Session Review: Appropriations
Lawmakers made adjustments to the state’s two-year budget this session, closing a projected budget shortfall of more than $646 million.
The Appropriations Committee’s budget adjustment package reduced 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.
The passage of several revenue-generating proposals closed the remaining gap.
LB1071 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.
Included in the measure are provisions of the following bills:
• LB858, introduced by Omaha Sen. John Fredrickson, which appropriates $500,000 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 appropriates $6 million from the Affordable Housing Trust Fund to be disbursed to approved projects under the Nebraska Affordable Housing Act;
• LB1140, introduced by Omaha Sen. Ashlei Spivey, which earmarks $500,000 of existing appropriated general funds in 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 Sen. Danielle Conrad of Lincoln, which amends 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 appropriates $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.
The bill passed 35-13 and took effect immediately.
Also introduced by Arch at the request of the governor, LB1072 transfers $152 million from the Cash Reserve Fund and makes a number of changes to other fund transfers, agency powers and duties and a variety of programs.
Among the proposals included in LB1072 are:
• LB844, introduced by Sen. Victor Rountree of Bellevue, which expands grant eligibility under the Site and Building Development Fund to authorize a grant of $100,000 to a nonprofit organization for building rehabilitation for purposes of food distribution in certain counties;
• LB862, sponsored by Lincoln Sen. Jason Prokop, which extends intent language under the Nebraska Reading Improvement Act for regional coaches and job-embedded training relating to evidence-based reading instruction;
• LB992, introduced by Dover, which creates the Nebraska Technology Infrastructure Cash Fund and requires that documentation related to software, informational technology hardware and a planning report be included with agency budget requests;
• LB1229, sponsored by Sidney Sen. Paul Strommen, which requires the state Department of Health and Human Services to designate a unique budget subprogram for purposes of federal law for the Rural Health Transformation Program; and
• LB1231, also introduced by Strommen, which amends the Animal Damage Control Cash Fund to include intent to appropriate funds for the animal damage control program and amends the Panhandle Improvement Project Cash Fund to authorize transfers to the Animal Damage Control Cash Fund.
LB1072 also passed on a 35-13 vote and took effect immediately.
Other measures
Lawmakers passed a bill as part of the budget adjustment package that provides for payment of a series of claims against the state and agency write-offs.
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.
The measure passed 48-0 and took effect immediately.
A proposal heard by the Appropriations Committee to implement a Money Follows the Person Program for the Division of Medicaid and Long-Term Care within the state Department of Health and Human Services was advanced to general file.
LB1143, sponsored by Gering Sen. Brian Hardin, then was amended into LB867, a Health and Human Services Committee omnibus bill, which passed this session.
An effort to use an Appropriations Committee proposal as a vehicle to increase salaries for various constitutional officers stalled this session.
LB1210 was introduced by Sen. Robert Clements of Elmwood as a shell bill for the committee. He offered a general file amendment to replace the proposal with an amended version of LB345.
That proposal, introduced last year by the Government, Military and Veterans Affairs Committee and advanced to general file, would have increased the salaries of seven offices established in the state constitution.
The amendment would have increased salaries as outlined below:
• governor, from $105,000 to $130,000;
• lieutenant governor, from $75,000 to $95,000;
• attorney general, from $95,000 to $120,000;
• secretary of state, from 85,000 to $110,000;
• state treasurer, from $85,000 to $110,000;
• state auditor, from $85,000 to $110,000; and
• public service commissioners, from $75,000 to $85,000.
Lawmakers rejected the Clements amendment 21-18. Twenty-five votes were needed. LB1210 then was advanced to select file on a 34-3 vote, but was not scheduled for further debate this session.
