Premium ContentMouse over Home then click on Premium Content for information.LINCOLN — Gov. Dave Heineman compared the University of Nebraska to a wealthy "special interest group" with its hand out for taxpayer dollars while the state's citizens want tax relief.
Heineman, in an interview Friday, said that his top priority remains passage of his proposed tax-cut package and that the university needs to reprioritize its spending or use private dollars from its foundation to finance the $91 million in new construction spending it is requesting from the state.
The university is seeking funds to expand nursing classroom space in Lincoln and Kearney, do design work on a new veterinary laboratory in Lincoln, and build a $370 million cancer research tower at the Nebraska Medical Center in Omaha.
"Here's what the average Nebraskan tells me: 'The university has over a billion dollars in their foundation, and they can't afford $400 million to $500 million to afford that (cancer tower) project?' " Heineman said. "They're offended, and they have a right to be offended," he told The World-Herald.
Ron Withem, an NU spokesman, said the university has worked well with the governor in the past and hopes to do so again this year. Withem said, however, that 30 "average Nebraskans" were among those testifying Thursday in support of NU's spending priorities before the budget-writing Appropriations Committee.
"There were nurses, students, medical professionals and cattle producers telling legislators that they should invest in economic development and health initiatives at the university," he said. "We think the average Nebraskans did speak yesterday."
Withem added that the state's largest business groups, including the Greater Omaha Chamber of Commerce, also support the NU requests.
Several members of the Appropriations Committee have voiced support for the university project, although they doubted NU would get the entire $91 million. Much, they said, would depend on the health of the state economy and competing demands for state dollars, including the governor's tax-cut proposal.
Heineman said Thursday the university has people who are "paid the big bucks" to prioritize NU's spending and said that is how the money could be found for the four projects.
"I'm willing to look at all of those projects, but the taxpayers of this state deserve tax relief first," he said.
NU President J.B. Milliken stressed last week it is important that state government commit a full $50 million this year to building the cancer center on the NU Medical Center campus.
He said that although private donors have pledged a "significant" amount of money, a state contribution would signal to other potential donors that the $370 million project would become a reality, he said.
State funds also are needed upfront to enable UNMC and Nebraska Medical Center officials to develop their financing plan, which includes borrowing $120 million, Milliken told the NU Board of Regents. He declined to say specifically how much has been donated privately.
Heineman rejected suggestions by some senators that he had threatened to block passage of all legislation until the Legislature advanced his $130 million-a-year tax-cut package. Senators said he made the comment during a speech Thursday before the Nebraska Chamber of Commerce and Industry.
"What I was emphasizing is that the highest priority in this legislative session should be tax relief for middle-class Nebraskans," Heineman said. "Before we increase spending for any special-interest project, we ought to pass tax relief first."
No recordings were made of the speech. The only state senator who attended the chamber luncheon, Jim Smith of Papillion, backed up the governor's version of events. Smith said Heineman said only what he has been saying since his State of the State address: that tax cuts ought to be the highest priority.
It's still early in the Legislature's budget process. Whether or not the state can afford tax cuts or spending on items such as the university priorities will become clearer after Feb. 24, when the state economic forecasting board issues an updated revenue projection.
Said Heineman: "I wish the first bill that reaches my desk is tax relief for middle-class Nebraskans."
Contact the writer: 402-473-9584, paul.hammel@owh.com
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