Baker sees progress in cuts

Friday, March 17, 2006

Significant progress has been made in reducing costs of Medicaid and other public assistance programs, Sen. Tom Baker said in his conference call Thursday morning at the McCook Chamber of Commerce.

More than 10,000 people have left public assistance programs, he said, but some programs are still operating inefficiently. More intervention programs are needed to reduce welfare roles and break the cycle, he said, such as prenatal classes and education requirements.

"It's a touchy situation," he said. Ideally, the government shouldn't have to be placed in this role, he said, adding that strengthening family values and the role of religious organizations could help the situation.

The state has had to pick up costs from the government, he said, with Health and Human Services asking for a 10 percent increase in its budget.

Tremendous improvement has also been seen this past week regarding irrigation districts, Baker said. He mentioned Bostwick Irrigation district's acceptance of the state's offer to buy water, and that the Riverside and Frenchman Valley districts, both of Culbertson, have also been talking with the state in selling water rights.

Bostwick will receive approximately $2.7 million from the state's general fund for their water, he said. The Middle Republican Natural Resource District has committed $50,000 to help buy water from the two other districts who are in negotiations with the state.

LB 971, which is attached to 1226 and 933, will address surcharges on irrigated areas and pumped water, he said.

Long term solutions to the water problem may come in the form of retiring some surface water projects, or to retire irrigation districts, he said. There's not a good chance of getting reservoirs full, he said, so work will continue with irrigation boards.

"There's not one simple solution out there," he said.

According to Baker, consumers should expect a 20 cent increase in ethanol prices this summer. Price competition between states such as Texas, Arkansas and Louisiana that have mandated the use of ethanol have pushed the prices higher, he said, and to mandate ethanol use in Nebraska at this time would not be wise.

LB 1208 from the Education committee, which would provide for distance education services, has been advanced to general file with amendments. This bill would have tremendous benefits and does not have much opposition, Baker said.

The bill, introduced by Senators Baker, Raikes, Pederson and Stuhr, proposes to use a portion of lottery funds for distance education equipment and incentives for districts and ESU's to exchange courses.

This would enable the western part of the state to transport classes to the eastern part, such as vocational agriculture, and could eventually include K-6 grades.

The Task Force investigating Hergert will be meeting on Tuesday, and will issue a press release of their findings later that day. Hundreds of interviews and depositions will be reviewed at the task force meeting, he said, and added that Sen. Ernie Chambers has vowed to file a motion of impeachment concerning the issue.

County Commissioner Leigh Hoyt asked if counties would have to "foot the bill" concerning LB 1222. Baker answered that cost reimbursements are included in the bill. LB 1222 would require each public safety answering point to serve at least two counties by July 2007 unless the county is larger than 8,000.

"LB 1222 is not a threat to anyone," Baker said, who added that the next "wave of the future" would be voice-over Internet, another issue that will have be addressed when it comes to enhanced 911 systems.

Baker also said that LB 966, which involves income tax credit refunds for long term healthcare insurance, is "moving right along" and that he fully supports the bill. It has advanced to select file, and would help take the strain off of Medicare, he said.

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