Appropriations Committee
March 17, 2025
Committee Chair: Sen. Rob Clements | Bills Heard: 4 | Full Transcript (PDF)
LB86: Appropriation for dam and watershed maintenance funding
Introduced by: Sen. Myron Dorn | Testimony: 1 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Nebraska seeks $500K for aging dam repairs as infrastructure crumbles past design life. The Appropriations Committee heard testimony on LB86, which would fund critical maintenance for dams and watersheds managed by Natural Resource Districts across the state. The Nemaha NRD alone operates over 500 dams, with many exceeding their 50-year design life by two decades.
Why it matters: Deferred maintenance on these structures threatens irrigation, flood control, recreation, and groundwater recharge across Nebraska. Failures could damage county roads, bridges, and private property. Federal funding built the dams but provides no maintenance support, leaving NRDs stretched thin.
What they're saying: - Kyle Hauschild, Nemaha NRD: "We have over $10 million worth of work that need to be done just on the structures over 50 years old" against a $4 million annual budget. - New slip-line repair technology costs ~$60,000 per structure but provides a 75-year warranty, extending infrastructure life significantly. - Sen. Dover: "I think it's really needed."
By the numbers: Nemaha NRD maintains 380 of 518 dams in its district. Routine maintenance averages $5,500 per structure annually. The oldest structures date to 1953—now 72 years old.
What's next: No vote was taken. The bill received 3 proponent comments for the record and no opposition.
Committee sentiment: Supportive: Sen. Dover, Sen. Spivey
Sentiment estimated from questions and comments — not stated positions.
LB580: Reappropriation of Lead Service Line cash fund
Introduced by: Sen. Machaela Cavanaugh | Testimony: 1 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Omaha's lead water crisis demands $3.5M reappropriation as federal deadline looms. The Appropriations Committee heard testimony on LB580, which would extend the Lead Service Line cash Fund deadline to allow MUD to complete replacements already under contract. An estimated $3.5 million in allocated funds will go unspent by the June 30, 2025 deadline due to the grant's reimbursement structure.
Why it matters: Lead exposure in drinking water causes irreversible developmental damage in children and is linked to cancer. Nebraska ranks fifth nationally in pediatric cancer rates. Lead service lines concentrate in disadvantaged north and south Omaha neighborhoods, creating an equity crisis. The federal government mandates removal by 2027 but provided no direct funding to MUD, a standalone utility.
What they're saying: - Rick Kubat, MUD: "The state of Nebraska receives a significant financial windfall" from Omaha's sewer project—$13 million annually in sales tax, up from $2.7 million in 2010. - Sen. Spivey: Emphasized that reappropriation avoids rate hikes for already-struggling low-income residents in her district. - Sen. Armendariz: Questioned regressive tax policy and noted her own MUD bill jumped $50-90/month for sewer work.
By the numbers: 15,000 lead lines at $8,000 each = $157 million total. MUD replaced 270 lines in 2024, targeting 651 in 2025, then 1,032 and 1,490 annually. State appropriated $10 million; federal funds ($4M) remain uncertain.
What's next: No vote was taken. The bill received 5 proponent comments and 1 opponent comment for the record.
Committee sentiment: Supportive: Sen. Spivey Skeptical: Sen. Armendariz, Sen. Dover Unclear: Sen. Clements
Sentiment estimated from questions and comments — not stated positions.
LB673: Redirect Perkins Canal funding to water projects and deficit
Introduced by: Sen. Jane Raybould | Testimony: 0 proponents, 5 opponents, 0 neutral | Read bill text (PDF)
Senator Raybould challenges Perkins Canal funding, citing budget crisis and statewide water emergency. The Appropriations Committee heard dueling visions for Nebraska's water future as Sen. Jane Raybould introduced LB673, proposing to redirect $500 million from the Perkins County Canal Project to address a $2.3-2.6 billion statewide water infrastructure crisis and the state's budget deficit.
Why it matters: Nebraska faces competing crises: a self-inflicted budget deficit from accelerated income tax cuts ($423M lost revenue by FY 2025-26), and a water emergency with communities requesting $2.6 billion for aging infrastructure, contamination remediation, and lead service line replacement. Raybould argues the Perkins Canal is years from construction anyway, while communities need help now.
What they're saying: - Sen. Raybould: "We can build the reservoir...we can walk and chew gum at the same time." Cited Colorado attorney letter showing Nebraska lacks permits, final drawings, and wetlands mitigation plan. - Matthew Manning, DNR: "Signals of non-committal do not help Nebraska's cause." Colorado monitors Nebraska's commitment and adjusts legal strategy accordingly. - Devin Brundage, Central Nebraska Public Power: "This is the best plan." Emphasized Lake McConaughy requires South Platte supplemental flows; without canal, more water must come from already-stressed North Platte. - Kent Miller, Twin Platte NRD: "The canal is the only option." Without it, Colorado has no obligation to release water under the 1923 compact.
By the numbers: Statewide water requests: $2.6 billion. Perkins Canal estimated benefits: $2 billion. State revenue loss from tax cuts: $423 million by FY 2025-26. Colorado Front Range population growth: 750,000+ per decade.
What's next: No vote was taken. LB673 received 2 proponent comments and 2 opponent comments for the record.
Committee sentiment: Opposed: Sen. Strommen, Sen. Dorn Unclear: Sen. Spivey, Sen. Armendariz, Sen. Clements, Sen. Cavanaugh
Sentiment estimated from questions and comments — not stated positions.
LB674: Redirect Perkins Canal funding ($250M each to deficit and water projects)
Introduced by: Sen. Jane Raybould | Testimony: 0 proponents, 3 opponents, 0 neutral | Read bill text (PDF)
Compromise Perkins Canal bill proposes $250M split between deficit and water projects. LB674, introduced by Sen. Raybould based on Sen. McKinney's suggestion, offers a middle path: redirecting $250 million from the Perkins Canal Project to address the state budget deficit and $250 million to statewide water infrastructure needs, while maintaining substantial canal funding.
Why it matters: The compromise attempts to balance three competing crises—the budget deficit, statewide water infrastructure emergency ($2.6B in requests), and the Perkins Canal's long-term importance—without fully defunding any single priority.
What they're saying: - Sen. Raybould: "My ask was a big one: $500 million...but I don't want to jeopardize the Perkins Canal." The $250M-$250M split leaves "plenty of money to start components of the project." - Opposition testimony (same as LB673): Any reduction signals lack of commitment and undermines negotiations with Colorado.
By the numbers: $250M to deficit + $250M to water projects = $500M redirected, leaving substantial Perkins Canal funding intact.
What's next: No vote was taken. LB674 received 2 proponent comments and 3 opponent comments for the record.
Committee sentiment: Unclear: Sen. Spivey
Sentiment estimated from questions and comments — not stated positions.
Session Notes
The committee also heard budget testimony from two state agencies: (1) Department of Natural Resources (Agency 29), where interim director Jesse Bradley expressed support for the governor's budget and discussed the proposed merger with the Department of Environment and Energy (pending LB317). A key issue emerged regarding Environmental Trust Fund transfers: Sen. Cavanaugh raised constitutional concerns about direct transfers rather than the grant process used for over a decade. Bradley indicated the department would proceed with whatever method the Legislature approves. (2) Department of Environment and Energy (Agency 84), where interim director Jesse Bradley (same person) testified in support of the governor's budget. Sen. Cavanaugh asked about the Lead Service Line Fund transfer and its impact on climate action work in disadvantaged communities. Bradley noted the funding sunsets June 30, 2025, and approximately $2M of the $10M has been reimbursed so far. For the record: DNR received 3 proponent comments, 0 opponents, 1 neutral. NDEE received 1 proponent comment, 0 opponents, 1 neutral. No votes were taken on agency budgets.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.