Budget adjustment package approved
Lawmakers passed three measures April 1 containing the Appropriations Committee’s mid-biennium budget adjustments and payment authorization for claims against the state.
The state budget is structured on a two-year basis, with the budget enacted during legislative sessions held in odd-numbered years. Adjustments are made during sessions held in even-numbered years.
Before the 2026 session began in January, senators were facing a $471.5 million budget shortfall. That hole got deeper following a February meeting of the Nebraska Economic Forecasting Advisory Board, which lowered revenue projections by another $175 million.
The Appropriations Committee’s budget adjustment package reduces that shortfall to $37 million through a variety of cuts to general fund appropriations, sweeps from state agency cash funds and reappropriation of existing general fund dollars.
Several revenue-generating proposals making their way through the legislative process are expected to close the remaining gap.
Lawmakers first voted 45-0 to suspend a legislative rule requiring budget bills to be passed by the 50th day in a 60-day session. Arch said the “extensive debate” needed to approve the budget this year required more time, leading to the bills being considered for final passage on Day 53 of the legislative session.
LB1071, passed 35-13, is the main budget adjustment bill introduced by Speaker John Arch of La Vista on behalf of Gov. Jim Pillen. The measure provides, changes and eliminates provisions related to appropriations for state expenses for the biennium ending June 30, 2027.
Also introduced by Arch at the request of the governor, LB1072 provides for and changes transfers from the Cash Reserve Fund and makes a number of changes to other fund transfers, agency powers and duties and a variety of programs.
The measure also was approved 35-13.
Finally, lawmakers passed a bill that provides for payment of claims against the state on a 48-0 vote. LB1133, sponsored by Business and Labor Committee chairperson Sen. Kathleen Kauth of Omaha, approves $695,507 in settled claims; six Workers’ Compensation Court claims totaling $1.17 million and a variety of state agency write-offs totaling $2.84 million.
All three 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.
