Nebraska lawmakers advanced five bills to floor debate Thursday that set up the state's next biennial budget, leaving a $124 million deficit for the full Legislature to grapple with. After weeks of debate, the Legislature's Appropriations Committee approved a $10.8 billion proposal for the upcoming two-year state budget, which will begin July 1, 2025, and last until June 30, 2027.
Speaker of the Legislature John Arch announced that floor debate on the budget will begin May 6. Appropriations Committee members began their budget negotiations facing a $289 million deficit, and through their discussions they lowered that figure to roughly $124 million. Legislative fiscal analyst Keisha Patent said the biggest contributions to that came from increasing transfers from various cash funds, lowering the committee's initial spending proposal by about $123 million, and incorporating savings from a recently passed Medicaid bill.
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Leaving a deficit in place means balancing the budget will hinge on multiple revenue-generating bills still pending this session, namely LB645 and LB650, which both advanced to the third and final round of floor debate Thursday. Patent said if both bills pass, that would eliminate the current deficit and leave about $7 million leftover. However, lawmakers are also wary that new projections will push the goal post further.
Several senators said they expect a Friday meeting of Nebraska's Economic Forecasting Advisory Board will increase the projected deficit, which would require additional revenue bills, or bigger spending cuts, to fill the gap. Appropriations Chair Robert Clements, a state senator from Elmwood, blamed most of the deficit on changes to Nebraska's allocations in the Federal Medical Assistance Percentage (FMAP), a formula used to decide the federal share of state Medicaid costs. Between the current fiscal year and the next two in the upcoming biennium, Patent said the revisions reduced Nebraska's revenues by about $290 million.
But Sen. Machaela Cavanaugh of Omaha, who was the sole vote against the mainline budget bill, contends that the Legislature holds some responsibility as well. She's frequently referred to the shortfall as a "manufactured deficit," and pointed to recent sessions when lawmakers approved large tax relief proposals while also authorizing several high-budget projects.
State signing DEI letter; trial for officer’s death; NFL motivation Meet Nebraska state senators making laws in 2025 District 49 Bob Andersen Omaha Elected 2024 402-471-2725 [email protected] District 14 John Arch La Vista Elected 2018, 2022 402-471-2730 jarch@leg.
ne.gov District 18 Christy Armendariz Omaha Elected 2022 402-471-2618 [email protected].
gov District 21 Beau Ballard Lincoln Appointed 2023, elected 2024 402-471-2673 [email protected] District 25 Carolyn Bosn Lincoln Appointed 2023, elected 2024 402-471-2731 cbosn@leg.
ne.gov District 29 Eliot Bostar Lincoln Elected 2020, 2024 402-471-2734 [email protected].
gov District 32 Tom Brandt Plymouth Elected 2018, 2022 402-471-2711 [email protected] District 9 John Cavanaugh Omaha Elected 2020, 2024 402-471-2723 jcavanaugh@leg.
ne.gov District 6 Machaela Cavanaugh Omaha Elected 2018, 2022 402-471-2714 [email protected].
gov District 2 Robert Clements Elmwood Appt. 2017, elected 2018, 2022 402-471-2613 [email protected].
gov District 37 Stanley Clouse Kearney Elected 2024 402-471-2726 [email protected] District 46 Danielle Conrad Lincoln Elected 2022 402-471-2720 dconrad@leg.
ne.gov District 10 Wendy DeBoer Bennington Elected 2018, 2022 402-471-2718 [email protected].
gov District 40 Barry DeKay Niobrara Elected 2022 402-471-2801 [email protected] District 30 Myron Dorn Adams Elected 2018, 2022 402-471-2620 mdorn@leg.
ne.gov District 19 Robert Dover Norfolk Appointed 2022, elected 2024 402-471-2929 [email protected].
gov District 26 George Dungan Lincoln Elected 2022 402-471-2610 [email protected] District 20 John Fredrickson Omaha Elected 2022 402-471-2622 jfredrickson@leg.
ne.gov District 7 Dunixi Guereca Omaha Elected 2024 402-471-2721 [email protected].
gov District 1 Bob Hallstrom Syracuse Elected 2024 402-471-2733 [email protected] District 16 Ben Hansen Blair Elected 2018, 2022 402-471-2728 bhansen@leg.
ne.gov District 48 Brian Hardin Gering Elected 2022 402-471-2802 [email protected].
gov District 36 Rick Holdcroft Bellevue Elected 2022 402-471-2642 [email protected] District 24 Jana Hughes Seward Elected 2022 402-471-2756 jhughes@leg.
ne.gov District 8 Megan Hunt Omaha Elected 2018, 2022 402-471-2722 [email protected].
gov District 44 Teresa Ibach Sumner Elected 2022 402-471-2805 [email protected] District 42 Mike Jacobson North Platte Appt.
2022, elected 2022 402-471-2729 [email protected] District 5 Margo Juarez Omaha Elected 2024 402-471-2710 mjuarez@leg.
ne.gov District 31 Kathleen Kauth Omaha Appt. 2022, elected 2022, 2024 402-471-2327 kkauth@leg.
ne.gov District 34 Loren Lippincott Central City Elected 2022 402-471-2630 [email protected].
gov District 33 Dan Lonowski Hastings Elected 2024 402-471-2712 [email protected] District 41 Dan McKeon Amherst Elected 2024 402-471-2885 dmckeon@leg.
ne.gov District 11 Terrell McKinney Omaha Elected 2020, 2024 402-471-2612 [email protected].
gov District 17 Glen Meyer Pender Elected 2024 402-471-2716 [email protected] District 22 Mike Moser Columbus Elected 2018, 2022 402-471-2715 mmoser@leg.
ne.gov District 38 Dave Murman Glenvil Elected 2018, 2022 402-471-2732 [email protected].
gov District 27 Jason Prokop Lincoln Elected 2024 402-471-2632 [email protected] District 35 Dan Quick Grand Island Elected 2024 402-471-2617 dquick@leg.
ne.gov District 28 Jane Raybould Lincoln Elected 2022 402-471-2633 [email protected].
gov District 12 Merv Riepe Ralston Elected 2022 402-471-2623 [email protected] District 3 Victor Rountree Bellevue Elected 2024 402-471-2627 vrountree@leg.
ne.gov District 45 Rita Sanders Bellevue Elected 2020, 2024 402-471-2615 [email protected].
gov District 39 Tony Sorrentino Elkhorn Elected 2024 402-471-2885 [email protected] District 13 Ashlei Spivey Omaha Elected 2024 402-471-2727 aspivey@leg.
ne.gov District 43 Tanya Storer Whitman Elected 2024 402-471-2628 [email protected].
gov District 23 Jared Storm David City Elected 2024 402-471-2719 [email protected] District 47 Paul Strommen Sidney Elected 2024 402-471-2616 pstrommen@leg.
ne.gov District 4 R. Brad von Gillern Elkhorn Elected 2022 402-471-2621 bvongillern@leg.
ne.gov District 15 Dave Wordekemper Fremont Elected 2024 402-471-2625 [email protected].
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Politics
Nebraska lawmakers advance budget proposal with $124 million deficit

Nebraska lawmakers advanced five bills to floor debate Thursday that set up the state's next biennial budget, leaving a $124 million deficit for the full Legislature to grapple with.