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Krusin' the Capitol

By Nebraska State Senator Lowen Kruse

Vol. 2 #13
April 13, 2002

Hi

That was the week that was. Old Timers say it is the most remarkable week they have seen.

On Tuesday, we almost had 30 votes to pass the revenue bill, with a combination of four new taxes. Rural and business interests said no, no, no. Never. Cut $70 million in expense using the governor's spending vetoes. "Farmers would have a three-way hit -- to pay more tax on property, sales and income." Strange. I never heard a farmer say s/he paid income tax. Smile.

So the speaker sent our Appropriations Committee back to our room at 8 p.m. We ordered pizza and lots of cold water. I did not go home that night. We cut about $22 million in addition to the $193 m. already cut and simply could not find another place to cut that had any chance of passing on the floor.

Even then, for example, we cut Micro business support. Saved each tax payer 20 cents. It has a 3:1 Federal match, so we lost $3 for each $1 saved. It all would have gone to increase jobs. Another loss! WHAT BUSINESS in a growing market would turn down added employees at only 25% of the cost? That is what we were down to. Not smart.

What the papers will not report is that even if we had taken all of the governors vetoes, we still were $60 million short of balance. Thursday morning he called the leadership to a breakfast to say we must "over-engineer" the recovery. Translation: he needs an additional $50 for cash flow for the rest of the year or he will call us back into session.

When that word hit the floor we quickly passed the tax increase and had at least 32 votes in the afternoon for an override. On the same bill that was rejected so strenuously on Tuesday. (We only used 30 of them, since the press and public are so punitive on anyone willing to step up to the plate and do the necessary painful work.)

PLUS we had tears all over the floor, from rural and business. "How could you DARE cut my project?" One rural senator openly called our chair, who is a dairy farmer, on the carpet, asking if he had no heart for the six rural projects which were cut or eliminated. That senator had demanded we sustain every veto.

Our chair said, "Yesterday is gone. You were not there to protect good programs, which I agree are a tremendous loss to this state, and will cost us. Yesterday is gone. Today have no negotiation left. Indeed, the governor says we need more."

It was hardball on Tuesday, and hardball on the veto override, with a different pitcher. Folks running for political cover all over the state. Cities saying we broke a promise. Yes, we did. Several groups, mainly business, forced the cutback.

In the aftermath, I must admit I am ticked with the media. Saw and read every report. They all talked about "Increasing taxes" and "more spending." Not one reported cutting taxes more than we raised taxes, which is what we did. For the two year budget we are reducing property taxes, through school aid, by $200 million. We raised taxes by $117 million, to pay for the property tax cut. We cut state programs by $215 million in addition to that to pay for the rest of the cut and revenue loss.

THAT is a tax increase? The public talk is downright dishonest. We shifted the tax base, with less property tax and more sales and income tax. Everyone I know feels that is desirable. But where is that reported? How will the public know the truth?

Thanks. I feel better. I must also admit that countless farmers, business people, lobbyists, educators have stepped up to the plate with us, openly said it is the right thing to do, and thanked us individually for taking the heat. My staff reported over 50 phone calls on one day, plus nearly that many emails which they gave me. Mostly citizen support. Five of the total opposed what we were doing, but it was obvious they did not know this was a shifting of the base, not an increase. Talk radio was going beserk with their skewed facts.

It is sad when these false statements scare people. One person was worried about how she could pay for the extra tax. The average household will receive $300 decrease and $200 increase on the tax shift alone. For $100 to the good. It is cruel and totally unnecessary for this pour soul to worry. She probably listens to the radio. Sigh.

Now I feel worse. Just read the Friday World-Herald editorial. Full two columns. Shameful. I do not mind disagreement, but this is slanderous. Says the senators are cravenly, ineffective, undisciplined -- can't do the job and knuckle under to special interests. The W-H lists the senators who would not support reduced spending. (!) I will respond, and I hope many others will call them on the reckless use of partial facts.

As I said, that was the week that was. We have a budget. It is a good one, though some key programs were eliminated. The pain will reach all except the wealthy, whose bill is quite small. We have a healthy state, comparatively. Some states are going into the millions on new taxes because of the economy. The envy is Wyoming, where they have not figured out how to spread any pain. They just dig deeper in the coal mines and ship it out to the rest of us. For money.

I promise no budget talk next week!
Y'All keep your stick on the ice. Make that grass.

Lowen

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