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NRD says LB701 funds still needed
The property and occupation taxes in LB701 are needed to fund projects in water short years, said Daniel L. Smith, general manager of the Middle Republican Natural Resources District in Curtis.
Without LB701, decreasing water allocations may be the only option, he said.
LB701, passed by the Nebraska Legislature in 2007, gave NRDs in the Basin the authority to levy property and occupation taxes, to pay back bonds that would be used to purchase water from irrigators to send to Kansas, among other projects. The purchased water would have been used to meet compliance with the Republican River Compact, where water from the Republican River is allocated between Nebraska, Kansas and Colorado.
Nine landowners in the basin challenged the property tax provision as unconstitutional in a lawsuit and a District Court Judge in Lancaster County agreed. The case is now on appeal.
Tighter water regulations were part of the discussions at the Republican River Compact Administration meeting in Lincoln.
"Several news stories following the Republican River Compact Administration meeting in Lincoln referred to changes in regulations that would be needed in the future," Smith said in a press release. "While this statement is true, it should not be considered to be anything more than the normal response to a changing situation.
"Over the last 10 years we have constantly discussed new regulations or new programs that would allow irrigation to remain economically viable the Republican basin. The primary emphasis of this new discussion is a result of the challenge to the bonding authority of LB 701. The NRDs have Integrated Management Plans that have been agreed to with the state of Nebraska. These plans will take us well into the future. The problem is that those plans rely on the authority of LB 701 to fund actions in the event of another water short year. We don't know when that will happen but we can be assured that in the future it will happen again.
"Just as the last water short years were a result of an extended drought, we will have another situation where drought impacts the supplies of the basin. Without the ability to fund projects, large scale projects, regulation may be our only option.
"2005 and 2006 were water short years and were the lowest state allocations in the history of the compact. 2007 was a wet year and Nebraska underused its allocation. 2008 will be very similar and we have excellent supplies in the system for 2009, but there will be a year when we are short. If we have some credits built up or have programs in place to lease water or augment supplies, one water short year may not be an issue. We must be prepared for the situation where a response to shortages is ready and available for use in case we see a situation similar to the recent drought.
"Nebraska has proposed some new methods to be used in ground water accounting. In general these will be to our benefit but they have not yet been agreed to by the Compact Administration. We know what the numbers might look like if nothing changes with the current accounting.Those were brought forward in December 2006 at a meeting in McCook. Using the revised accounting, should it be approved, those numbers will not have to be that severe. With the state we will look at all accounting methods and all situations in the near future. Kansas has questioned Nebraska's ability to comply with the compact because of the challenge to LB 701. While I don't agree with Kansas on most things, they have made a claim that must be considered. The ability to fund programs or the enactment of regulations are the only options for the NRDs. Without the authority of LB 701, I am sure the impacts to the basin will be less with the taxes or fees that may be imposed than with the regulations that will be needed without LB 701. An economic study from last year proved that. In this district agriculture fuels all other activities. If agriculture is effected adversely, all segments of our economy will be effected.
"This district and the other NRDs have always been interested in the economic viability of the basin. We are bound to consider all options and must make the decisions on which are the most feasible given multiple situations. We need a consistent reliable set of rules and regulations for the routine or normal years and the ability to react to water short years will the minimum amount of changes. Getting ahead of the problem by building small credits each year is the most effective way to deal with that situation. That is where we are now but without LB 701 we will need to consider other actions. "
The regular meeting of the MRNRD will be Tuesday, 7:30 p.m. At the Community Center in Curtis. Smith will update board directors on the appeal status of LB 701 and of the Republican River Compact Administration meeting.