With only 10 working days remaining in the 2022 Legislative Session, lawmakers will turn their attention early next week to providing final approval to a package of state budget bills (LB 1011, LB 1012, and LB 1013), and will commence Select File debate on the American Rescue Plan Act (ARPA) funding proposals (LB 1014).
 
General File debate on LB 919, which contains property tax relief and income tax relief provisions, will be debated when the Legislature reconvenes next Monday. With 21 priority bills awaiting Select File debate and 40 priority bills yet to have received first-round debate, lawmakers will be burning the midnight oil in the waning days of the session.

The Legislature has given first-round approval to LB 1014, which would distribute just over $1 billion in ARPA funds for approximately 40 projects or focus areas. In developing legislative priorities, the Appropriations Committee held public hearings on almost 100 proposals collectively seeking just under $4 billion in funding. The legislation contains $14 million for rural workforce housing “infrastructure” (laying drinking water transmission lines, rehabilitation, renovation, demolition or destruction of vacant or abandoned buildings in disproportionately impacted communities and removal and remediation of environmental contaminants or hazards from vacant or abandoned properties in disproportionately impacted communities).
 
ARPA funding has been proposed, in part, to address the following project areas:
 
Public Health:

• $60 million for a rural health complex at the University of Nebraska Kearney
  
• $20 million to help rural communities replace aging ambulances

 
Economic Revival:

• $60 million to Nebraska’s six community colleges to strengthen and grow a post-pandemic skilled workforce
• $20 million for grants to Nebraska food banks and to groups with innovative food supply chain projects

 
Premium Pay:

• Nearly $37 million to provide pay increases for front-line public health and public safety workers in 24-hour facilities
  
• $55 million for rate increases for certain providers of developmental disabilities services

 
Infrastructure:

• $23 million to repair irrigation tunnels that collapsed in the Fort Laramie–Gering Irrigation District
  
• $20 million to the Nebraska State Fair for wastewater and sewage systems

 
North Omaha/South Omaha:

• $150 million specifically to North and South Omaha for needs such as job training, housing and business development
  
• $60 million for a North Omaha business park near Eppley Airfield

An effort to combine the provisions of LB 825 (Social Security exemption) and LB 919 (property and income tax relief), fell one vote short of being considered for advancement on Friday morning. LB 825, introduced by Senator Brett Lindstrom (Omaha), would provide for a full exemption from taxation for social security income phased-in over a four-year period beginning with the tax year commencing January 1, 2022, with such income to be deducted from adjusted gross income as follows: tax year 2022 (40%); tax year 2023 (60%); tax year 2024 (80%); and tax year 2025 (100%).
 
LB 919, introduced by Senator Lindstrom and designated as a priority bill by Senator Ray Aguilar (Grand Island), as amended by the Revenue Committee, would reduce the maximum corporate income tax rate from 7.25% to 6.50% in 2024; to 6.24% in January 2025; to 6.00% in January 2026; and to 5.84% in January 2027. The bill would also reduce the maximum individual income tax rate from 6.84% to 6.64% in January 2023; to 6.44% in January 2024; to 6.24% in January 2025; to 6.00% in January 2026 and to 5.84% in January 2027.
 
Additional property tax relief is being proposed for the portion of real estate taxes paid for community colleges, with initial funding for property tax credits in the amount of $50 million in 2022 and increasing to $195 million by 2026, with the credit percentage to be adjusted going forward on the basis of credits allowed in the prior year increased by the allowable growth percentage by no more than 5%.
 
Senator Tom Briese (Albion) proposed to have the provisions of LB 919 amended to LB 825, which was met by a four-hour filibuster. A motion for cloture failed to garner the 33 votes necessary to cease debate and allow the bill to be voted upon. The vote on the motion for cloture, was as follows:

​Ayes: Sens Aguilar, Albrecht, Arch, Bostelman, Brandt, Brewer, Briese, Clements, Dorn, Erdman, Flood, Friesen, Geist, Gragert, Halloran, Hansen, B., Hilgers, Hilkemann, Hughes, Jacobson, Kolterman, Lindstrom, Linehan, Lowe, McDonnell, Moser, Murman, Sanders, Slama, Stinner, Wayne, and Williams.
Nays: 0
Present-Not Voting: Blood, Bostar, Cavanaugh, J., Cavanaugh, M., DeBoer, Hansen, M., Hunt, Lathrop, McCollister, McKinney, Morfeld, Vargas, and Wishart.

While the Nebraska Unicameral is in session, the NBA shares a weekly Legislative Update that summarizes and provides information on current bills and debates in the legislature.

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Below you will find PDFs of the weekly publications of Legislative Update, arranged by date published, for files shared thus far in 2022. The Legislative Update is sent each Friday during the legislative session.