Nebraska’s budget bills advance to second round of debate

With a March 25 deadline looming, lawmakers weigh cuts and fund transfers to close a nearly $650M deficit

March 12, 2026Updated: March 12, 2026
News Channel NebraskaBy News Channel Nebraska

Nebraska Capitol(Gina Dvorak / WOWT)

By Darsha Dodge

LINCOLN, Neb. (KOLN) — There are only two weeks to go before Nebraska’s Unicameral has to deliver a balanced budget to Gov. Jim Pillen, and state lawmakers are working to draw money from funds across the state to try to close a problematic budget deficit.

State law requires Nebraska to have a balanced budget, but the deficit sits at nearly $650 million.

The Appropriations Committee has proposed about $500 million in cuts so far — leaving about $140 million remaining to be found.

“It may not be pretty, but yeah, there’s ways to do this,” said Plymouth Sen. Tom Brandt. LB 1071 — the appropriations bill — was advanced Tuesday. Its neighbor, LB 1072, deals with cash transfers and was advanced late Wednesday afternoon.

Appropriations previously proposed a $130 million transfer from the state’s rainy day fund to help close the gap.

Plus, there are numerous other cuts ranging in size, including $5 million from the state’s cultural endowment fund, and smaller cuts, like a limit on senators’ travel reimbursements.

Millions slashed from the Department of Health and Human Services budget have some senators concerned about the real-world impacts to Nebraskans.

“We need to not balance the budget on the backs of those who can least afford it,” said Sen. Danielle Conrad of Lincoln, “whether that’s vulnerable kids or whether that’s working folks or folks living on a fixed income.”

Conrad was one of 23 senators voting to remove a $3.5 million appropriation for private school vouchers that was pushed by Gov. Jim Pillen.

Pillen’s initial request during the State of the State address was $7 million.

Nebraska voters previously rejected using public funds for private schools, including those in Sen. Tom Brandt’s district.

“We started with a huge budget deficit, and then this is an increase of either $7 or $3.5 million that they’re labeling as a stopgap,” Brandt said. “I see no need for it.”

Brandt told the Nebraska Examiner he won’t vote for cloture on the next round of debate if this provision isn’t removed.

As the budget process continues, senators say it’s a time for voters to stay engaged.

“Now is a great time for Nebraskans to get engaged, to contact their senators and let them know what their priorities are,” Conrad added.

“We started with a huge budget deficit, and then this is an increase of either $7 or $3.5 million that they’re labeling as a stopgap,” Brandt said. “I see no need for it.”

Brandt told the Nebraska Examiner he won’t vote for cloture on the next round of debate if this provision isn’t removed.

As the budget process continues, senators say it’s a time for voters to stay engaged.

“Now is a great time for Nebraskans to get engaged, to contact their senators and let them know what their priorities are,” Conrad added.

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