LINCOLN — Gov. Dave Heineman says he enters 2010 hoping that the economy has hit rock bottom and that another special session to cut the budget won't be necessary.
But it might be four to five months before that's known, the governor said, meaning that this year's session of the Legislature will focus on “philosophical issues,” not spending new state funds.
“2010 is going to be a time of economic uncertainty. That's kind of the cloud over the session: When is this economy going to turn around?” Heineman said. “We're all hoping that the worst is behind us.”
The Legislature opens its 60-day session Wednesday. It will be the fifth such session for Heineman as governor. A former lieutenant governor, he assumed the state's top job in January 2005 after then-Gov. Mike Johanns resigned to become the U.S. agriculture secretary.
Last year's session resulted in a wave of conservative initiatives, including several pushed by Heineman, a conservative Republican who has no announced opponent in the 2010 election.
After more than two decades of debate, lethal injection replaced electrocution last year as the means of carrying out the state's death penalty. Senators also passed laws to restrict employment of undocumented workers and to bolster services for emotionally troubled youths.
By comparison, Heineman predicted that the 2010 session will be far less ambitious.
In an recent interview in his Capitol office, Heineman revealed only a couple of hints about his legislative priorities, which he'll unveil Jan. 14 in his State of the State address.
But he said the state is “headed in the right direction” after a special session in November in which legislators closed a $334 million spending gap to address the downturn in state tax receipts caused by the recession.
Nebraska, unlike many states, did not have to raise taxes and still has a healthy cash reserve, which puts the state in a better position when the economy rebounds, he said.
“To me, the key is to make sure we do not damage the momentum we're building,” he said.
Because the spring months are big for personal income tax receipts, it might be June before state officials know whether another round of budget cuts will be necessary, Heineman said.
His comments on issues coming in 2010:
• QUESTIONS & ANSWERS
Wind energy: “I want to accelerate our wind energy development while preserving this great asset we have, which is public power. I think we can find a way to do that, because clearly Nebraska has great wind potential and we want to take advantage of that. It's particularly critical for rural Nebraska. These wind farms aren't going to be located in Omaha or Lincoln.”
Finding new funding sources for road construction: Every state is wrestling with this issue as revenue from fuel taxes declines, he said, but there's no consensus yet on what to do. He said people don't want an increase in gas taxes, and he's skeptical of borrowing money, via bond financing, to build state roads. “We probably can't build every road that everyone wants us to. It doesn't mean that the only roads that get built are in Omaha and Lincoln. On the other hand, you can't build 100 percent of the roads where there's a smaller population.”
Adopting further limits on the use of embryonic stem cells for research after the University of Nebraska Board of Regents did not do so in December: “That one's kind of up to the Legislature. That could (also) be played out in the 2010 and 2012 elections to the Board of Regents.”
Greater use of diversion, rather than incarceration, for nonviolent juvenile offenders: “We've got to find ways to keep young people in the classroom and make sure they're learning and make sure there are jobs when they get out of school. (Omaha Sen. Brad Ashford) does have a focus on (reducing) truancy, which I applaud.”
Conditions at the Beatrice State Developmental Center, which lost its federal funding in September: “We're making progress, but we have a lot of work to do. The key is get recertified. That will take place over the next year and a half. There are some very encouraging signs. Our new leadership is doing an outstanding job. Our medical staff is stronger today, we've increased … vocational opportunities for BSDC residents, and we're doing a better job with our direct care staff in training and retaining them.”
Reducing property taxes: “I'm going to continue to remind people that property taxes are locally assessed, locally collected and locally spent. I would encourage local governments to make priority decisions and tighten their belts just like we've done … by cutting spending, not by increasing taxes.”
Accepting $43.6 million in federal stimulus funds to “modernize” the state's unemployment insurance program and relieve costs on businesses: “That money comes with strings attached that will result in a long-term, permanent tax increase on business. My (opposition) hasn't changed.”
Spending by local schools: “Whether it's stimulus money or state aid, the best use of that money is in the classroom. That's where teaching occurs, that's where learning occurs.” Heineman said that doesn't require legislation. “It requires leadership and requires school boards and other wings of government to be innovative and be creative. And I'll be talking about that in the future, primarily as it pertains to education.”
Contact the writer:
402-473-9584, paul.hammel@owh.com
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