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LR 542: AD HOC COMMITTEE MEETING
June 29, 2010State Capitol Room 11139:00 a.m.
NOTES
ThesearepersonalnotestakenbyShelliDawdy,whowaspresentinthemee7ngroom.Itisnotanofficialtranscript.Thenoteswerereviewedbyanotherci7zenwhowaspresentfortheen7remee7ng.Atanypointwheretherewasadiscrepancyintheinforma7onrecollected,thatfactisnotedandthediscrepancyexplained.Thepurposeofthesenotesistosharewithothersinforma7onabouttheStateofNebraska’sbudgetandpoten7alac7onsthatmaybetakenbytheLegislatureandtheGovernor’soffice.Inaddi7on,boththeauthorofthesenotesandtheaendeewhoreviewedthemarecoremembersofGrassrootsinNebraska ,agroupwhosemissionistopromoteareturntoCons7tu7onal,limitedgovernment.GiNhasbeendevelopingaproject,NELibertyWatchmen
 
 ,tomonitorlocal,county,andstategovernmentforthepurposeofinformingci7zensandadvoca7ngforlegisla7vemeasuresthatlimitgovernment’ssizeandimpactontheindividuallibertyofci7zens.Therehasbeenane fforttakentoavoided itorializingorcommen7nginthesenotes.Analysiswillbedoneseparately.
Theroomwasfullforthismee0ng.ThosepresentincludedSpeakeroftheUnicameralMikeFlood,alloftheCommi>eeChairs,someresearchersandotherstaff.AlsopresentwereMichaelCalvert,headoftheLegisla0veFiscalOfficeandandaMr.Berdquist,whoseposi0onwasnotclear,butapparentlyalsopartoftheLegisla0veFiscalOffice.Thebulkofprovidedsea0ngwasreserved(twolongrows).Byreportofalobbyistwhoisaregulara>enderofsuchmee0ngs,thereservedrowswereforagencystaff.Theremainingseatswerefullandtherewereindividualsstanding.TherewerethreeTVcamerasinuse,althoughnoneappearedtobeNET,asthehearingwasnotairedthroughthemechanismontheNebraskaLegislaturewebsitewherethepubliccanwatchlivebroadcastsoftheLegislaturefloorac0on.Themee0ng’sdirectpar0cipantswereseatedintheroundwiththeCommi>eeChairsinorderaccordingtoitemVIII.star0ngalmostdirectlyoppositeSpeakerFlood.
 
Themee0ngstartedon0me.Spectatorswereprovidedwithaprintedagendawhiledirectpar0cipantshadanaddi0onaldocumentthatwasreferencedregularlythroughoutthemee0ng.
I.Welcome
(Flood)
LR542waspassedduringthelegisla0vesessionconcludedApril14,21,inan0cipa0onofabudgetshorWallforthebudgetthatcoversthebienniumofJuly1,211-June3,213.[Thehistoryoftheresolu0oncanbeseenontheNebraskaLegislaturewebsiteHERE,(rawlink:h>p://nebraskalegislature.gov/bills/view_bill.php?DocumentID=1122)thebillcanbeviewedand/ordownloadedatthefollowingloca0ons:Scribd:HERE(rawlink:,andNELegislatureHERE(rawlink:h>p:// nebraskalegislature.gov/FloorDocs/Current/PDF/Intro/LR542.pdf ]
II.Purpose of LR 542
(Flood)
•Role of ad hoc committee and role of standing committees
Thisadhoccommi>eeiscomprisedofthechairsfromeachstandingcommi>ee(seelistofthesecommi>eesHERE).Standingcommi>eesaretoworktowardstarge0ngprogramsandservicesforreduc0onorelimina0on.
•LR 542 Outcomes (10% Options List)
Attheendoftheprocess,eachcommi>eechairissupposedtohaveanop0onslistcomprisedofservicesandprogramsthatwouldallowforcungby1%.
•General Fund vs. cash fund issues•LR542 process vs. Appropriations’ budget process
LR542wasameasurepassedinrecogni0onofanan0cipatedshorWall,aerhavingexperiencedashorWallthattriggeredtheneedforaspecialsession(inNovember29).LR542‘spurposeistoprovideanorderlyprocessforhandlingtheshorWalloveraperiodof0mesothatsolu0onsareavailableatthebeginningofthenextlegisla0vesession.
III.
Financial Outlook and Steps to Determine Proposed BiennialShortfall
 
(Calvert and Berquist)
MikeCalvertiswiththeFiscalOffice.
LR542ADHocCommi/eeMeengNotes,June29,2010Page2
 
•Financial Status
Therearenoofficialrevenueprojec0onsavailableforthebiennialbudgetyearscurrentlyunderdiscussion(7/1/11-6/3/13).Theusual0meofforecas0ngforthatperiodisdoneinthepriorOctober.Therefore,alloftheinforma0oncurrentlyavailable,includingthattherewillbeashorWallanditsextent,arebasedonaseriesofassump0onsandusingdatafromthepast.Thecurrentdiscussionsarethereforebasedonwhatonehopesarereasonableassump0ons.CalvertaskedSpeakerFloodwhetherhewas“comfortable”withanopenstatementregardingthe“rainydayfund”.Floodhavingindicatedintheaffirma0ve,Calvertnotedsomelevelofcertaintyregardingtheuseof$27millionfromthatfundforthepurposesofreducingtheshorWall.
Note:
Duringthisdiscourse,itwasnoten0relycleartotwoofuswhetherornotsomeofthenumbersmen0oned,i.e.proposedamountsofcutsincludedthe$27millionornot.Oneofusthoughtthe$27millionwasbeingcalculatedintheamountsquotedandtheotherdidn’tthinkitwas.Itseemstherecollec0onbetweenthetwoofusonthispointmaybemorereliablefromthepersonwhobelievestheamounthasnotyetbeentakenintoaccount,astherecollec0onincludedthatMr.CalvertwasexplainingawillingnessonthepartoftheAppropria0onsCommi>eetotapupto$27millionofthecashreservefund.
Furthernotes:
OneofusrecollectsBerdquistsaythatthea1%increaseinbudgetrequestsbytheagencieswasanassumedandtheprojecteddeficitwasbasedonthat.3%MinimumReserveNebraskastatuterequiresthattherealwaysbea3%minimumreserveintheGeneralFundaccount.The3%isapparentlybasedontheaverageannualbudget,whichis$3.4billion.Thecurrentamountrequiredis$221million.
•Cash Reserve Fund•90 - 10 Budget Process - General Fund Only
BudgetrequestsfromagenciesaredueSeptember15.Theagencieswillbegiveninstruc0onsandanopportunitytoreviewtheLR542mechanismandprocess.Calvertexplainedthattheplanistodoamodifiedzerobasedbudget;agencybudgetswouldbudgetat9%oftheirpreviousbudget.Theirjobispriori0ze
LR542ADHocCommi/eeMeengNotes,June29,2010Page3
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