Lincoln,NE- The LB611 Bill may require most state agencies to submit a report on the amount and strings attached to federal funds in their budget. Today, the bill will see its first day of discussion during Nebraska Legislature Session. The bill, proposed by State Sen. John Stinner, was approved by the Legislature Appropriations Committee in 2017 and became a priority bill frot he committee.
This bill was supported by the Platte Institute in legislative hearing.
If LB611 were to be passed, the legislation would require the reports from state agencies to be compiled into a federal funds inventory. This means it would be available to lawmakers and members of the public. Agencies would also need to provide a risk assessment of the potential loss of federal funds, and contingency plans in the event of significant cuts.
Nebraskas state budget is 30 percent federal tax dollars. The availability of conditions of accepting funds can change depending on policies decided in Washington. Federal grants may require the state to spend more of its own tax dollars on policy initiatives than it might otherwise, or may come with regulations that prevent states from spending the money in ways that meet the needs of their constituents.
The federal funds inventory would help Nebraskans see the federal money coming into our budget, measure the effectiveness of programs that are funded with those dollars, and help our senators act in the best interests of their constituents when federal funding inevitably changes for programs here in Nebraska, said Sarah Curry, Policy Director for the Platte Institute.
Key areas of the state budget that rely on federal funds:
- Federal funding makes up more than $446 million in the Nebraska education budget each year. Thats more than 1 in every $4 in the Department of Education budget.
- $2.7 billion of Nebraskas Health and Human Services budget comes from federal tax dollars.
- Approximately $5 million, or 24 percent of the Nebraska Department of Agriculture budget, relies on federal funds.
- $580 million of the University of Nebraskas budget, or 22 percent, comes from federal funds.
- 34 percent of the Nebraska Department of Economic Developments budget is made up of money from the federal programs.
