Appropriations Committee
March 5, 2025
Committee Chair: Sen. Rob Clements | Bills Heard: 2 | Full Transcript (PDF)
LB254: Rural Workforce Housing Fund Appropriation
Introduced by: Sen. Bob Hallstrom | Testimony: 10 proponents, 1 opponents, 0 neutral | Read bill text (PDF)
Appropriations Committee advances rural housing bill with overwhelming support, citing strong return on investment. LB254 would inject $25 million annually into the Rural Workforce Housing Fund, a program that has produced nearly 1,400 units from just $17 million in prior state funding.
Why it matters: Rural Nebraska employers say housing shortages—not job availability—are the primary brake on economic growth and worker recruitment. The program addresses a market failure where construction costs exceed appraised values, preventing private development.
What they're saying: - Proponents: Each state dollar leverages $6-$8 in private investment. Current demand is $28.6 million for only $12.5 million available. Aurora's program consumed just $14,000 of a $3.5 million revolving fund while producing 57 housing units and adding $15 million to the tax base. "This isn't about subsidizing development, it's about addressing a market failure," testified Edward Dunn of West Central Nebraska Development District. - Opponents: One online comment opposed; no one testified against the bill.
By the numbers: 19 applications requesting $28.6 million for current $12.5 million allocation. Initial $7 million investment generated over $100 million in total impact with matching funds. Rural counties experiencing 30% vacant homes, with only 2% available for sale or rent.
What's next: No vote was taken. Committee received 16 proponent comments, 1 opponent comment, and 0 neutral comments for the record.
Committee sentiment: Supportive: Sen. Spivey, Sen. Dover, Sen. Dorn, Sen. Lippincott Unclear: Sen. Strommen
Sentiment estimated from questions and comments — not stated positions.
LB88: Main Street Revitalization Funding
Introduced by: Sen. Myron Dorn | Testimony: 10 proponents, 2 opponents, 0 neutral | Read bill text (PDF)
Committee hears bill to fund Main Street revitalization programs across Nebraska. LB88 seeks $500,000 annually for the Department of Economic Development to contract with Main Street organizations providing downtown revitalization services.
Why it matters: Rural and small-town downtowns face ongoing challenges with vacant storefronts and deteriorating historic buildings. Main Street programs offer technical expertise and community coordination to reverse decline and attract new businesses.
What they're saying: - Proponents: Sen. Dover praised the program's effectiveness in Norfolk and other communities, noting it "dresses up a main street" and creates walkable downtown spaces. Sen. Dorn cited Beatrice's success improving downtown frontage through Main Street grants. - Opponents: Two online comments opposed; no one testified against the bill.
By the numbers: Approximately 16-17 Main Street programs operate statewide. Funding request: $500,000 per fiscal year.
What's next: No vote was taken. Committee received 10 proponent comments, 2 opponent comments, and 0 neutral comments for the record.
Committee sentiment: Supportive: Sen. Dover Unclear: Sen. Spivey
Sentiment estimated from questions and comments — not stated positions.
Session Notes
Committee Chair Rob Clements opened with procedural instructions for testifiers. Weather conditions affected attendance; several proponents for LB88 were unable to attend due to poor weather. Committee clerk Cori Bierbaum, fiscal analyst Eric Kasik, and page Demet Gedik (UNL student) assisted. Sen. Hallstrom made personal note that his sister Betty's birthday was being observed 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.