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(Lincoln, NE) Gov. Dave Heineman delivered the State of the State address today, speaking on his reasons for optimism and his vision for a more prosperous Nebraska. Also introduced were the Governor’s mid-biennium budget recommendations, which focus on tax relief and spending restraint.
“Because our state is headed in the right direction, we have a golden opportunity to keep faith with Nebraska taxpayers,” Gov. Heineman said. “The focus of this session should be to provide meaningful and sustainable tax relief for individual Nebraskans and their families. I recognize that there will be tremendous pressure to pursue additional spending, but I stand here today to make the case for tax relief and spending restraint.”
The Governor proposed to provide $421 million in income, sales and property tax relief over the next three fiscal years by reducing income tax rates to levels set in 1997, reducing tax liabilities by roughly 3 percent across the board. The plan would also eliminate the sales tax on construction labor penalizing individuals for improving homes and businesses, and would invest more than $170 million in state aid to schools to provide property tax relief by lowering the levy lid two years ahead of schedule.
The Governor expressed optimism about the state’s rebounding economy, providing an update on progress seen as a result of the Nebraska Advantage jobs-creation package he supported during the last legislative session. Initial figures indicate that 11 companies have applied to create more than 3,000 jobs in the weeks since the Nebraska since economic incentives took effect on January 1.
The Governor also cited progress made in curbing the growth of methamphetamine labs across the state. In the first 90 days of implementation of the state’s new anti-meth law, LB 117, meth lab discoveries reported to the State Patrol have decreased by 60 percent.
Gov. Heineman outlined his budget recommendations for the session, using prioritized spending decisions to help agencies turn $85 million in mid-biennium budget deficit requests into $7 million in taxpayer savings.
In addition to tax relief, the Governor also outlined legislative priorities including a joint package designed to protect Nebraska families from sexual predators, which was developed jointly with Attorney General Jon Bruning and Sen. Pat Bourne of Omaha, Chairman of the Judiciary Committee.
Another priority highlighted by the Governor was the ongoing challenge with regard to water management across the state. The Governor’s budget recommendations propose providing more than $3 million in funding to help alleviate short-term challenges while state and local officials work with irrigators to develop long-term solutions.
“Water is Nebraska’s issue of the decade,” Gov. Heineman said. “Our state didn’t get into this situation overnight, and we’re not going to get out of it quickly. No place is our challenge more immense or more immediate than in the Republican River Basin, and with years of extended drought, the issue has gained pre-eminence. As long as I am Governor, Nebraska will never forget that our priority is agriculture and the needs of our agricultural producers, nor will we ignore the needs of our cities.”
The Governor is also proposing funding for an independent study to examine the progress being made by Nebraska’s foster care system and provide recommendations on how to continue making the system more responsive to the needs of foster children and families.
Other issues highlighted by the Governor include his support for exploring effective and efficient Medicaid reforms that will provide savings for taxpayers without damaging the essential services the program provides to vulnerable children and senior citizens, and his support for finding a solution to the ongoing schools dispute in metropolitan Omaha that would protect the integrity of existing districts.
“Governing is about the future,” Gov. Heineman said. “It is about conquering the next challenge and seizing the next opportunity. We have accomplished an extraordinary agenda together and there is no limit to how much more we can do. From LaVista to Beaver City, from Tokyo to Havana, from the most sweeping jobs-creation package to enacting a no-tax-increase balanced budget, we have worked well as a team. That gives me confidence that as long as we continue working together; Nebraska will be on the move.”
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