Nebraska Legislature Adjourns its 2019 Session

Governor signs $9.3 billion budget, issues no line-item vetoes

The latest legislative update on the small-business agenda from State Director Bob Hallstrom

The Legislature adjourned on Friday, May 31, having concluded all of its work for the 2019 session. Adjournment occurred after Day 84, rather than the scheduled June 6 date. Lawmakers will reconvene the 2020 Legislative Session on Jan. 8, 2020, at which time floor debate on carryover bills and introduction of new bills will commence.

The Legislature completed the session having passed 260 individual bills, with another 32 measures adopted by way of amendments to those bills. The major accomplishment of the session was balancing the state’s budget in the face of an initial $125 million budget shortfall.

Governor Signs Budget Bills

Gov. Pete Ricketts signed the state’s next two-year $9.3 billion budget into law without issuing any line-item vetoes. The budget:

calls for a 2.9 percent increase in spending
provides $550 million in direct property tax relief (an additional $51 million in funding over the next two years)
includes over $2 billion in state aid to K-12 education ($135 million increase over the next two years)
as well as provides new resources for public safety and corrections initiatives.

Looking Ahead to 2020

All legislation that was not adopted or indefinitely postponed this session will be carried over to the 2020 Legislative Session. With the Legislature having failed to adopt meaningful property tax relief, it is anticipated that a property tax relief initiative could be placed on the 2020 General Election ballot for consideration by the voters.

The initiative petition drive underway proposes a constitutional amendment to provide Nebraskans with a state income tax credit for 35 percent of local property taxes paid. If placed on the ballot and approved by voters, the initiative is expected to impact the state budget by approximately $1 billion, potentially triggering significant increases in state sales and/or income taxes or steep reductions in spending for state programs and services, or both.

Previous Legislative Reports

• May 24—Did Cloture Vote Failure Doom Additional Property Tax Relief

• May 17—Speaker: It’s Legislative Lights Out, May 31

• May 10—Pressure on to Find 33 Votes for Tax Increases

• May 1—Will the Largest Tax Increase in State’s History Pass?

• April 26—Will Increasing the Sales Tax and Adding it to Some Goods and Service Make Property Tax Relief Worth it?

• April 19—Nebraska Senators Await April 25 Findings from Economic Forecasting Board

• April 12—Senators Continue to Work on Property Tax Relief

• April 5—NFIB-Crafted Amendments Adopted in Employee Compensation Bill

• March 28—Nebraska Senators Break for Long Weekend

• March 22—NFIB Victory: Onerous Paid Leave Bill Stopped

• March 21—Paid Family Leave Bill Dies a Quiet Death

• March 15—Revenue Committee Leader Wants Tax-Relief Measure Ready for Vote by Mid-April

• March 8—Legislative Bill Seeks to Accelerate Collection of Online Sales Taxes

• March 1—NFIB Members Called to Action on Legislative Bill 487

• March 1 Web Story—Members Urged to Call in Support of Legislative Bill 487

• February 22—NFIB-Supported Amendment Adopted in Fair Chance Hiring Act

• February 15—Marijuana, Economic Development Measures Advance to Priority Bill Status

• February 11 News Release—Small Business Testifies Against Minimum-Wage Bill

• February 8—NFIB Amendment on Unemployment Insurance Bill Adopted

• February 1—Hearings on Paid Sick Time, Family Medical Leave Coming Up

• January 25—Bill Introduction Deadline Passes; Committee Hearings Commence

• January 18—Will Bill Introductions Set a Record?

• January 15—Comment on Today’s State-of-the-State Address

• January 11—Nebraska Legislature Convenes; Committee Chairmen Elected