Nebraska lawmakers spent hours Tuesday debating the state’s mainline budget bill, Legislative Bill 261, which outlines roughly $11 billion in spending for the 2025–2027 biennium. Championed by Appropriations Committee Chair Sen. Rob Clements, the bill holds operational budgets flat for most agencies but boosts employee salaries. Lawmakers faced a projected $262 million shortfall, influenced by federal Medicaid changes and reduced revenue forecasts. To address the gap, the plan includes $132 million from the state’s rainy day fund and $135 million in additional spending cuts or fund transfers. Key provisions include $10 million for food assistance nonprofits and $10 million for community college dual enrollment. Heated debates emerged over controversial priorities like the Perkins County Canal and a new state prison, while others pushed to protect services like problem-solving courts and university funding. An amendment by Sen. Dunixi Guereca added $300,000 for the Special Olympics, despite concerns over prior funding transparency. Tensions rose as Sen. Terrell McKinney vowed disruption if his juvenile justice pilot program was excluded. As debate continues, lawmakers must reconcile growing needs with limited revenue while meeting constitutional requirements to pass a balanced budget.
Nebraska Lawmakers Tackle $11 Billion Budget Amid Shortfall, Debate Over Spending Priorities

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