Senators advanced a measure March 16 that would eliminate three existing economic development programs and replace them with the Business Innovation Act.<\/p>\n
LB387, introduced by Kearney Sen. Galen Hadley at the request of the governor, would require the Department of Economic Development (DED) to establish five programs to provide financial assistance to:<\/p>\n
The bill also would repeal the Agriculture and Value-Added Partnerships Act, the Microenterprise Development Act and the Building Entrepreneurial Communities Act.<\/p>\n
Hadley said the bill resulted from a consulting firm\u2019s examination of economic development in Nebraska that found weaknesses in the state\u2019s current approach. He said Nebraska needs a state-level program to help local companies create winning projects in order to leverage federal SBIR dollars.<\/p>\n
\u201cWe have a low application rate compared to other states,\u201d Hadley said.<\/p>\n
Lincoln Sen. Danielle Conrad supported the bill, saying research indicated that approximately 60 percent of Nebraska entrepreneurs and business owners were not familiar with SBIR programs.<\/p>\n
\u201cNebraska has a real opportunity for improvement and growth in this policy area,\u201d she said. \u201cWe need to make sure that the end result is good, quality jobs.\u201d<\/p>\n
An amendment offered by Hadley and adopted 35-1 would require DED to establish an innovation in value-added agriculture program to support small enterprise formation in Nebraska\u2019s agricultural sector.<\/p>\n
An entity receiving financial assistance under the agriculture program would be required to provide a 25 percent match and assistance would be capped at $1 million per year.<\/p>\n
The amendment also would place caps of between $1 million and $3 million on each of the programs created by the bill and would appropriate $7 million per year in general funds to operate the Business Innovation Act.<\/p>\n
The Hadley amendment\u2019s definition of a distressed area was the focus of general file debate that spanned two days. Under the bill, 40 percent of financial assistance funds are reserved for economically distressed areas of the state.<\/p>\n
Under the amendment, a distressed area is defined as a municipality, a county with a population of fewer than 100,000 according to the most recent census, an unincorporated area within a county or a census tract that:<\/p>\n
Omaha Sen. Burke Harr said the inclusion of counties with a population under 100,000 in the definition means that no area in Douglas County could qualify for the 40 percent of funds set aside for distressed areas.<\/p>\n
\u201cWe\u2019ve created a definition that de facto picks on one county,\u201d he said. \u201cWe need rural support \u2013 there\u2019s no doubt about that \u2013 but we have to do it in a fair and equitable way.\u201d<\/p>\n
Harr offered an amendment to Hadley\u2019s amendment that would have removed counties from the definition of a distressed area.<\/p>\n
Hadley opposed the amendment, saying economic development funds historically have gone to urban areas and that lawmakers should focus on statewide solutions to Nebraska\u2019s economic challenges.<\/p>\n
\u201cWe\u2019re looking for a formula that does the best for the most people in the state,\u201d he said. \u201cThe problems, generally speaking, for distressed areas are in rural Nebraska.\u201d<\/p>\n
Hadley added that 60 percent of funds remain available to any area of the state under the bill as amended.<\/p>\n
Conrad also opposed the Harr amendment, saying development in any area of the state benefits all Nebraskans.<\/p>\n
\u201cWe have a shared interest in Nebraska\u2019s economic success,\u201d she said. We have a shared tax base.\u201d<\/p>\n
The Harr amendment was defeated by a vote of 11-29.<\/p>\n
Hastings Sen. Dennis Utter offered an amendment, adopted 38-0 that would sunset the bill\u2019s provisions in 2016. He said the Legislature has a duty to evaluate the programs it funds.<\/p>\n
Hadley supported the Utter amendment, saying it would encourage DED to make the programs successful.<\/p>\n
\u201cI think in five years we will have indicators of whether this is a success or not,\u201d he said.<\/p>\n
LB387 advanced to select file on a 33-0 vote.<\/p>\n","protected":false},"excerpt":{"rendered":"
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