Legislative budget discussions underway

 

February 25, 2021



The legislature passed the one-third mark this week in the 90-day legislative session. The Appropriations Committee also presented its preliminary recommendations for the biennial budget. This provides a starting point for discussion of the various budget actions suggested so far. After the Appropriations Committee finishes its committee work, it will develop formal recommendations to be presented to the legislature by mid to late March, at which time floor debate will take place.

Although we are in the middle of a pandemic, the state’s financial status is surprising good, having improved significantly since last year. Current projections reflect a balance of $49 million above the minimum reserve at the end of the 2022-23 fiscal year, a noticeable improvement from the previous projection of a $170 million shortfall. The committee’s proposal includes $130 million per year for funding legislation advanced to the floor. At this point, it does not contain funding for the governor’s major initiatives, which will compete for this funding.


The Government, Military, and Veterans Affairs Committee received testimony this past week on two controversial issues introduced by Senator Julie Slama. LB 76 would reinstate the winner-take-all system for electing presidential candidates, awarding all electoral votes to the candidate who received the highest number of votes in the state. LR 3 is a proposed constitutional amendment, giving voters a say on whether to require a photo ID prior to voting.


Only two states, Maine and Nebraska, allow their electoral votes to be split. Since 1991, Nebraska has awarded three of its five electoral votes to the winner of the popular vote in each of its three congressional districts. The other two electoral votes go to the statewide winner. This method has resulted in the awarding of one electoral vote to President Barack Obama in 2008 and one to President Joe Biden in 2020. Since 1991, there have been more than a dozen attempts to change our system back to winner-take-all, but all have been unsuccessful. Proponents of LB 76 say now is the time to return to the system used in 48 other states. Opponents argued that our current system attracts more attention to Nebraska in the presidential race and to change it would signal to voters their votes don’t matter as much.

LR 3 CA states that voter identification is necessary in order to combat voter fraud, preserve the relative power of each eligible citizen’s right to vote, modernize election infrastructure, and ensure the integrity of the election process. Thirty-five other states require voter identification. Opponents argued it will make it more difficult for some to vote, and it isn’t necessary, as there is little evidence of voter fraud in Nebraska.

Last year the legislature passed LB 1107, creating a property tax credit that Nebraskans can claim when filing their state income taxes. The credit is based on the amount of property taxes paid to schools. The credit will provide up to $125 million in property tax relief for the 2020 tax year, increasing to $375 million annually when fully phased in. This is in addition to the $275 million that is appropriated annually to the Property Tax Credit program, reflected on property tax statements.

In order to determine the amount eligible for the refundable income tax credit, the Nebraska Department of Revenue has created a tool for taxpayers to look up the amount of school district property taxes paid. The look-up tool can be found at revenue.nebraska.gov. If a taxpayer claims a different amount of credit than what they are entitled to, their refund may be delayed. Therefore, taxpayers are encouraged to use this tool.

If you are opposed to or in support of legislation or if you have any questions, contact me with your thoughts and opinions. I can be reached at District #40, P.O. Box 94604, State Capitol, Lincoln, NE 68509. My email address is [email protected] and my telephone number at the Capitol is 402-471-2801.

 

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