2008 LEGISLATIVE SESSION REACHES HALF-WAY POINT

Unicameral Update

February 25, 2008

Today will mark the 30th legislative day and we will then officially enter the second half of the session.  Committee hearings will be completed by the end of the week, and senators will now gear up for full-day debate.  Last Friday marked the deadline for Senator and Committee priority bills.  The Speaker released his list of 25 Speaker priority bills today.  The following is a link to the lists: http://www.unicam.state.ne.us/web/public/priority.  These priority bills will become the Legislature’s primary focus for the rest of the session.  Notwithstanding a number of noncontroversial “Consent Calendar” type legislation, bills that remain in committee and have not been selected as a priority have little chance of passage. 

At this point last year, major issues facing the Unicameral included the state’s budget, a revenue package, education and water rights.  The same can be said this year.   With fiscal issues always at the forefront, the state received a somewhat sobering report from the Nebraska Forecasting Economic Advisory Board.  Many reports would have folks thinking that Chicken Little was loose in the Capitol on Friday even before the forecasting board met.  As Walt is fond of saying, “When the forecast goes up it’s a caution, when it goes down it’s a crisis.  The only thing for certain is that they will be wrong by three to five percent.”  The latest report anticipates that the state will be down approximately $126 million over the next two years.  While that number may seem like a crisis, the reality is that it brings us back to where we were last year when the state’s biannual budget was put into place.  We must also note that Nebraska still has nearly $550 million in the official reserve fund.  However, even with this reality check, it will be unlikely that many of the proposals seeking general fund dollars will gain approval.

Other issues likely to stir debate this year include the repeal of the death penalty, the location of the Nebraska State Fair, the Governor’s proposed “Super Advantage” tax credit proposal which is targeted at employers providing salaries that exceed 200% of the county average salary or 150% of the state average salary (whichever is greater), and Expressway and other road funding through a proposed 3 cent gas tax.  The issue of illegal immigration will also be debated as it is also the subject matter of a number of priority bills dealing with access to public benefits, employee classification, and tax collection.

As full-day debate begins Walt, Korby and Justin will be spending most days in the Rotunda.  Things can start happening very quickly, especially as the session gets closer to the end.  We will work to keep clients informed of any developments on issues of interest.