LINCOLN — Nebraska’s new state prison north of Lincoln is already behind schedule and likely to exceed its $350 million budget, raising concerns among lawmakers and officials. Originally expected to break ground in fall 2024, construction is now at least four months delayed, with the bidding process only beginning in April. The 1,500-bed facility was projected as a replacement for the aging Nebraska State Penitentiary, parts of which are nearly a century old. While state officials had long claimed the project could be completed within budget, rising construction costs and inflation have cast doubt on that estimate. The Nebraska Department of Correctional Services has already spent nearly $34 million on design work, including more than $20 million to the DLR Group, which also requested additional funds to redesign parts of the facility in hopes of reducing costs.
Even supporters, such as Appropriations Committee Chair Sen. Rob Clements, now acknowledge the price is expected to climb. Critics like Sen. Ashlei Spivey argue the project is unrealistic and underfunded. Meanwhile, some lawmakers proposed diverting prison construction funds to rehabilitative programs and maintenance for existing facilities, but the measure failed. In comparison, South Dakota recently halted plans for a similar 1,500-bed prison after bids came in at $825 million—more than double Nebraska’s budget. Both states employed DLR Group, and South Dakota officials have expressed skepticism that Nebraska can complete its facility for just $350 million. The final cost for Nebraska’s prison will be clearer once construction bids close on June 3.
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