Legislative Notes
Senator Deb Fischer
Week of March 1, 2010

Forecasting Board: Proceed with Caution

The Nebraska Economic Forecasting Advisory Board met on February 26th to update their projections for the upcoming fiscal years.  This is a nine member appointed board that makes advisory forecasts of tax revenues and meets in October and February.  The Legislature and the Governor use the board’s recommendations to guide our budget decisions.

The board lowered its revenue prediction for the current fiscal year (FY 2009-2010) by $40.2 million and increased it for the next fiscal year (FY 2010-2011) by $8.6 million.  The net decrease in this biennium is roughly $31 million.  Due to an increase in federal Medicaid dollars, the state will receive approximately $18 million in additional assistance.  This federal money will reduce the budget shortfall to approximately $12 million.

There are still many factors that could change this forecast, and the board members continue to express caution regarding the state’s economic outlook.  I believe we need to continue to carefully monitor our expenditures.  It is important to me to ensure that the state of Nebraska is financially solvent well into the future.  That being said, I anticipate lower revenue projections in future months that will require action by the Legislature.

LB 937, a bill I introduced to eliminate per diems for members of a learning community coordinating council, advanced to Select File.  Currently these council members are provided a $200 per day per diem, up to $12,000 per year, for meetings and other council responsibilities in addition to reimbursement for expenses.  The learning community coordinating council was created in 2007 to pool property tax dollars among Douglas and Sarpy County school districts, settle boundary disputes and address the academic gaps among students in those districts.  Currently 18 members serve on the council and received $216,000 in per diem payments last year.

My bill aligns the reimbursement structure of learning community coordinating council members to that of school board members.  If the bill passes, council members will receive reimbursement of actual and necessary expenses, as school board members do.  Those council members that are currently serving will continue to receive their per diems through the end of their terms.  As a former school board member, I believe that learning community coordinating council members provide a similar function for our schools and should not be paid a per diem for their efforts.

An important bill for Nebraska’s roads also advanced through the second round of debate.  LB 821 requires the Department of Roads to consider the preservation and maintenance of the existing state highway system as its primary priority when creating its plans.  I believe we have an obligation to Nebraskans that they may safely travel on our highways and that they will not see the current system deteriorate.  The current highway system is worth $7.7 billion.  I believe it would be irresponsible of us not to protect this investment.

LB 821 does not change the department’s current planning process.  Rather, it will be the department’s duty to decide what level of preservation and maintenance is sufficient.  This bill is important for preserving our highways and maintaining safe driving conditions, and it is especially vital for rural areas in order that our highway maintenance needs be met.

As always, thank you for sharing in our legislative process, and I’ll visit with you again next week.

Deb Fischer
Senator, District 43