ESU Coordinating Council
April 04, 2017 4:00 PM
Legislative Committee Meeting
1. Call to Order
Rationale

Notice to visitors:  To be heard at this meeting, the "Request to be Heard" form, must be completed and submitted to the Secretary to the Executive Director of ESUCC.  The President of the Board of ESUCC will call upon visitors wishing to address the Board in the order they were submitted or by subject.

Pursuant to Section 84-1411 of the Nebraska Statutes, notice of this meeting was given by advertisement on the ESUCC website, NE Public Meeting site, and host site.

Open Meetings Law
: Pursuant to Section 84 - 1412 of the Nebraska Statutes, the public is hereby informed that a current copy of the Nebraska Open Meetings Act is posted in this meeting room. 

Discussion

Call to order at 4:05 PM

Staff:  David Ludwig and Deb Hericks

Guests: Jason Bromm

2. Roll Call
3. Agenda Item
Chair of Committee
3.A. Legislative Bills Update (Curt and Jason Bromm)
Curt/Jason Bromm
Attachments
Discussion

Jason Bromm was present to update committee on legislative bills.  Reviewed history from the beginning of session and where we are at today.  We need to show data to support our ESUs and where we are efficient at saving schools money.    

3.A.I. LB 22 - Provide, change, and eliminate provisions relating to appropriations and reduce appropriations
Committee Chair - Calvert and Executive Director Ludwig
Rationale

LB 22

One Hundred Fifth Legislature - First Session - 2017
Introducer's Statement of Intent
LB22
Chairperson: Senator John Stinner
Committee: Appropriations
Date of Hearing: January 17, 2017

The following constitutes the reasons for this bill and the purposes which are sought to be
accomplished thereby:

LB 22, introduced by the Speaker at the request of the Governor, is part of the Governor's expedited
FY 2016-17 budget adjustment recommendations.

The bill makes adjustments to appropriations and re-appropriations for state operations, aid and
construction programs in the current fiscal year ending June 30, 2017, provides for transfers, and modifies
intent language and earmarks accompanying appropriations approved by the 104th Legislature.

This legislative bill contains the emergency clause.

Detailed information regarding the Governor’s budget recommendations can be found in the document
entitled “Governor’s Budget Recommendations, FY 2016-17 Budget Adjustments” dated January 5, 2017,
and may be viewed on the Administrative Services – State Budget Division’s website at http://
budget.nebraska.gov/biennium-2015-2017.html.

Principal Introducer:
Senator Speaker Scheer, 19

Attachments
3.A.II. LB 219 - Change retirement system provisions relating to authorized benefit elections and actuarial assumptions
Committee Chair - Calvert and Executive Director Ludwig
Rationale

LB 219

One Hundred Fifth Legislature - First Session - 2017
Introducer's Statement of Intent
LB219
Chairperson: Senator Mark Kolterman
Committee: Nebraska Retirement Systems
Date of Hearing: January 31, 2017

The following constitutes the reasons for this bill and the purposes which are sought to be
accomplished thereby:

In 2016 an Experience Study was conducted on the Judges, School Employees and State
Patrol Retirement defined benefit plans and the County and State Employees defined
contribution and cash balance plans. The actuary recommended several actuarial assumption
changes including updating the mortality table from the current statutorily required 1994
mortality table, lowering the defined benefit plan assumed rate of return from 8% to 7.5% and
the cash balance plan assumed rate from 7.75%, to 7.5%.

The adoption of these new actuarial assumptions requires an amendment to the definition of
"actuarial equivalent" in each plan to clarify that the current 1994 mortality table will only be
applied to calculation of factors for defined benefit members hired prior to July 1, 2017 and
for state and county cash balance plan members hired prior to January 1, 2018. Calculation of
factors for defined benefit plan members hired or rehired on or after July 1, 2017 and all state
and county defined contribution and cash balance plan members hired or rehired on or after
January 1, 2018 will use the mortality table recommended by the actuary and adopted by the
Public Employees Retirement Board. The new statutory language will allow the mortality
table to be updated as recommended by the actuary and adopted by the Board, based on the
most recent actuarial study and will not require future statutory changes.

In addition, in the county and state plans, it clarifies that the assumed rate of return as
recommended by the actuary and adopted by the Public Employees Retirement Board will be
the rate used to calculate annuities for cash balance plan members.

Principal Introducer:
Senator Mark Kolterman, Chairperson
Nebraska Retirement Systems Committee

Attachments
3.A.III. LB 327 - Appropriate funds for the expenses of Nebraska State Government for the biennium ending June 30, 2019
Committee Chair - Calvert and Executive Director Ludwig
Rationale

LB 327

Introduced By: Senator Speaker Scheer At the request of the Governor

Date of Introduction: January 12, 2017

Attachments
3.A.IV. LB409 - Change the base limitation and local effort rate for school districts
Committee Chair - Calvert and Executive Director Ludwig
Rationale

LB409

Chairperson: Senator Mike Groene

Committee: Education Date of Hearing: March 06, 2017

The following constitutes the reasons for this bill and the purposes which are sought to be accomplished thereby:

LB 409 would revise the Tax Equity and Educational Opportunities Support Act (TEEOSA), by reducing the base limitation rate for school districts found under section 77-3446 to 0% for school fiscal year 2017-18' and 2018-19'. The effect of LB 409 would be to change the amount of TEEOSA Aid provided by the state to school districts for 2017-18' and 2018-19'.

LB 409 also amends section 79-1015.01 to change the local effort rate from 1.00 to 1.01 for the purposes of increasing the level of local resources available to school districts for school fiscal years 2017-18' and 2018-19' for State Aid purposes.

Principal Introducer: ________________________________

Senator Mike Groene

Attachments
3.A.V. LB 415 - Provide and change notification requirements and duties and benefits for certain retirement system members, change certain annuity and disability benefit provisions, and provide duties for school districts and the Public Employees Retirement Board relating to retirement
Committee Chair - Calvert and Executive Director Ludwig
Rationale

LB 415

Introduced By: Senator Kolterman

Date of Introduction: January 13, 2017

Attachments
3.A.VI. LB 431 - Change provisions relating to cash reserves under the Nebraska Budget Act
Committee Chair - Calvert and Executive Director Ludwig
Rationale

LB431 Letters

LB 431

Budget Form

One Hundred Fifth Legislature - First Session - 2017

Introducer's Statement of Intent
LB431
Chairperson: Senator John Murante
Committee: Government, Military and Veterans Affairs Date of Hearing: January 26, 2017

The following constitutes the reasons for this bill and the purposes which are sought to be accomplished thereby:

The purpose of this bill is to correct the relationship between taxes levied and cash reserved.  LB431 intends to cap cash reserves at 50% of the total amount received from personal and real property taxes, instead of through projected budgeting. Furthermore, the bill intends to strip governing bodies from their ability to build-up exorbitant cash reserves which exceed 50% of their total tax asking ability.

LB431 will accomplish this goal by changing the wording of Nebraska State Statute 13-504(b) and (c).  The bill will strike the words, “budget adopted” from these two sections of the statute and replace them with the words, “amount received from personal and real property taxation.” This change in the wording of Nebraska State Statute 13-504(b) and (c) shall limit incoming cash reserves to 50% of the governing body's tax asking ability and cap the total amount of these cash reserves at this same amount.  There is simply no reason for any governing body within the State to hold more than 50% of its operating costs in cash reserves.

Principal Introducer:                                                                   
Senator Steve Erdman

 

Attachments
3.A.VII. LB 484 - Create the School Financing Review Commission
Committee Chair - Calvert and Executive Director Ludwig
Rationale

LB 484

Introduced By: Senator Kolowski

Date of Introduction: January 17, 2017

Attachments
3.A.VIII. LB 521 - Change provisions related to early childhood education in the Tax Equity and Educational Opportunities Support Act
Committee Chair - Calvert and Executive Director Ludwig
Rationale

LB 568

Introduced By: Senator Walz

Date of Introduction: January 18, 2017

Attachments
3.A.IX. LB552 - Provide for the Children's Connection program
Committee Chair - Calvert and Executive Director Ludwig
Rationale

LB 552

Introduced By: Senator Walz

Date of Introduction: January 18, 2017

 

Attachments
3.A.X. LB 568 - Change provisions related to temporary teaching certificates
Committee Chair - Calvert and Executive Director Ludwig
Rationale

LB 568

Introduced By: Senator Erdman

Date of Introduction: January 18, 2017

Attachments
3.A.XI. LB 575 - Provide funding for schools offering certain programs and courses as prescribed
Committee Chair - Calvert and Executive Director Ludwig
Rationale

LB 575

Introduced By: Senator Kolowski

Date of Introduction: January 18, 2017

Attachments
3.A.XII. LB 595 - Provide for the use of physical force or physical restraint or removal from a class in response to student behavior
Committee Chair - Calvert and Executive Director Ludwig
Rationale

LB 595

Introduced By: Senator Groene

Date of Introduction: January 18, 2017

Attachments
3.A.XIII. LB664 - Prohibit a political subdivision from using taxes or fees to employ a lobbyist
Committee Chair - Calvert and Executive Director Ludwig
Rationale

LB 664

Introduced By: Senator Kuehn

Date of Introduction: January 18, 2017

Attachments
3.B. Legislative Summer Committee Meeting
Executive Director Ludwig
Rationale

June 6 or 7, 2017

January 21, 2018

June __, 2018

4. Next Meetings Agenda Items
Chair of Committee
5. Executive Session
Rationale

The ESU Coordinating Council is authorized by state statute to enter into executive session. Executive session may be held when clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual. Reasons that meet this standard include but are not limited to: (a) strategy sessions with respect to collective bargaining, real estate matters, pending litigation, or litigation which is imminent as evidenced by communication of a claim or threat of litigation to or by the public body; (b) discussion regarding deployment of security personnel or devices; (c) investigative proceedings regarding allegations of criminal misconduct; (d) evaluation of the job performance of a person when necessary to prevent needless injury to the reputation of a person and if such person has not requested a public meeting; and (e) legal advice.

Explanation

At this point, it is appropriate for the Board to meet in closed session for one of the stated matters and/or any other permissible closed session matters in compliance with the law.

PROPOSAL:

That the Board hold a closed session:

1. For strategy session with respect to negotiations/collective bargaining clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual in compliance with the law.

2. For strategy session with respect to property/real estate matters clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual in compliance with the law.

3. For strategy session with respect to pending litigation, or litigation which is imminent as evidenced by communication of a claim or threat of litigation to or by the public body clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual in compliance with the law.

4. For discussion regarding deployment of security personnel or devices clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual in compliance with the law.

5. For investigative proceedings regarding allegations of criminal misconduct clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual in compliance with the law.

6. For personnel and the evaluation of job performance clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual in compliance with the law.

7. For discussions of the legal consequences of specific action and legal advice clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual in compliance with the law.

6. Adjournment
Actions Taken

Motion Passed:  Motion to adjourn at 5:04 PM passed with a motion by Bell ESU 10 and a second by Schnoes ESU 03.