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The Legislature passed a pair of bills Wednesday morning that are expected to significantly lower the state's projected budget deficit, but lawmakers still have a long way to go. Lawmakers passed LB650 in a 40-7 vote, and LB645 in a 45-2 vote. LB650 will pair back or fully repeal a collection of recently passed tax incentives, including Nebraska’s biodiesel tax credit and tax credits for donations to food banks.
LB645 will lower the contribution rate to the Statewide School Retirement Plan for teachers, school districts and the state. The bills are now headed to Gov. Jim Pillen's desk, where they're expected to be signed into law.
Both bills were introduced at the governor's request. Lawmakers hoped the two bills would be enough to fill the projected deficit in the state's upcoming two-year budget. Just last week, when the deficit stood at $124 million, the bills would have done just that.
The Legislative Fiscal Office estimates the combined bills will generate roughly $133 million in new revenue over the next two fiscal years. People are also reading..
. But a new economic forecast late last week brought the expected deficit back up to $396 million. LB650 and LB645 will still lower the deficit, but it will leave a $263 million hole.
Lawmakers have until May 15 to pass their budget bills. The bills passed with no debate Wednesday, though there was opposition to both proposals in previous rounds. Sen.
Danielle Conrad of Lincoln argued, despite what supporters claimed, Nebraskans would see the rollbacks as a tax increase. "No matter what verbal gymnastics you try to utilize or assuage your principles or guilt in pushing those forward, it is a tax increase," Conrad said. Conrad also spoke out against LB645, criticizing the introducer, Sen.
Beau Ballard of Lincoln, for "rushing" the process to pass such a substantial proposal. She also claimed proponents were trying to balance the budget on the backs of teachers, despite Nebraska’s largest teachers union supporting the amended legislation. In 2013, Ballard said the state's teacher retirement plan was at a $108 million deficit, so lawmakers responded by raising contribution rates across the board.
The strategy worked, he said, and as of July 1, 2024, the plan was 99.1% funded, and on track to be 100% funded by next year. Currently, teachers’ contribution to the plan is 9.
78% of their annual salary. Under LB645, if the plan is over 100% funded, teacher contributions would drop to 7.25%, which would raise the average teacher’s annual salary over $1,000.
If the plan falls below 96% funded, the contribution rate would be 9.75%. Tim Royers, president of the Nebraska State Education Association, said the union supports the bill because it would effectively raise teacher salaries for all teachers outside of Omaha Public Schools, which has an independent retirement plan.
Royers said the bill would help with Nebraska’s teacher recruitment efforts in a time of statewide staffing issues. Better Wi-Fi at arena; chamber city swap; Raiola joins Adidas Top Journal Star photos for April 2025 (From left) Eleanor Isaacson, Aspen Isaacson, Levi Isaacson and Norah Isaacson empty their plastic easter eggs of candy on Saturday, April 19, 2025, at Woods Park in Lincoln. An opponent of LB89, also known as the Stand With Women Act, holds a LGBTQ+ pride flag up to a window as Sen.
Jane Raybould of Lincoln prints something off during a floor debate at the Capitol on Tuesday. Papillion-La Vista's Ryan Thompson breaks his bat as he hits the ball against Lincoln East on Monday at Sherman Field. Jadyn Olesen (center) embraces Olive Brethouwer (left) and Violet Brethouwer (right) after her performance on Monday at the Railyard in Lincoln.
Violet considers Olesen her hero, and even cut her hair to resemble the singer’s. Lincoln Southwest's Peyton Tiernan (14) and Lincoln Southwest's Yai Tong (18) vie for possesion of the ball against Lincoln Southeast's Jack Talley (6) during the first half at Seacrest Field on Saturday, April 19, 2025, in Lincoln. Protesters gather on the north steps of the Capitol during an anti-Trump demonstration on Saturday.
Charlotte Eberle, 8, leaps over rows of tulips while picking flowers with her family at SR Pumpkin and Flower Farm near Ceresco on Friday. Construction worker Gustavo Leverman works on a home in the 800 block of West Avondale Street on Tuesday. Rising costs for building materials like lumber due to tariffs have raised the average cost of building a home.
Luke Shaner peeks through a fake dinosaur egg with his toy T-Rex at the Jurassic Quest event Friday at the Sandhills Global Event Center. Lincoln East's Carter Harmes (3) high fives his teammates after scoring a run as he heads back inside the dugout in the second inning of the HAC baseball championship at Den Hartog Field on Wednesday, April 16, 2025. Lincoln Star goalkeeper Yan Shostak (33) blocks a shot by Sioux City's Nikita Klepov (92) as he is backed up by teammate Gio Digiulian (17) during the second period in Game 1 of a USHL Western Conference semifinals series Friday, April 18, 2025, at the Ice Box.
Damien Rodriguez (front to back), Jason Bell and Cesar Gonzalez, who competed as the team “Three Blind Mice,” pull a plane on Saturday during the Woman in Aviation Cornhusker Chapter's 2nd Annual Plane Pull at the Lincoln Airport. Loren Eiseley Society vice president Thomas Lynch (from left), society president Bing Chen, and Mayor Leirion Gaylor Baird unveil a new historical marker honoring writer Loren Eiseley on Friday at Irvingdale Park. Mary Abebe (left) returns to her seat after being named the 2025 Scottish Rite Educator of the Year as Brenda Barnett and Stacie Coatman congratulate her on Friday at Adams Elementary School.
Abebe, who teachers computer science, started at Lincoln Public Schools in 1995 and moved to Adams in 2019. Lincoln Northeast's Lazerek Houston poses for a photo during the 2025 Super State photoshoot at the Lincoln Journal Star on Saturday, April 5, 2025, in Lincoln. Omaha Skutt's Molly Ladwig poses for a photo during the 2025 Super State photoshoot at the Lincoln Journal Star on Saturday, April 5, 2025, in Lincoln.
Nebraska head coach Rhonda Revelle (from left) embraces player Natalia Hill at the top of the 6th inning next to Jordyn Bahl during the Creighton game on Wednesday at Bowlin Stadium. Zemi Wolfe records as she dumps water on her mother, Rudi Wolfe, on Saturday at Zeman Elementary School. The school hosted a color run, picnic, splash towers and other family-friendly events with proceeds going to support the school's summer activities.
Protesters with the American Federation of Government Employees union (AFGE) hold a rally outside of the Lincoln VA Clinc at on Tuesday, April 8, 2025, in Lincoln. The American Federation of Government Employees (AFGE) local representing Department of Veterans Affairs employees at the Lincoln VA Clinic rallied Tuesday to stop the attacks on the federal workforce. Cows graze in the fields below as Sandhill Cranes take flight at sunrise along the Platte River on Sunday, April 6, 2025, in Kearney.
The Cranes eat corn from the grain fields and then sleep on the sandbars. The largest congregation of sandhill cranes occurs from February to early April along the Platte River in Nebraska. Gretna East senior Sonora DeFini scores against Lincoln Southwest with a header during a high school soccer game on Monday, April 7, 2025, at Beechner Athletic Complex.
Sen. Ashlei Spivey during debate on a bill that would return Nebraska to a winner-take-all presidential election system at the Capitol on Tuesday. Halsey, a Great Horned Owl, looks through a kaleidoscope of mirrors on display on Saturday, April 5, 2025, at Indian Center Inc in Lincoln.
Lincoln Southwest's Sole Jones (center) competes against other athletes in heat one of the girls 400m during a track and field invitational at Union Bank Stadium on Thursday, April 3, 2025, in Lincoln. A bee covered in pollen buzzes from flower to flower on Sunday, April 6, 2025, at the Sunken Gardens in Lincoln. Jarrek Renshaw, a lead mechanic, works on an engine in a testing area at Duncan Aviation on Wednesday.
Duncan is expanding its engine overhaul facility, which will allow it to test engines for Canadian aerospace manufacturer Pratt & Whitney. University of Kansas students Remi Ward (left) and Jess Judd test out their concrete canoe Friday at Holmes Lake. The University of Nebraska-Lincoln College of Engineering hosted a competition in which college students from across the region used their own concrete mixes to design and build canoes -- some more than 20 feet long and weighing more than 300 pounds.
The canoes were tested for buoyancy and raced at Holmes Lakes. The event was part of the American Society of Civil Engineers' Mid-America Student Symposium hosted by UNL from Thursday through Saturday. Rutgers’ Yomar Carreras (left) slides into home as Nebraska’s Will Jesske tags him out on Sunday at Haymarket Park.
An early voter drops off her ballot at a drop box at the Lancaster County Election Commission Office, 601 N. 46th St., on Friday in Lincoln.
The primary election is Tuesday. Nebraska defensive line coach Terry Bradden talks to players during a team practice on Tuesday, April 8, 2025, at Hawks Championship Center. Sandhill Cranes excitedly dance with one another as they begin to stir along the sandbars on the Platte River the morning of Sunday, April 6, 2025, in Kearney.
' Hundreds of thousands of Sandhill Cranes have been converging on the Platte Basin for their annual migration to their northern breeding grounds. Every spring, as sandhill cranes are migrating to their breeding grounds, cranes without partners will start pairing up. During this time, the cranes perform dancing displays.
Although the dancing is most common in the breeding season, the cranes can dance all year long. Sometimes the dance involves wing-flapping, bowing, and jumping. Jacob Huebert, president of the Liberty Justice Center, argues at the Nebraska Supreme Court in a case over the city's ban on guns in public places on Thursday, April 3, 2025, at the Capitol.
Gov. Jim Pillen (right) greets World War II veterans Clare Sward (from left) and Jay Cawley on Tuesday in Lincoln. Lincoln Pius X's Tatum Heimes (from left) and Ana Patera look on as Gretna East's Lily Frederick (far right) celebrates a goal with teammate Madi Shelburne during a high school soccer game on Monday, March 31, 2025, in Lincoln.
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