LINCOLN — Governor Jim Pillen was quick to praise Nebraska’s growth, both in population and economic activity, in his annual address but the Governor and lawmakers are staring down the barrel of one of the biggest budget shortfalls in recent memory.
Lawmakers will need to come up with $432 million dollars to put the state in the black.
Pillen argues the problem comes from out of control spending that grew exponentially post COVID.
“There was little fiscal restraint and the result was bloated government, growing unchecked on the backs of our people,” said Pillen.
But not every lawmakers was convinced that government bloat is the main issue.
“We are dealing with an almost half a billion dollar shortfall because the government and his allies in the legislature decided to institute inequitable and unsustainable tax cuts,” said Senator Danielle Conrad.
To reach those numbers Pillen has suggested freezing the growth of many state agencies at 0% except scheduled salary increases and repealing more than 40 recently passed bills that would expand several newer state programs including things like Good Life Districts and assistance grants for small businesses.
“He says he is using a last in first out approach. The newer programs that have been added re the ones we are gonna roll back, things that have been in place for 10 or 15 years protect those programs,” said Senator Robert Clements.
He is also recommending tax increases on cigarettes, vapes, spirits, pop and candy and gaming machines.
But it wasn’t just the budget on Pillen’s mind. He also wants the lawmakers to tackle a transgender bathroom bill, regulate social media for kids and banning lab grown meat.
With a budget battle ahead the time to tackle these issues could be limited, and some in the body would rather leave those issues behind and focus on the economic issues like the budget and property taxes.
“I think the governor again devolved into some things that aren’t really important to Nebraskans but are a focus to himself and his political allies,” said Senator John Cavanaugh.
