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Dist. 40 Report
The Legislature passed the budget bills last week containing its recommendations for the fiscal year 2025-2026 & fiscal year 2026-2027 biennial budget. Now, it is up to the Governor to sign the legislation or use his line-item veto.
When the Legislature convened in January, senators initially faced an estimated $432 million shortfall for the next two years, a number that soon grew. A large part of the increased deficit, but not all, came because the state’s economy, measured by per capita income, is doing well compared to other states. As a result, the federal government pulled back on the percentage of Medicaid costs it covers in Nebraska, passing on a cost of about $55 million this fiscal year and nearly $300 million next year to the state.
This deficit was further compounded by a late pessimistic fiscal report of the state’s future revenue from the Nebraska Economic Forecasting Advisory Board. In response, senators voted to shift funds or cut spending by over $600 million to cover the deficit and balance the budget.
The finalized budget preserves $55 million for the projects proposed by the Legislature’s Statewide Tourism and Recreational Water Access and Resource Sustainability Special Committee.
As I mentioned last week, $37 million will be allocated to expand the Weigand Marina at Lewis and Clark Lake. Another $18 million will be allocated to Lake McCaughey. Any remaining money could be spent on Niobrara State Park once the other two projects are completed.
I would like to extend my appreciation to the Appropriations Committee, the STAR WARS Committee, the Governor’s Office, and Nebraska Game and Parks Commission for collaborating on a path forward. STAR WARS will be a transformational investment in water access and recreational opportunities that will dramatically increase Northeast Nebraska’s tourism economy.
Additionally, LB89 by Sen. Kauth, otherwise known as the Stand with Women Act, was considered for a second time. LB89 would create restrictions on biological males from competing in women’s sports and establish policies designating school restroom and locker rooms for males, females, single occupancy, or family use.
During debate, Sen. Riepe moved to amend LB89 to strip out the sections relating to restroom and locker room spaces and limit the bill to just sports. Sen. Kauth ultimately agreed to let Sen. Riepe’s amendment be adopted so the bill would not fail. Following a filibuster, LB89 was moved to Final Reading by a 33 to 15 vote.
The Legislature also sent 31 bills to the Governor’s desk. Bills that passed and that I voted for include: LB80 which modernizes the state’s protection order statutes under a new unified law; LB140 requires school boards to adopt a policy to limit the use of cell phones by students during the school day; LB198 better protects independent pharmacies like those in rural Nebraska from unfair practices by pharmacy benefit managers. For example, some PBMs have limited the ability of certain retail pharmacies from being able to offer services like prescription drug delivery; LB230 which regulates the sale of a substance known as kratom. LB230 also includes my bill LB184 which restricts the commercial sale of flavored nitrous oxide products. These products are currently available in some vape stores, kratom dispensaries, and smoke shops. Flavored nitrous oxide is being marketed to minors and has few legitimate uses outside of getting people high, and when abused, this drug results in permanent brain and nerve damage. LB184 brings Nebraska more in line with 44 other states that have enacted laws regulating nitrous oxide and other inhalants.
LB246, another bill of mine, prohibits the commercial sale and distribution of cultured protein products to consumers would be banned in Nebraska.
Cultured protein products, also called lab-grown meat, is made by combining animal stem cells and other ingredients in bioreactors.
My intent with this bill is to address public safety concerns and help preserve our cultural identity as an agricultural state.
I appreciate the collaboration of my colleagues and the Governor’s office and am pleased this measure passed this year; LB526 allows an electric utility to interrupt electric service to a cryptocurrency mining operation if that operation draws too much power and threatens the stability of the electric grid.
