Diversion of environmental trust fund dollars proposed

The Natural Resources Committee heard testimony Feb. 2 on a proposed constitutional amendment that would alter the distribution of state lottery revenue.

Currently, 44.5 percent of lottery money remaining after an initial transfer to the Compulsive Gamblers Assistance Fund and payment of prizes and operating expenses is transferred to the Nebraska Environmental Trust Fund, to be used as provided for in the Nebraska Environmental Trust Act.

LR51CA, introduced by Elk Creek Sen. Lavon Heidemann, would place a proposed constitutional amendment on the 2012 general election ballot that would alter distribution of the 44.5 percent currently allocated to the environmental trust. If approved by voters, 22.25 percent of that total would be transferred to the Water Resources Cash Fund and 22.25 percent to the University of Nebraska Board of Regents to support Nebraska Innovation Campus. Beginning in 2039, the funds would be transferred to the state’s general fund.

Heidemann said he introduced the measure because funding the state’s water obligations and creating jobs are two of Nebraska’s greatest concerns. The resolution would allow voters a voice in funding decisions in a new fiscal environment, he said, noting that the current method of distribution was established in 2004, prior to the current economic downturn.

“It’s going to give the people of the state of Nebraska the ability to choose priorities,” Heidemann said.

Carl Sousek of the Nebraska Corn Growers Association testified in support of the measure, saying Nebraska has legal obligations in relation to water issues that require substantial long-term expenditures.

“These obligations have created a funding priority which must be addressed,” Sousek said.

Opposition testimony focused on the work of the Nebraska Environmental Trust Fund and whether lottery distribution should be put before voters again.

Mark Brohman, executive director of the Nebraska Environmental Trust, testified in opposition to the resolution, saying the trust plays an important role in bringing federal and other dollars to Nebraska for environmental projects.

“Almost every dollar we put on the ground is matched,” he said, adding that many of the 1,200 projects funded last year received federal grants that could not have been obtained without a source of local matching dollars.

Lynn Moorer of the Friends of Wilderness Park also opposed the measure. The trust has distributed $157 million in grants since it was established, she said, which translates to $470 million of investment in the state’s economy when matching funds are included.

“That’s a lot of jobs,” Moorer said. “These projects are certainly as important for Nebraska’s future as the innovation campus.”

Ken Winston of the Nebraska chapter of the Sierra Club questioned the wisdom of placing funding for a specific program in the state constitution, saying it would make it difficult to adapt to future funding needs. In addition, he said, part of the reason voters approved the state lottery was because proceeds would benefit the environmental trust.

“This would overturn a mandate of the people,” Winston said. “Once the people have made a decision, it seems questionable to keep going back and asking the same question over and over again.”

Ron Withem of the University of Nebraska testified in a neutral capacity, saying that while innovation campus could benefit from the funds, the university could not support the measure.

“We decided that we could not support funding this program by taking funds from another state agency,” he said.

The committee took no immediate action on the proposal.