Session Review: Appropriations

Lawmakers approved the state’s two-year $11 billion budget package this session. The package closed a more than $600 million projected shortfall and represents a 1% increase in state expenditures over the next two fiscal years.

Among the measures passed was LB261, introduced by Speaker John Arch of La Vista at the request of Gov. Jim Pillen, which is the mainline budget bill. The measure contains funding for state operations and aid programs and 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, introduced by Sen. Jason Prokop of Lincoln, which appropriates an additional $5 million in general funds for each of the next two fiscal years to aid community colleges for dual enrollment purposes;
• LB505, sponsored 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;
• 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; and
• LB621, introduced by Sen. Robert Dover of Norfolk, which appropriates $500,000 in FY2026-27 from the Health Care Cash Fund to DHHS for expanded health care access to the Nebraska Medicine Midtown Health Center.

LB261 passed on a vote of 37-11 and took effect immediately.

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.

LB264, 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 $680 million in the state’s so-called “rainy day fund.”

Additional bills approved as part of the budget package include:
• LB260, which adjusts 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 took effect immediately.