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Legislative Action Winding Down
With only about 15 days left in the second session of the 100th Legislature, action has shifted to the primary budget bills and Senator priority bills.
Anticipation of an economic downturn over the next two years has forced the revenue and budget committees to revise their current biannual budget. Dealing with a possible shortfall of over $180 million, the Legislature revised their 2008 - 2009 budget and trimmed their projected rate of growth to 4.2% and 3.7% respectively. A good deal of the budget shortfall has to do with a dramatic increase under the current formula in state funding for schools.
Debated in the revised budget was a $14.5 million increase to the Department of Roads budget to continue the current road funding needs over the next two years. The increase would come from a 1.2 cent per gallon tax increase. Additionally, senators rejected new amendments that would have eliminated any increase in the gas tax.
An additional $40 million per year in state highway road construction funding will be debated under LB 846. The $40 million would be generated through a 5% tax on the wholesale price of gasoline. However, the current excise tax of 10.5 cent excise tax would be reduced to 2.5 cents.
The relocation of the Nebraska State fair is destined for debate as an Ag committee priority bill. At this time, it is been estimated that moving the State fair to another Lincoln location to cost between $40 and $70 million. In the meantime, several other communities including Grand Island have aggressively pursued posting the State fair. Recent discussions among Lincoln business leaders eager to convert the State fair Park into a technology corridor and State fair supporters have recently suggested that a westward move could be inevitable.
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Nebraska Grain and Feed Association
1233 Lincoln Mall, Suite 200
Lincoln. NE 68508
Phone: 402-476-6174
Fax: 402-476-3401
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