Nebraska Lawmakers Clash Over Bill to Balance Budget and Close Shortfall

LINCOLN, Neb. (WOWT) — As the legislative session enters its final four weeks, Nebraska’s lawmakers face a significant challenge with limited time to find a solution.

On Tuesday, local legislators discussed and moved forward with the proposal by voting on it. LB 261, A funding proposal to address a significant financial deficit.

Senators have just a few weeks left to solve a $262 million dollar budget shortfall and balance the state’s budget.

They debated about how to fund the deficit, considering either reducing programs to cut costs or using emergency funds for the budget.

"Any budget we propose that ends up having a negative effect on programs such as veterans court, DUI court, and mental health court," stated Senator George Dungan from Lincoln.

Is harming not only the individuals in these programs—the veterans and people we care for within our state whom we aim to support—but also the state as a whole.

"I think we have significant potential to reduce our expenditures rather than increasing taxes," stated Senator Christy Armendariz from Omaha.

Throughout the years, we've experienced expansion of project scopes, with bills being approved for amounts like $2 million, $1.5 million, and even $5 million, which strain the general funds and increase future commitments. Therefore, we're making significant efforts to reduce these expenditures.

An amendment that included moving money from the proposed Perkins County canal led to numerous exchanges back and forth.

We ought to allocate $100 million from the Perkins Canal funding, which incidentally has been delayed for 15 to 19 years because of legal issues," stated Senator Jane Raybould from Lincoln. "This approach seems far wiser than dipping into our cash reserves and withdrawing $100 million from them.

Nevertheless, it failed to garner the necessary backing for passage.

"No one can seriously claim now that we should deduct $135 million from the canal project, and later when we require those funds, suggest to the legislature that they provide an additional $135 million, essentially adding this amount to the general budget," contended Senator Mike Jacobson from North Platte.

Is anyone really convinced this will actually occur?

The same outcome awaited a proposition to reallocate tens of millions from the new state prison .

“Nearly a billion dollars will be spent on a prison that will be overcrowded from the moment it opens,” stated Omaha Senator Terrell McKinney.

What do you think about this as a return on investment? What do you make of how well we're ensuring the financial stability of our state?

"Failing to construct the new prison would be an error. The present facility has undoubtedly surpassed its useful lifespan and has been struggling with maintenance issues for many years," stated Brad von Gillern, senator from Elkhorn.

It is a setting that does not promote rehabilitation and is also unsafe for both inmates and correctional staff.

Over the coming two weeks, lawmakers still need to discuss several more budget bills. They must get a balanced budget approved before the legislative session concludes.