LINCOLN — Workforce development has taken center stage as the key issue for Nebraska lawmakers in the upcoming 2024 legislative session. With the state grappling with a labor shortage, policymakers, business leaders, and other stakeholders are emphasizing the need to recruit and retain more workers as a top priority.
To address this pressing concern, Governor Jim Pillen established a working group in August to explore solutions that the state can implement. Jennifer Creager, representing the Greater Omaha Chamber, participated in the group and identified four areas of improvement: housing, child care, education, and incentives.
Legislation from the working group has yet to be formalized, but the Governor’s Office is actively working on drafting an executive report based on the group’s discussions, according to State Sen. Lou Ann Linehan.
The shortage of workers has taken a toll on businesses across Nebraska for the past three to five years, resulting in measures such as reduced operating hours and services, says Creager. This labor crunch has been exacerbated by the retirement of a significant portion of Nebraska’s baby boomers, with a lack of younger individuals to fill their roles. The impact of the COVID-19 pandemic has further heightened these challenges.
While workforce development has been a topic of discussion in previous legislative sessions, stakeholders are now focusing on exploring more innovative solutions rather than solely relying on increased funding. One specific example highlighted by Sen. Linehan is incentivizing businesses to support employees with child care, as this has proven effective in attracting young workers with children.
Tax reform has also remained a prominent concern among lawmakers. Nebraska Treasurer Tom Briese, who began addressing workforce issues as a legislator and continues to contribute in a limited capacity after his appointment as treasurer, expects multiple tax bills to be introduced in the 2024 session. These proposals may stem from Governor Pillen’s working group. Briese underscores that taxes can dissuade individuals from choosing to live in Nebraska, making it challenging for businesses to recruit new employees. He recommends allocating excess revenue to support relief efforts.
One legislative bill that could assist in alleviating the state’s workforce problems is LB 16, introduced by Briese in 2023. It aims to remove barriers to employment by simplifying the licensing process for experienced workers from outside Nebraska and establishing clearer guidelines for criminal offenses that disqualify individuals from obtaining licenses. Senator Danielle Conrad of Lincoln intends to adopt the bill in 2024, given its progress in committee and the widespread consensus on prioritizing workforce development.
The stage appears to be set for LB 16 to receive early debate, thanks to its positive positioning and broad support among lawmakers. Conrad believes that licensing reform is a vital step in removing existing obstacles for individuals seeking employment in Nebraska.
As the 2024 legislative session approaches, the focus on workforce development remains paramount. Lawmakers, alongside stakeholders from various sectors, are committed to finding innovative solutions to attract and retain workers. By addressing key issues related to housing, child care, education, incentives, and tax reform, Nebraska aims to overcome its labor challenges and foster a vibrant and thriving workforce.
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Nebraska Treasurer Tom Briese, who started on the committee as a lawmaker and remained there in a limited role after being appointed treasurer, said another issue that has remained a focus among lawmakers is tax reform. He said he expects multiple tax bills to be proposed in the 2024 session, some of which may stem from Pillen’s working group.
Taxes are a deterrent for people considering living in Nebraska, Briese said, which makes it more difficult for businesses to recruit new employees. He advocated for the state to contribute excess revenue to support relief efforts.
In 2023, Briese introduced Legislative Bill 16, which includes multiple proposals that could help ease the state’s workforce problems. Among other things, the bill would make it easier for the state’s licensing boards to issue licenses to experienced workers outside of Nebraska, and would clarify what criminal offenses would exclude someone from getting a license.
With Briese now out of the Legislature, Sen. Danielle Conrad of Lincoln said she’s looking to adopt the bill in 2024. She said licensing reform is a key way to remove existing barriers to employment for people looking for work in Nebraska.
LB 16 was voted out of its committee in 2023 and is currently waiting for its first round of floor debate. Conrad said given this and the fact that most other lawmakers appear to agree that workforce development should be a top focus of 2024, she is hoping the bill sees that debate early.
It’s really well positioned for early debate, Conrad said.
