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House speaker vote update: Johnson wins showdown with GOP hard-liners; President Biden and the First Lady to travel to New Orleans on Monday; Hunger-fighting groups try to prevent cuts to CA food-bank funding; Mississippians urged to donate blood amid critical shortage; Rural telehealth sees more policy wins, but only short-term.

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Federal officials present more information about the New Orleans terrorist attack and the Las Vegas cybertruck explosion. Mike Johnson prepares for a House speakership battle, and Congress' latest budget stopgap leaves telehealth regulations relaxed.

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The humble peanut got its '15 minutes of fame' when Jimmy Carter was President, America's rural households are becoming more racially diverse but language barriers still exist, farmers brace for another trade war, and coal miners with black lung get federal help.

2017 Brings Tough Budget Choices in Nebraska

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Monday, January 2, 2017   

LINCOLN, Neb. – Nebraska rings in the New Year faced with a looming revenue shortfall – nearly $900 million heading into the next budget cycle for 2019.

And while it's a touchy subject, some analysts say school-funding reform should be part of any budget discussions.

Nebraska's school financing formula relies heavily on local property taxes, and Brian Hanson, senior policy associate with the Center for Rural Affairs, says local officials are stressed to ensure schools can provide Nebraska children a good education.

"But at the same time, that affects farmers and landowners who are facing really high property taxes, and that's something we're concerned about as well,” he stresses. “We want to see property tax reform, but we need responsible leadership that's going to consider changing the way we fund education to make that happen."

Some support reducing the property tax burden by increasing the sales tax, but Hanson argues that would hurt lower and middle-income families.

He contends greater state investment in education would help lower property taxes without sacrificing the quality of education.

Nebraska is ranked 49th nationally in state school funding per student.

Solutions suggested by lawmakers include lowering both income taxes and property taxes, which would then have to be offset by cuts in state services.

But Hanson notes tax cuts over the past decade have already taken more than $750 million out of the budget annually.

"Some tough decisions are going to be made, but we can't simply cut our way out of this budget shortfall,” he states. “And making further tax cuts would be a bit foolish."

Gov. Pete Ricketts supports budget reductions without tax increases, and is expected to outline his budget plan in the upcoming State of the State address.





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