Heineman makes almost $42M in vetoes
Gov. Dave Heineman whittled about $41.7 million from the state’s more than $7 billion two-year budget with his line item vetoes, sparing the University of Nebraska from major cuts and avoiding a gas tax increase.
Heineman said that lower taxes, provided by the tax cut package he signed last week, and modest growth in spending — an average 4.3 percent per year — would help promote job growth in the state.
“As I have said repeatedly, education and the economic vitality of our state are linked together, and they are essential to an improved Nebraska economy,” he said.
The Appropriations Committee likely will not seek to override the gas tax hike veto. The gas tax did not come up during a short Appropriations Committee meeting on the vetoes Monday evening.
However, several Appropriation Committee members said they were concerned about reductions in provider rates, particularly those who care for the developmentally disabled, and the veto of pay raises above other state workers for court employees and probation officers.
In general though, committee members seemed comfortable with the vetoes.
“I think we came out of this fairly well. We could live with the vetoes,” said committee member Sen. John Harms from Scottsbluff.
The committee, which can seek to override specific vetoes, will meet again today. Individual senators can also seek overrides when the vetoes are debated by the full Legislature late this week or early next week. There are only six days left in the session.
Heineman pointed out that he made no major cuts to the University of Nebraska mainline budget or to the other state-supported colleges. And he suggested the university, state colleges and community colleges “resist the urge to increase tuition.”
The gas tax was the biggest dollar amount cut from spending. As promised, the governor eliminated the need for a 1.8 cent gas tax hike next year by cutting $19 million from the highway cash fund, used to maintain and build roads.
His vetoes also will mean smaller increases in the provider rates paid to thousands of Nebraskans who help care for the state’s most vulnerable residents, including foster care parents, nursing homes taking care of Medicaid clients and agencies that provide services for adults with developmental disabilities.
Heineman had recommended 1 percent to 2 percent increases in most of these provider rates while the Legislature’s budget bill gave 3 percent raises. The governor’s $11 million veto in provider rates splits the difference.
Pointing out the need to restrain the costs of Medicaid and other public assistance programs, Heineman said “this veto represents an attempt to meet the Legislature half-way in those areas where the Legislature increased rates above my original recommendations.”
Many of the vetoes were small numbers, including $120,000 to establish a diversion program for prostitutes. “This is not a priority for the state of Nebraska,” he said of that diversion program.
These vetoes are not the end of spending decisions. Several separate spending bills, including $12 million for increased aid to community colleges, are expected to move on to the governor, who promised he would “carefully scrutinize” them.
Heineman’s vetoes, if sustained, would add $23.6 million to the money available for new spending.
However the governor also eliminated $20 million from the spending column by vetoing money being transferred from other specific funds (the tobacco cash fund and the Securities Act cash fund) into the general fund that pays for the bulk of state programs.
That extra cash may come in handy in the future, Heineman said.
Reach Nancy Hicks at 473-7250 or nhicks@journalstar.com.
Heineman said that lower taxes, provided by the tax cut package he signed last week, and modest growth in spending — an average 4.3 percent per year — would help promote job growth in the state.
“As I have said repeatedly, education and the economic vitality of our state are linked together, and they are essential to an improved Nebraska economy,” he said.
The Appropriations Committee likely will not seek to override the gas tax hike veto. The gas tax did not come up during a short Appropriations Committee meeting on the vetoes Monday evening.
However, several Appropriation Committee members said they were concerned about reductions in provider rates, particularly those who care for the developmentally disabled, and the veto of pay raises above other state workers for court employees and probation officers.
In general though, committee members seemed comfortable with the vetoes.
“I think we came out of this fairly well. We could live with the vetoes,” said committee member Sen. John Harms from Scottsbluff.
The committee, which can seek to override specific vetoes, will meet again today. Individual senators can also seek overrides when the vetoes are debated by the full Legislature late this week or early next week. There are only six days left in the session.
Heineman pointed out that he made no major cuts to the University of Nebraska mainline budget or to the other state-supported colleges. And he suggested the university, state colleges and community colleges “resist the urge to increase tuition.”
The gas tax was the biggest dollar amount cut from spending. As promised, the governor eliminated the need for a 1.8 cent gas tax hike next year by cutting $19 million from the highway cash fund, used to maintain and build roads.
His vetoes also will mean smaller increases in the provider rates paid to thousands of Nebraskans who help care for the state’s most vulnerable residents, including foster care parents, nursing homes taking care of Medicaid clients and agencies that provide services for adults with developmental disabilities.
Heineman had recommended 1 percent to 2 percent increases in most of these provider rates while the Legislature’s budget bill gave 3 percent raises. The governor’s $11 million veto in provider rates splits the difference.
Pointing out the need to restrain the costs of Medicaid and other public assistance programs, Heineman said “this veto represents an attempt to meet the Legislature half-way in those areas where the Legislature increased rates above my original recommendations.”
Many of the vetoes were small numbers, including $120,000 to establish a diversion program for prostitutes. “This is not a priority for the state of Nebraska,” he said of that diversion program.
These vetoes are not the end of spending decisions. Several separate spending bills, including $12 million for increased aid to community colleges, are expected to move on to the governor, who promised he would “carefully scrutinize” them.
Heineman’s vetoes, if sustained, would add $23.6 million to the money available for new spending.
However the governor also eliminated $20 million from the spending column by vetoing money being transferred from other specific funds (the tobacco cash fund and the Securities Act cash fund) into the general fund that pays for the bulk of state programs.
That extra cash may come in handy in the future, Heineman said.
Reach Nancy Hicks at 473-7250 or nhicks@journalstar.com.
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