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Budget, taxes loom large in upcoming Nebraska session

LINCOLN, Neb. (AP) — Nebraska lawmakers are set to kick off a new session Wednesday with proposals to balance a tight state budget, lower property taxes and legalize medical marijuana in the face of a potential ballot measure.

The new, 90-day session will also usher in 13 new state senators who will reshape the officially nonpartisan Legislature in ways not yet known.

Here are some things to watch:

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THE BUDGET

A persistent state revenue shortfall could create budget headaches once again for lawmakers, who have relied on Nebraska’s rainy-day fund the last several years.

Nebraska faces a projected $95.1 million revenue shortfall in its upcoming two-year, general fund budget.

It’s a tiny fraction of the roughly $9 billion total state budget and smaller than other recent shortfalls, but some lawmakers worry the downturn will continue and they won’t have enough money left in the rainy-day fund to cover state expenses. The fund holds about $296 million, down sharply from the $729 million stashed away in 2016.

“I think we may be getting to the point where we can’t afford to use any more of that,” said Speaker of the Legislature Jim Scheer, of Norfolk.

In an interview last week, Gov. Pete Ricketts said tapping the cash reserve was appropriate given the downturn in agriculture, the state’s largest industry. Ricketts has previously said he’d like to keep about $500 million in the rainy-day fund.

“The reason you have a rainy-day fund is to help cushion against economic downtimes,” he said. “In agriculture, it’s clearly raining.”

Lawmakers will also debate how to pay for a voter-approved measure to expand Medicaid to an estimated 90,000 low-income residents. Ricketts said he will fit that expense into his budget proposal to lawmakers, but it’s likely to crowd out other priorities over time.

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PROPERTY TAXES

Lawmakers will try once again to address the complaints of farmers, ranchers and homeowners who have seen sharp increases in their local property tax bills.

The issue rises to the forefront nearly every year, but lawmakers seldom agree on how to pay for property tax cuts and who should receive most of the benefits.

“I’m relatively optimistic we can get something done this year,” said Sen. Tom Briese, an Albion farmer who has introduced numerous property-tax proposals. “A lot more folks are realizing the gravity of the situation.”

The biggest recipient of property tax dollars are K-12 public schools, particularly in rural districts that no longer qualify for state equalization aid because they contain too much valuable land. Farmers argue that they’re paying higher property taxes even though lower commodity prices have reduced their incomes.

Sen. Patty Pansing Brooks, of Lincoln, said she understands the pressure farmers are facing and wants to help, but she also sees needs in her urban district.

“We have to work together,” she said. “The conservative and rural members need to work with the urban senators and the progressives to really get something done.”

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ELECTING NEW LEADERS, SETTING THE RULES… AND MORE GRIDLOCK?

Lawmakers will choose new committee leaders in a secret-ballot election that’s often full of surprises.

During the last elections in 2017, conservative Republicans won nearly all of the Legislature’s leadership positions and tried to force through a change that would have made it harder for Democrats to win committee chairmanships in the future. Democrats and even some moderate Republicans blasted the moves as a partisan power grab, and the dispute brought the Legislature to a virtual standstill for 30 days.

The leadership votes were highly unusual in an officially nonpartisan Legislature, where committees are traditionally led by a mix of Republicans and Democrats. The new session will mark the first time lawmakers have formally addressed those issues since 2017.

Pansing Brooks said she’s hopeful lawmakers will try to build coalitions more than they have in previous years.

“The original my-way-or-the-highway approach doesn’t work,” she said. “People are starting to realize it takes coalitions, it takes people working together.”

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MEDICAL MARIJUANA

Nebraska lawmakers could face more pressure to legalize medical marijuana in some form, thanks to a group of senators and activists who are promising to put the issue on the 2020 ballot if nothing passes this year.

A newly formed ballot committee, Nebraskans for Sensible Marijuana Laws, plans to launch a signature-gathering campaign, although organizers said they’d prefer that lawmakers address the issue. Sen. Anna Wishart, of Lincoln, a leading proponent, will introduce a medical marijuana bill this year.

Similar measures won approval last year in Missouri, Oklahoma and Utah, bringing the total to 33 states that have legalized the drug for medicinal purposes. Unlike past efforts in Nebraska that have faltered, the latest campaign is backed by the Marijuana Policy Project, a national group that has helped lead five successful marijuana-related ballot measures.

Central Nebraska priest charged with sex assault of woman

ORD, Neb. (AP) — A central Nebraska prosecutor says she intends to charge a Roman Catholic priest who’s been accused of sexually assaulting a woman.

Valley County Attorney Kayla Clark said Friday that she didn’t yet know which charges the Rev. John Kakkuzhiyil (kah-kuh-ree-AL’) will face because she hasn’t reviewed all the investigation reports. He was arrested Wednesday and remains in custody. It’s unclear whether he has an attorney.

The woman who accused him has obtained a protection order against the 63-year-old cleric. She says he assaulted her in November. She says she went to his Ord home on business and blacked out after having a couple drinks with him.

The Grand Island Diocese says Kakkuzhiyil has been serving as pastor of Our Lady of Perpetual Help Catholic Church in Ord and Sacred Heart Catholic Church in Burwell. The diocese says Bishop Joseph Hanefeldt placed Kakkuzhiyil on leave Dec. 15 upon learning that the Nebraska State Patrol was investigating the allegations.

Investors, farmers guessing as shutdown delays crop reports

DES MOINES, Iowa (AP) — The U.S. Department of Agriculture announced Friday that it must delay the release of key crop reports due to the partial government shutdown, leaving investors and farmers without vital information during an already tumultuous time for agricultural markets.

The USDA had planned to release the closely watched reports Jan. 11 but said that even if the shutdown ended immediately, the agency’s staff wouldn’t have time to release the reports as scheduled. Congressional leaders met with President Donald Trump on Friday but there were no indications the shutdown would end soon.

“The longer it goes on, the more distorted our reference points get,” said grain market analyst Todd Hultman, of Omaha, Nebraska-based agriculture market data provider DTN. “It’s a lot of guesswork.”

The reports detail the size of the 2018 harvests of corn, soybean, wheat and other crops and give an early estimate for what farmers will plant in the upcoming season. Depending on the estimates, the price of the commodities can rise or fall as they show the current supply and forecast how many acres will be devoted to different crops in the coming months.

The government shutdown has now forced the delay of such reports for two weeks, and uncertainty about the commodity supply will only grow as more time elapses, Hultman said. USDA reports provide the foundation for understanding the U.S. agricultural industry, and because they also estimate farm production in other countries, they are essential for understanding global crop markets.

Although the government is still releasing some information, such as the Labor Department’s monthly jobs report , the USDA hasn’t released key reports since Dec. 22. This includes the closely watched World Agricultural Supply and Demand Estimates report and information about specific crops, such as winter wheat and canola seedings.

The lack of information comes amid the uncertainty of trade with China, where tariffs led to an abrupt drop in U.S. agricultural exports to the country. There were indications that China was beginning to resume at least limited purchases of U.S. crops, but because of the government shutdown it’s unclear what’s happening.

“We certainly don’t want to be in the dark and miss any big changes like that,” Hultman said.

University of Illinois professor Todd Hubbs, who studies agricultural commodity markets, said he finds the report delays especially frustrating because he thinks they could confirm a belief that the U.S. soybean crop was smaller than earlier forecast. If true, that information would mean a smaller supply and could raise soybean prices, helping farmers who have struggled with low prices worsened by the trade dispute with China.

Until the USDA releases its information, investors and farmers can’t be certain about where they stand, he said.

“Those kinds of numbers are fundamental,” Hubbs said. “When the USDA produces the numbers, they are the numbers. They move markets.”

Incoming Nebraska secretary of state planning voter ID bills

LINCOLN, Neb. (AP) — The incoming Nebraska secretary of state intends to seek legislation that would require voters to show identification at the polls.

Bob Evnen told the Omaha World-Herald that he plans to spend time during his first year in office studying other states’ voter ID laws before drafting his proposal for the 2020 legislative session.

“Having integrity in your voting system is absolutely fundamental in our democracy,” Evnen said.

Evnen beat Democrat Spencer Danner in November and will be sworn in Thursday to replace fellow Republican John Gale. Gale and other state election officials have said they haven’t seen evidence of systemic voter fraud in Nebraska.

Evnen’s proposal likely will face stiff opposition from legislators and others who say any voter ID requirement creates a new barrier to voting.

“I’ll vigorously oppose any voter identification legislation, as I have the last four years,” said state Sen. Adam Morfeld, of Lincoln, a Democrat in the officially nonpartisan Legislature. Morfeld said he doesn’t think there is enough support to pass a voter ID measure.

Last January Sen. John Murante offered three measures he said were needed to address potential voter fraud.

One bill would have required officials to check voter records for dead people and confirm the citizenship status of all registered voters. Another would have permitted the use of electronic books that poll workers could use to identify voters. The third would have required voters to show a government-issued identification at the polls.

None of the three made any headway during the session.

Ricketts plans to maintain focus on jobs, taxes in 2nd term

Gov. Pete Ricketts
LINCOLN, Neb. (AP) — Gov. Pete Ricketts is preparing to start his second and final term in office next week with a focus on jobs, lowering taxes and promoting Nebraska domestically and abroad.

In an Associated Press interview, the Republican governor said he hopes to concentrate on the same economic issues he championed during his first four years at the Capitol.

Ricketts said his agenda will build on the “four pillars” he emphasized in his first term: connecting residents to high-paying employment, providing government services more efficiently, slowing the growth of state spending and touting Nebraska as a good place for businesses to invest.

“We’re going to stick with those same four pillars,” Ricketts said. “It’s a question of how we take what we’ve done and take it to the next level.”

Ricketts said he will again introduce a plan to ease pressure on property taxpayers, a major concern raised by constituents on the campaign trail but one the governor and lawmakers have struggled to fully address.

Ricketts said he still likes some of the ideas floated in past years, including a proposal that would tax farmland based on the potential income it can generate instead of its market value, which can be inflated. He also supports using state money for a refundable tax credit that would offset some of what property owners have to pay.

Both ideas stalled in the Legislature, but Ricketts hinted that he might resurrect them.

“There’s no single, silver-bullet solution that addresses all the issues with regard to property tax relief,” Ricketts said. “There are a lot of good ideas out there. The question is what we can pull together for that consensus… to get a bill to my desk.”

Ricketts said he will reveal more details about his plan during his annual State of the State address to lawmakers on Jan. 15.

Speaker of the Legislature Jim Scheer said he expects a lot of debate over property taxes in the session that begins Wednesday, but a tight state budget will make it difficult to pass any major changes in one year. Lawmakers face a projected $95 million state revenue shortfall in the upcoming budget.

“Many senators want something substantial,” said Scheer, a Republican from Norfolk. “But when we’re starting at a deficit, I don’t see a way to produce those types of results without some sort of cuts elsewhere or finding another source of revenue.”

Ricketts and lawmakers may also disagree over how to pay for property tax cuts. Ricketts said he will oppose any measure that raises other taxes to cover the cost, but some senators say that’s the best way to rebalance a tax system that relies too heavily on property owners.

Sen. Tom Briese, of Albion, said the state should consider eliminating sales tax exemptions on a variety of items, such as candy, soft drinks and lawn-care services, and increase the state’s cigarette tax. The state should use the additional revenue to ease property taxes on farmers, ranchers and homeowners, he said.

“Nebraskans deserve a strong, balanced tax structure, and they don’t have it now,” Briese said.

Ricketts said he’ll also include funding in his budget to expand Medicaid in Nebraska after voters approved the measure in November. Ricketts has for years opposed Medicaid expansion, and some supporters of the expansion have expressed concern that the governor and others might try to sabotage the measure before it’s implemented in Nebraska.

Ricketts said his administration has launched a website to notify the public about the expansion and is working with the federal government, which must approve the state’s request to amend its current Medicaid program before the change can be implemented.

“It’s going to be a big part of our budget going forward, and it will have to fit in along with all of our other spending priorities,” Ricketts said.

2 surgeons sue Omaha hospital, alleging wrongful suspensions

OMAHA, Neb. (AP) — Two Omaha surgeons have filed a lawsuit alleging they were wrongfully suspended from a children’s hospital after they raised safety concerns following the death of a 7-month-old during an operation.Drs. Jason Miller and Mark Puccioni contend Children’s Hospital & Medical Center suspended their privileges to practice there after they questioned the skill and competence of the surgeon who performed the operation.

The lawsuit in Douglas County District Court also names the hospital’s president and CEO, Dr. Richard Azizkhan, and the surgeon who performed the procedure.

Hospital officials said in a statement that it does not comment on pending litigation, except to say they “strongly disagree” with the allegations.

“We stand behind our executive leadership, medical team and our process, and are confident that these claims against our hospital, Dr. Azizkhan and (the other surgeon) will be proven to be without merit,” the statement said. “We are also saddened by the manner in which the family’s tragic loss has been utilized by the plaintiffs in this litigation.”

Miller is a board-certified plastic surgeon with training in craniofacial plastic surgery. He has held privileges for more than 10 years at several Omaha-area hospitals. Puccioni, a board-certified pediatric neurosurgeon, has had privileges at several local hospitals for over 17 years.

The lawsuit comes weeks after the Nebraska Medical Association sent a letter to the Children’s Hospital board, expressing concerns about “patient care, safety and quality” at the hospital, in addition to the loss of longtime physicians.

Azizkhan said hospital officials could not discuss personnel matters, but the hospital is committed to recruiting specialty physicians and is having a positive impact on children’s health.

Sheriff who lived at Nebraska jail retires, moves out

HASTINGS, Neb. (AP) — A Nebraska sheriff who lived at the county jail has retired and moved out of the courthouse that served as his home for the last 36 years.

The Hastings Tribune reports that Gregg Magee was the last sheriff in Nebraska to live at the county jail. The 67-year-old retired from his position as Adams County Sheriff in December, choosing not to seek a 10th consecutive term in office.

Living at the jail is no longer a requirement in Adams County, so incoming Sheriff John Rust will maintain his residence in Hastings.

Magee lived in an apartment on the third floor of the Adams County Courthouse, which is where the jail is located. He says the space has three bedrooms and room for storage.

Nebraska ordered to pay nearly $60K in public records suit

LINCOLN, Neb. (AP) — A Nebraska judge has ordered the state to pay nearly $60,000 in attorney fees to two newspapers and an advocacy group that sued the state for its refusal to release public records related to lethal injection drugs.

The Lincoln Journal Star reports that state officials were ordered to pay about $19,500 to the Lincoln Journal Star and the Omaha World-Herald and more than $20,000 to the American Civil Liberties Union.

The newspapers and the ACLU filed the lawsuits after prison officials refused their public records requests. The judge previously ordered officials to release records of its communications with its lethal injection drug supplier, as well as several other documents related to Nebraska’s efforts to carry out the death penalty.

Prison officials appealed that decision, and the records remain undisclosed.

No serious injuries in central Nebraska school bus crash

AMHERST, Neb. (AP) — Authorities say a pickup and school bus crashed in central Nebraska, but no one was seriously injured.

The Kearney Hub reports that the crash happened around 2:45 p.m. Friday at an intersection northeast of Amherst in Buffalo County.

Amherst Superintendent Tom Moore says 13 students were on the bus at the time. He says all students were checked out by emergency medical technicians and either went home with parents who arrived at the scene or were taken home by another school bus.

The driver of the pickup was cited in the crash, but the specific offenses were not released.

Ex-Husker QB Armstrong signs with Grand Island indoor team

Tommy Armstrong Jr. (Photo Courtesy Scott Bruhn/Nebraska Communications)

GRAND ISLAND, Neb. (AP) — Former Nebraska quarterback Tommy Armstrong Jr. has signed a contract to play for the Nebraska Danger of the Indoor Football League.

Armstrong started 44 games for the Cornhuskers and set school career records for total offense, total touchdowns, passing yards and passing touchdowns.

Armstrong went undrafted in 2017 but spent part of that spring with the Minnesota Vikings as a wide receiver and safety. He was cut in June 2017.

The Danger signed Armstrong Wednesday. They open the regular-season with a game against the Bismarck Bucks at the Heartland Events Center on Feb. 23.

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