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Heineman makes almost $42M in vetoes

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By NANCY HICKS / Lincoln Journal Star

Monday, May 21, 2007 - 10:38:44 pm CDT

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.

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Gov. Dave Heineman

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Gov. Heineman's veto announcement

Hear Gov. Dave Heineman announce his line-item vetoes on May 21, 2007....

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Gov. Heineman's major veto decisions

Gas tax veto

$19 million reduction to highway cash fund, eliminating need for gas tax hike.

"Now is not the time to increase the gas tax."



Spending vetoes

$23.6 million vetoed from general fund budget, including the following:

* $11 million -- from provider rates, including agencies that care for adults with developmental disabilities.

* $5.4 million -- from special education aid, giving a 3 percent increase, not 4 percent.

* $1.3 million -- from Education Department administrative costs.

* $1.5 million -- one-half of Supreme Court special raises for court staff and probation officers.

"The Legislature did a good job and with my line-item vetoes I have worked to make it an even better budget package."



Blocking transfers

$20 million, eliminates two transfers from cash funds to general funds, leaving less money for new spending in bills before the Legislature.

"These transfer vetoes will help to restrain spending and reserve additional funds for the future."

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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TG wrote on May 21, 2007 4:48 pm:
" Look at the career politician go!!! I think its time we had state elected officers that weren't just thinking ahead to their next election. Way to make our legislators the bad guys, Governor. If only we were smart enough to see that you were just pulling the wool over our eyes...... "

 Buford T. Szchlotnokof wrote on May 21, 2007 5:01 pm:
" These cuts do not go nearly far enough! Nebraska is an economic communistic state. "

 Dave K wrote on May 21, 2007 5:01 pm:
" Imagine that, an elected official exercising the will of the people who voted him into office! If that's what you call a career politician just thinking ahead to the next election, then I'd say our system of democracy is working as intended. What a concept! Anyways, thanks for the fiscal discipline, Gov. Heineman! "

 Lincoln Voter wrote on May 21, 2007 5:46 pm:
" By keeping our annual growth in government spending below it's average of 5.4% Heineman is acting like a "career politician"? It's the career politicians over at the capitol catering to their friends over on K street that got our state into this mess in the first place.

Way to go Heineman for having the guts to do what the career politicians running our state haven't done for years. "


 Matt wrote on May 21, 2007 5:53 pm:
" Wow. It looks like the governor showed us once again how he feels about the state's young people--very little. Almost every cut was targeted at education or other children's services. Wow. "

 brian wrote on May 21, 2007 6:07 pm:
" Congrats Governor. Defund education and keep em stupid. Yeah, that way they won't get none of that there book learnin and do somethin silly like going and getting an edumacation and then go ah votin like them there Democrats. We don't need no education, we just need the republikans to look after us. "

 whatever wrote on May 21, 2007 6:32 pm:
" Most of the education cuts are in areas that target immigrants both legal and illegal. We have to shut off the attraction to come to this country, we simply can't afford tens of millions more on welfare. "

 Vernon wrote on May 21, 2007 7:14 pm:
" So when do the under payed state employee's get there raise?? Or would it be cheaper to put them all on food stamps and ADC. Most of the office- single mom's qualify now.. "

 Tom wrote on May 21, 2007 8:03 pm:
" Good Work Governor! Now you have sat up the legislature to override the vetoes fully knowing this when you made the vetos. This way you can continue to run on the platform you profess. You were only a Captain and a graduate of West Point! Nothing more needs to be said except you are a staffer! "

 Bill wrote on May 21, 2007 9:54 pm:
" Well its a start. I can't control his thoughts, but if it is to make him look good for the next election, then mores the pity. If he means business, thats another story, but there needs to be more cutting. If you want big pay, go to a state that brings in business and industry and grows. I don't know where some of you people think money comes from when there's no revenue coming from business. And the poor little kiddies that can't have more for schools. Good grief, no one would help me thru or after school, I had to leave my home state!!!! So quite your whinning and be thankful for what you have. Former Nebraskans had to leave to get jobs, now they are retired and come home and are expected to fork over so the rich kids can have more and more and more. I paid half the taxes in the state I had to move to, yet they have excellant schools and universities! And a heck of alot more colleges than Nebraska has!! Why? They have growing business and Industry AND farming. Pretty sad when you have to come back to Nebraska to help the family thats been taxed to the core. All I can say for the state, is, either get the lead out or stop the spending!!!!! And the same goes for the city of Lincoln!!!! "

 Frank wrote on May 21, 2007 11:11 pm:
" One has to only remember that this is the guy who thought a prairie schooner was a more appropriate tribute to Nebraska than Standing Bear. You would think he is auditioning to be Nebraska's next athletic director with decisions like these. No career politician here right!? "

 Cat wrote on May 22, 2007 12:10 am:
" A few years ago, you asked agencies to tighten belts, Governor. And they did. You asked them to use every spare bit of federal funds, and they did. Now you're telling them that they have to cut even more. Without the spare funds. And after the belt has been tightened. And later on, someone will start complaining because things don't work as well as they should. I am deeply disappointed in you, governor. I think you have been very foolish. "

 Sad wrote on May 22, 2007 7:46 am:
" Looks like the vulnerable citizens in this state lost again at the hands of Heinemann. You may think they don't vote, but many of them do and their families also vote. And the providers should be commended and compensated for the work they do. Heinemann should be ashamed. "

 Fred Register wrote on May 22, 2007 11:28 am:
" I'm an immigrant whatever. I paid over $40,000 in federal and state income taxes last year, and have never taken a dime in welfare. I can do that because I received a decent education. Imagine that. Heck that's just me though. The right wing Heritage Foundation says that immigrants pay more than they receive - and that includes ALL immigrants regardless of documentation status "

 RB wrote on May 22, 2007 12:15 pm:
" I cannot believe our Govenor is going to allow people who will inherit million dollar estates to avoid taxes when the rest of us common folk work day after day until were old enough to die so we can support such crazy legislation. Does this bother anyone else or am I the only one who will not benefit from this? "

 Joe G wrote on May 22, 2007 3:00 pm:
" Vetoeing the provider rates for service providers for developmental disabilities is SHAMEFUL. What is allotted is not sufficient to adaquately serve these vulnerable people in the manner that they deserve. It will ultimately result in diminished care, costly lawsuits, & neglect of vulnerable people. We cannot afford to NOT properly serve this vulneerable community. Ask Joseph Siemms about this. "

 RB wrote on May 22, 2007 3:15 pm:
" The estate tax doesn't kick in until 2 million dollars. Please tell me where this secret repository of multi millionaires is that the estate tax matters to? "

 cuts vs. increased funding wrote on May 22, 2007 5:21 pm:
" Where are the "cuts" in education? There's a difference between cutting funding and not giving the lobbyists for the NSEA as much of an INCREASE in funds as they want.

The Governor did not CUT funds (or "defund") for education. He just didn't allow nor will he allow huge increases year after year.

But maybe you have to actually read the article to understand the difference. You probably also have to read the article to see that cutting an increase in the gas tax was actually the largest dollar cut, not education. (But democrats love the gas tax, I keep forgetting.) "


 Common wrote on May 22, 2007 5:50 pm:
" I wonder if the folks above who are slamming the Governor for cutting spending would slam the Governor if he cut nothing at all. From what I've seen, he's vetoed $42 million in increased spending, and signed into law a tax cut for over $400 million. "

 Matt wrote on May 22, 2007 6:10 pm:
" Yes, that tax cut is wonderful. What's it amount to? $200/Nebraskan. Yet our Universities continue to raise tution just to stay funded, and our teachers still are some of the lowest paid in the state. Heineman refuses to invest in the future of this state. His only vision is the next election. The future of Nebraska is at stake, and while that $200 might feel good, the future of this state is in trouble. "

 WesternNE wrote on May 22, 2007 11:51 pm:
" I think he is being responsible, not posturing for the next election. These veto designations were warranted, and there needs to be more. When government learns to run like a business, we'll have something. When a business needs more revenue to provide a service, they don't have the luxury of taxing -- they have to raise rates and hope it doesn't hurt income. The government doesn't have to work like that. I'll bet a lot of whining here is from those who receive a government paycheck and have a sense of entitlement. If you don't like what you are paid, find another job. You may have to move, so the choice is yours. "

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