Nebraska Pulse Political Blog

News and Views about Politics in the Great State of Nebraska

Adjustments Made in Nebraska 2010 Budget

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Unicameral Update reports that “adjustments were made” to Nebraska’s 2010 budget package during second-round debate late last week.

The article notes that “the mainline bill” would “balance the state’s budget with cash fund transfers and an additional 2% across-the-board cut to agencies.”

According to the story, state senators “voted 35-0 to adopt the amendment before advancing the bill to final reading on a voice vote.”

Nebraska leaders mulling unemployment insurance stimulus funding

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JournalStar.com reports that state leaders are still pondering whether to accept a portion of available federal stimulus funding — “about $43.6 million that could be used to help pay for unemployment benefits.”

The drawback? Accepting the federal funding comes with a federal mandate to expand unemployment insurance benefits, which would almost certainly lead to “higher future costs” — all of which would be shouldered by Nebraska businesses. According to the Journal Star, “the state can get the money by improving the state’s unemployment benefits in two of four specific categories.”

The article notes that “labor leaders support the improved benefits and don’t see any reason to dawdle. … State business interests are still weighing the options, looking for a route that won’t lead to higher unemployment taxes in the future.”

According to the story, “Gov. Dave Heineman, who must ask for the money, says he’s not interested in this stimulus funding if it requires an eventual tax increase. … (L)abor and business interests have at least another year to come up with a solution.”

Ron Sedlacek, General Counsel for the Nebraska Chamber of Commerce & Industry told the Journal Star, “It would be a simple decision if the only issue was putting money into the unemployment trust fund.” But accepting the federal money with strings attached “could lead to a permanent tax increase. And seeking the money will require changes in state law, he noted.”

Several other states have said they don’t want the federal unemployment money “because of the potential future cost of raising benefits.

Contract would give Nebraska’s state employees 2.9% raise

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Most state employees would get raises of 2.9% beginning this year and 2.5% next year under a contract proposal they will vote on Friday and Saturday. Union leader Mike Marvin, executive director of NAPE/AFSME Local 61, said there was no loss of vacation and no changes in the health insurance plan.

“For a lot of people this is a fair offer. But some of the bargaining units probably should reject it,” he said. Two years ago the union and state negotiators took their contract disagreements to a special master and then to the Commission on Industrial Relations. The result was some state workers received up to 7.5% increases in each of the past two years plus another 2.5% hike on their hiring anniversary.

Term limits mean new faces in Legislature’s leadership posts

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As many as half of the Nebraska Legislature’s 16 top leadership posts — which are up for election today — will be occupied by state senators with only two years of experience in the Unicameral, a repercussion of term limits.

As many as six other leadership spots, including speaker and chair of the budget-writing Appropriations Committee, will be filled by senators with four years of experience under their belt. Chairmanships of the Legislature’s 14 standing committees and the posts of speaker and chairman of the Executive Board used to be reserved for the most veteran of lawmakers.

“In a vacuum, that sounds kind of daunting,” said Bob Sittig, a retired UNL political science professor and longtime observer of the Legislature. “But I’ll have to admit, last time around, it worked out pretty well.”

Sittig referred to 2006, when two-year veterans Mike Flood of Norfolk was elected speaker and Lavon Heidemann of Elk Creek became chairman of the appropriations committee, two key posts. Both won praise for their leadership, despite their relative lack of experience. Committee chairmen can make or break a proposal through the scheduling of hearings and work on bill revisions.

Once a bill gets on the floor, the chairs are the main sellers of the ideas.

States set to impose bevy of new taxes

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Governors in several states want to levy higher taxes next year on clothes, soft drinks, gasoline, auto licenses and other items that likely will hit low- and middle-income families struggling to make ends meet in a deepening recession the hardest.

One of the most sweeping revenue packages comes out of New York, where Democratic Governor David A. Paterson wants to raise $4 billion with 137 new or increased taxes and fees in the budget, including an 18 percent so-called “anti-obesity tax” on non-diet soft drinks. Satellite TV, cigars and professional licensing fees also are targets.

“Middle-income families do not get wage increases during a recession, but neither should the states. Families have to cut back, and so should state government. They should cut spending,” said Chris Edwards, who tracks state budgets at the libertarian Cato Institute. While states are generally holding the line on income taxes, analysts said, many are pushing tax and fee increases on products, services, licenses and businesses that most people consider necessities.

In Kansas, for example, Governor Kathleen Sebelius, a Democrat, and state legislative leaders are calling for a major cigarette-tax increase, between 50 cents and 75 cents a pack, to help finance health care programs. Wisconsin legislators are considering tax and fee increases, and South Dakota is weighing a higher gas tax.

“Even die-hard Keynesians would tell these governors that raising taxes in the middle of an economic slowdown will only perpetuate the recession cycle,” said Pete Sepp, spokesman for the National Taxpayers Union. One positive trend among the states in this economic decline is the reluctance to raise income taxes, fiscal analysts said.

Debate over the future of uranium in Nebraska

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Interest in nuclear power and uranium mining is rising as the nation looks for cleaner, cheaper forms of energy that can be produced domestically. The debate in western Nebraska plays out over the Crow Butte mine, which produces about 800,000 pounds of yellowcake uranium each year.

Crow Butte is currently on course to greatly expand near Crawford, Neb. and to renew its 10-year operating license — proposals that local environmental groups oppose. The Nuclear Regulatory Commission is reviewing a proposed 2,100-acre expansion on a site north of Crawford called the North Trend. The mine provides 66 jobs with an annual payroll of $3.6 million in a region where good-paying jobs are often hard to find.

“It’s a great thing for our economy. I don’t know what we’d do without it,” said Bev Witt of Crawford, a clerk at the town’s grocery store. Crow Butte officials say the mine operates safely and is constantly monitored to prevent any mixing of the water used in mining with surface or underground water used for livestock and humans. Crow Butte is one of about a dozen such uranium mines in the country.

Gary Homrighausen, a former rancher who’s worked at the mine for 12 years, said he was skeptical of its safety before he took the job. “A lot of people have turned around in their thinking about that,” he said, as he monitored computers tracking the mine’s pumping and extraction of the uranium solution. But the relicensing and expansion of the mine has drawn a litany of concerns from the Western Nebraska Resources Council, the Oglala Sioux Tribe and individuals and groups associated with the tribe.

Currently, about 20% of electric power in the United States is produced by nuclear plants such as the Fort Calhoun and Brownville nuclear stations in eastern Nebraska. The NRC has 26 applications for new nuclear reactors throughout the U.S. There’s also been renewed interest in mining uranium, spurred by a leap in uranium prices. Right now, the fate of Crow Butte’s expansion and new license lies in the hands of the Atomic Safety and Licensing Board.

Public hearings and hundreds more pages of written arguments and appeals are expected before the judges finally rule on whether Crow Butte will be allowed to expand.

Nebraska governor names natural resources director

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Nebraska Govenor Dave Heineman has appointed Brian Dunnigan director of the state’s Department of Natural Resources.

Dunnigan has been acting director since March. He is a professional engineer who has spent 23 years with the agency.

One of Dunnigan’s key challenges will be the water battle with Kansas, where officials have demanded millions of dollars and an irrigation shutdown for Nebraska’s overuse of Republican River water.

Nebraska hospital plans to cut 50-100 jobs

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Good Samaritan Hospital in Kearney is planning to eliminate the jobs of 50-100 people, likely by the end of January. Hospital chief executive John Allen told the Kearney Hub in a copyright story Tuesday that the cuts will eliminate between 3 and 6% of the hospital’s staff of 1,600 people.

Allen says declines in patient admissions, elective surgery and the hospital’s investment income have combined with other factors to force the cutbacks. He says the cuts show that the health care industry is not immune to the national economic downtown.

Nebraska gas tax going up 0.4 cents on Jan. 1

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The State Department of Roads, based on consultation with the State Department of Revenue, certified late Friday that the state gas tax would rise slightly Jan. 1. It means that overall state gas taxes will rise from 26 cents per gallon to 26.4 cents per gallon.

As of October, Nebraska’s gas tax ranked No. 20 among all states, according to the American Petroleum Institute. That is about 3 cents under the national average, according to API, and about 22 cents lower than the highest state, California.

National Magazine Touts Nebraska: Think Globally, Hire Locally

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How do state trade and investment officials visit business and government leaders from 10 countries around the world all at once? If that state is Nebraska, you get those leaders to come to you. In September, Nebraska’s Gov. Dave Heineman and his economic development team hosted a Reverse Trade Mission that brought 130 delegates to the state from every continent except Australia and Antarctica.

Meanwhile, workers 25 miles north of Omaha now have employment options closer to home. Blair, the Washington County seat, won two key projects in 2008, each of which will hire about 100 people initially. Both Northstar Wind Towers and Denmark-based Novozymes expect to expand their Blair operations in the coming years. Talk about a global marketplace. The site-search team for Novozymes, which included a site consultant from an international service provider, considered several Midwestern states before settling on the Blair location.

The Blair plant will not be an R&D operation, but it will require a highly educated work force including chemical engineers, mechanical engineers and other professional resources, such as HR, environmental and safety resources and supervisory people and operators. “Our intention is to hire locally wherever we can. That’s our commitment to Nebraska and Omaha and to the City of Blair,” said Novozymes’ Mark Paige.