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
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09-04-2025
- Business
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Social media protections, student phone ban advance again in Nebraska Legislature
State Sen. Carolyn Bosn of Lincoln. April 8, 2025. (Zach Wendling/Nebraska Examiner) LINCOLN — State lawmakers are one debate away from adopting two bills backed by Nebraska Gov. Jim Pillen meant to increase online safety for minors and curb student phone use at school. Senators on Wednesday, by voice vote, advanced Legislative Bill 504, the 'Age-Appropriate Online Design Code Act' by State Sen. Carolyn Bosn of Lincoln. It would require online services to explicitly protect minor users and their personal information in the physical design of certain applications or websites, including social media. LB 504's goal is to tackle rising youth social media use and harms such as depression, anxiety, eating disorders, bullying, harassment, stalking, suicide and more. Bosn, a former deputy county attorney in Lancaster and Saunders Counties and a mother of four young children, said the online services covered under her bill profit off of users' data, including from screen time, clicks or purchases. She added that families know the importance of bills such as LB 504 and how difficult it is to stay ahead of an 'ever-changing online world.' The bill is about public safety, Bosn explained, comparable to car seats, toddler beds, training wheels, helmets and high chairs. 'We think about safety features in every other product we provide to our most vulnerable,' Bosn said. 'So why wouldn't we make every effort to make kids online safer?' Under LB 504, 'qualified online services' are those that: Conduct business in Nebraska. Determine the purposes and means of processing users' personal information. Have annual gross revenue over $25 million, adjusted every other year for inflation, at least 50% of which is derived from the sale or sharing of personal user data. Buy, receive, sell or share the personal information of 50,000 or more consumers, households or devices each year. Online services with 'actual knowledge' that fewer than 2% of users are minors (up to age 18) would be excluded from the act, as would federal, state, tribal or local governments for design features 'in the ordinary course of its operations.' Should Bosn's proposal conflict with one or more other laws, 'the law that affords the greatest protection from harm to minors shall control.' State Sens. Terrell McKinney and Margo Juarez, both of Omaha, both spoke in favor of Bosn's bill and said it was important to have guardrails in place for children. Juarez, a former school board member for Omaha Public Schools, said she imagined she would have appreciated the guidance if she had dealt with such social media influences when her children were younger. Children and teens using these online services would need to be treated differently online than adults, requiring easy-to-use and accessible tools, such as for parents up to their child's 13th birthday, to crack down on: Screen time. A minor being able to communicate with other users. Other individuals being able to see a minor's personal data. The operation of all design features, including to opt-out of any 'unnecessary' features. Personalized recommendations, allowing an opt-in for a chronological info stream rather than one based on user activity. In-game purchases or other transactions, placing limits or prohibiting such activity. The sharing of the precise geolocation of the minor and providing obvious notice of such tracking. Targeted advertising of minor users would also be prohibited on qualified online services. So would notifications or push alerts from such online services between 10 p.m. and 6 a.m. during the school year, and 8 a.m. to 4 p.m. on weekdays during the school year. Bosn's proposal also prohibits 'dark patterns' from being used on minors. These are user interfaces 'designed or manipulated with the effect of substantially subverting or impairing user autonomy, decision-making or choice.' This could include features that influence user choices often without the awareness of what they are consenting to, such as tracking or targeted ads. State Sen. George Dungan of Lincoln, as he did when the bill was first debated in February, said he had 'philosophical concerns' but also legal questions over whether LB 504's requirements would be constitutional under the First Amendment right of free speech. Dungan's largest concern was that the bill would require these settings to be default. He cited a recent case in California where a similar law was put on pause. 'I believe that in order to be compliant with the First Amendment, it is important that we not curate the speech that is being made by these private actors,' Dungan said. Bosn said requiring the default settings would add some 'teeth' to the law. State Sen. John Cavanaugh of Omaha, noting he has four children almost the same age as Bosn's, said he appreciated the changes that Bosn made for the second-round debate as a 'step in the right direction.' Cavanaugh said that while he shared concerns about social media and taking action, he was concerned about 'injecting the government from a top-down approach.' 'I think there are concerns people raise [that] young people should be entitled to some level of their own privacy about their thoughts and things like that,' he said. 'I don't know where you draw that line.' Bosn said she made multiple changes after talking with opponents, but that while she tried multiple times to work with Dungan and Cavanaugh, they hadn't engaged. She criticized the duo, who are both attorneys, for saying they agreed with the premise but in effect saying, 'We're just not there yet.' She called that 'a little disingenuous.' 'Maybe you should sit this one out,' Bosn said. 'Either have the courage to come and say, 'These are the changes we want made,' … or don't bother.' Bosn said one senator who previously raised concerns, State Sen. Danielle Conrad of Lincoln, worked on the bill before Bosn filed an amended version about one week ago. 'If you're not going to read it and you're not going to come and talk with me about your concerns, please don't stand here and patronize me and say, 'I really support your efforts,'' Bosn said. Bosn said she had removed a main provision of her bill similar to an issue raised in the California case, even though she said she disagreed with those concerns. That language would have required qualified online services to implement features to prevent compulsive usage, severe psychological harm (including anxiety and depression), severe emotional distress, 'highly offensive intrusions on reasonable privacy expectations,' identity theft, discrimination or other injuries. The amended bill would also no longer require online services to treat all users as a minor without until it is known that the user is not one. Online services would also not be required to issue an annual compliance report. Dungan said he had to 'respectfully dispute' that the Nebraska and California proposals were substantively different and apologized if his concerns had come off as patronizing. 'It still addresses the same underlying issue, which is that it seeks to regulate speech in a way that is overly broad,' Dungan said. Dungan said he thought the bill was a 'good idea, but, unfortunately, we do have to adhere to the rules of the Constitution.' An effort by Dungan to remove the 'default settings' language from Bosn's bill failed 26-10 against his amendment. Bosn's amendments to her bill were approved 45-0. LB 504 is one of four proposals backed by Pillen and Nebraska Attorney General Mike Hilgers this spring that addresses online safety for minors. A second bill, advanced Tuesday by voice vote to a third and final round of debate, LB 140 by State Sen. Rita Sanders of Bellevue, would require each of the state's 245 public school districts to prohibit student use of personal electronic devices, such as cellphones, on school grounds or at a 'school instructional function,' like a field trip. Most school districts already have such policies, and districts would retain wide latitude in approving the places and times when such devices could be used. The other bills are LB 383, from State Sen. Tanya Storer of Whitman, and LB 172, from State Sen. Brian Hardin of Gering. Storer's 'Parental Rights in Social Media Act' advanced 6-1 from the Bosn-chaired Judiciary Committee, with LB 172 amended in. LB 383 would prohibit anyone from creating social media accounts without first verifying their age after Jan. 1. One method of age verification could be a digital ID card. Minors (up to age 18) could not create an account without clear parental consent. Hardin's LB 172 would update existing state laws against child sexual abuse material to outlaw computer-generated images of child pornography. Storer has designated LB 383 as her 2025 priority bill. It is scheduled to begin debate Wednesday. Bosn's LB 504 would take effect Jan. 1 if passed. Civil violations could be enforced by the Nebraska AG's Office, up to $50,000 for each violation. The bill would include funding for a new assistant attorney general, or about $150,000 each full fiscal year. Companies would have a six-month 'grace period' to comply with the act, or until July 1, 2026. Bosn said 'red flags' over youth online activity have been flying from educators, medical professionals, law enforcement, judges, parents, grandparents, guardians and children who she said were acknowledging problems and asking for help. Bipartisan groups of lawmakers nationwide have been doing just that, Bosn added. 'This is the time to stand up for our kids,' Bosn said. 'This bill is a common sense opportunity for this body to demonstrate the political will to protect Nebraska children online.' Nebraska Examiner senior reporter Cindy Gonzalez contributed to this report. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX