|
2023 SESSION, 108TH LEGISLATURE As the 2023 Legislative Session draws to a close, the Legislature is putting the finishing touches on a number of major legislative issues. During the past week, the Legislature gave final approval to a package of tax relief and school funding measures (LB 243, LB 583 and LB 754), passed a significant rural workforce housing bill (LB 191), advanced a criminal justice reform measure (LB 50) to the final stage of debate and a Voter ID proposal (LB 514) to Select File. Governor Pillen also issued his line-item vetoes which are designed to save $94.2 million in General Funds and $87 million from the state's Cash Reserve Fund over the next four years. On deck for the final full week of the session is second round debate on LB 514, consideration of overrides of Gubernatorial vetoes and action on the remaining bills on Final Reading. Governor Wields Veto PenGovernor Pillen exercised his line-item veto authority to cut more than $140 million in proposed spending over the next two years. Among the Governor's vetoes were more than $45 million in increases for Medicaid provider rates and $40 million in rural workforce housing and middle-income housing funding. The Appropriations Committee, on a divided 5-4 vote, has recommended overrides of the Medicaid provider rates and rural workforce housing and middle-income housing vetoes, as well as vetoes of proposed salary increase for a state legislative staff and funding for additional staff for the State Auditor's office. Contacts with your state senator are needed to urge the override of workforce housing vetoes. A "Background Paper" setting forth additional information and talking points accompanies this NBA Legislative Update for your assistance in contacting members of the Legislature. Package of Tax Relief Bills Sent to GovernorThe Legislature on Thursday gave final approval to a series of bills that will provide property tax relief (LB 243) and income tax relief (LB 754). The two tax relief bills, combined with Governor Pillen's proposal to increase state aid to schools, will provide approximately $6.4 billion in tax relief over the next six years. LB 243, in part, will increase state tax credits provided against property tax payments and provide state funding for the state's six community colleges, taking this funding off the local property tax rolls. LB 754 will reduce the maximum individual income tax rate from 6.84% to 3.99%, reduce the maximum corporate income tax rate from 7.25% to 3.99% over the next five years, as well as phase out state income taxes on social security benefits and certain federal pension payments, among other things. Also sent to the Governor for signature was LB 583. The legislation will use funding from a $1 billion Education Future Fund contained within the state budget bill to provide $1,500 per student in foundation aid and help cover 80% of special education costs. Rural Workforce Housing Bill ApprovedLawmakers gave final approval to LB 191, which contains provisions of original LB 249, which was introduced by Senator Tom Briese (Albion) and the priority bill of Senator Teresa Ibach (Sumner). The provisions of LB 249 would allow a nonprofit development organization to apply for more than one grant subject to a limitation on the maximum amount of grant funds awarded to such nonprofit development organization over a two-year period to no more than $5 million. Prior to its amendment into LB 191, provisions in LB 249 to remove "anti-stacking" provisions prohibiting the mixing of certain low-income housing funds with rural workforce housing funds (removal of which was opposed by the NBA), were dropped from the bill. Revenue Priority Bill Gets Second Round ApprovalThe Legislature gave second-round approval to LB 727 on Tuesday. Introduced by Senator Lou Ann Linehan (Elkhorn) and designated as a Revenue Committee priority bill, the bill originally provided a sales tax exemption for certain purchases by the state and other public entities. The bill had previously been amended to incorporate provisions of an additional 25 tax-related bills. As advanced to Final Reading, LB 727 addresses, in part, the following bills. which were supported by the NBA:
Prior to advancing the bill to Final Reading, the Legislature eliminated some provisions and modified others to reduce the fiscal impact of the measure to fit within the budget parameters. NBA Supported Bill AdvancesA bill on the NBA Affirmative Legislative agenda has been added as an amendment to LB 157, a bill relating to temporary guardians, which has been designated as a priority bill by the Planning Committee. Following adoption of the amendment, the bill was advanced to Select File. The provisions of LB 330, introduced by Senator Wendy DeBoer (Omaha), which have been incorporated into LB 157, would change provisions relating to small estate affidavits and the negotiation of checks made payable “to the estate of” by authorizing a financial institution to accept such a check endorsed by the successor named in a small estate affidavit. This clarification in the law will avoid the need to have a new check issued by the drawer of the check under such circumstances. Background Paper |
STAY CONNECTED |
Nebraska Bankers Association
233 South 13th Street, Suite 700
Lincoln, NE 68508 402-474-1555 Digital Millennium Copyright Act Policy |