Main budget adjustment bill advances after cloture, more cuts to come

After two days of debate, senators advanced the first of two budget adjustment bills March 10 following a successful cloture vote.

LB1071, the main budget adjustment bill introduced by Speaker John Arch of La Vista on behalf of Gov. Jim Pillen, would provide, change and eliminate provisions related to appropriations for state expenses for the biennium ending June 30, 2027.

An Appropriations Committee amendment would close all but approximately $125 million of a $646 million budget gap through a variety of cuts to general fund appropriations, sweeps from state agency cash funds and reappropriation of existing General Fund dollars.

Sen. Robert Clements of Elmwood, chairperson of the committee, said the remaining shortfall would need to be addressed during the second round of debate through additional cuts. He added that passage of several revenue-generating bills that are working their way through the Legislature also could help balance the budget.

Clements said the committee would be meeting daily to determine additional cuts.

During first-round debate March 10, senators rejected three minor adjustments to LB1071, including an amendment offered by Lincoln Sen. Danielle Conrad to remove $75,000 in funding to the Nebraska Secretary of State’s Office in FY2025-26 and $175,000 in FY2026-27.

Conrad said Secretary of State Bob Evnen has used his office to testify in favor of voter suppression efforts and recently provided Nebraska voter registration information to the federal government in service of those efforts.

Sen. Kathleen Kauth of Omaha opposed the amendment, saying Evnen’s transmission of voter data was done in compliance with a lawful request from the federal government and is an example of the secretary of state fulfilling the duties of his office.

“The implication that the secretary of state is acting improperly is, I think, more wishful thinking and general irritation with voter integrity measures coming from the progressives in our body,” she said.

Clements also opposed Conrad’s amendment, saying the provisions it would strike give the secretary of state authority to spend cash on hand to cover “huge” increases in health insurance premiums for employees of that office.

Conrad countered that while she appreciates that Secretary of State Evnen is dealing with “exorbitant” health care costs for office employees, everyday Nebraskans are facing the same challenges without help from lawmakers.

“If we’re asking … businesses and families in Nebraska to do more with less to cover skyrocketing health insurance costs, then the secretary of state can do the same,” she said.

The amendment failed 8-29.

A second Conrad amendment that would state legislative intent to prohibit cuts to the state’s child care subsidy program was rejected on a vote of 12-31.

Also considered was an amendment from Bellevue Sen. Victor Rountree that would undo a proposed cut included in the committee amendment of $450,000 annually over the next two fiscal years from the state’s tobacco cessation efforts.

Rountree said the Tobacco Prevention and Control program, which was established with Tobacco Master Settlement Agreement funds, has been a “wise investment” in reducing smoking in Nebraska, especially among the state’s youth.

Lincoln Sen Jane Raybould supported the amendment, saying funding for smoking cessation is an important public policy priority.

“Lots of people want to quit,” she said, “they just don’t have the resources or the mechanisms.”

Senators rejected the Rountree amendment 12-28.

After eight hours of discussion, Arch offered a motion to invoke cloture, which ceases debate and forces a vote on the bill. The motion was adopted on a vote of 35-12.

Lawmakers then adopted the committee amendment 34-12, which included the amended provisions of the following bills:
• LB858, introduced by Omaha Sen. John Fredrickson, which would appropriate $500,000 in FY2026-27 from the Health Care Cash Fund to the state Department of Health and Human Services for aid to federally qualified health centers;
• LB1070, sponsored by Sen. Robert Dover of Norfolk, which would appropriate $6 million from the Affordable Housing Trust Fund in FY2026-27 to be disbursed to approved projects under the Nebraska Affordable Housing Act;
• LB1140, introduced by Omaha Sen. Ashlei Spivey, which would earmark $500,000 of existing appropriated general funds in FY2026-27 within the state Department of Education Vocational Rehabilitation program for a multi-trade pre-apprenticeship pilot program serving young adults in a metropolitan class city;
• LB1190, sponsored by Conrad, which would amend an earmark to expand eligibility for aid for mentorship programs for nonprofit organizations administered by the state Department of Economic Development; and
• LB1248, introduced by Dover, which would appropriate $38 million in federal funds previously appropriated to the state Department of Water, Energy and Environment for a grant to a first class city for wastewater treatment facilities, with certification of matching funds by an eligible applicant.

Following adoption of the committee amendment, LB1071 advanced to select file on a 32-14 vote.

Senators then began debate on LB1072, the second bill in the committee budget adjustment package, which continued when the Legislature convened March 11.