Appropriations Committee Carries State Budget

Details: 17 May 2013

With only 11 working days left in its 2013 regular session, the Nebraska Unicameral cleared a hurdle last week when it moved the state’s budget for the next fiscal biennium past the first round of floor debate.

The process on the seven-bill package that earlier had been advanced to the full legislature by the Appropriations Committee, lasted three-and-half days. Although deliberated some for policy questions and pronouncements, the outcome underscored the work and authority entrusted to the nine-member committee.

Five proposed amendments to the committee’s recommendations fell well short of the 25 votes needed for adoption. Four other amendments were withdrawn prior to having a vote. Two amendments that were adopted were introduced as updates by the committee’s chairman, Senator Heath Mello. The only other amendment to be adopted, one that temporarily puts the brakes on the purchase of an airplane from the University of Nebraska Foundation, failed initially, but then was reconsidered and approved.

Two other amendments were held for second-round consideration, which started May 14.

This year’s first-round of deliberation probably took longer than in other, more recent budget-setting years. That can be attributed in part to the fact that the state’s significantly improved fiscal situation provides more flexibility in spending decisions. The Appropriations Committee had to defend its decisions pretty thoroughly. Chairman Mello, although new in that position, methodically and patiently steered the process and adeptly used the committee’s influence.

After the first round of consideration, the budget package showed General Fund appropriations of more than $3.83 billion for FY 2013-14 and more than $4.02 billion for FY 2014-15. That’s an increase of 5.5 percent for FY 2014 and 4.9 percent for FY 2015. Nonetheless, it leaves about $51 million for additional spending on bills awaiting final passage; and that’s even after approval of a committee recommendation to transfer an additional $53 million to the Cash Reserve Fund.

The budget includes separate bills, as follows:

LB 194 makes adjustments for deficits in funding for state operations, state aid and construction projects in the current fiscal year.

LB 195 is the mainline bill, which includes line-items for all state- government operations and aid programs. Spending via this bill stood at $3.797 billion for FY 14 and $3.979 billion for FY 15. Increases and reductions are documented in a report—"State of Nebraska FY 2013-14 and FY 2014-15 Biennial Budget"—that is available on the Legislature’s Website: www.nebraskalegislature.gov.

LB 196 appropriates $632,982 in each fiscal year to pay for the $12,000 annual salary (and the employer share of payroll taxes) of each of the 49 legislators.

LB 197 appropriates $23.3 million in each fiscal year for the salaries and benefits of all judges, elected constitutional officers, the Parole Board and the Tax Commissioner.

LB 198 contains funding for capital construction projects.

LB 199 authorizes transfers from and to the General Fund, including transfers to the Capitol Construction Fund and the Property Tax Credit cash fund.

LB 200 authorizes funding via transfer from the Cash Reserve Fund. For instance, a transfer not to exceed $43.02 million to the Capital Construction Fund represents the state’s commitment to add to federal funds for the construction of a new Central Nebraska Veterans’ Home.

In addition to the seven bills from the Appropriations Committee, a bill from the Business and Labor Committee, LB 536, is also considered part of the budget. It is used to pay for settled claims against the state and "write offs," which are required by statute to be reviewed and approved by the legislature. This spending is a little over $825,000. That’s a budget summary. On to another subject….

Even though Nebraska is not establishing its own health-insurance exchange pursuant to the Federal Patient Protection and Affordable Care Act, because the Governor decided to let the Federal Government fulfill that responsibility, there will be some state-based oversight. LB 384, which passed May 10 on a 47-0 vote by the Legislature, creates the Nebraska Exchange Stakeholder Commission.

The 12-member commission will identify problems and make recommendations. In doing so, it satisfies PPACA’s stakeholder-consultation requirements.

The Commission’s membership will include four health-care consumers, including one who represents a rural area; a small-business representative; two health-care providers; one health-insurance agent; one representative of a health-insurance carrier; and three, non-voting representatives of the state’s insurance and health and human services agencies. All members will be appointed by the Governor, subject to approval by the Legislature.

The Exchange Stakeholder Commission is to have its first report for the Legislature by Dec. 1 of this year, a month before PPACA’s health-insurance exchange requirement takes effect.