By Governor Mike Johanns
January 20, 2004
Dear Nebraska Neighbors:
Throughout our state's history, we have seen over and over again that in order to survive our citizens have had to change how they lived, worked, and did business. So too must state government examine itself and change.
In my annual State of the State Address last week, I outlined my agenda for the 2004 Legislative Session. In doing so, I have asked senators to focus on five major areas of reform - mental health, education, Initiative 300, water policy, and the protection of our children. The budget plan I submitted provides financial support for these reform initiatives, proposes a plan for managing the projected $211 million budget gap, and recommends no increase in taxes.
In the area of mental health reform, I have called for a transition to community-based services by contracting with hospitals, nursing homes, and other providers to close gaps in service across the state. A recent study showed that two-thirds of the patients at the Norfolk and Hastings Regional Centers are ready for a lesser level of care. It is time to acknowledge dramatic advances in treatment and provide care for people with mental illnesses close to their families and support structure.
The closure of the Norfolk and Hastings Regional Centers frees-up $29 million in current funding and captures an estimated $9 million in new federal matching funds. Additionally, our budget proposal identifies $12 million to fund the reform - $6 million in ongoing funds, $3.5 million for housing, and $2.5 million for crisis care to address emergency protective custody issues.
In the area of education, I have called for the passage of a bill that changes the way K-12 education is financed. LB 698 addresses concerns about the cost of educating students stricken by poverty and those with limited English proficiency, as well as other concerns. I also called on school districts to come to the table and offer insight as to how we might best address and finance today's classroom needs.
The third area of reform calls for an examination of Initiative 300. I am concerned about a similar constitutional approach in South Dakota that was recently ruled invalid by the U.S. Eighth Circuit Court of Appeals. There have also been some unintended consequences of I-300, namely precluding neighbors from pooling resources in a corporate structure to farm together, raise livestock together, or bring children into a farming corporation.
Nebraska's water policy constitutes the fourth area of needed reform. I applaud the Water Policy Task Force members for their good work and recommendations. Our budget identifies $2.5 million annually to fund integrated management of groundwater and surface water.
The fifth and final area of major reform involves the protection of Nebraska's children. I want to thank the members of the Children's Task Force for turning the state's child protective system upside down. I'm eager to adopt their key recommendations, which I believe constitute the most comprehensive effort to reform the way we protect children in our state's history.
Our budget identifies $10.5 million to fund 120 new child protection positions, five new Assistant Attorneys General, coordinators at each of the six Child Advocacy Centers statewide along with one new center, and enhancements to the Criminal Justice Information System. Legislation will be introduced to authorize the Attorney General's Office to prosecute abuse, neglect, and parental rights cases in 90 counties without separate Juvenile Court.
As important as these reform initiatives are to me, it was also important to stand by my belief that we must take a conservative approach to the budget in a recovering economy. I did exactly that by proposing to utilize federal fiscal relief funds provided to Nebraska, which will avoid the need for harsh deductions in essential government services. My overriding philosophy in developing this budget was one of careful and cautious long-term planning. We've guarded against overly optimistic revenue projections by planning for a 4 percent minimum operating reserve in the General Fund at the end of the 2005-2007 biennium.
To view a copy of the State of the State Address or the budget, go to www.gov.state.ne.us.