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Krusin' the Capitol

By Nebraska State Senator Lowen Kruse

2003
Week 2
January 18, 2003

Hi

What's coming down? The glass ball is starting to settle, but not to clear.

First, I promised the good news after last weeks grim outline. (There is no silver bullet.)

Several states have found a way to collect federal matching dollars on Medicaid bills paid locally. It is not this simple, but a county paying Medicaid-qualified bills for children in low income families, for example, would send the bill and 40% payment to the state, to receive the 60% match. This would not be large -- maybe save $10 million, which is $10 for each taxpayer -- but every bit counts.

The governor has bypassed many of the suggested cuts which would simply shift cost to counties or hospitals. Still some there, but this is a good start.

The cuts have spared corrections (prison system), state patrol, nursing homes and several children's health programs.

The governor has privately stated his support for increased taxes on alcohol products if the revenue goes to increased drug treatment. This is huge! Failure to increase treatment for drug addicts now would add very large increases to future taxes, for prisons, enforcement, courts, unemployment, loss of income and sales taxes, broken families -- the list does not end.

We have hope of taxing Internet sales. Would bring in around $100 million a year (or $100 each). Has to be a cooperative effort of ten states for the feds to help, so we are cautious.

Nebraska has an excellent economic growth record. Do pay attention to this. In a state where we do not grow more people we must grow our economy. Some grumble about that but do not doubt it. Growth is our survival.

This may sound backwards, but hang on. Part of our good news is that the increased revenue has already paid for greatly increased services. We are ahead of where we were and I think we have done so efficiently. Compare with 20 years ago: special education, an essential and expensive program, was unheard of not long ago. We are doing it, learning, and getting better at something new.

Plus, we once did not care about public policy on drug addiction. Now we are paying the cost. I consider it the biggest reason for present increases and the deficit. Waking up, if we do so, is the good news here.

Plus, our medical research has changed lives, gained national attention, drawn key people and patients to Nebraska, and is growing at a fantastic rate. Grants will increase ten times in a few years.

Plus, the public is beginning to care about family abuse and impaired drivers. Both cost us millions now, but changed public attitude would save a big chunk of taxes and medical costs in the future.

The list goes on. We are spending more money because we are doing much more, not because we are going soft.

The major downside of the proposed budget is education. The cut to public schools, if it stands, will be covered by property taxes. That causes its own pain. The cut to the university and state colleges, as proposed, would clearly hurt the state. For both, education is economic development. We pay now or pay later. We invest in our youth or lose the growth.

Finally, we all plead for efficiencies. That is in our thought at every turn in the legislature and the crisis will force a broad group of people and agencies to work at it.

On a personal note, several have asked if I intend to run again next year. They note this job ain't fun. Yes, I plan to run one more time. That's it, no matter what happens to term limits.

I have started fund raising. It is obvious I have strong support, even from some who fuss with a vote. I appreciate the trust established in fair and open dialog.

Fun story to close with. A fellow in California (Silicon Valley) phoned my office, to get the story on north Omaha because he is considering moving his business here. My staff member offered to give him the phone numbers for the Chamber of Commerce and some commercial developers but he quickly stopped him. "I do not want to talk to those who have something to sell, to pitch, to spin. I want the truth."

So he chose me. Wow. And thereby certified that a politician could be considered honest. Double Wow! I called back, for a long conversation. Sounds very positive. He had done his homework, with extensive web searches on Omaha, Nebraska, north Omaha and me. He is serious.

May we continue to be the same.

Lowen


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