Gov. Signs School Aid Bills; Vetoes Gas Tax Increase

(Lincoln, Neb.) Gov. Dave Heineman today signed two legislative bills necessary to help maintain a balanced budget in the remaining year of the biennium.

While signing LB 959, the 2008 budget bill, the Governor included one line-item reduction, which was to eliminate the gas tax increase. The veto of the gas tax increase represents a $14.5 million savings for the state. “I want to applaud the hard work and leadership of Senator Heidemann, members of the Appropriations Committee, and the Legislature as a whole for delivering a budget bill package that represents a responsible revision to our state budget,” Gov. Heineman said. “I particularly want to thank state senators for helping maintain a strong cash reserve and continuing to exercise restraint in spending. “While I appreciate the Legislature’s willingness to engage in a discussion of our roads funding challenges, now is not the time to increase the gas tax. Gasoline and diesel prices are hitting record highs, the cost of food is increasing and healthcare costs are soaring, all of which impact Nebraskans. I urge members of the Legislature to sustain my line-item veto of the gas tax increase.” The Governor also signed LB 988, which provides funding for state aid to Nebraska’s K-12 schools in FY 2008-09 and the following biennium. While slowing the growth in appropriations, the bill provides nearly $70 million in new funding for school districts for FY 2008-09, which represents a more than 9 percent increase in school funding.