Baker: State could face $800 million shortfall
Sen. Tom Baker said this morning that the state could be looking at an $800 million deficit.
During his Legislative call this morning, Baker told the McCook Chamber of Commerce Legislative Committee that early figures on corporate and individual income tax receipts are down considerably.
Because of the shortfall, Baker said the focus of this year's 90-day legislative session has changed focus from previous years.
There are 199 bills sitting in the Revenue Committee, Baker said. Those bills deal with issues ranging from increasing the sales tax base to giving counties the right to collect sales tax.
Baker fielded questions from 14 individuals during the hour long discussion.
Moderator Larry Eisenmenger questioned Baker about LB598, which would organize a study group to look at ending term-limits.
In the past, Baker has expressed his concern over the term limit issue, explaining that 22 of the 49 senators would be forced to leave office in 2004 if the term limit issue is carried out.
Baker said LB598 would allow for state wide public input meetings to determine if the revocation of term limits is an option. Those meetings would be conducted throughout the summer and the issue could be placed on the ballot in 2004. Another bill, introduced by Sen. Edward Schrock of Elm Creek, would extend he term limits from eight years to 12 years.
Baker also told committee members that K-12 educators should be prepared for a 10 percent cut and assured them there would be no raise in legislator pay.
Gary Bieganski, President of Community Hospital of McCook, expressed concerns over further Medicaid costs and possible copayment for Medicaid recipients. He also asked Baker to take his concerns over taxing medical services back to his colleagues.
"Medicare won't pay the taxes, Medicaid won't pay the taxes and that's 75 percent of our business. That would leave the remaining 25 percent of the people with that burden," Bieganski said. And, private insurance companies will come back and say "if they're not going to pay it, we're not going to pay it," he explained to Baker.
Baker said he understood the problem and hoped that medical services would be exempted from the taxes.
Those attending the meeting included Ike Brown, Jerry Vap, Jerda Garey, Dixie Lorenz, Raleigh Haas, Judge Jack Hendricks, Marvin and Dixie Lorentz, Angus Garey, Larry Eisenmenger, Duane Tappe, Kathy Kugler, Gary Bieganski, Marie Owen and Gloria Masoner.
The McCook Chamber of Commerce will be hosting weekly legislative calls from Sen. Baker on Thursdays, 8 a.m. The public is invited to attend.