Erdman Edition: 100th Legislature, 2nd Session in Review

The second session of the 100th Legislature adjourned Sine Die, marking the end of session, on April 17, 2008. The following is a highlight of the bills which were passed or sent to the Governor for his signature.

In 2004, the voters directed a portion of the lottery funds to the state fair through Amendment 4. These funds have helped stabilize the fair's finances, but the State Fair continues to incur significant expense which includes aging infrastructure at State Fair Park. After considerable discussion for the last 16 months, the Fair Board, University, and others agreed to a negotiated solution. To carry out that agreement, the Legislature gave approval to LB 1116 to relocate the Fair to Fonner Park in Grand Island while requiring the parties in the agreement to provide $42 million, most of which is private contributions, for capitol improvements to Fonner Park to serve as the new site for the state fair. This investment, plus the Heartland Events Center and other facilities already at Fonner Park will provide over $100 million of capitol improvements, most of which will have been built within the last 5 years. The plan also relieves the fair of as much as $3 million of operating expenses each year.

Other agricultural issues debated this legislative session include I-300, Beginning Farmer programs, and veterinary assistance payments. The Legislature rejected LB 1174 to reinstate corporate farming restrictions, commonly known as I-300, in statute. After much debate this session and interim hearings last fall, the Legislature concluded that this is not the time to limit the business tools available to agriculture, particularly beginning and family farmers, to help them compete in today's agricultural economy. The Legislature passed LB 1027 which expands the Beginning Farmer program by allowing additional landowners to qualify for tax incentives for renting land to beginning farmers, and providing a personal property tax exemption for farm machinery and equipment owned by beginning farmers. Finally, the Legislature passed LB 1172 which creates an incentive program to encourage food animal veterinarians to practice in underserved areas.

LB 959, the budget bill, included an increase in the Department of Roads budget of $14.5 million funded by an increase in the gas tax to pay for salaries and benefits for employees at the Department. A 1.2 cent increase in the variable gas tax rate is projected to occur July 1, 2008. I opposed increasing the gas tax and offered multiple alternatives to provide road funding without raising taxes. Unfortunately, a majority of my colleagues voted against those amendments and in favor of increasing the gas tax. The Legislature and the Governor did reach a compromise on another bill, LB 846, which provides increased funding for road construction by transferring $15 million dollars from the cash reserve fund without further increasing the gas tax. This compromise will allow Nebraska to match federal funds for specific road construction projects like the Heartland Expressway.

The Legislature also tackled the State Aid to Schools formula in LB 988. While I support the idea of revising the state aid formula to ensure future sustainability for the state and stability for schools, I voted against LB 988. LB 988 improves the formula to better reflect the needs of school districts yet the bill fails to address rural school districts' concerns. Even with these proposed changes, aid statewide is projected to increase 9% over last year. LB 988 passed Final Reading and was signed by the Governor on April 2, 2008.

This is my last term and last regular session as your State Senator. Next week's Erdman Edition will likely be my last. I would like to use that edition to properly thank you for your involvement in the Legislature the last 8 years.

My office in Lincoln is open Monday through Friday, 8:00am - 4:00pm (MST), excluding holidays. You can contact my Lincoln office either by mail: Sen. Philip Erdman, District 47, P.O. Box 94604, Lincoln, NE 68509-4604; by email: perdman@unicam.state.ne.us; or by phone (toll free): (866) 800-7445.