Income tax package advances to Select File

It is the last week of March and the legislature has moved on to all-day debate. At this point in time in the prior 2021 90-day long session, the legislature had passed 31 bills with 16 signed into law by the governor. This year, a grand total of zero bills have been passed into law and only one resolution - my resolution LR 13 - affirming the Legislature’s support for including the names of the Sage brothers and other 71 sailors of the USS Frank E. Evans on the Vietnam veterans memorial Wall, has received a final vote for adoption. Senators and committees designated 107 priority bills. There are 204 bills on General File, 32 bills on Select File, and two bills on Final Reading. In recent weeks, the filibuster has slowed the pace of the legislature.

I would like to provide an overview on how the legislature got to this point. There are seven items that have been points of contention thus far: the Nebraska Heartbeat Act (LB 626), Let Them Grow Act (LB 574), Sports and Spaces Act (LB 575), Opportunity Scholarships Act (LB 753), constitutional carry (LB 77), the school finance and tax reform package (LB 243, LB 754, and LB 583), and the budget (LB 814). Some senators have also expressed dissatisfaction with the committee assignment process back in January and conduct at public hearings. These topics resulted in the filibustering of appointments and noncontroversial legislation in the early part of the session.

A turning point was the advancement of LB 574 from the Health and Human Services Committee in February. The following day, Sen. Machaela Cavanaugh warned she was willing to “burn the session to the ground over this bill” in protest of LB 574. True to her word, Sen. Cavanaugh has slowed the business of passing laws to a crawl by introducing amendments and motions to every bill that makes it to the floor and taking up all eight debate hours allowed by the rules.

Last week, the legislature moved LB 574 to Select File. During debate, Sen. Megan Hunt and others warned if LB 574 received cloture and advanced, the session would be effectively finished.

Some senators said every bill on the agenda would be filibustered, regardless of who the introducer is, the content of the legislation, or whether those participating in the filibuster even support the bill. On the third final day of debate, opponents of LB 574 filed 14 bracket motions on the bill. By rule, priority motions always take precedence over amendments, and the senator making the motion always gets 10 minutes at the microphone to open on the priority motion. Brackets are considered a priority motion. Therefore, a small group of opposing senators began to make priority motions on bills and withdrawing the motion at the end of their 10-minute opening. One of their colleagues would then follow up and introduce a new priority motion, which would take another 10 minutes off the clock. This would go on to ensure supporters of LB 574 never got an additional opportunity to speak on the bill or potentially challenge words said on the floor.

The first item senators debated this week was a motion by Sen. Steve Erdman to suspend rules “to provide that for the remainder of the 108th legislature, First Session, only one motion to bracket, to recommit or to postpone indefinitely shall be offered on the same day at the same stage of the bill or proposition.” This rule change would help curb the usage of these priority motions in debate and provide greater opportunity for all sides to get in the speaking queue and discuss the legislation, rather than allow just one side to speak. Other methods to conduct a filibuster are still available moving forward; this rule change is aimed at stopping a small group of senators from filing priority motions to prevent supporters of bills from speaking or bringing forward amendments. Erdman’s proposed rule change was adopted on a 32-13 vote.

The legislature also gave second-round approval to LB 77, which would allow for the carrying of concealed handguns without a permit. After four hours of debate, LB 77 was advanced to Final Reading on a 31-10 vote. I am a co-sponsor of this legislation.

The legislature also advanced this year’s income tax package, LB 754, to Select File on a 41-0 vote. Under LB 754, the state’s top personal income tax rate, along with the state corporate income tax rate, would gradually decrease to 3.99% by tax year 2027. The bill would also accelerate the phasing out of income taxes on Social Security. By tax year 2024, Social Security checks would be 100% exempt from state taxes. Additional components of the package include an income tax exemption on federal pension benefits, thus mirroring the exemption for about 14,000 Nebraska retirees who don’t qualify for Social Security, and tax credits of between $1,000 and $2,000 for child care expenses and provides credits to those who contribute to child-care programs, as well as to workers in such programs and employers who provide them. Taxpayers whose household income is below the federal poverty level would receive $2,000 per child, regardless of whether they have child-care expenses. LB 754 and a property tax relief proposal, LB 283 are projected to provide $3 billion in combined tax cuts over six years. 

Feel free to call my office anytime at 402-471-2801 or email me at [email protected]. My mailing address is: Senator Barry DeKay, District #40, P.O. Box 94604, State Capitol, Lincoln, NE 68509.