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LR 542 Ad Hoc Meeting Notes 062910

LR 542 Ad Hoc Meeting Notes 062910

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Published by Shelli Dawdy
NOTE: This is NOT an official government document, but since Scribd does not have sufficient categories available for such documents at this, it's the best choice available.
These are notes taken at a meeting of Nebraska Unicameral AD Hoc Committee Meeting on June 29, 2010 at the State Capitol.
The AD Hoc Committee was created by a legislative resolution - LR 542 - for the express purpose of reviewing Nebraska's budget and in preparation for measures that will need to be taken to eliminate state programs as there is a projected shortfall of $675 - $1 Billion dollars in the next biennial budget 2011 - 2013.
NOTE: This is NOT an official government document, but since Scribd does not have sufficient categories available for such documents at this, it's the best choice available.
These are notes taken at a meeting of Nebraska Unicameral AD Hoc Committee Meeting on June 29, 2010 at the State Capitol.
The AD Hoc Committee was created by a legislative resolution - LR 542 - for the express purpose of reviewing Nebraska's budget and in preparation for measures that will need to be taken to eliminate state programs as there is a projected shortfall of $675 - $1 Billion dollars in the next biennial budget 2011 - 2013.

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Published by: Shelli Dawdy on Aug 13, 2010
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08/12/2010

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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%.
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 Fund90 - 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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