LINCOLN, Neb. — Nebraska Gov. Jim Pillen supports a legislative bill to accelerate highway projects, which could benefit a proposed U.S. Highway 81 expressway between Yankton and Norfolk, Nebraska.
District 40 State Sen. Barry DeKay of Niobrara sees the bill, introduced as LB 706, as providing an opportunity to create the divided four-lane highway in northeast Nebraska.
Currently, the 57-mile stretch of U.S. 81 from Yankton to Norfolk consists of a patchwork of two- and four-lane highway through winding, hilly terrain. The highway has raised safety concerns, particularly with the occurrence of fatal accidents in recent years.
DeKay previously introduced LB 464, which would require the Nebraska Department of Transportation (NDOT) to plan, design and purchase rights-of-way for US 81.
However, a state senator has maintained a weeks-long filibuster to block a bill banning gender-affirming procedures for minors. The move has stymied floor action in the unicameral.
“Things are still backlogged because of the filibuster. Just about every bill is going to a cloture vote,” DeKay told the Press & Dakotan. “My bill remains alive but is still in committee. It doesn’t look like it will reach the floor this session.”
However, lawmakers have taken moves that provide hope for the U.S. 81 expressway.
District 22 Sen. Mike Moser of Lincoln introduced LB 706, which authorizes the issuance of highway bonds under the Nebraska Highway Bond Act. DeKay has signed as a co-sponsor of the bill, introduced in the Revenue Committee. If passed, it contains an emergency clause for its immediate enactment.
As a show of his support, Pillen testified for LB 706. The hearing receive favorable testimony from nearly a dozen persons of various agencies and organizations. No one testified in opposition, and one person spoke as a neutral party.
Pillen’s office provided some of the remarks in a press release, with speakers referring to the Build Nebraska Act (BNA).
“I believe deeply that this is an important piece of legislation that will allow us to compete and grow Nebraska in an economically viable way,” the governor said.
“As currently amended, LB 706 provides a pathway for the expansion and reconstruction of the state’s highway system and ensures necessary projects are planned and completed on a much faster timetable.”
Vicki Kramer, NDOT director, told the Revenue and Finance Committee that BNA funds were instrumental in initiating construction of essential highway projects, notably US-275, US-30 and US-385.
Bonding would provide the “financing tool” to accelerate the completion of such projects, resulting in maximum benefit to communities and the state, she said.
With the amendment, LB 706 would authorize NDOT to issue up to $450 million in bonds with up to $35 million in annual service debt for a period of not more than 19 years.
It requires bonds be issued prior to June 30, 2029, and paid off no later than June 30, 2042. To ensure there is a stable revenue stream for the terms of the bonds, the bill would extend BNA funding until 2042. Currently, funding for the BNA will sunset in 2033.
During his testimony, Pillen noted the bill would also address safety issues that exist for travelers on two-lane highways.
“It is a legitimate safety hazard, when you consider truck traffic, farm vehicles and the other types of heavy equipment that traverse those roadways,” he said. “Improvements are necessary to make sure they are safe for everyone.”
That sentiment was echoed by Nebraska Chamber President Bryan Slone, who also testified in support of LB 706.
“Our highways often are the lifeblood of our communities,” he said. “We need quality roadways to ensure our goods are safely and efficiently transported from farm or manufacturer to market and that our kids and families can safely get to school and work.”
As part of the ongoing process, LB 706 has become part of a larger bill, DeKay said.
“Theoretically, we could pass LB 706 as a stand-alone bill, but because of the filibuster and it being non-controversial, LB 706 has been rolled into LB 727 along with 18 other bills,” he said.
DeKay sees the process, known as omnibus bills, as the best chance of any progress on the Yankton-Norfolk expressway, sought for decades.
“The Transportation Committee’s bill packages have already been crafted, so I see it as unlikely LB 454 will be discussed on the floor this year,” he said.
DeKay explained possible benefits of the omnibus bills — and possible hazards.
“We sometimes call (them) ‘Christmas tree’ bills because you have a bill with many ornaments — smaller bills — attached to it,” he said. “A concern is if you attach too many ornaments to a so-called Christmas tree bill, you risk it tipping over and failing.”
The 57-mile stretch between Norfolk and Yankton was not listed as part of the original Nebraska expressway system. The stretch has raised safety concerns as part of a transcontinental highway popular with truckers and the operators of large farm and recreational vehicles.
The road looks to become even busier with the completion of the so-called STAR WARS project. The plans call for a new lodge and convention center at Niobrara State Park and an upgraded Weigand Marina, both in Knox County.
In anticipation of the heavier traffic, DeKay’s bill includes signage for Lewis and Clark Lake and the new Knox County amenities. In addition, his bill would complete the US Highway 81 expressway in the Columbus-York area.
The Nebraska Legislature set up an expressway system in 1988, but Highway 81 from York to Columbus wasn’t completed and the nearly 60-mile stretch from Yankton to Norfolk wasn’t even listed on the plan.
“The purpose of the expressway system is to connect urban centers with a population of 15,000 residents or more to the National System of Interstate and Defense Highways,” he said. “Norfolk has 25,000 residents, and Yankton has more than 15,000, with thousands more who live just west of Yankton along Lewis and Clark Lake.”
LB 727 doesn’t directly allocate money for U.S. 81 but would pave the way, DeKay said.
“LB 727 would not benefit Norfolk and Yankton as it is currently written. It deals with the original Nebraska expressway system,” he said. “It would provide for bonding to help quicken the pace for funding the projects as opposed to waiting for years for money under the’“pay as you go’ method. Keep in mind that bonding hasn’t been done for highway projects in Nebraska.”
Nebraska has successfully completed other major highway projects with an alternative financing method, DeKay said.
“In 2019, the Nebraska Legislature passed a bill that allowed the state to pay off the cost of the Lincoln South Beltway project over eight years, rather than all at once — a financing mechanism which I would say is fairly comparable to bonding, which the state does not use,” he said.
“The Beltway project is now more or less complete and open to traffic, which I would consider a success. LB 727 would expand on this idea and permit bonding for a good chunk of the remaining uncomplete portions of the original Nebraska expressway system.”
As Nebraska highway projects are completed, the door opens for other programs such as the U.S. 81 expressway, he said.
“I’m thinking of LB 706 as a sort of test case. If it is successful and the original Nebraska expressway system is completed, we can then start contemplating expanding that system by adding Highway 81 from Norfolk to Yankton,” he said.
While other avenues are currently pursued, LB 454 remains in committee and could be considered this session or even next year without a need for reintroduction, DeKay said.
“It will just sit in committee until either I can get five votes to advance it to the floor, there are five votes to indefinitely postpone (kill) the bill in committee or the bill just sits until the 2024 session ends, following which the bill will be indefinitely postponed and killed per the rules,” he said.
“This means, if there is no action in 2023 or 2024, I would have to reintroduce the bill in 2025 to revive the idea.”
The STAR WARS project provides a major impetus to create the divided four-lane highway in northeast Nebraska, DeKay said. Major stakeholders recently met to further work on the recreation plans, he added.
“My understanding is construction should start to break ground at the Weigand Marina along the Lewis and Clark Lake sometime towards the end of the year,” he said.
The Nebraska Legislature reconvenes today (Tuesday).
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