Deb Fischer
Senator, District 43

The week of March 15th is National Agriculture Week and the Nebraska Department of Agriculture has chosen the theme of "Nebraska Agriculture: hank a Farmer."  I want to thank all of the people who produce our ood, nutritious, safe food along with the other important products they rovide.  Agriculture is our state's number one industry. It contributed ver $17 billion to our economy last year and one in three jobs in our tate is tied to agriculture.  Nebraskans are fortunate that this industry continues to grow.  Please take the time this week to reflect on the importance of this industry to Nebraska, and the world, and to thank those people who work in agriculture.

As I discussed last week, the Nebraska Economic Forecasting Advisory board reduced their forecasts for this biennium by $31.7 million. The state also discovered that aid to schools would need to increase by over $18 million.  The Appropriations Committee used this information, and estimations of revenue in the next biennium, to craft their mid-biennium budget recommendations.  The Committee has adjusted for these changes by utilizing a Medicaid reduction, recapturing the costs associated with renatal services to unborn children per a federal ruling, and a 2% across the board cut on top of the 5% across the board cuts adopted during the recent special session.  There is also money available from cash fund lapses and a $3 million transfer from the Cash Reserve Fund.

It is important to note that these budget reducing measures will leave a balance that is about $500,000 above the minimum reserve.  I must point out, however, that the estimated revenue into the next biennium is, as the Appropriations Committee reports, "at best pessimistic."  The current financial status yields a projected balance that is $670 million below the minimum reserve.  One positive aspect is that the Cash Reserve Fund Balance is projected to be $321 million at the end of this
biennium.  It is important that we continue to not heavily rely on this fund to make up our revenue short comings in the current biennium because I anticipate it will be needed in the next biennium.  Debate on the budget begins March 16th.  

Another fiscal concern impacting our legislative district and rural Nebraska is the recent state aid to schools certification. Of the 21 school districts in the 43rd District, only five will see an increase in
aid for the 2010-2011 year.  Many districts will see a significant decrease in state revenue.  This is a distressing trend rural Nebraska continues to face.  It has been difficult for rural senators to make
changes to the formula but I continue to work with my colleagues in trying to address this situation.

As we move past the 40th day of this 60-day session, several bills have been passed including two bills I introduced.  LB 865 creates the Livestock Animal Welfare Act and is supported by the Nebraska Cattlemen and Nebraska Farm Bureau.  This bill separates livestock animals from the existing animal welfare statutes in order to reduce statutory confusion and is a priority for many agriculture groups.  Another bill I introduced to allow natural resources districts to develop an integrated management plan, regardless of their appropriated status, also passed. LB 258, introduced by Senator Harms of Scottsbluff, is a bill that allows for stiffer penalties on minor in possession charges.  The bill gives judges the option to use increased penalties when sentencing minors in possession of alcohol, but does not make the penalties mandatory.  Penalties could include the one year impoundment of a
driver's license.

As always, thank you for sharing in our legislative process, and I'll visit with you again next week.