Press Release
Optimism is replacing pessimism among Nebraska businesses and manufacturers, the president of the Nebraska Chamber of Commerce and Industry said Tuesday night in Norfolk.
“There’s a goodly amount of optimism out there,” Barry Kennedy said.
Much of it deals with the passage earlier this year in the Legislature of a package of economic development incentives designed to make Nebraska competitive in strengthening its economy, he said.
Forty-five state senators voted in favor of the incentives -- referred to as the Nebraska Advantage Act -- and Gov. Dave Heineman signed them into law. Many of the provisions will go into effect in 2006.
“I’m proud of what the Nebraska Advantage Act will do,” said state Sen. Mike Flood of Norfolk.
Kennedy was in Norfolk to lead the annual state chamber’s legislative forum. He, Flood and state Sen. Matt Connealy of Decatur all spoke to the small group that attended.
Connealy noted that the economic incentives made up his priority bill -- Legislative Bill 312 -- during the 2005 session.
“It’s a great accomplishment,” he said.
One of the strong points was the creation of five tiers in which businesses and manufacturers can qualify for varying degrees of incentives, including a tier that is aimed at small firms. It requires the creation of 10 new jobs and $1 million in new investment.
“This is very attractive to some smaller firms,” Kennedy said.
Another part of the act was the exempting of manufacturing machinery and equipment from state sales tax. That alone is expected to save Nebraska manufacturers more than $19 million annually. Without that provision, Nebraska would have been one of just 10 states that didn’t have such an exemption, he said.
Connealy said the passage of the bill also provided relief for Nucor Steel in Norfolk from the double taxation dilemma the plant found itself in.
“We’ve solved about 80 percent of their problem,” he said. “We’ve still got some work to do.”
Another important measure was Legislative Bill 90, which provides $250,000 per year for grants to small communities to encourage business growth and entrepreneurship. Yet another measure, LB425, significantly increases funds available for customized job training assistance, which community colleges can provide, Kennedy said.
Looking ahead to the 2006 legislative session, Flood said two of his priorities would be looking to strengthen the state’s Medicaid fraud unit and streamlining the Nebraska Department of Environmental Quality’s permit review process.
“Let’s get it (review of permits) done on a timely basis. It shouldn’t be a barrier to growth,” he said.
Connealy said the 60-day 2006 session would have several key issues that would take up time, but many state senators -- because of term limits -- will be leaving the Unicameral after the session, which could create a push for action.
“This might be a more productive session because of term limits,” he said.
Connealy said he envisioned that the state’s projected revenue surplus would be used in a combination of tax cuts, replenishing of state reserves and appropriate spending.
“Hopefully, we’ll be judicious in how we deal with our affluence,” he said.
- Story Courtesy of the Norfolk Daily News
