Mar 24

Written by: ngreditor
3/24/2010 10:10 AM 

Senator Flood to constituents: “We don’t have any money”

Kenneth Purscell

“Even after we cut $30 million out of the budget during the special session, revenue is still coming in below our projections.”

This was the bleak news that State Senator Mike Flood brought to constituents at his legislative coffee in the City Cafe in Newman Grove on March 20. This is the sixth year that Flood, representative for Madison County and the Speaker of the Legislature, has hosted the coffee and visited with local residents.

Grim as the news was of a $43 million shortfall this year, though, there was more to come. “The real storm is next year,” he said. “We’re predicting a deficit of $670 million next year.” The state has $324 million in reserve.

“We are one of only two states that have a reserve,” Flood noted. “But we are going to have to make decisions next year. We will do as much as we can without raising taxes. There just is not much appetite to raise taxes right now.”

Some impacts are being felt right now. “We have not filled vacancies in the State Patrol,” he reported. “There’s no money for recruit class.”

Mike Flood speaks to area citizens at the City Cafe on Saturday, March 20th.

Looking at his audience from Newman Grove and surrounding area he said, “That affects you, because we have used them [Patrol officers] in rural areas to back up local enforcement.”

At the moment K-12 education is untouched. “In fact, we increased it $19 million,” he said. But the formula will need to be changed. “We can’t let a computer set the budget. It is not sustainable. We cannot let one function of state government control all the rest.”

Flood reported that a special session in July is already being planned.

The senator also related changes in wind energy policy. Nebraska has been missing some opportunities for federal subsidies supporting wind farms.

“Private power companies qualify for tax relief,” he said. “But Nebraska is a public power state. Our companies don’t qualify. That’s why we are passing a bill to make wind power attractive. Companies could build facilities and lines to export the power and qualify for tax breaks.

“The bill will help produce 2 thousand megawatts. That could explode the growth of power in the state. Western Madison County is a very good place for that development.”

He continued, pointing out that Northeast Community College now has a wind energy program. “This will see some growth and keep some people in the area with good jobs.”

But there are further changes necessary in tax law to help keep revenue in the area. “Right now turbines are taxed as personal property, taxed over five years. By comparison, radio towers are business real estate improvements and are taxed over twenty years. We need to reclassify turbines and tax them the right way to help support schools and local areas over time.”

Two other topics the senator lifted up were juvenile services and prenatal care for aliens.

The latter has gained a lot of attention: “It has become a big issue,” he said. “I voted last year to not allow in-state tuition for illegal aliens.” But prenatal care is a different issue, in part because the Federal government does not effectively enforce immigration law.

“We have an interest in the child because when the child is born it will be a citizen. We talk a lot about care for unborn children. Until the federal government acts, we’ve got to deal with it.”

The bill, a lightning rod issue, has gone nowhere. “But as Nebraskans, we’re better than that,” Flood said.

Questions were asked about abortion. The senator supports the bill making abortion illegal after twenty weeks’ pregnancy, “when the fetus feels pain,” he said. “I do think the Supreme Court gives legislatures broad interest.” However, there is opposition to the bill. When several in the audience suggested that the opposition comes from out of state, Senator Flood noted that opinions vary within Nebraska also.

“There are several senators who feel it is in individual choice. Some out of state folks did come and testify against the bill at hearings. And I had law professors come from out of state to testify on its behalf.”

In response to other questions, the senator said that he opposed a bill to make texting while driving illegal. “You can’t legislate common sense,” he said. “If an officer sees you weaving across the center line, he can already write you up for careless driving.”

On the other hand, Flood expressed agreement with changes to the law regarding under age drinking. “The $250 fine was being treated as a rite of passage. Now the judge has the discretion to take away a license.”

Responding to reports of trouble with census forms, Flood reminded everyone of the importance of the census. “Next year will be redistricting, and we’re going to lose two or three rural seats. Madison County has already lost about 1,200 people. There’s no question that this district will be more than one county. If the census numbers are wrong, it could screw that up.”

Road taxes were brought up in questions. “We’re looking at bonding,” Flood said. “We really don’t have a lot of money. A lot of the budget got used up with snow removal.”

There was also concern about California’s fiscal crises. “I don’t know what will happen,” he said. “The way out is either tax or cut, but they’re not willing to do either. Nebraska can’t go into debt. This means we [in the legislature] will scream at each other over $25 thousand, a sneeze in California. But we haven’t spent any additional money this session.”

Copyright ©2010 Newman Grove Reporter