Growing Nebraska for the Next Generation


By Governor Pete Ricketts

Nebraska continues to grow!  Last week, the Department of Labor and Department of Economic Development joined me to announce that Nebraska’s non-farm employment reached a new milestone last year: 1,000,000 jobs.  We did not reach this point overnight.  It came to us over the years through a lot of hard work and leadership from many across the state.  This collaboration has created a national reputation for Nebraska as a great place for job creators and families looking to live, work, and raise their children.

 

Over the last year, Forbes ranked Nebraska third among the best states to do business nationally and CNBC named us the seventh best state for business.  Recently, Money-Rates.com ranked Nebraska as the third best state for millennials citing Nebraska’s second lowest-in-the-nation ranking for young adult unemployment.  Overall, Nebraska has the third lowest unemployment rate in the nation.  Additionally, Nebraska has been receiving attention for the growing Silicon Prairie movement, which has fostered an environment for young entrepreneurs and startups.  Forbes ranked Nebraska third for Fastest-Growing States for Tech Jobs in 2015, and both Lincoln and Omaha have received similar national recognition.

 

Nebraska did not receive these rankings by accident, and we must continue to work to create an event better environment for the job creators who are helping grow our state.  One area Nebraska can improve upon is our tax climate.  The Tax Foundation ranks Nebraska 26th highest for income tax and 12th highest for property tax.  There is nothing competitive about high taxes.  We have made progress in the last two years in providing tax relief, however, it is imperative we look for ways for the state to continue to provide additional relief.  To cut taxes, we must continue to control spending.  This last biennium, the Legislature and I cut the rate of growth in spending by about half to 3.6 percent.  This summer and fall, my agencies and I are working to craft a budget for the next biennium that continues to constrain state spending.

 

In addition to providing tax relief and controlling spending, my administration has been working to make government more effective, efficient, and customer-focused over the past year and a half.  Last year, the Nebraska Department of Environmental Quality launched online permitting for a number of environmental quality permits used by businesses.  The agency has reduced the amount of time it takes to deliver certain permits from months and weeks to a single day.  Working with partners across the state, we have pushed back on the Obama Administration’s attempts to implement the Waters of the U.S. Rule, roll out the Clean Power Plan, and cut the Renewable Fuel Standard.  Last year, I led two overseas trade missions, one to the European Union and one to Asia.  In November, I will be leading another trade mission to China.  These missions have helped attract additional job-creating investments in Nebraska from overseas investors.

 

In addition to these initiatives, we have also launched a first-in-the-nation reemployment program, which is helping connect Nebraska’s jobseekers with good-paying jobs.  The program provides one-on-one job coaching and requires jobseekers to create a resume that is searchable by potential employers.  One of the program participants, Jacqueline Smith, recently shared about how she found her job as a Marriott Reservation Sales Specialist.  I’ll let her words speak for themselves: “I had been out of the workforce for quite a while when I got started with the reemployment program.  I had a son with a lot of medical issues and I had to find a position that allowed me to still be a parent first.  I can remember the day very clearly when I got the call about the Marriott position.  I was very excited because I was convinced that it was going to be a very long process.  The position ended up being perfect for me.”

 

Jacqueline’s story is evidence that the hard work that our State of Nebraska team members are doing is having a real impact.  As we continue to work together to grow Nebraska, my administration will focus on lowering the tax burden, controlling spending, and making government more customer-focused so we can get government out of the way of job creators.  Next week, Nebraskans from across the state are coming together in Lincoln at the first annual Governor’s Summit on Economic Development to talk about additional ways to grow our state.  If you are not able to join, I hope that you will share some of your thoughts on how we can continue to grow our state by emailing pete.ricketts@nebraska.gov or by calling 402-471-2244.

Governor Pete Ricketts

Governor Pete Ricketts

 

Holding Government Accountable


By Governor Pete Ricketts

Over the last year, I have regularly written about the importance of running government like a business.  It is something I have been focusing on in state agencies over my first 16 months as your Governor.  Unfortunately, government does not always work for the taxpayers.  Two weeks ago, the State Auditor announced that he had uncovered significant waste and abuse of your taxpayer dollars at the Nebraska Tourism Commission, a government agency run by an independent board which does not report to the Governor.

 

In a 79-page report, the Auditor’s Office detailed how the commission provided complimentary massages at a tourism conference, paid a speaker over $40,000 for an hour and a half speech, and spent $18,000 to move a single employee from Sidney to Kearney.  In addition to this wasteful spending, the commission reimbursed a contractor for alcohol and cigarettes, and mismanaged a contract with an ad agency which went an astounding $4.4 million over budget.

 

On top of this waste, the State Tourism Director, Kathy McKillip, attempted to ask the Legislature for money to patch a hole in their budget—without her board’s knowledge—even though our state had a record year for hotel tax revenues that help fund the commission.  Because of all this waste and mismanagement, I have called on the Tourism Commission board to fire Ms. McKillip, so the commission can search for new leadership to help run the organization more like a business.  Nebraskans cannot tolerate such flagrant abuse of taxpayer dollars, and it is important that commission directors take the necessary steps to rectify this situation.

 

You only have to go back a few years to understand how the Tourism Commission ended up with minimal oversight.  In 2012, the Legislature voted to create an independent commission to promote tourism—a function previously performed by the Department of Economic Development.  The creation of an independent commission took away the accountability of direct oversight from the Governor’s Office.  As Governor, I have the authority to appoint commission members, and will make my first appointments later this year when the terms of several commission members expire.  While I will have the opportunity to make appointments to the commission as Governor, I do not have the authority to remove commission members.

 

When the Legislature creates independent commissions, there is always a risk of a lack of oversight by the volunteer board members of commissions and it is harder for elected officials to hold them accountable.  Unlike the Governor or Legislature, the board members of the tourism commission are not elected by a vote of the people.  Additionally, unlike my cabinet, which is accountable to me, I cannot fire directors or commissioners from these agencies at will.  Removing our tourism office from the Department of Economic Development made it more difficult to hold the State Tourism Director accountable.

 

In the coming days and weeks, I hope to see the Tourism Commission do the right thing by making staffing changes and instituting best business practices.  My office will continue to work to encourage commissioners to do the right thing in the wake of this scathing audit.  In the agencies reporting to me, I will continue to work with my directors to run agencies in a more business-minded and customer-friendly manner.  If you have any thoughts on this subject or any other matter, you are welcome to share them by emailing my office at pete.ricketts@nebraska.gov or by calling 402-471-2244.  I look forward to hearing from you!

Legislative Session Nearing an End


Another week has flown by at the Legislature with the completion of Day 77 on May 7. There are only 13 session days left, with many major issues remaining on the agenda such as the budget, prison and corrections reform, and property tax relief.

 

The budget advanced through second round of debate on Wednesday. While much of the debate on the budget may occur during final reading and after line-item vetoes by the Governor, some concerns have been raised. For instance, there was extended discussion regarding an $8 million appropriation to Creighton University for the construction of a dental clinic. The debate focused on whether public tax dollars should be solely disbursed for this private institution. The appropriation was amended to provide eligibility for funding to the University of Nebraska’s dental college as well.

 

A recent announcement by the Nebraska Economic Forecasting Advisory Board was good news. It was anticipated the Forecasting Board would announce a shortfall in projected tax revenues requiring budget cuts, but instead the Board announced a $12 million increase. Thankfully, the additional revenues were allotted for further property tax relief within the budget.

 

While the decision to provide increased property tax relief was a prudent move, I remain disappointed by the passage of LB610. LB610 hikes the motor vehicle gas tax by six cents over the next four years. LB610 was advanced to the Governor who immediately vetoed the bill. LB610 needs thirty votes to override the Governor’s veto.

 

Recently, a few bills I introduced made progress through the legislative process. LB570 expands the authority of cities, villages, and counties to permit the usage of golf car vehicles within their jurisdictions, subject to specific safety requirements.

 

Additionally, LB569 and LB571 were amended into LB449. LB569 modifies certain provisions of the Business Innovation Act and gives the Department of Economic Development greater flexibility to fund several programs supporting development of Nebraska-based technology and innovation in both rural and urban communities. LB571 provides the Tourism Commission with the discretionary authority to establish highway tourism signage for significant tourism attractions at the request and funding of local, private or public entities. LB449 recently passed final reading and has been presented to the Governor for his signature to become law.

 

Our office continues monitoring developments in the recent, abrupt decision by Deseret Health Group to close the Logan Valley Manor in Lyons. We are working closely with Senator Al Davis (District 43), whose district has another of Deseret’s nursing homes, Governor Ricketts, Director Phillips of the Department of Health and Human Services, the Department of Labor, and other private groups and individuals. On May 8, I stopped by the home in Lyons to speak with staff concerning needs of both residents and staff. Currently only 7 residents await placement to a different facility. All residents continue being well cared for. Residents, family, community and the state are grateful to the wonderful, caring staff who are yet to be paid during the past month. Actions are underway by the Attorney General’s Office to secure funds for wages due to the staff.

 

Finally, a special thanks to Pastor Coral Parmenter and Reverend Les Parmenter from the Wisner-West Point area who served as Chaplains of the Day, offering beautiful and eloquent prayers over the Legislature and our great State.

 

As always, please contact me, administrative aide, Katie Wattermann, or legislative aide, Tom Venzor, with questions or thoughts at (402) 471-2728 or e-mail at lbrasch@leg.ne.gov.

 

Keeping the Good Life Growing in Nebraska,

Senator Lydia Brasch, District 16

Senator Lydia Brasch

Senator Lydia Brasch