OpenSky offered insight on 13 different bills in 5 committees last week, weighing in on everything from property taxes to school vouchers to term limits. We were also in attendance at the meeting of the Nebraska Economic Forecasting Advisory Board, an important step in the development of the state’s biennium budget.
School Privatization Bills – A variety of proposals to pay for private education through the state budget were floated last week, in a variety of committees. LB 624, heard in the Appropriations Committee, is a very similar proposal to LB 1402, which was repealed by Nebraska voters just a few short months ago, except with even fewer guardrails to ensure that the funds would be directed at low-income families. In the Education Committee, LB 557 and LB 633 both directed state funds meant for families who were denied option enrollment at a public school, which the introducers shared they anticipated could be used for tuition at private or parochial school. LB 427 would mimic Education Savings Account programs that exist in other states, where they have largely been proven to benefit children already enrolled in private schools. LB 131, heard in the Revenue Committee, would include private and parochial K-12 schools in the NEST program which allows families to save for postsecondary education by deducting contributions from their income taxes. OpenSky has conducted extensive research on private school voucher mechanisms in other states and has yet to find a privatization program that is proven to enhance learning, accessible to all students, or fiscally responsible, and thus, Connie Knoche, Senior Policy Fellow, testified in opposition to each of these proposals.
LB 14 – Introduced by Senator Machaela Cavanaugh, would provide breakfast and lunch to all students enrolled in Nebraska’s public schools. Improvements in children’s dietary intake, health, academic performance, and lower incidence of food hardship are well-documented with universal school meal programs, so OpenSky offered a letter in support of the measure.
LB 81 – introduced by Senator Brian Hardin the “missing year” bill as it has become known, would result in a revenue loss of more than $635 million. OpenSky is concerned that any attempt to make this legislation work within current fiscal confines would be harmful to the state’s fiscal health. The Legislature must address not only the shortfall for the upcoming biennium, but also ensure the state is structurally balanced and able to adequately fund its obligations now and into the future. Dr. Rebecca Firestone testified in the Revenue Committee in opposition to the bill.
LR19CA and LR27CA – Introduced by Senators Dover and Hunt, respectively, the Executive Board heard testimony on similar measures that would extend the term limits for state legislators from 2 consecutive terms to 3 consecutive terms. Dr. Firestone testified in support of LR19CA on the basis that tax policy, budgeting, local government financing, and fiscal decisions are quite technical, and the state would benefit from a longer tenure to apply knowledge attained through serving in the body.
LB 656 – Introduced by Senator Bob Andersen would institute work requirements for recipients of benefits under the Supplemental Nutrition Assistance Program (SNAP). Evidence shows work requirements reduce SNAP participation and benefits, and do not increase employment prospects or earnings. These changes would make it harder to stay on SNAP and keep SNAP from being an effective economic development tool. Additionally, 49% of Nebraska’s SNAP participants are currently working, and more than 80% have worked in the last 12 months. All while our unemployment rate is just 2.8%. Deputy Director Tiffany Friesen Milone testified in opposition to the proposal. OpenSky also submitted a letter in opposition to LB 379, which would put a lifetime maximum cap on cash assistance funds under the Temporary Assistance for Needy Families (TANF) program. Overly restrictive policies on social safety net programs are harmful for the people who need them the most.
LB 439 – Introduced by Senator Ashlei Spivey, the bill establishes a “circuit breaker” which would set a limit on the percentage of total household income paid to property taxes or rent. OpenSky supports the measure because it would allow the state to target additional property tax relief to those who are most in need, rather than blanket proposals that benefit all Nebraska property owners, including those who live outside the state. Outreach and Engagement Director Lillian Butler-Hale shared support with the Revenue committee on this proposal.
LB 424 (introduced by Senator Bob Andersen) and LR12 CA (introduced by Senator Kathleen Kauth) – were both heard in the Revenue Committee and both cap property taxes from increasing year over year. OpenSky submitted a letter in opposition to both measures that would limit increases in property taxes to the lesser of the inflation rate or 3%. OpenSky has long objected to revenue limits for a variety of reasons and maintained our opposition to these measures.
