THE NEBRASKA LEGISLATURE...•Nebraska was the last state legislature to adopt term limits. In 2000,...
Transcript of THE NEBRASKA LEGISLATURE...•Nebraska was the last state legislature to adopt term limits. In 2000,...
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THE NEBRASKA
LEGISLATURE
The Unicameral System
Taxes & Spending
Hot Topics – What Would You Do?
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THE NEBRASKA
UNICAMERAL
ONE OF A KIND
• 1934 Constitutional Amendment Passed creating a Non-
Partisan Unicameral
• The People serve as the Second House
• A Transparent process
• Hearings - Readings - Amendments
• Isolated from Political Party Influence
• allow lawmakers to base their actions on their own
convictions and the needs of their districts, rather than
according to party dictates
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NEW FACES = NEW IDEAS?
• Nebraska was the last state legislature to adopt term limits. In 2000, 56 percent of voters passed a two-term four year limit on members of the legislature.
• In 2016, 11 Senators will end their terms due to term limits. There were 17 in 2014.
• 5 incumbent senators face major opposition, only 3 are running unopposed.
• Term Limits impact Nebraska differently than other states.
-Unicameral System - Nonpartisan
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TAXES & SPENDING
how much does it cost to run
a state?
Where does the money come
from?
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$$ TAXES $$
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STATE REVENUE
Sales & Use
Taxes
Individual
Income Taxes
Corporate
Income Taxes
The Nebraska Economic
Forecast Advisory Board
Who? What?
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THE THREE-LEGGED STOOL
• Property Taxes
• Agricultural Land V.
Residential &
Commercial
• Income Taxes
• Who pays?
• Sales & Use Taxes
• Do we need a broader
base?
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TAX THE OTHER GUY!!!
“ I wont
agree to any
changes
unless I can
pay less in
property
taxes”
“We must do
something to
lower income
taxes and
bring more
businesses to
Nebraska”
“I am running
for the
Legislature
because we
need a
balanced
budget, and
to cut taxes.”
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I PAY
MORE
THAN HE
DOES!
Really???
www.totaltaxinsights.org
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WHAT IS THE SOLUTION?
• What have we heard?
• Property Taxes are too high!!!!! Well, maybe…
• We need to eliminate social security, Military
retirement, corporate and upper tier income
taxes. What about the middle class?
• We need to broaden the sales tax base and tax
more services. Well, except for the goods and
services I buy…
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• Potential Property Tax proposals
• Change Agricultural Land value to an income
basis
• Reduce the percent of the assessed value taxed
to 60 or 65 percent (now 75%)
• Proposed Changes for Income Taxes
• Eliminate taxes on Social Security Income
• Reduce upper tier and corporate income taxes
• Revamp corporate incentive packages
• Proposed Changes for Sales and Use Taxes
• Eliminate some exemptions and tax more
services. “Broaden the Base!”
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$$ SPENDING $$
•Biennial Budget – How
Much?
•Where does the money
go?
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MAJOR BUDGET DRIVERS
Agency
Operations
In Fiscal Year
2015-2016
35.8%
• University
• HHSS
• Courts
• State Patrol
• Corrections
• 40+ State
Agencies
Aid to
Individuals
In Fiscal Year
2015-2016
31.7%
• Medicaid
• Child Welfare
• Public
Assistance
• Developmental
Disabilites
• Behavioral
Health Aid
Aid to Local
Government
In Fiscal Year
2015-2016
32%
• TEEOSA
• Special
Education
• Community
College Aid
• Homestead
Exemption
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AGENCY OPERATIONS
• University of Nebraska and State Colleges - $1.25
billion
• Health & Human Services System - $513 million
• Correctional Services - $406 million
• Courts - $346 million
• State Patrol - $118 million
• Other Agencies - $467 million
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STATE AID TO INDIVIDUALS
• Medicaid - $1.66 billion
• Child Welfare Aid - $302 million
• Developmental Disabilities Aid - $296 million
• Public Assistance - $220 million
• Behavioral Health Aid - $143 million
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STATE AID TO LOCAL
GOVERNMENTS
• TEEOSA/State Aid to Schools - $1.9 billion
• Special Education - $441 million
• Community College Aid - $198 million
• Homestead Exemptions - $143 million
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K-12 EDUCATION FUNDING
The Nebraska Constitution provides that :
“The Legislature shall provide for the free instruction in the common schools of this state of all persons between the ages of five and
twenty-one years.”
The Funding Formula:
NEEDS – RESOURCES = AID
Funding Comes from a mixture of
Income and Property Taxes, and other fees
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“STATE AID” TO EDUCATION
• ALL schools receive “State Aid”
• Accounted for when looking at resources
that come from sources other than the
local school district.
• Not all schools receive “Equalization” Aid
• Formula Needs – Formula Resources =
Equalization Aid
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OTHER ISSUES
• Corrections
• Death Penalty, Good Time, Overcrowding,
oversight
• Mental Health Care
• State or Private Oversight, Institutions,
children
• Medicaid
• To Expand or Not to Expand
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Questions?