Proposal for Infrastructure Review Task Force Advances Discussion on Nebraska Transportation Funding

A legislative hearing on LB 558 brought officials, industry groups and local chambers to the Revenue Committee to discuss creating an Infrastructure Review Task Force charged with reviewing Nebraska’s transportation needs, revenue options and policy responses.

Senator Brad Von Gillern, sponsor of LB 558, said the proposed task force would analyze the Nebraska Department of Transportation’s (NDOT) needs assessment, investigate funding sources and engage stakeholders to consider transportation decisions through a lens of safety and economic development. The sponsor told the committee he expected the work to produce better‑informed legislative options rather than immediate tax changes.

Vikki Kramer, director of the Nebraska Department of Transportation, testified in support. Kramer told senators NDOT’s needs study shows an estimated $17 billion in needs over the next 20 years and described an approximate $150 million annual gap between current revenue and the funding required to preserve and expand the state’s system. Kramer explained that the Build Nebraska Act currently dedicates one‑fourth of one percent of general sales tax to highway projects and yields about $100 million annually for NDOT (which the department estimates buys roughly 11 miles of new expressway per $100 million). Kramer told the committee that federal funding reimburses roughly 70% of NDOT’s contracted construction program and that the Federal Highway Trust Fund faces its own revenue challenges. Kramer said states are pursuing diverse revenue strategies in response to stagnant motor fuel tax receipts and rising construction costs.

Supporters included Senator Sue Mosier, construction trade groups such as the Associated General Contractors (represented by Katie Wilson), engineering trade groups (ACEC Nebraska, represented by Jeannie McClure) and chambers of commerce. They urged lawmakers to put a broad menu of options on the table — including mileage‑based fees, increases to fuel or sales tax streams dedicated to roads, tolling, and public‑private partnerships — and to build political consensus around any revenue proposals. Senator Mosier warned of the political difficulty of raising taxes but said prior interim studies helped generate the political will that created the Build Nebraska Act.

Committee members discussed scope and representation for the task force; several said they wanted geographic diversity and clarity about whether rail and other modes would be included. Senators discussed tolls and public‑private partnerships as potential tools; proponents noted different states have used varied mixes of revenue. The hearing closed without a committee vote on LB 558; sponsors and agency staff said the task force, if created, would aim to deliver a report and suggested draft legislative options for the legislature to consider.

The department and supporters asked the committee to weigh long‑term solutions rather than one‑off fixes, noting a mix of maintenance needs and capacity projects. The task force would be expected to compile options and, if the legislature chooses, craft enabling legislation for funding changes.