Help for Poor Areas of Omaha Advanced Despite Cost Questions

The Nebraska Legislature gave first-round approval Tuesday to a proposal designed to benefit poor areas of Omaha, despite questions about whether the state can afford all the proposals currently moving forward.

The proposed help to Omaha would go to predominantly black north Omaha and predominantly Hispanic south Omaha. It would spend money to create jobs, support entrepreneurship, provide housing and assist small businesses. Sen. Justin Wayne, lead sponsor of the bill, LB1024, said it would help make up for historic discrimination:

“LB1024 provides jobs to the jobless, affordable housing to the working middle class, and I believe it reclaims young people from violence and despair. This is our moment in this body, this is our time in this body to send a message for those who have been voiceless and those who feel like they have been forgotten that they too are a part of the American dream,” Wayne said.

Wayne had originally asked for the bill to be funded with $450 million from the federal American Rescue Plan Act, or ARPA, but the Appropriations Committee has recommended only $100 million. Sen. Mike Flood questioned Wayne about where the money for the bill would come from.

“You’re saying ‘Hey, don’t touch the ARPA funds. Just replace all of that ARPA funding spending that we were going to use for this project and let’s just take it all to the general fund?’” Flood asked.

“No. What I’m saying is our budgeting – ARPA process is bifurcated, causing a problem today. And I’m willing to sit down with you and anybody else to figure out where those cash -- where those dollars come from,” Wayne said.

“I think we have to have a real conversation about how we’re going to spend the money here,” Flood said.

Wayne accused Flood of hypocrisy.

“For three days, Sen. Flood didn’t talk about the budget. We’re spending $4 billion. For three days he didn’t say one damn thing about the budget. Talked a little bit about the prison. But didn’t ask where a dime went for the budget. But when it comes to north Omaha and black people, let’s figure out where every dollar is going. Let’s figure out where every dollar is going. The hypocrisy! I’ve said from day one, anyone who’s talked to me, I don’t care where the money comes from,” he said.

Wayne said that could include using more from the state’s cash reserve, which he said could be reduced from a projected $1.3 billion to $1 billion.

Sen. Anna Wishart said that would leave the state without enough of a financial cushion for when the next economic downturn occurs, and would cause her to oppose proposed tax cuts.

“The direction that we’re going is going to spend down our entire savings account. I agree that this investment is important, and I enjoyed hearing from Sen. Wayne that this can be a roadmap for other communities that have needs to lift up those communities. But I will tell you this right now: I will not be voting on any tax cuts if our cash reserve is $1 billion,” Wishart said.

Sen. Curt Friesen opposed Wayne’s proposal.

“I think we’re overspending. You know, back when my kids were little, I watched a cartoon with the Smurfs, and there was Greedy Smurf. And that’s what I think we have on this floor today. We have a lot of Greedy Smurfs. We talk like we’re conservative bunch of senators, we’re not going to spend money, we’re going to hold down our budget, and yet you dangle money in front of us and we grab it and we run with it. And I’m not sure we’re solving any problems,” Friesen said.

Wayne said he’s willing to negotiate down the cost of the proposal, perhaps to $275 million, before the next round of debate. Senators then voted 28-0 to give the bill first-round approval.

Earlier Tuesday, the Legislature voted first-round approval to the third of three main budget bills. Those bills had been delayed by a filibuster led by Sen. Steve Lathrop, chair of the Judiciary Committee, who used the debate to argue for a criminal justice reform bill that will be debated soon.

Senators are divided over parts of that bill, including its recommendations for reduced penalties for some drug offenses and parole eligibility for older inmates. Lathrop said those recommendations would reduce the projected prison population by the end of the decade by about 1,000 from where it is otherwise projected to be, while not accepting those recommendations would only reduce it by 143.

Nebraska’s prisons currently hold about 50 percent more people than they were designed for. Sen. Wendy DeBoer supported Lathrop’s argument, and challenged opponents.

“What is the solution to our overcrowding crisis? Sticking our heads in the sand and pretending it’s not happening isn’t working. It’s getting worse,” DeBoer said.

As is often the case, senators on the opposite side of the argument did not speak during the filibuster. But they have argued in the past that reducing sentences will increase crime, and have also argued that people convicted of drug crimes are frequently guilty of other crimes as well.

After reaching the cumulative eight hours of debate allowed on the first round, senators voted to cut off debate and advanced the budget bill on a vote of 39-4.