Heineman's fee plan faces criticism

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Like all agency directors that report directly to Gov. Dave Heineman, the Department of Agriculture director didn't complain about the budget cuts his boss proposed.

Greg Ibach gave the standard response in a letter to the Legislature's Appropriations Committee: "My agency recognizes we must again share in the steps necessary to overcome this current fiscal situation."

But that didn't stop others from complaining at a Friday budget hearing.

A half-dozen people, most representing industries that pay fees for specific state inspection services, asked the committee to not rob their cash funds to help with tax-funded services.

If money is taken from the Bureau of Animal Industry, the state would likely not be able to respond to emergency outbreaks of disease in the future, said Larry Sitzman, ag department director in the 1990s.

"If you take the cash funds, you don't have the inspectors to go out and certify and inspect," he said.

The fees were developed to pay for specific programs. And the department will likely have to raise fees in some programs to offset the loss of money in reserve funds, he and others said.

"We believe the ag programs are being hit hard, and within a year many of our fees will have to be increased to keep the integrity of the programs," said Tom Kohmetscher, a board member of the Agribusiness Association, whose members pay fees and use the state inspection services.

"We do not believe that cash funds should be swept into the general funds and penalize these frugal programs," he said.

The governor recommends taking about $1.4 million over the next year and a half years from ag department cash funds that run specific programs such as testing scales and helping farmers plant buffer strips that prevent runoff of chemicals into streams.

Heineman has also recommended taking about $2.3 million from independent commodity boards that use producer fees for promotion, marketing and research. Producers have also objected to taking these cash funds to help out the tax-funded programs.

A bill (LB11) with 14 senators as co-signers would not allow taking cash funds from many ag department programs and independent commodity board funds.

Reach Nancy Hicks at 473-7250 or nhicks@journalstar.com.

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