May 25, 2013

Program uses high-tech means to teach students money basics (AUDIO)

Treasurer Don Stenberg speaks with Bonnie Sibert and Harris Payne to his right and George Beattie to his left.

Treasurer Don Stenberg speaks with Bonnie Sibert and Harris Payne to his right and George Beattie to his left.

Nebraska high school students will be taught basic financial literacy using high-tech methods under an initiative launched by State Treasurer Don Stenberg.

Treasurer Stenberg held a news conference in his office to discuss Nebraska NEST Financial Scholars, a program that will be offered at no charge to high schools throughout the state. The program will use the services of EverFi, an educational technology company based in Washington, D.C.

EverFi uses a number of high-tech methods to engage high school students in basic money management, including video, animation, 3-D games and social networking. Students participating in the program could become certified in more than 600 topics.

High-tech might be used in the program, but the basic message is an old-fashioned one, according to Stenberg: don’t spend more than you earn.

“Sounds awful simple, but if you look what happened during the early 2000’s, people got mortgages far beyond their ability to pay for them. They lost their homes. It was so severe it severely impacted the national financial system,” Stenberg stated.

Nebraska Bankers Association President George Beattie, appearing with Stenberg at the news conference, said the lack of financial literacy hit home to him when he saw a television report about a young, single mother making $40,000 a year struggling to pay the mortgage on her $400,000 home.

Jonathan Chapman with EverFi demonstrates the program

Jonathan Chapman with EverFi demonstrates the program

“Somewhere there was a big disconnect as to how far that $40,000 would go,” Beattie stated. “And that’s when I talk about the value of money and what you can do with it. You have to have some understanding that there are limitations on what you as an individual have as resources to expend, whether it’s on a mortgage, on a car, college education or whatever the case may be.”

Bonnie Sibert with the Nebraska Department of Education, also at the news conference, continued the discussion on why so many students are financially illiterate today.

Sibert joked with Beattie, asking if he had a credit card when he was young. When he responded that he didn’t, she pointed out that many high school students have access to credit cards, changing the dynamics of money management for the coming generation.

“Our society has easy, easy credit and that’s why that $40,000 wage earner thought she could buy a $400,000 house,” Sibert added.

Beattie said he hopes the Nebraska NEST Financial Scholars will succeed in raising the financial literacy of youth.

“I just don’t think we have emphasized financial literacy,” Beattie said. “We’ve talked about doing this for 30 years, but we haven’t made a big ripple in the pond.”

AUDIO:  State Treasurer Don Stenberg news conference on financial literacy program for high school students. [15 min.]

Nebraska Congressman in middle of IRS investigation (AUDIO)

Congressman Adrian Smith

Congressman Adrian Smith

A Nebraska Congressman is involved in the investigation of how the Internal Revenue Service handled requests for tax-exempt status from conservative groups.

Congressman Adrian Smith sits on the House Ways and Means Committee, which oversees the IRS, and has held hearings on revelations that the agency placed conservative groups under extra scrutiny.

The IRS has confessed that it required extra documents, asked additional questions and took longer to approve the applications for tax exempt status for conservative groups, especially groups with “Tea Party”, “Patriot” and “9/12” in their name.

Outgoing IRS Chief Steven Miller appeared before the House Ways and Means Committee. He apologized for mistakes made and poor service provided. He claimed partisanship did not drive the policies.

When Smith’s turn came for questioning, he quizzed Miller about bias. Miller preferred the term “perceived bias”.

“The commissioner did acknowledge that many of these questions should not have been asked,” Smith tells Nebraska Radio Network. “What seems to be the fact is there was a pattern that questions of this nature were only asked of conservative groups.”

Some of the questions seemed out of line. IRS officials asked certain conservative groups for lists of their volunteers, books, even book reports written by members. In one case, it asked for the prayers recited by a pro-life group.

Smith says the IRS tolerated such questions for two years and has failed to act on an application from one conservative group that has been before it for three years.

“You know, the commissioner talked about poor customer service,” Smith says. “I think that is grossly understating and not describing the situation as it should be.”

Other Congressional committees have been investigating the IRS. The IRS Director of Exempt Organizations, Lois Lerner, pleaded the 5th Amendment and refused to testify during a hearing by the Oversight and Government Reform Committee.

AUDIO: Brent Martin reports [:50]

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]