May 23, 2013

Bill to rate child care and raise subsidy moves toward passage

Licensed child care centers would be rated and more families would be eligible for child care subsidies under a bill moving into position for passage in the legislature.

Sen. John Harms of Scottsbluff tells colleagues as many as 60,000 young children are at risk, not prepared to enter school.

“We can not any longer turn ourselves away from these children,” Harms says during floor debate on LB 507. “They’re our future. They’re our hope. They will run this country and for every child that drops out that’s one child gone.”

The primary thrust of the bill would create a rating system for licensed child care centers in Nebraska, rating them beyond whether they meet safety and health codes.

Under the bill, child care centers receiving at least $250,000 annually will have to submit to a review. Other providers could submit to the review voluntarily.

The sponsor of the bill, Sen. Kathy Campbell of Lincoln, says child care has changed and Nebraskans need better assessments of child care providers.

“It’s no longer good enough to park the kids in front of a TV or let them play with toys,” Campbell states. “There has to be a curriculum. There has to be the development of the teachers. That prepares that child for exactly what Sen. Harms was talking about; to be ready for Kindergarten.”

An amendment adopted earlier incorporates a modification of LB 625 into LB 507.

The modified version of LB 625, sponsored by Sen. Danielle Conrad of Lincoln, would raise the threshold for families to qualify for public child care subsidies. Currently, a family making up to 120% of the federal poverty level qualifies. Under the amendment, that threshold would be raised to 125% the first year and 130% the second year.

The legislature rejected an amendment that would hold the threshold at the 125% level, though the amendment sparked a debate on the proper role of government in addressing social issues.

Sen. Tom Carlson of Holdrege cautions that the legislature can help only so much.

“In my view, we’re rather heavy on committing and very short on oversight. We’re long on giving out and short on accountability,” Carlson states. “We’re quick to provide and slow to encourage self-help and demand self-help.”

The state at one time provided child care help to families making as much as 185% of the federal poverty level, but tough times forced budget cuts in 2002 and the threshold hasn’t been raised since.

It is estimated that the expansion to 130% of the federal poverty level would cost $8.2 million over the two-year budget cycle, adding approximately 7,300 children to subsidized child care.

Sen. Paul Schumacher of Columbus tells colleagues they shouldn’t think of the bill solely as a social program.

“I almost look at LB 507 as a business-subsidy bill,” Schumacher says, “because, what it’s doing is enabling that very low-paid workforce to show up for work if they have kids.”

LB 507 has cleared the two rounds of legislative debate in which it can be amended. It next comes before the Unicameral for final consideration.

Sen. Chambers succeeds in repeal of local option sales tax, for Omaha (AUDIO)

State Sen. Ernie Chambers has succeeded in repealing the local option sales tax; for Omaha.

At least, Chambers has succeeded in getting the votes needed for an amendment to repeal the local option sales tax for the Omaha metropolitan area.

Chambers failed earlier this week in his attempt at a total repeal, so he tells colleagues he will take a different route.

“The effect of that is to remove Omaha from that local option sales tax authority that would remain in place for the rest of the state,” Chambers says during legislative floor debate.

Chambers receives a 30-5 vote to add the repeal onto LB 104, the tax incentives for wind energy.

Chambers thought he had the votes for a total repeal, falling only one vote short last week with a supporter missing from the legislative chamber. A move to reconsider the vote succeeded, but the votes weren’t there for reconsideration on Monday. Chambers blamed the lobbying against his measure by the League of Nebraska Municipalities.

Unable to secure a total repeal of the local option sales tax that passed only last year, Chambers settles for a partial repeal.

“I will do everything I can to protect the people in Omaha who are burdened down by taxes now and, especially, the ones that I designate the poor and this is one of the steps being taken in that direction,” Chambers states.

AUDIO: Sen. Ernie Chambers moves to repeal local option sales tax for Omaha metro area. [6:30]

Incentives to develop wind energy moves forward in legislature (AUDIO)

Tax breaks meant to lure a Kansas company to build a wind farm in northeast Nebraska have advanced in the legislature.

The incentives included in LB 104, sponsored by Sen. Steve Lathrop of Omaha, would refund the sales tax paid on inputs used to build wind farms.

Specifically, the bill would provide a total of $16 million in tax breaks to Trade Winds of Lenexa, Kansas. Trade Winds plans to build a wind farm in Dixon County capable of generating 200 megawatts of electricity which would be exported to other states.

Sen. Jim Smith of Papillion calls the bill’s approach piecemeal.

“We need the development of renewable resources, but we need to approach it in a very thoughtful, constructive, planned out way,” Smith tells colleagues during floor debate.

Yet, Sen. Steve Lathrop, the sponsor, tells rural colleagues this will benefit them.

“This is an opportunity to provide economic development, not in Sarpy County, not in Douglas County, not in Lancaster County, but out in your part of the world,” Lathrop says.

Lathrop says Nebraska has great capacity for wind energy, but lags behind in development.

The wind farm planned for the northeast part of the state would create up to 300 construction jobs with 20-to-25 permanent jobs. It is a 40-year project expected to pay $10,000 to $15,000 per tower to farmers in leases and between $700,000 and $800,000 in tax revenue for Dixon County.

Lathrop’s bill competed with another measure that would have required local investment to provide tax breaks.

AUDIO: Brent Martin reports [:50]

Attempt to repeal local option sales tax fails; senator vows revenge (AUDIO)

Sen. Ernie Chambers

Sen. Ernie Chambers listens to debate in the Unicameral

A state senator attempting to repeal the local option sales tax falls short of the votes needed; then issues a thinly veiled threat.

The votes appeared to be there Thursday.

Sen. Ernie Chambers moved to amend LB 308 to incorporate a repeal of the local option sales tax into the measure seeking to adjust how the federal alternative minimum tax is applied in Nebraska.

Chambers secured 24 votes, but lacked the 25th needed to approve his amendment. That 25th vote seemed assured since a supporter wasn’t in the legislative chamber on Thursday.

Things changed though on Monday.

Only Sen. Tom Carlson of Holdrege announced he no longer favored repeal, stating he saw no risk in giving cities the authority to tax themselves.

“If they make a mistake in implementing it, they suffer the consequences,” Carlson told colleagues after announcing he would switch his vote. “I don’t think Big Brother at the state level should decide this.”

No other senators announced they would switch, but they did.

A motion to reconsider the vote taken last week fell three votes short this time, 22-25 with two senators not voting.

Chambers blamed the lobbying of the League of Nebraska Municipalities over the weekend.

“And we’re going to see what happens the rest of the session,” Chambers stated during floor debate. “I’m not going to give warning. I’m not going to give notice. I’m just going to do whatever seems the right thing for me to do.”

Chambers opposes efforts to raise the sales tax, saying it disproportionately affects the poor.

The local option sales tax allows cities to ask voters to increase the sales tax to fund specific projects.

Only five cities have exercised the option. Three succeeded in winning voter approval. Voters in Sidney, Alma and Waterloo passed measures to increase their sales taxes. Voters turned down similar measure in Bellevue and Nebraska City.

AUDIO: Brent Martin reports [:50]

Gov. Heineman says legislature should not delay airplane purchase

Gov. Dave Heineman says the legislature should act, not delay a decision on whether to purchase a state airplane.

The legislature has advanced a budget bill that strips $2.2 million appropriated to buy a King Air plane owned by the University of Nebraska Foundation, which the state has been leasing. Instead, the legislature has ordered a study be made of the state’s air travel needs.

Heineman says there’s no need to put off the issue.

“It’s time to make a decision,” Heineman tells reporters during a conference call. “It’s like buying a car. Do you want to buy a good, used state plane in this case which is what we think we should do or buy a new plane? And I think it’s just time to make a decision.”

Legislators questioned whether the governor’s office had entered a sweetheart deal with the university foundation.