State budget package approved
Lawmakers gave final approval May 15 to six components of the state’s $11 billion, two-year budget package.
The Appropriations Committee’s budget package represents a 0.9% increase in state expenditures over the next two fiscal years and closes a roughly $260 million projected deficit.
Among the measures passed was LB261, the mainline budget bill that contains funding for state aid and operations. The measure includes provisions of the following bills:
• LB55, sponsored by Adams Sen. Myron Dorn, which appropriates $1.5 million from the Hospital Quality Assurance and Access Assessment Fund to the state Department of Health and Human Services for reimbursement to certain mental health providers;
• LB173, sponsored by Lincoln Sen. Jason Prokop, which appropriates $5 million in general funds for each of the next two fiscal years to aid community colleges for dual enrollment purposes;
• LB505, introduced by Prokop, which appropriates $10 million in TANF funds in FY2025-26 for grants to nonprofits to provide food assistance;
• LB580, introduced by Omaha Sen. Machaela Cavanaugh, which reappropriates funds in the Lead Service Line Cash Fund for grants to metropolitan utilities districts for lead service line replacements; and
• LB581, also sponsored by Cavanaugh, which appropriates $500,000 in FY2025-26 from the Health Care Cash Fund for grants to a nonprofit entity for construction costs related to a new facility.
LB261 passed on a vote of 37-11.
Also approved was LB264, which provides for fund transfers, changes provisions governing the administration and use of funds and repeals previous expansions to aid and incentive programs.
The measure, passed on a 35-13 vote, includes $216 million in transfers to the state’s General Fund from state agency cash funds and $147 million from the Cash Reserve Fund. The bill leaves approximately $684 million in the state’s so-called “rainy day fund.”
Also approved were:
• LB260, which makes adjustments to appropriations in the current fiscal year, on a 41-7 vote;
• LB262, which appropriates funds for the $12,000 annual salaries of state senators, on a 40-9 vote;
• LB263, which appropriates funds for salaries of constitutional officers, on a 42-7 vote; and
• LB534, which provides for payment of claims against the state, on a 49-0 vote.
All of the measures take effect immediately.
The governor has five calendar days, excluding Sunday, to sign, veto or line-item veto appropriations within the budget bills.
If budget bills are returned to the Legislature with line-item vetoes, the Appropriations Committee must report on the fiscal impact of the vetoes within one day and may offer a motion to override any or all of them. Thirty votes are required to override a veto.
