Government, Military and Veterans Affairs Committee
February 13, 2025
Committee Chair: Sen. Rita Sanders | Bills Heard: 3 | Full Transcript (PDF)
LB403: Establishes the Office of Grants within the executive branch
Introduced by: Sen. Ashlei Spivey | Testimony: 0 proponents, 1 opponents, 0 neutral | Read bill text (PDF)
Sen. Spivey seeks to create an Office of Grants to help Nebraska capture more federal funding, but the Platte Institute warns the state is becoming dangerously dependent on federal dollars. The bill would establish a centralized office to coordinate federal and national grant opportunities for state agencies, local governments, and nonprofits. Spivey argued Nebraska ranks 46th nationally in per capita federal grant awards, leaving $1.17 billion on the table annually—money that would pay for the office many times over. She cited her own experience: a $25 million maternal health grant fell through because state bureaucracy prevented timely partnership with HHS. Why it matters: Federal grants account for one-third of Nebraska's budget. With the Trump administration signaling cuts to federal spending, the state faces competing pressures: maximize available funding or prepare for potential reductions. What they're saying: Spivey: "You have to invest money to make money." The office would be a strategic quarterback, not a grant writer, creating efficiencies across siloed state agencies. Nicole Fox, Platte Institute: Federal dollars come with matching requirements and mandates that can incur costs. "Before bringing more federal dollars into the state, we would advise that instead, the state considers contingency planning for current federal dollars." By the numbers: Nebraska receives $1,287 per capita in federal grants vs. $1,871 national average. Potential net increase: $1.17 billion. What's next: No vote taken. Committee members requested additional data from states with similar offices showing pre- and post-establishment grant amounts.
Committee sentiment: Supportive: Sen. John Cavanaugh, Sen. Dunixi Guereca, Sen. Megan Hunt Unclear: Sen. Dan Lonowski, Sen. Dave Wordekemper
Sentiment estimated from questions and comments — not stated positions.
LB560: Grants creative districts priority access to innovative tourism grants
Introduced by: Sen. George Dungan | Testimony: 8 proponents, 0 opponents, 2 neutral | Read bill text (PDF)
Creative districts are revitalizing Nebraska communities—and Sen. Dungan wants to give them marketing money to reach more visitors. LB560 allocates an additional $500,000 from existing cash funds to innovative tourism grants, with priority consideration for cities and villages with creative districts. Dungan signaled he'll remove the priority language if needed, keeping only the funding boost. Why it matters: Nebraska ranks in the bottom fifth nationally in tourism revenue. Creative districts—which blend arts, culture, and economic development—are proven economic engines. Benson saw commercial property values jump 223% since 2011. Norfolk created 31 new businesses and 104 jobs in four years. These districts attract young families and out-of-state visitors, generating tax revenue. What they're saying: Mike Markey, Nebraska Arts Council: "Creative districts foster a sense of identity and community pride." Last year, participating districts reported 35% increase in sales tax revenue and 51% increase in lodging taxes. Kara Weander-Gaster, Norfolk: "I am helping build a community where the families of those workers want to stay and build community." By the numbers: 34 certified creative districts statewide; 19 more pending. Benson's First Fridays attract 3,500 summer visitors. Holdrege's inaugural Iron Horse Arts Festival drew attendees from Minneapolis, Kansas, Chicago, Denver, and Kansas City. What's next: No vote taken. Dungan will bring amendment to remove prioritization language while preserving $500,000 funding allocation.
Committee sentiment: Supportive: Sen. Dunixi Guereca, Sen. Megan Hunt, Sen. Dan Lonowski, Sen. John Cavanaugh
Sentiment estimated from questions and comments — not stated positions.
LB346: Terminates or reassigns 46 boards, commissions, committees, and councils
Introduced by: Sen. John Arch | Testimony: 3 proponents, 5 opponents, 1 neutral | Read bill text (PDF)
Gov. Pillen's efficiency push would eliminate 46 boards and commissions, but preservationists, child welfare advocates, and labor groups are fighting to save key entities. LB346 targets Nebraska's 225+ legislatively created boards and commissions, many created reactively decades ago and no longer serving original purposes. The bill would eliminate over 400 appointments currently managed by the Governor's Office. Why it matters: Government bloat wastes time and resources. But some boards serve critical functions: the Children's Commission coordinates child welfare reform across three branches of government with 250 subject-matter experts; the Capitol Commission oversees a $225 million national historic landmark; the Worker Training Board has guided grant-making for 29 years. What they're saying: Kenny Zoeller, Governor's Policy Research Office: "Governor Pillen has charged our team with finding ways to cut and reduce the total size and scope of state government." Bob Ripley, former Capitol administrator: Changing qualifications from "licensed architect AND 5 years historic preservation" to "OR" would "leave our landmark Capitol vulnerable to nonprofessional leadership." Sage Leis, Children's Commission: "We simply cannot replace those 250 people and replace the work that they do with the 22 people on the commission." By the numbers: 225+ boards and commissions; 400+ vacancies; 1,300+ gubernatorial appointments. What's next: No vote taken. Arch indicated Governor's Office will be flexible, already agreeing to remove Motor Vehicle Licensing Board and working with stakeholders on other entities. Arch will revise bill with amendments before advancing.
Committee sentiment: Skeptical: Sen. John Cavanaugh Unclear: Sen. Dave Wordekemper, Sen. Dunixi Guereca
Sentiment estimated from questions and comments — not stated positions.
Session Notes
Committee Chair Sanders opened hearing at 1:31 p.m. Committee members introduced themselves: Sen. Megan Hunt (District 8), Sen. Dunixi Guereca (District 7), Sen. John Cavanaugh (District 9), Sen. Dan Lonowski (District 33), Sen. Dave Wordekemper (District 15), Sen. Dan McKeon (District 41). Sen. Bob Andersen (vice chair) was absent. Legal counsel Dick Clark and committee clerk Julie Condon assisted. Pages Ruby Kinzie and Kim Dykstra were introduced. Committee used 3-minute light system for all testifiers. Chair Sanders reminded testifiers to exit room after testimony due to back-to-back hearings. Written position comments submitted online by 8 a.m. deadline were included in record. Three bills were heard: LB403, LB560, and LB346. No votes were taken on any bills during the hearing.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.