Over the past couple of months, the COVID-19 crisis has impacted the lives of Nebraskans and the state economy in innumerable — and often unprecedented — ways. During that time, OpenSky has released a number of policy briefs outlining policy recommendations that would help the state and its residents come out of this period as strongly as possible.
- Nearly 100,000 people have filed for unemployment insurance (UI) in Nebraska recently and many have been struggling to obtain benefits. Last year, Nebraska had the 49th lowest recipiency rate in the nation, with only 10% of unemployed workers receiving benefits. Permanently loosening restrictions to UI, including lowering job search requirements and moving from a minimum earning requirement to an hours worked requirement, would help ensure people can continue to be supported even after the emergency declaration is lifted. Increasing the spending power of the newly unemployed not only helps them weather the crisis, but also helps support local businesses and economies.
- With an unprecedented number of people losing their jobs, we also have an unprecedented number of people losing their employer-sponsored health insurance. Expanding Medicaid without delay would help thousands of these newly-unemployed workers access health coverage and ensure millions of federal dollars are flowing into the state.
- In addition to losing health coverage, thousands of people are also losing income needed to feed their families. While the state has taken advantage of federal flexibility in tailoring our Supplemental Nutrition Assistance Program (SNAP) to respond to the crisis, it also could provide funds to those families having to replace school lunches at home and permanently increase the income threshold to expand the program to more families. The increased consumer spending power of these households would bolster local businesses and flow through the supply chain, supporting other businesses along the way.
- For those fortunate enough to be employed during the crisis, paid sick and family medical leave is crucial to preventing transmission of the virus. Nebraska could consider joining the 13 other states that mandate paid sick leave for employees or following the example of several other states that have boosted their policies for pandemic-related purposes.
- Mandatory closures and social distancing have hurt nonprofits and small businesses across all sectors of the economy. While the federal government tried to offset the harm through the Small Business Association loan program, gaps remain. As a result, the state could expand access to its Community Development Block Grant program or create a separate small business loan program, as a number of other states have done, or create a small business grant program using funding Nebraska will receive from the CARES Act to help support small businesses and local economies.
- While the Legislature passed an $83.6 million emergency appropriation for public health funding in late March, the state has only spent about $25 million on personal protective equipment (PPE), the governor said in a May 5 press conference, despite public health workers in many areas of Nebraska being pushed to their limits by COVID-19. More public health spending is needed, as public health administrators from hard-hit areas say they’re struggling to replenish depleted PPE in the form of gowns, N95 masks, gloves, face shields, and testing supplies. They also call for increased spending on testing and contact tracing as the state’s economy reopens.
The crisis — and the state and federal response to it — is still evolving; however, legislators and policymakers have the opportunity to make thoughtful decisions over the next few months on how to best support the state’s businesses, residents and economy.
