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Dist. 40 R eport
Dist. 40 Report
The Nebraska Economic Forecasting Advisory Board met on Feb. 28 and voted to increase revenue projections for the upcoming 2025-2026 and 2026-2027 fiscal years.
The Board forecasted in October of last year that the state was facing a budget shortfall of $432 million. With the latest forecast, Nebraska is projected to receive up to $165 million in potential new revenue, reducing the state’s budget shortfall to about $198 million.
Revenue projections for the current fiscal year were raised based on an anticipated increase in corporate income tax receipts, offset by projected decreases in miscellaneous and individual income tax receipts. The Economic Forecasting Advisory Board will meet again in April to evaluate income tax receipts to the state. Last week, the Appropriations Committee heard testimony on the proposed STAR WARS projects and my bill LB491. Relevant to northeast Nebraska, testifiers emphasized the need to compete with South Dakota in tourism and economic development. Receiving the bulk of tourism dollars, South Dakota takes advantage of most of the two million visitors that visit each year along the Missouri River corridor, so Nebraska not developing our side of the Lewis and Clark is a missed opportunity.
The more optimistic economic forecast and unexpected projected increase in tax revenue helps improve the likelihood that funding for the Weigand Marina and other STAR WARS projects will be maintained.
I and other members of the STAR WARS Committee remain engaged in talks with the Appropriations Committee, the Governor’s Office, and the Game and Parks Commission to try to keep the money previously appropriated for STAR WARS.
LB491 was brought on behalf of the Ponca Tribe of Nebraska and would restore $14 million in state funding for a museum and visitor center honoring Chief Standing Bear intended to be built in northeast Nebraska. The funding for this project was cut by the Governor as part of an effort to close the state’s multi-million-dollar budget deficit. Proponents to LB491 at the hearing argued that this project would help bring tourism and support the local economy. As of this writing, a final source of funds has yet to be determined.
Meanwhile, the General Affairs Committee heard testimony on four bills that would provide a more detailed regulatory framework for the two medical cannabis initiatives passed last year. LB651 from Senator Conrad and LB677 from Senator Hansen would establish a medical cannabis system modeled off of Missouri’s system which seeks to strike a balance between patient access and public health. Both bills would allow for multiple ways for people to use cannabis, including smoking, vaping, infused edibles, and ointments.
LB483 from Senator Storm would limit permissible cannabis forms to just pills and liquid extracts, with a possible amendment coming for inhalers and nebulizers. This bill would also reduce the amount of cannabis a person can possess from 5 ounces per person with a health care practitioner’s written recommendation to 300 milligrams.
LB705 from Senator McKinney largely mirrors LB677 and LB651 but includes a path to criminal justice relief for people with past marijuana convictions as well as creates other programs for “social equity applicants” from historically underrepresented communities.
In the coming days, the introducers of these four bills and the General Affairs Committee will look for a possible pathway to get at least one of these bills to the floor. I anticipate these bills will result in contentious discussions among committee members and during floor debate.
As bills are heard and debated, I would appreciate your input. Call my Capitol office telephone number at (402) 471-2801 or send email to [email protected]. My address is: Sen. Barry DeKay, Dist. 40, P.O. Box 94604, State Capitol, Lincoln, NE 68509.
