Budget debate continues, mainline bill advanced

Lawmakers continued debate on the state’s budget package. The state budget is structured on a two-year basis, with the budget enacted during legislative sessions held in odd-numbered years.

As introduced, the Appropriations Committee budget proposal would result in a financial status at the end of fiscal year 2014-15 that is $41.3 million more than the 3 percent minimum reserve.

Budget growth in the committee’s proposal is 5.7 percent in FY2013-14 and 4.8 percent in FY2014-15, for a two-year average of 5.2 percent. Committee chairperson Sen. Heath Mello of Omaha said the two-year average is similar to the spending growth outlined in the governor’s budget proposal and is in line with the state’s historical average.

Senators discussed a variety of proposed amendments to the mainline budget bill, LB195, into the evening of May 8.

Mello offered an amendment, adopted 40-0, which would increase revolving funds for the Nebraska Public Safety Communication System by $1.4 million each year of the biennium.

He said the funds would allow for upgrades to the statewide radio system.

Scottsbluff Sen. John Harms supported the amendment, saying the current system does not have enough towers to work properly. The result, he said, is a dangerous situation in which there are areas of the state where law enforcement and first responders cannot communicate with each other.

“We must continue to pay a great deal of attention to make sure this system … is put together appropriately,” Harms said.

Ogallala Sen. Ken Schilz offered an amendment that would have added $7.5 million each year of the biennium to the state’s Property Tax Credit Program.

Schilz said the state’s tax revenues are growing, but that the best way to guard against future difficult economic times is to make sure that Nebraskans keep more money in their pockets.

“Our constituents need to know that we’re thinking about this,” he said, “that we’re not just out here spending money left and right.”

Lincoln Sen. Danielle Conrad opposed the amendment, saying it would result in only $4.56 of tax relief per $100,000 of property valuation. She said a tax credit so small would not be worth hindering the state’s ability to fund other priorities.

Sen. Kate Bolz of Lincoln also opposed the amendment, saying the state should not invest in “token” initiatives rather than providing meaningful services and reforms.

“What I heard from my constituents is that they want and need reliability and sustainability [in government],” Bolz said. “They want reasonable and responsible governing from us.”

Gretna Sen. John Murante supported the amendment, saying property tax relief is the most important issue to Nebraskans. No amount of tax relief should be considered too insignificant to pursue, he said.

“Taxes are increased in slow increments and they never come back down,” Murante said. “[This amendment] sends a message to the people in Nebraska that we are listening and that their priorities matter.”

The amendment failed on a 14-15 vote.

Debate continued on LB195 on May 9.

An amendment offered by Omaha Sen. Scott Lautenbaugh would have reduced appropriations by $185,681 each year of the biennium that is designated for the Public Service Commission to fund a railroad inspector position.

Lautenbaugh said the position, which was defunded in the previous state budget, was unnecessary. He said railroad safety concerns are covered sufficiently by the federal government and that the state should not expend taxpayer dollars to fill the inspector position.

“There is no need for this position,” Lautenbaugh said. “It’s not our $200,000 to spend; it’s someone else’s.”

Murante supported the amendment, saying lawmakers chose to defund the position during difficult economic times and should resist the temptation to reinstate its funding simply because the state now has money to spend.

“It’s easy to live within your means when you don’t have any money,” he said.

Fullerton Sen. Annette Dubas opposed the amendment, saying the inspector position is needed to monitor the state’s rail system to ensure safety and uninterrupted service.

Federal inspectors are assigned large regions, Dubas said, and states are solely responsible for monitoring short line railroads.

“It’s not a duplication of federal services in any way,” Dubas said.

Omaha Sen. Bob Krist also opposed the amendment. He said miles of unsupervised railroad lines pose a soft target for terror activity, which could result in a disruption of economic activity and damage to infrastructure.

“There are things that we need to spend taxpayers’ dollars for,” he said, “and one of them is public safety.”

The amendment failed on a vote of 18-25.

Wilber Sen. Russ Karpisek offered, and later withdrew, an amendment that would have removed $1.54 million in funding over the biennium for the University of Nebraska to be used for a negotiated tuition freeze.

Following adoption of the Appropriations Committee amendment on a 35-0 vote, lawmakers advanced LB195 to select file 36-0.

Debate on the remaining budget bills continued into the evening.