Nebraska schools are keeping a close eye on a state budget proposal for a 5% increase in funding for special education, a growing expense that has forced them to divert money away from other priorities.

School districts welcome the increase after years of flat-lined funding, but say the proposal still fails to cover the increased costs of federally mandated services for disabled students, as well as those with mental and behavioral health problems.

Nebraska reimburses about 50 cents for every dollar that local districts spend on special education, a rate that has declined since the 1970s.  Chase County superintendent Brad Schoeppey in Imperial says the increase isn’t where it needs to be, but “obviously, it’s better than nothing at all.”

Chase County Schools spend about $719,000 per year on special education, out of a $9 million budget. The money helps pay for contract services, including a teacher for a visually impaired student and speech therapists. The cost of those services has risen for the district of 588 students.

The Gordon-Rushville Public Schools have also struggled to cover the treatment costs for students with mental and behavioral health problems. Superintendent Merrell Nelsen says the district has to pay to drive students from Gordon to treatment centers in Scottsbluff – a 130-mile, one-way trip.

Nelsen says the district spent 11% of its $8.8 million budget on special-education services last year. The district has 720 students, and 15 percent qualify for special-needs services.

Nelson says that “at the end of the day, you have a responsibility to the kids. You have to do what’s right for them, and that is going to involve spending money.”

Special-education funding is a major part of the overall school-funding debate, but it’s particularly important for smaller schools.

The funding formula that distributes general aid to schools is based on land values and student enrollment, which favors larger, urban schools that have lower land values and larger student populations.

Smaller districts with valuable, taxable farm land and declining student numbers receive less – but special-education funding goes to all schools that have special-needs students.

Sen. Kate Sullivan, chairwoman of the Legislature’s Education Committee, hopes to advance a bill that gives districts more flexibility to grow their own budgets but says lawmakers will need to be cautious as they decide how much to spend in general state-aid to schools because the economy remains fragile.

Speaker of the Legislature Greg Adams, the previous Education Committee chairman, says schools have become more aggressive in seeking special education funding after cutbacks in other types of state aid and that the governor’s proposed increase “gives them a little relief.”

Creighton University’s January monthly survey of supply managers in 9 Mid-west and Plains states indicates the regional economy continues to grow…but not much.

Survey head and economist Ernie Goss says the survey’s overall index rose above the growth-neutral point of 50 for just the second time in the past 5 months to just a tepid 53.2. Goss says it continues a pattern reflecting a sluggish economy but not a recession.

There are recessions overseas, and Goss says that hurt exports from the region, with the new export orders index falling almost 5 points to 45.3. Manufacturing, in turn, slowed down…keeping the employment index just a fraction under 50.

The prices-paid index, which tracks inflation at the wholesale level through the cost of raw materials and supplies, jumped over 8 points to 71.8…which Goss says is enough to catch his attention, but not worry him too much yet.

The supply managers don’t seem that worried, either. They predicted their input prices to go up about 6% for the year…roughly what they said last July…and the confidence index…how they see the regional economy 6 month from now rose nearly 7 points to 56.6.

The Creighton survey offers numbers for each state as well as for the 9-state Mid-America region.

Nebraska’s overall index got above 50 for just the second time in 5 months, but just at 50.5 and with employment at 46.4. Goss puts most of the blame downturns for durable goods producers with the reduced exports.

South Dakota’s index was on the growth side for the second straight month…rising 1.6 points to 53.5 while employment came in at a positive 58.4. Goss predicts that growth will continue to be positive, but tepid, for the first half of the year.

DEADWOOD, S.D. (AP) — The Deadwood City Commission is delaying the enforcement of an ordinance that limits downtown public transportation to the city’s trolley and taxis for six months.

The Black Hills Pioneer reports that the ordinance would prohibit hotel and convention center properties from shuttling visitors to and from their hotels to other locations within the Deadwood city limits.

Deadwood Mayor Francis Toscana says the city will set up a task force to solve the issue.

Local taxi cab owners have questioned the ordinance and want to ensure that the hotel shuttle services are held to the same guidelines and restrictions they’re required to follow.

Deadwood City Commissioner Gary Todd said he’d like to see shuttles limited to those who hold convention center liquor licenses.

RAPID CITY, S.D. (AP) — A South Dakota National Guard unit is heading to Afghanistan for the second time.

Family and friends filled a high school gym in Rapid City Saturday to salute 124 soldiers of the Guard’s 235th Military Police Company. They will deploy to Fort Bliss in Texas before shipping off to Bagram Airfield in Afghanistan for nine months.

The unit will guard prisoners and patrol the perimeter of the base.

Governor Dennis Daugaard (DOO’-gahrd), the keynote speaker, thanked the soldiers for their service and the families for their support. He told the unit it’s important to communicate with family members while overseas “because they love you.”

Specialist Brandon Schwans tells the Rapid City Journal that the unit is looking forward to the mission and says they have “trained a lot for this.”

RAPID CITY, S.D. (AP) — A man accused in a fatal shooting in a Rapid City motel parking lot has been formally indicted.

Thirty-year-old Charles Birdshead faces several charges including manslaughter in the January 7th death of Eustacio Marrufo, which authorities say happened during a botched drug deal.

Birdshead also faces a rape charge involving a child, after police said they uncovered evidence during their investigation.

Birdshead is being held without bond. A date has not been set for him to enter pleas.

    Farmers and ranchers from across Nebraska braved snow-packed roads and interstate closings to testify Wednesday before the Unicameral’s Judiciary Committee on a bill to tighten the state’s eminent domain laws.

Most of the packed audience and witnesses supported the bill as a way to protect unwilling landowners from having their land taken for the Keystone XL oil pipeline.

Repeated stories were heard about strong-arm and scare tactics by pipeline developer TransCanada over the past couple years to get landowners to sign easements for the pipeline…even though the company still doesn’t have the state and federal permits needed for the project.

The bill being discussed…LB-152…requires those permits to be approved before any company could start or even threaten to start eminent domain proceedings. It also allows landowners to sue for damages and attorney fees if companies violate that or other restrictions.

Nebraska Farmers Union President John Hansen said he’s never seen such an outpouring of concern from farmers in his 22 years as head of the group, calling it “appalling” the way landowners have been squeezed and coerced by TransCanada.

A lawyer for TransCanada testified againt the bill, saying the company works hard to have good landowner relations and that the bill would actually make the eminent domain process worse for everyone by compressing the time frame and the time available to educate landowners about the process and projects.

Representatives of cities, public utilities, railroads, and road contractors also testified against it…saying the bill would could increase their costs and delay projects. A BNSF Railway lobbyist said the railroad has used condemnation only once in 10 years in Nebraska.

      A retired Nebraska National Guard IT manager from Lincoln and a Milford father and his 2 young sons will be featured this spring on the labels of cans of Frank’s sauerkraut.

60-year old Mike Marlar and Jeremy, Jonathan, and Connor Kohout were picked in Frank’s “Search for Sweetness” campaign in Nebraska and Iowa…which had people send in photos of them posing with a can of sauerkraut.

Company marketing manager Katie Smith says the idea was to see how Frank’s sauerkraut makes life sweet and how it connects to the everyday lifestyles of consumers.

Marlar…whose label has him posing like Popeye with a can of Frank’s on his bicep…says the contest was fun and that he grew up eating Frank’s, preferring it over just about every other kind of sauerkraut he’s ever tried.

Kohout posed balancing a can on an accordion and his sons..ages 3 and 6…playing a set of drums in the background. He says he really does love Frank’s , especially with his Czech heritage, but is getting his head wrapped around the idea of his face being on the can.

The Marlar and Kohouts labels are being printed next week, and Smith says cans featuring their pictures should hit shelves in early April.