Center for Rural Affairs March 29, 2005 NE Legislative Update

-- from the desk of Jon Bailey, Director Rural Research and Analysis Program
Center for Rural Affairs


Legislative Update

March 29, 2005


Budget Update

The Appropriations Committee continues to develop their final budget recommendation to the Legislature. The committee is required to have a plan to forward to the Legislature by April 28.

The primary task of the committee is to determine what spending proposals are worthy of including in their final recommendation. State agencies and other proposals are requesting nearly $400 million more than what was included in the committee’s preliminary budget proposal released in February.

State agencies and others have requested nearly $250 million over the committee’s preliminary plan, and there is about $150 million in additional spending at various stages of legislative debate.

A main determinant of how much will be spent is how much the Legislature wants to place in reserve. Based on increased revenue forecasts, one scenario being considered by the Appropriations Committee is spending $132 million in addition to the preliminary plan and placing $127 million in reserve.

The Nebraska State Forecasting Board will meet once more before the Appropriations Committee releases its final plan. The Forecasting Board’s revenue findings may determine how much is spent and how much is placed in reserves.



Rural Development Legislation

During last week’s initial floor debate on LB 273, the Building Entrepreneurial Communities Act, there was significant discussion of the state’s rural development policy. The discussion had two distinct portions – the ability of the state to pay for any of the bills being proposed and the need for a comprehensive rural development policy in the state.

While the two arguments appear contradictory, they are related in that they are being used as justification for inaction. In fact, the Legislature has before it a comprehensive, common-sense and cost-effective rural economic development package to help ensure a viable and sustainable future.

This package is built on a simple premise: It is time to build a new rural economy in Nebraska, an economy supported by three pillars – 1) focus on community and regional resource mobilization; 2) find a niche, not a commodity; and 3) grow more entrepreneurs.

This model is now the commonly accepted model of revitalizing rural economies. The Center for the Study of Rural America of the Federal Reserve Bank of Kansas City, for example, has discussed at length the need for states to develop a rural policy based on new components of rural governance and agricultural and non-agricultural entrepreneurship.

Four bills and provisions in the Governor’s proposed budget fit together to create this new rural policy model. They are not – as some Senators have stated – disparate measures with no common purpose. They are all pieces of a comprehensive rural revitalization package advanced by the Governor’s appointed Nebraska Rural Development Commission.

LB 273, the Building Entrepreneurial Communities Act, and LB 28, the Endow Nebraska Act, will mobilize communities and public and private resources to begin planning economic development within and between communities. Both bills provide resources to communities and regions that generally do not have the access to state, federal or private funds for planning, entrepreneurial training, private fundraising and leadership development – all crucial to economically successful communities.

Once communities and regions have mobilized, they can expand opportunities for business and job creation. In rural Nebraska, those opportunities will come from entrepreneurship, specifically small businesses and value-added agriculture. During the 1990s, over 70 percent of job growth in rural Nebraska came from small, non-agricultural businesses, and currently nearly one in three private, non-farm jobs in rural Nebraska come from small businesses with five or fewer employees.

The Legislature and the Governor now have a golden opportunity to implement several measures that will create even more jobs and businesses in rural Nebraska.

LB 71 would provide grants for farmer- and rancher-owned cooperatives to take advantage of value-added agricultural opportunities to fill profitable new markets.

The Governor’s budget would boost small business development by increasing funding for loans, training and technical assistance for entrepreneurs and small businesses.

LB 309 would provide tax relief to small business owners and an incentive for those seeking to start and grow small businesses.

Together, these proposals and bills would cost the state about $6 million. And not all of that would go to rural areas – several of the bills and proposals would also apply in urban areas of the state. This represents less than FOUR percent of what the state currently spends on tax incentives for big business expansion and recruitment. The Legislature is debating how to include additional revenue in its budget. This rural development package represents about TWO percent of those available funds.

Several Senators have put forth a list of economic development programs available to rural areas, both public and private. But they cost communities money to access (money they don’t have, but that LB 273 and LB 28 would provide), they are not available to small rural communities, they are targeted for elimination, or they are stretched too thin in resources and personnel so as to be ineffective for the demand in rural Nebraska.

Other Senators have proposed we need a study of what is needed for rural development. Rural communities across the state don’t have time for a “study” – the economic and demographic challenges facing them are accelerating daily. What works for rural economic and community development has been studied for years in Nebraska and across the nation. The result is the package now before the Nebraska Legislature.



Bills Update

Any bill designated a Priority Bill will also have a “P” attached to its number (for example, LB 123P). The chief sponsor of the bill is listed in parentheses.

The words Support or Oppose after a bill description indicate where the Center for Rural Affairs has taken a position on the bill. If neither word is indicated, the Center has not taken a position at this time.

NOTE: Once a bill is Indefinitely Postponed (killed) or signed into law, we will remove it from the Legislative Update list.



Rural Development

LB 28 (Connealy) – The “Endow Nebraska Act.” The bill would provide a tax credit for a contribution to a qualified charitable organization. The bill sits on Select File. Support

LB 273P (Cunningham) – Would create the “Building Entrepreneurial Communities” program through a grant program for each of the next two years. In General File debate on March 23, the Legislature approved an amendment offered by Sen. Synowiecki that would restore the original proposed funding of $1 million annually (the committee had reduced the funding to $200,000 annually) and would apply the program to federal enterprise zones in Omaha. Sen. Cunningham also filed an amendment to LB 273A (the appropriation bill) to increase the appropriation to $500,000 annually (from the committee’s $200,000). The bill is still scheduled for additional debate on General File. Support


Agriculture/Livestock

LB 71P (Stuhr) – Would re-authorize the Agricultural Opportunities and Value-Added Partnership Act (formerly the LB 1348 grant program). This program was terminated through budget cuts in 2001 and 2002. This bill would reauthorize the program through 2009. Sen. Stuhr has designated this as her Priority Bill. The bill awaits a vote on Final Reading. Support

LB 132 (Cunningham) – This bill modifies the Nebraska Pasteurized Milk Law by providing exemptions to small-scale dairies and processors to the often-expensive bottling and processing requirements, and by allowing dairies and farmers to advertise on-farm sales of non-pasteurized milk (currently, the sale of non-pasteurized milk cannot be advertised). The bill sits on General File. Support

LB 346P (Agriculture Committee) – Would modify several provisions of the Beginning Farmer Tax Credit Act all with the goal to increase utilization of the tax credit. The bill sits on General File. Support


Education/Schools

LB 126P (Raikes) – Would mandate the “assimilation” of Class I schools (elementary-only schools) into K-12 school districts for the 2006-07 school year. The bill awaits action on Select File. Oppose
.
LB 129P (Education Committee) – An overhaul of the formula for state aid to schools. The bill is pending in the Education Committee.


Taxes

LB 133 (Connealy) – Would provide a renewable energy sales tax credit, and would provide any generator of electricity from a renewable resource a credit against any sales and use tax. The bill was Indefinitely Postponed by the Revenue Committee on March 29.

LB 309 (Connealy) – Would establish the Small Business Rural Microenterprise Tax Credit. The bill would provide for $2 million worth of tax credits annually for small business (with five or fewer employees or beginning farmers/ranchers) in areas with declining population or low incomes or federal enterprise zones. The bill is pending in the Revenue Committee. Support

LB 404 (Wehrbein) – Would create a tax credit for modernization and expansion of livestock facilities. The goal of the bill is to “attract and retain investment in Nebraska’s livestock industry.” The bill was Indefinitely Postponed by the Revenue Committee on March 29 (Senators Cornett, Janssen, Landis, Preister and Redfield voted to kill the bill; Senators Baker, Connealy, and Raikes voted to advance the bill).


Business Tax Incentives

The Revenue Committee is still developing a bill to advance to the floor later this week or next.



Other

LB 208 (Stuthman) – Provides for the appropriation of $1.75 million annually for the next two years to the state’s five federally qualified health clinics to provide services to the uninsured (the clinics are in Omaha, Lincoln and Scottsbluff). The bill is pending in the Appropriations Committee. Support

LB 550 (Jensen) – Requires a plan to be submitted by December 1, 2005, for the financial support of community health centers and emergency medical services in the state. The bill awaits action by the Health and Human Services Committee.

Three Practical Steps to Create Effective Reform

-- from the desk of Chuck Hassebrook, Executive Director
Center for Rural Affairs

There are challenges confronting rural people and rural communities. But the problem is solvable. Active citizens can fix it.

Effective reforms would provide genuine opportunity for rural people and a future for their communities. We can make the political system responsive to such solutions by keeping three essential points in mind.

1. - Partisanship is not the solution.

When in control, each of the major parties has failed to institute the reforms needed to create a better future in rural America. Each has frequently used issues to gain political advantage rather than seeking solutions.

Individual elected officials have fought for real solutions but none has gained sufficient support to succeed. Neither party has consistently championed the interests of ordinary rural people and the common good.

2. - Candidates from all parties must be held accountable.

We must use our votes to reward and punish candidates for their actions on rural economic and community issues.

Thomas Frank, author of the bestseller “What’s the Matter with Kansas?” and keynote speaker at the Center for Rural Affairs Annual Gathering blames the diminishing focus on economic issues in elections. Frank’s critics have derided him by saying he wants voters to elevate economic self-interest over values. Frank’s critics miss the point.

Fairness and social justice are values. Our values are violated when people are denied genuine opportunity and those who contribute to the nation’s prosperity are not allowed to share in it.

We need not choose between voting on economics and our values. To the contrary, to be true values voters we must consider economics, fairness, and social justice.

3. - As citizens in a democracy, we hold the power.

It is in our power to fix the system. Rural representatives – our representatives – dominate the Congressional committees that decide critical rural issues. We need not win the support of the metropolitan majority. We need to get our representatives to fight for us and our communities.

If we remember – and exercise – these three points, change is possible.

CENTER FOR RURAL AFFAIRS STATEMENT at the NATIONAL RURAL NETWORK PRESS AND CONGRESSIONAL BRIEFING

STATEMENT OF JON BAILEY
DIRECTOR, RURAL RESEARCH AND ANALYSIS PROGRAM
CENTERFOR RURAL AFFAIRS
NATIONAL RURAL NETWORK PRESS AND CONGRESSIONAL BRIEFING
MARCH 15, 2005


Good afternoon. My name is Jon Bailey, Director of the Rural Research and Analysis Program at the Center for Rural Affairs in Lyons, Nebraska.

I am here today because rural communities – especially those in the Midwest and Great Plains – are suffering.

Many rural communities are becoming the repositories of the poor and aged. The entire middle of this country is emptying out, devoid of young people, schools, churches, businesses and other institutions. And devoid of a most important ingredient – Opportunity.

The future of much of rural America lies in creating an economic policy focused on asset-building strategies, providing both opportunity and ownership. Only this type of framework will build the broad prosperity needed in rural America.

The President’s FY06 budget proposal speaks of creating an “ownership society,” but it neglects to provide opportunity. The budget proposal will do nothing to address the issues of economic distress and depopulation present in much of rural America. Many of the programs targeted for elimination hit rural people and rural places the hardest. In fact, the budget proposal will exacerbate the economic distress in rural America and accelerate rural depopulation.

One budget example of this effect is the Small Business Administration Microloan Program. It provides assistance to entrepreneurs with a dream but little collateral, business experience or capital. The Microloan Program specifically serves low-income entrepreneurs who are in abundance in rural America. Over 40 percent of the loans in the Microloan Program go to rural entrepreneurs compared to only 6 percent in other SBA programs.

The Microloan Program is vital to rural communities. Our research shows 70 percent of job creation in the 1990s in the rural Midwest and Great Plains came from non-farm small businesses like those served by the Microloan Program.

Without programs that serve the unique needs of entrepreneurs and small business owners who live and work in rural communities, the economic dreams and opportunities of rural people will vanish. Yet the SBA Microloan Program is targeted for elimination.

Another example of how the budget proposal does not serve the needs of rural America is the slashing of funding for the Value-Added Producer Grant Program. Value-added agriculture is the other piece of the entrepreneurial-based economy that represents the economic future of much of rural America. Value-added agriculture allows farm and ranch families to remain on the land by taking advantage of emerging markets for specialized products. Programs such as the Value-Added Producer Grant Program are vital for small- and moderate-size farm and ranch operations to compete in a world of low commodity prices and global marketing. Since 2002, the Value-Added Grant Program has lost over 60 percent of its Farm Bill funding level.

The President’s FY06 budget proposal represents a retreat from what can truly bring about a revitalization of rural communities – a combination of public resources to modernize and enhance community infrastructure and economic development built on asset-building strategies. Such a combination would build a true Opportunity and Ownership Society in rural America.

Unfortunately, the FY06 budget proposal neither recognizes this possibility nor makes it a priority.

2006NRNBudgetAnalysis.pdf

Center for Rural Affairs REAP Basic Business Development Class Starting in Crawford!

-- from the desk of Jerry Terwilliger, REAP Business Specialist
Center for Rural Affairs

March 21, 2005

Dream of starting your own business? The Center for Rural Affairs’ Rural Enterprise Assistance Project (REAP) offers a four week course designed to get you on the road to small business success!

Starting April 4th in Crawford, Nebraska, the seminar covers the important things you should know to make your business dream a reality. REAP’s Business Plan Basics Course has helped hundreds of Nebraskans start their own business, according to REAP Business Specialist Jerry Terwilliger.

This four part course runs three hours each Monday night for four weeks.
The classes will be held at the Legend Buttes Health Resources Technology Room, at 11 Paddock Street in Crawford, Nebraska.
Registration contacts for the class are Myrna Betson at 308-665-2343, or Dixie Lees at 308-667-2754.

REAP offers business technical assistance services and a micro-loan program for small businesses. For more information about REAP services call Jerry Terwilliger, (308) 247-9926 or email him at j414@charter.net. Also visit our website at http://www.cfra.org/reap.

Established in 1973, the Center for Rural Affairs is a private, non-profit organization working to strengthen small businesses, family farms and ranches, and rural communities through action oriented programs addressing social, economic, and environmental issues.

This U.S. Small Business Administration (SBA) Cooperative Agreement with the Center for Rural Affairs is partially funded by the SBA. SBA’s funding is not an endorsement of any products, opinions, or services. All SBA funded programs are extended to the public on a nondiscriminatory basis.

Center for Rural Affairs Provides Conservation Security Program (CSP) Sign-up Hotline

--from the desk of Traci Bruckner, Assistant Director Rural Policy Program

Center for Rural Affairs

Conservation Security Program Hotline available
through the Center for Rural Affairs

LYONS, NE – Sign-Up Begins March 28 in 202 Watersheds Nationwide for the Conservation Security Program (CSP).

The signup allows farmers with good conservation practices to receive cash payments for their efforts. But like last year, the time frame is very limited, and comes during the busiest time for farmers.

That's why the Center for Rural Affairs is again offering a hot line to answer questions for farmers registering for the program. “We want to ensure that the farmers and ranchers this program was intended to reward are able to fully access the program," says Traci Bruckner, a policy analyst at the Center.

The CSP sign-up will be held March 28 to May 27. The sign-up announcement and an amendment to the CSP interim final rule that will detail specific program requirements will be published in the Federal Register soon.

The Hotline, 402-687-2100, timed to coincide with the U.S. Department of Agriculture’s sign-up period, will continue on past the deadline for follow-up help and questions. But those interested in taking part in the USDA Conservation Security Program must be enrolled with the USDA by May 27th. For more information on the Conservation Security Program or the Hotline, contact Traci Bruckner at 402-687-2100 or email tracib@cfra.org.

Potential participants can find a self-assessment workbook and other application materials at the CSP website or from their local NRCS offices.

Center for Rural Affairs March 21, 2005 Nebraska Legislative Update

-- from the desk of Jon Bailey, Director Rural Research and Analysis Program
Center for Rural Affairs

Legislative Update
March 21, 2005


Revenue Committee Tax Incentive and Economic Development Package

The Revenue Committee has generally approved a package of proposals that will reshape Nebraska’s tax incentive programs. The committee approved the package on March 17 with the understanding that any or all pieces could be removed or changed. No official vote was taken to advance the package out of committee.

Two issues could cause that to happen – cost in lost revenue to the state and the approval of the state’s business community.

The package includes the following general concepts, many from other bills:

Modifications to the existing LB 775 tax incentive program. The proposed qualification tiers to trigger allowable tax credits would be: $1 million investment, 10 jobs; $4 million investment, 30 jobs; $14 million investment, 100 jobs; or creating 30 jobs with no jobs.
Workers in newly created jobs would have to be paid at least 60 percent of the state average wage; the higher the wage paid, the greater the wage income tax credit. This is a significant shift in policy, for there is currently no wage requirement in the LB 775 program.
New incentives not in current law would end in five years.

The personal property tax exemption in the tax incentive program would be limited to 10 years (rather than 15); it would also expand to businesses that distribute personal property such as warehouses.

Business could collect tax benefits for up to seven years and have five years to qualify (rather than the current seven and seven).

A new tax credit would be created for increasing expenditures for research and development.
The Invest Nebraska Act, providing tax credit for qualifying projects in rural Nebraska, would continue instead of ending in July.

LB 309 – providing tax credits for small businesses – would also be included.

It is possible this package would be rolled into LB 312 that was given Priority Bill status by Senator Connealy. LB 695, proposing to exempt manufacturing machinery and equipment from sales tax, may also be part of the economic development advanced by the Revenue Committee.

Committee Hearings

Committee hearings are essentially done for the session. Most committees will be meeting in Executive Session this week to determine the fate of any bills remaining in committee.

The Appropriations Committee will also be meeting in Executive Session to begin developing their final budget recommendation.

With committee meetings finished for the session, the Legislature will soon begin scheduling all-day floor sessions.

Bills Update

Any bill designated a Priority Bill will also have a “P” attached to its number (for example, LB 123P). The chief sponsor of the bill is listed in parentheses.

The words Support or Oppose after a bill description indicate where the Center for Rural Affairs has taken a position on the bill. If neither word is indicated, the Center has not taken a position at this time.

NOTE: Once a bill is Indefinitely Postponed (killed) or signed into law, we will remove it from the Legislative Update list.

Rural Development

LB 28 (Connealy) – The “Endow Nebraska Act.” The bill would provide a tax credit for a contribution to a qualified charitable organization. The bill sits on Select File. Support

LB 273P (Cunningham) – Would create the “Building Entrepreneurial Communities” program through a grant program for each of the next two years. The bill sits on General File. Last week Sen. Synowiecki filed an amendment that would include urban enterprise zone areas in the definition of economically distressed communities that would qualify for grants under this bill. Support

Agriculture/Livestock

LB 71P (Stuhr) – Would re-authorize the Agricultural Opportunities and Value-Added Partnership Act (formerly the LB 1348 grant program). This program was terminated through budget cuts in 2001 and 2002. This bill would reauthorize the program through 2009. Sen. Stuhr has designated this as her Priority Bill. The bill awaits a vote on Final Reading. It will likely sit for awhile, awaiting decisions on the budget. Support

LB 132 (Cunningham) – This bill modifies the Nebraska Pasteurized Milk Law by providing exemptions to small-scale dairies and processors to the often-expensive bottling and processing requirements, and by allowing dairies and farmers to advertise on-farm sales of non-pasteurized milk (currently, the sale of non-pasteurized milk cannot be advertised). The bill sits on General File. Support

LB 346P (Agriculture Committee) – Would modify several provisions of the Beginning Farmer Tax Credit Act all with the goal to increase utilization of the tax credit. The bill sits on General File. Support

Education/Schools

LB 126P (Raikes) – Would mandate the “assimilation” of Class I schools (elementary-only schools) into K-12 school districts for the 2006-07 school year. The bill awaits action on Select File. Oppose.

LB 129P (Education Committee) – An overhaul of the formula for state aid to schools. The bill is pending in the Education Committee.

Taxes

LB 133 (Connealy) – Would provide a renewable energy sales tax credit, and would provide any generator of electricity from a renewable resource a credit against any sales and use tax. The bill is pending in the Revenue Committee.

LB 309 (Connealy) – Would establish the Small Business Rural Microenterprise Tax Credit. The bill would provide for $2 million worth of tax credits annually for small business (with five or fewer employees or beginning farmers/ranchers) in areas with declining population or low incomes or federal enterprise zones. The bill is pending in the Revenue Committee. Support

LB 404 (Wehrbein) – Would create a tax credit for modernization and expansion of livestock facilities. The goal of the bill is to “attract and retain investment in Nebraska’s livestock industry.” The bill is pending in the Agriculture Committee.

Business Tax Incentives

See the first item above.

Other

LB 208 (Stuthman) – Provides for the appropriation of $1.75 million annually for the next two years to the state’s five federally qualified health clinics to provide services to the uninsured (the clinics are in Omaha, Lincoln and Scottsbluff). The bill is pending in the Appropriations Committee. Support

LB 550 (Jensen) – Requires a plan to be submitted by December 1, 2005, for the financial support of community health centers and emergency medical services in the state. The bill awaits action by the Health and Human Services Committee.

LB 655 (Beutler) – Would create the Task Force on Small Employers Health Plans that would review data and policy ideas concerning health care plans for small employers and recommend policy steps for the state on this issue. On March 15, the Banking, Commerce and Insurance Committee Indefinitely Postponed (killed) the bill. Support.

Center for Rural Affairs - 2005 Annual Gathering Review

--from the desk of Russ Gifford, Director Communications/Development
Center for Rural Affairs

Old friends mixed with many new faces on February 26 for the Center for Rural Affairs’ Annual Gathering. “It is always good to see a great crowd of people who are enthusiastic about the work of the Center,” said Don Reeves of Central City, Nebr. Reeves serves as President of the Center for Rural Affairs Board of Directors.

Perhaps as many as 300 people attended the event, this year held at the Lifelong Learning Center in Norfolk, Nebr. Attendees had many workshop options to choose between, with five tracks of teach-in sessions covering topics in agriculture, conservation, small business, legislation, and agri-tourism.

“People were very interested and excited to hear what was going on,” said Wyatt Fraas, assistant director of the Center’s Rural Opportunities and Stewardship Program. “I heard enthusiasm in the halls.”

Comments on the feedback forms certainly agree. It isn’t always easy to book programs when listeners already know the basics and are there looking for “what’s the next step?” But according to the evaluation forms, it appears we came pretty close!

Many people noted their favorite part of the program was the abundance of information from presenters and the large variety of teach-in topics available. The Center’s Business Fair, featuring displays and goods by regional small businesses, was also a winner.

The evaluation forms show the big hit of the day to be the speakers. The Center’s executive director, Chuck Hassebrook set the tone over lunch putting a sharp focus on “Why Rural Matters.” His evaluation of the current situation and why a healthy rural economy is important to everyone nationwide certainly struck listeners and got them excited about making a difference.

Best selling author Thomas Frank brought the crowd to their feet to end the day, with his straight-from-the-heart assessment of why things have gotten out of control between the political parties. After finishing his talk, Frank took questions and discussed issues with the audience for another half-hour, and then signed books and programs as the Center supporters headed for home.

“The work of the Center is really based on strengthening the things folks are already doing for themselves,” said Board President Reeves. “It is evident from the large turnout and the great response that the Center’s Annual Gathering was a success.”

The Center staff would like to thank everyone for attending and for your support through the year. Put a note on your calendar now to join us at next year’s gathering, tentatively scheduled for February 27, 2006.

Center for Rural Affairs 1 of 21 National Organizations Voicing Opposition to $2 Billion in Community & Economic Development Cuts

March 15, 2005

Washington, DC – A diverse coalition of 21 national organizations representing the nation’s community and economic development practitioners, elected officials and constituency groups declared their overwhelming opposition today to the Administration’s proposal to eliminate 18 federal community and economic development programs. The coalition is also opposing the $2 billion cut in overall funding for federal support for state and local development efforts.

According to a March 15 letter to the bipartisan leadership of the House and Senate, "At a time when nearly every American business and community is confronting intense competition from emerging and developing nations, the federal government should be expanding its resources and assistance for local community and economic development."

"Instead, the Administration is recommending a 34 percent funding cut and more unfunded mandates for our nation’s state and local governments," explained the coalition. "The President’s plan would also significantly diminish and eviscerate the federal role in community development projects such as providing first-time access to clean and drinkable water, affordable housing and community facilities for our nation’s poorer areas and citizens."

"From our perspective as the constituencies at the frontlines of community and economic development, we feel strongly that the current federal investment of $5.7 billion each year is a solid, wise and effective investment in our nation’s local communities. While we understand and recognize the current federal budget climate, we must point out that the proposed funding cut represents less than one-half of a percent of last year’s federal deficit."

"More importantly, the $2 billion reduction in federal investments will result in the loss of at least $18 billion in matching and leveraging investments by the private sector and other governmental and nonprofit programs at the state and local level," the group concluded. "Our nation’s distressed regions, communities and neighborhoods need national leadership, models of innovation and matching funds for locally-led projects and initiatives. Instead, we fear the Administration’s proposal will result in more communities marking time in the land of
lost opportunity."

FOR MORE INFORMATION, CONTACT: MATTHEW CHASE, NATIONAL ASSOCIATION OF DEVELOPMENT ORGANIZATIONS
(202) 624-5947 WORK
(703) 731-0742 CELL

American Planning Association
American Public Works Association
Association for Enterprise Opportunity
Center for Rural Affairs
Coalition of Community Development Financial Institutions
US Conference of Mayors
Council of State Community Development Agencies
Local Initiatives Support Corporation
National Association of Counties
National Association of Development Organizations
National Association of Regional Councils
National Association of RC&D Councils
National Association of Local Housing Finance Agencies
National Community Capital Association
National Community Development Association
National Farmers Union
National Low Income Housing Coalition
National Rural Funders Collaborative
National Rural Housing Coalition
Northeast-Midwest Institute
Rural Community Advancement Program
The Enterprise Foundation

Farm Policy Matters: Farmers to speak on issues affecting rural citizens at Town Hall meetings March 21 and 22.

-- from the desk of Russ Gifford, Director Communications/Development
Center for Rural Affairs

March 15, 2005

The Center for Rural Affairs wants to hear what rural farmers have to say, and they're heading to Minnesota to listen and share ideas.

"The listening sessions are designed to encourage rural Minnesotans to let their voices be heard," says Kim Leval, organizer and Senior Policy Analyst for the Center for Rural Affairs, a private non-profit organization that works on issues that concern rural areas and small towns.

The Center for Rural Affairs will participate in a meeting scheduled for Crookston on Monday evening, March 21 at 7:30 p.m. in the Golden Link Senior Center.

On Tuesday, March 22, the meeting will be in Thief River Falls at the Handy Farms Country Cookin' at 7:30 p.m.

The meetings are sponsored by the Center for Rural Affairs and the Minnesota Agri Women.

"We need to hear from farmers about what is working and not working on their farms and in their communities," says Leval. " How can rural communities and the farm economy be strengthened? What are issues facing young farmers? These meetings help us to define the most pressing policy issues affecting farmers in and around Minnesota," says Leval. The discussion will likely include trade, farm profit, consolidation in agriculture, development of new markets, “Main Street” small business, and other economic development strategies.

"The question and answer session will look at current policy and potential ideas," says Leval, "with items like the Farm Bill, farm and rural development grant programs, and the current budget all on the table."

"The Center works to make certain rural voices are heard when bills and legislation are debated," says Center Executive Director, Chuck Hassebrook. "Proposed changes in law are often pushed forward by the bigger interests in the country. If no one points out the negative consequences for rural America, those measures might pass. We try to be rural America's watchdog," says Hassebrook.

"The success of this effort," says Leval, "will be determined by a broad-based turnout of concerned citizens." The Center encourages the participation of everyone living in rural areas – business owners, farmers, ranchers, educators, clergy, laborers, town officials, school board members, youth, seniors and all other concerned citizens, whether they are currently active in working with the Center or not.

Established over 30 years ago, the Center is a well known agency with broad support in rural America. "We're looking forward to seeing many old friends of the Center on this trip," says Hassebrook, "but we're expecting to see new faces as well. This is everyone's chance to be heard, to tell us what we should be looking out for, and to be part of something big, and something very important to the health of rural America."

Center for Rural Affairs March 14, 2005 NE Legislative Update

-- from the desk of Jon Bailey, Director Rural Research and Analysis Program
Center for Rural Affairs

Legislative Update
March 14, 2005

Priority Bills Set Remainder of Legislative Agenda

Friday, March 11 was the deadline for Senators and Committees to designate their Priority Bills (we had earlier mistakenly stated March 16 was the deadline – sorry for the confusion). With the session nearing the halfway point (that is March 16), the remainder of the session will be devoted primarily to Priority Bills and completing the state budget.

Any bill that is designated a Priority Bill has a better chance of becoming law because the legislative rules give Priority Bills an advance for floor debate. There is, however, no guarantee that Priority Bills will become law or even receive debate before the entire Legislature – they must first be advanced by committees. But the Priority Bills list does give us glimpse to what the Legislature will be devoting their time in the remainder of the session.

If the bills prioritized are advanced by committees, the list contains many controversial issues that will require extensive debate. The subjects of the Priority Bills include: smoking bans, economic development and tax incentives, gay rights, concealed weapons, Medicaid reform, penalties for injuries to unborn children, prairie dogs, motorcycle helmets, school finance and structure, and repealing legislative term limits.

As of March 11, only 23 of the 49 individual Senator Priority Bills had advanced out of committee. Committees will be meeting over the next couple of weeks in Executive sessions to determine the fate of the Priority Bills and other bills that are still locked up in committee. Generally, any bill that does not advance out of committee (Priority Bill or not) in the next couple of weeks is dead for the session.

Appropriation Committee Hearings

The Appropriations Committee continues it's hearings on agency and program budgets. Highlights of hearing dates over the next week include:

March 14 – Higher Education I: state colleges and community colleges

March 15 – Higher Education II: University of Nebraska

March 16 – Departments of Insurance, Labor and Administrative Services and the Accountability and Disclosure Commission

March 17 – State elected officials and their offices, the Public Service Commission and the Legislative Council

After these hearings are completed, the Appropriations Committee will work on it's final budget recommendation to the Legislature.


Bills Update

Any bill designated a Priority Bill will also have a “P” attached to its number (for example, LB 123P). The chief sponsor of the bill is listed in parentheses.

The words Support or Oppose after a bill description indicate where the Center for Rural Affairs has taken a position on the bill. If neither word is indicated, the Center has not taken a position at this time.

NOTE: Once a bill is Indefinitely Postponed (killed) or signed into law, we will remove it from the Legislative Update list.

Rural Development

LB 28 (Connealy) – The “Endow Nebraska Act.” The bill would provide a tax credit for a contribution to a qualified charitable organization. The bill sits on Select File. Support

LB 59 (Mines) – Would change the provision in the Microenterprise Development Act defining “microenterprise” to allow for microenterprise loans up to $35,000 (from $25,000). On March 9, the Governor approved the bill and signed it into law. Support

LB 273P (Cunningham) – Would create the “Building Entrepreneurial Communities” program through a grant program for each of the next two years. The bill sits on General File. Senator Cunningham designated this as his Priority Bill. Support

Agriculture/Livestock

LB 71P (Stuhr) – Would re-authorize the Agricultural Opportunities and Value-Added Partnership Act (formerly the LB 1348 grant program). This program was terminated through budget cuts in 2001 and 2002. This bill would reauthorize the program through 2009. Sen. Stuhr has designated this as her Priority Bill. On March 11, the bill was advanced to Final Reading. During Select File debate, Sen. Mines attached an amendment to the bill that would have deleted individual net worth as a qualifying factor for agricultural project credit under the Nebraska Investment Finance Authority – the current limit is $300,000 in net worth. Sen. Beutler filed an amendment that would have reinstated a $500,000 net worth as a qualifying factor for NIFA credit eligibility. The Mines amendment was primarily intended to allow agricultural projects to qualify for support under the federal New Market Tax Credits. The Mines amendment as amended by the Beutler amendment was adopted. Support

LB 132 (Cunningham) – This bill modifies the Nebraska Pasteurized Milk Law by providing exemptions to small-scale dairies and processors to the often-expensive bottling and processing requirements, and by allowing dairies and farmers to advertise on-farm sales of non-pasteurized milk (currently, the sale of non-pasteurized milk cannot be advertised). The bill sits on General File. Support

LB 346P (Agriculture Committee) – Would modify several provisions of the Beginning Farmer Tax Credit Act all with the goal to increase utilization of the tax credit. The Agriculture Committee has designated this as one of their Priority Bills. The bill sits on General File. Support

Education/Schools

LB 126P (Raikes) – Would mandate the “assimilation” of Class I schools (elementary-only schools) into K-12 school districts for the 2006-07 school year. The bill awaits action on Select File. Oppose.

LB 129P (Education Committee) – An overhaul of the formula for state aid to schools. The bill is pending in the Education Committee. The Education Committee designated this as a Priority Bill.

Taxes

LB 133 (Connealy) – Would provide a renewable energy sales tax credit, and would provide any generator of electricity from a renewable resource a credit against any sales and use tax. The bill is pending in the Revenue Committee.

LB 309 (Connealy) – Would establish the Small Business Rural Microenterprise Tax Credit. The bill would provide for $2 million worth of tax credits annually for small business (with five or fewer employees or beginning farmers/ranchers) in areas with declining population or low incomes or federal enterprise zones. The bill is pending in the Revenue Committee. Support

LB 404 (Wehrbein) – Would create a tax credit for modernization and expansion of livestock facilities. The goal of the bill is to “attract and retain investment in Nebraska’s livestock industry.” The bill is pending in the Agriculture Committee.

Business Tax Incentives

Senator Connealy designated LB 312 as his priority bill. That bill modified LB 775’s job and investment requirements and links LB 775 benefits to wages paid relative to the state’s average weekly wage. From public statements by Sen. Connealy, LB 312 may become the vehicle for a negotiated modification of the state’s business tax incentive laws and include a provision specifically targeted to rural businesses.

Other

LB 208 (Stuthman) – Provides for the appropriation of $1.75 million annually for the next two years to the state’s five federally qualified health clinics to provide services to the uninsured (the clinics are in Omaha, Lincoln and Scottsbluff). The bill is pending in the Appropriations Committee. Support

LB 550 (Jensen) – Requires a plan to be submitted by December 1, 2005, for the financial support of community health centers and emergency medical services in the state. The bill awaits action by the Health and Human Services Committee.

LB 655 (Beutler) – Would create the Task Force on Small Employers Health Plans that would review data and policy ideas concerning health care plans for small employers and recommend policy steps for the state on this issue. The bill is pending in the Banking, Commerce and Insurance Committee. Support.

Chuck Hassebrook, Center for Rural Affairs, Audio Response to IA Rep. Nussle's Payment Limitation Comments

Center for Rural Affairs calls on Rep. Nussle to support independent farmers over mega farm operations

-- from the desk of Russ Gifford, Director Communication & Development
Center for Rural Affairs

March 11, 2005

(Lyons, NE) – Yesterday it was reported that Iowa Rep. Jim Nussle, the Republican chairman of the House Budget Committee, said he’d work to ensure there were no cuts in the commodity support programs.

"This means Mr. Nussle will fight payment limitation reforms to reduce subsidies for mega farms to drive family farms out of business," said Chuck Hassebrook, executive director of the non-profit Center for Rural Affairs.

“If he prevails," said Hassebrook, "the result will be deep cuts in rural development programs that offer a future to rural Iowa; deep cuts in the Value Added Producer Grants Program that supports initiatives by family farmers to earn income from the market; and deep cuts in conservation programs that reward farmers for protecting the soil and water. All so Mr. Nussle can keep the six-figure checks flowing to mega farms to subsidize them while they drive their neighbors out of business. That approach will destroy family farming and further undermine rural communities across Iowa.”

__________________________________________________________

Established in 1973 the Center for Rural Affairs is a private, non-profit organization headquartered in Lyons, Nebraska. The Center works to strengthen family farms and ranches, small businesses, and rural communities through action oriented programs addressing social, economic, and environmental issues.

Center for Rural Affairs March 8, 2005 Nebraska Legislative Update

-- from the desk of Jon M. Bailey
Director Rural Research and Analysis Program
Center for Rural Affairs


Legislative Update
March 8, 2005

Committee Hearings are nearing an end in the Unicameral. Several committees have wrapped up their hearing schedule for the session, and may meet only in Executive Session to decide on the fate of bills. Other committees are wrapping up their hearing schedules. Within the next two weeks, legislative action will move full-time to floor debate and will begin to concentrate on the budget and Priority Bills.

Appropriation Committee Hearings

The Appropriations Committee continues its hearings on agency and program budgets. Highlights of hearings dates over the next week include:

March 9 – Department of Economic Development, Game and Parks, Historical Society and Military Department

March 10 – Transportation Day: Motor Vehicles, Railway Council, Roads

March 11 – Veterans’ Affairs, Workers Compensation, Industrial Relations, Public Employees Retirement, Investment Council

March 14 – Higher Education I: state colleges and community colleges

March 15 – Higher Education II: University of Nebraska

March 16 – Departments of Insurance, Labor and Administrative Services and the Accountability and Disclosure Commission

March 17 – State elected officials and their offices, the Public Service Commission and the Legislative Council

Priority Bills

One of the major events of the next few days will be the designation of Senator and Committee Priority Bills. Senators and Committees must designate Priority Bills prior to March 16. To date, 31 Senators have not designated a Priority Bill. Since a Priority Bill must also advance out of committee, many Senators are likely either waiting for committees to act on bills or determining which bill advanced from committee is worthy of Priority Bill status. A Senator can designate any bill his or her Priority Bill, even one he or she did not sponsor or co-sponsor.

To date, six committees have not designated a Priority Bill and seven committee have only designated one Priority Bills (committees may designate two Priority Bills). Committees must designate a bill within their jurisdiction as a Priority Bill.

Bills Update

Any bill designated a Priority Bill will also have a “P” attached to its number (for example, LB 123P). The chief sponsor of the bill is listed in parentheses.

The words Support or Oppose after a bill description indicate where the Center for Rural Affairs has taken a position on the bill. If neither word is indicated, the Center has not taken a position at this time.

NOTE: Once a bill is Indefinitely Postponed (killed) or signed into law, we will remove it from the Legislative Update list.

Rural Development

LB 28 (Connealy) – The “Endow Nebraska Act.” The bill would provide a tax credit for a contribution to a qualified charitable organization. The bill sits on Select File. Support

LB 59 (Mines) – Would change the provision in the Microenterprise Development Act defining “microenterprise” to allow for microenterprise loans up to $35,000 (from $25,000). On March 3, the bill was approved on Final Reading by a 41-0 vote and now awaits the Governors signature. Support

LB 273 (Cunningham) – Would create the “Building Entrepreneurial Communities” program through a grant program for each of the next two years. The bill sits on General File. Support

Agriculture/Livestock

LB 71P (Stuhr) – Would re-authorize the Agricultural Opportunities and Value-Added Partnership Act (formerly the LB 1348 grant program). This program was terminated through budget cuts in 2001 and 2002. This bill would reauthorize the program through 2009. Sen. Stuhr has designated this as her Priority Bill. The bill sits on Select File. Support

LB 132 (Cunningham) – This bill modifies the Nebraska Pasteurized Milk Law by providing exemptions to small-scale dairies and processors to the often-expensive bottling and processing requirements, and by allowing dairies and farmers to advertise on-farm sales of non-pasteurized milk (currently, the sale of non-pasteurized milk cannot be advertised). The bill sits on General File. Support

LB 346P (Agriculture Committee) – Would modify several provisions of the Beginning Farmer Tax Credit Act all with the goal to increase utilization of the tax credit. The Agriculture Committee has designated this as one of their Priority Bills. The bill sits on General File. Support

Education/Schools

LB 126P (Raikes) – Would mandate the “assimilation” of Class I schools (elementary-only schools) into K-12 school districts for the 2006-07 school year. The bill awaits action on Select File. Oppose.

LB 129 (Education Committee) – An overhaul of the formula for state aid to schools. The bill is pending in the Education Committee.

Taxes

LB 133 (Connealy) – Would provide a renewable energy sales tax credit, and would provide any generator of electricity from a renewable resource a credit against any sales and use tax. The bill is pending in the Revenue Committee.

LB 309 (Connealy) – Would establish the Small Business Rural Microenterprise Tax Credit. The bill would provide for $2 million worth of tax credits annually for small business (with five or fewer employees or beginning farmers/ranchers) in areas with declining population or low incomes or federal enterprise zones. The bill is pending in the Revenue Committee. Support

LB 404 (Wehrbein) – Would create a tax credit for modernization and expansion of livestock facilities. The goal of the bill is to “attract and retain investment in Nebraska’s livestock industry.” The bill is pending in the Agriculture Committee.

Business Tax Incentives

One March 8, the Revenue Committee unanimously voted to kill LB 646, a rework of the state’s business tax incentive law and supported by the state’s big business community. A coalition of big businesses and the Omaha, Lincoln and state Chambers of Commerce had announced last week the hiring of four powerful lobbyists to win passage of LB 646. Sen. Landis, chair of the Revenue Committee, stated that the committee, the Governor’s office and the Appropriations Committee are still working on a package of revisions to the business tax incentive programs (primarily the LB 775 program). Other Revenue Committee members said the vote on LB 646 was done out of a desire to revise current programs rather than start over with a new program. Sen. Brashear, sponsor of LB 646, said floor debate on the package advanced by the Revenue Committee will allow an opportunity to resurrect parts of his bill. Sen. Landis’ LB 312 may be the Revenue Committee’s vehicle to spark that debate. That bill would modify the LB 775 job and investment requirements and would link benefits to wages paid relative to the state’s average weekly wage.

Other

LB 208 (Stuthman) – Provides for the appropriation of $1.75 million annually for the next two years to the state’s five federally qualified health clinics to provide services to the uninsured (the clinics are in Omaha, Lincoln and Scottsbluff). The bill is pending in the Appropriations Committee. Support

LB 550 (Jensen) – Requires a plan to be submitted by December 1, 2005, for the financial support of community health centers and emergency medical services in the state. The bill awaits action by the Health and Human Services Committee.

LB 655 (Beutler) – Would create the Task Force on Small Employers Health Plans that would review data and policy ideas concerning health care plans for small employers and recommend policy steps for the state on this issue. The bill is pending in the Banking, Commerce and Insurance Committee. Support.

Center for Rural Affairs supports House Joint Resolution 23

"Don't re-open the

Canadian border to live cattle trade."

The Center for Rural Affairs has signed on in support of the House Joint Resolution 23 asking members of the US House of Representatives to deny the USDA's plan to permit commodity imports from countries, including Canada, that have documented cases of BSE.

If you would like to include your organization as a co-signer, please contact mailto:kcondon@nfudc.org, 202-314-3106.

The deadline is Close Of Business (Eastern Time), Friday, March 11, 2005.



United States House of Representative
Washington, D.C. 20515

Dear Representative:

We write today representing millions of Americans that do not support the U.S. Department of Agriculture’s (USDA) plan to establish “minimal-risk regions” and permit the importation of commodities from countries with documented cases of bovine spongiform encephalopathy (BSE); including resuming live cattle trade with Canada. We ask for your support and cosponsorship of House Joint Resolution 23, introduced by Representatives Herseth (D-SD) and Cubin (R-WY) to reject USDA’s current plan. It is vital this resolution be passed before USDA’s rule is implemented and we urge you to place consideration of the resolution at the top of the House of Representatives’ priority list.

Now is not the time to rush in reopening the border with Canada, particularly given their most recent announcements of BSE-positive cattle, discovered after the publication of USDA’s plan.

United States must be absolutely sure that the proper steps are being taken to protect the public before the border to Canada is open to cattle and beef products. America produces the safest and most abundant food supply that our consumers have come to depend on. It is unwise to potentially jeopardize the consumer trust instilled in our food supply to prematurely opening our markets to BSE-positive countries.

The United States Senate passed a similar resolution rejecting USDA’s plans by a vote of 52-46. During debate in the Senate, many members remarked on the lack of compliance Canada has demonstrated regarding its ruminant feeding ban; the fact our largest beef export markets remain closed to U.S. beef; and finally, mandatory country-of-origin labeling is not in place. We fully concur with these concerns and strongly believe these issues need to be resolved prior to opening the border to Canada.

On behalf of American consumers and agricultural producers, we again urge you to support and cosponsor H.J. Resolution 23. Please contact Representative Herseth’s office at 225-2801 (Ryan Stroschein) or Representative Cubin’s office at 225-2311 (Allison McGuire) to cosponsor H.J. Resolution 23.

Sincerely,
Americans for Country of Origin Labeling Coalition Members

Center for Rural Affairs signs on with the National Community Capital Association to oppose Bush's Proposed Budget. You can too.

-- from the desk of Jon Bailey, Director Rural Research and Analysis Program,
Center for Rural Affairs

The Center for Rural Affairs has signed its name to the following letter sponsored by the National Community Capital Association. You can show your support for Rural Development by clicking here and adding your name to the letter.


President George W. Bush
The White House
1600 Pennsylvania Avenue
Washington, DC 20500


Dear President Bush:

We, the undersigned, oppose your "Strengthening America's Communities Initiative" that would reduce 18 proven community development programs into a single Department of Commerce block grant strategy. While we share your goal of "creating the conditions for economic growth, robust job opportunities, and livable communities," we strongly disagree that the federal government would best stimulate these conditions with the initiative you propose.

We welcome your decision to shine the spotlight of American public attention on the role that government can and should play in creating an inclusive economic prosperity. We believe deeply that every person in the United States deserves the chance to succeed.

The 18-targeted programs in the Departments of Agriculture, Commerce, Health and Human Services, Housing and Urban Development, and Treasury have produced jobs, affordable housing, and capitalized public-private partnerships benefiting tens of millions of people and communities across America. Together these programs represent a vital investment in our nation’s emerging domestic markets. Eliminating these programs and significantly reducing the aggregate budget by some 30% would weaken those communities and dramatically reduce living conditions for millions of people across the nation.

Like you, we believe that an efficient and prudent use of public investment best serves all Americans. Replacing proven programs with a new, undefined initiative will not meet the goals you have laid out, in our view.

We urge you to withdraw this proposal and restore funding to the 18 programs you propose to eliminate.

Trading Time for Money: Fusion Marketing and REAP

-- from the desk of Russ Gifford, Director of Development
Center for Rural Affairs

If someone offered you the opportunity to show your business and products to hundreds of people who annually attend a highly valued group meeting, would you do it?

What if the only cost was your time?

Michael Levine, author of The Guerilla Marketer's Handbook, talks about the power of "Fusion Marketing." That's when you can use the promotional work of another group to bring your product to the attention of the larger group's customers.

Fusion marketing has lots of advantages. There's a big value in associating your product or service with a "brand" those customers consider a high quality. Fusion marketing also allows you to reach people your advertising might not reach on its own.

Small examples of fusion marketing might be getting the local pizza parlor or restaurant to attach coupons for your goods to every carryout order. If your customers and the customers of the restaurant share like needs or interests, it is a match that helps both groups.

A bigger example of fusion marketing is associating your business with a larger organization that shares the values of your business. The Rural Enterprise Assistance Program (REAP) is a good example of fusion marketing. While we often talk of the benefits that REAP members gain in access to financial loans and business training, there are also promotional prospects!

Many of the small businesses in REAP and in rural areas generally are people with drive, skill and insight – but not a lot of capital for a fancy media blitz or a dedicated marketing campaign. Trade your time and effort for exposure. This is your chance to not only tell people about your product or service, but in some cases to demonstrate it as well.

Could this opportunity be a bonus for your business? Certainly – but if you don't check out REAP now, you'll miss this chance!

Call Peggy Mahaney at the Center for Rural Affairs (402) 687-2100 to find the REAP chapter nearest you. Or visit the REAP website at www.cfra.org.

REAP Selected as Local Partner for Women and Company Microenterprise

-- from the desk of Glennis McClure, Center for Rural Affairs –REAP Women’s Business Center

Local Women Microentrepreneurs in Rural Nebraska to Receive $1,000 Cash Awards

(Lyons, Nebraska: 2/23/05) – The Center for Rural Affairs –REAP Women’s Business Center is proud to announce that it has been selected to be a Local Partner for the Women and Company Microenterprise Boost Program. Through this program, REAP will have an opportunity to award $1,000 cash equity awards to at least five women microentrepreneurs who have worked with REAP in rural Nebraska communities, to help them grow and develop their businesses. The Center for Rural Affairs -REAP is one of only eight Local Partners chosen for this program from throughout the country.

The Women and Company Microenterprise Boost Program is designed to provide low and moderate income women microentrepreneurs the opportunity to achieve greater business success by providing cash awards that will have a measurable impact on the development of their business. Supported by a grant from the Citigroup Foundation, the program will distribute up to seventy-two equity awards to women microentrepreneurs through Local Partners across the country. The program is managed by the Association for Enterprise Opportunity, a national membership association for the microenterprise development industry, representing hundreds of microenterprise development programs across the country. Women and Company, a division of Citigroup that provides access to financial education and resources for women, will work with AEO to implement and promote the program.

“Women and Company is proud to participate in this program because we believe all women should have the opportunity to achieve their financial goals,” said Lisa Caputo, President and CEO, Women and Company. “More and more women are finding they can begin to achieve financial independence by starting their own businesses, and these grants can have a practical and immediate impact as they strive to grow these businesses.”

REAP (Rural Enterprise Assistance Project) consists of four elements including; networking, business management training, credit and technical assistance. Local rural communities form associations or roundtable networking groups which meet for discussing business ideas and problems, networking, ongoing training and reviewing loan applications if a local loan loss reserve is established. REAP is an SBA micro-loan program and operates the only SBA funded Women’s Business Center in Nebraska. REAP staff provide technical assistance, loan packaging assistance and training to rural small business owners.

The recipients of the $1,000 cash equity awards will be announced in March and April, and, in addition to the cash equity award, the recipients will receive technical training and assistance from REAP on growing their business and maximizing their equity award. The awards may be used for essential business development activities such as marketing, technology purchases, website development, inventory, or professional services.

Citigroup (NYSE:C), the preeminent global financial services company has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup’s trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, and Banamex. The Citigroup Foundation focuses its grants primarily in three areas: financial education, educating the next generation, and building communities and entrepreneurs. Additional information may be found at www.citigroup.com.

Women and Company is a membership program from Citigroup designed to help women expand their financial knowledge, and prepare themselves for financial decisions that life’s transitions often bring. Women and Company provides financial education through conference calls, Master Classes, and newsletters; personal attention through toll-free resource lines for questions related to taxes, general finance, care giving, survivorship and real estate issues; and special savings on select Citigroup financial products. Additional information may be found at www.womenandco.com.

The Association for Enterprise Opportunity (AEO) is the national association of community-based organizations that provide entrepreneurial education, access to capital, and support to aspiring and active low-income entrepreneurs. AEO's mission is to support the development of strong and effective U.S. microenterprise programs to assist underserved entrepreneurs in starting, stabilizing, and expanding businesses. To learn more about AEO or microenterprise, please visit our website at www.microenterpriseworks.org.

For more information contact Glennis McClure, Center for Rural Affairs –REAP Women’s Business Center 402.645.3296 or Liz Fogarty, Citigroup, 212-559-0486.

Center for Rural Affairs March 1, 2005 NE Legislative Update

-- from the desk of Jon Bailey, Director Rural Research and Analysis Program
Center for Rural Affairs

Legislative Update
March 1, 2005

State Budget: Forecasting Board Increases Revenue Estimate

The Nebraska State Forecasting Board met on February 25 and possibly changed the entire dynamic of the Legislature’s budget deliberations.

The Forecasting Board increased the projection for state general fund receipts for the current fiscal year by $83 million. Revenue projections for the next fiscal year (2005-06) were set at $90 million more than previous projections. And the projection for the 2006-07 fiscal year is $110 million greater. In total, the Forecasting Board increased revenue projections by $283 million for the three years.

Of course, this will place pressure on the Legislature to increase spending in the state budget being prepared, particularly for those programs that were cut or eliminated in recent years. The Governor and Sen. Pederson, chair of the Appropriations Committee, both cautioned against this temptation.

The Forecasting Board meets again in April.

Appropriation Committee Hearings

The Appropriations Committee continues its hearings on agency and program budgets.

March 1 – Health and Human Services

March 2 – Department of Corrections, State Fire Marshal, Liquor Control Commission, Commission on Law Enforcement and Criminal Justice and Commission on Public Advocacy

March 3 – State Fair, Department of Environmental Quality and Department of Banking and Finance

March 8 – Attorney General, Department of Education, Library Commission and Arts Council

March 9 – Department of Economic Development, Game and Parks, Historical Society and Military Department

March 10 – Transportation Day: Motor Vehicles, Railway Council, Roads

March 11 – Veterans’ Affairs, Workers Compensation, Industrial Relations, Public Employees Retirement, Investment Council

Bills Update

Any bill designated a Priority Bill will also have a “P” attached to its number (for example, LB 123P). The chief sponsor of the bill is listed in parentheses.

The words Support or Oppose after a bill description indicate where the Center for Rural Affairs has taken a position on the bill. If neither word is indicated, the Center has not taken a position at this time.

NOTE: Once a bill is Indefinitely Postponed (killed) or signed into law, we will remove it from the Legislative Update list.

Rural Development

LB 28 (Connealy) – The “Endow Nebraska Act.” The bill would provide a tax credit for a contribution to a qualified charitable organization. The bill sits on Select File. Support

LB 59 (Mines) – Would change the provision in the Microenterprise Development Act defining “microenterprise” to allow for microenterprise loans up to $35,000 (from $25,000). On February 17 the bill was advanced to preparation for Final Reading. Support

LB 273 (Cunningham) – Would create the “Building Entrepreneurial Communities” program through a $1 million grant program for each of the next two years. On March 1, the bill was advanced to General File by the Government, Military and Veterans Affairs Committee on a 6-1 committee vote (Senators Brown, Burling, Fischer, Langemeier, Mines, and Schimek voted “yes”; Senator Wehrbein voted “no”; and Senator Pahls was absent). The Committee amended the bill by reducing the program cost to $200,000. Support

Agriculture/Livestock

LB 71P (Stuhr) – Would re-authorize the Agricultural Opportunities and Value-Added Partnership Act (formerly the LB 1348 grant program). This program was terminated through budget cuts in 2001 and 2002. This bill would reauthorize the program through 2009. On February 24, the bill was advanced to Select File unanimously. There was some concern during debate whether this was an effective program and whether the state budget would afford $1 million (through the companion bill LB 71A). Sen. Stuhr has designated this as her Priority Bill. Support

LB 132 (Cunningham) – This bill modifies the Nebraska Pasteurized Milk Law by providing exemptions to small-scale dairies and processors to the often-expensive bottling and processing requirements, and by allowing dairies and farmers to advertise on-farm sales of non-pasteurized milk (currently, the sale of non-pasteurized milk cannot be advertised). The bill sits on General File. Support

LB 191 (Preister) – Would permit local requirements for environmental protection and financial assurance under the state’s environmental laws (including the Livestock Waste Management Act). On February 25, the bill was Indefinitely Postponed (killed) by the Natural Resources Committee.

LB 346 (Agriculture Committee) – Would modify several provisions of the Beginning Farmer Tax Credit Act all with the goal to increase utilization of the tax credit. The bill sits on General File. Support

Education/Schools

LB 126P (Raikes) – Would mandate the “assimilation” of Class I schools (elementary-only schools) into K-12 school districts for the 2006-07 school year. The bill awaits action on Select File. Oppose.

LB 129 (Education Committee) – An overhaul of the formula for state aid to schools. The bill is pending in the Education Committee.

Taxes

LB 133 (Connealy) – Would provide a renewable energy sales tax credit, and would provide any generator of electricity from a renewable resource a credit against any sales and use tax. The bill is pending in the Revenue Committee.

LB 309 (Connealy) – Would establish the Small Business Rural Microenterprise Tax Credit. The bill would provide for $2 million worth of tax credits annually for small business (with five or fewer employees or beginning farmers/ranchers) in areas with declining population or low incomes or federal enterprise zones. The bill is pending in the Revenue Committee. Support

LB 404 (Wehrbein) – Would create a tax credit for modernization and expansion of livestock facilities. The goal of the bill is to “attract and retain investment in Nebraska’s livestock industry.” The bill is pending in the Agriculture Committee.

Business Tax Incentives

In this year’s session there are numerous bills relating to amending Nebraska’s business tax incentive laws or creating new tax incentive programs. The primary bill is LB 646, the Advantage Nebraska Act, which would create a new, more generous tax incentive program to take the place of LB 775. The Fiscal Note for LB 646 estimated a revenue impact of the new incentive program of $61 million by 2011 (in addition to the ongoing LB 775 revenue impact). LB 646 awaits action in the Revenue Committee.

Other

LB 208 (Stuthman) – Provides for the appropriation of $1.75 million annually for the next two years to the state’s five federally qualified health clinics to provide services to the uninsured (the clinics are in Omaha, Lincoln and Scottsbluff). The bill is scheduled for hearing before the Appropriations Committee on March 1. Support

LB 550 (Jensen) – Requires a plan to be submitted by December 1, 2005, for the financial support of community health centers and emergency medical services in the state. The bill awaits action by the Health and Human Services Committee.

LB 655 (Beutler) – Would create the Task Force on Small Employers Health Plans that would review data and policy ideas concerning health care plans for small employers and recommend policy steps for the state on this issue. The Center for Rural Affairs testified in support of the bill at its public hearing before the Banking, Commerce and Insurance Committee on February 22. Support.