The Nebraska Department of Revenue laid off 11 employees Monday and announced the closure of its Scottsbluff satellite office, according to both state officials and the Nebraska Association of Public Employees (NAPE).
Six workers were cut in Lincoln and five in Scottsbluff, where the office will permanently close. The layoffs represent roughly 2.7% of the department’s 409-member workforce as of July.
Union leaders say this marks the largest round of state layoffs in recent weeks, following cuts to the Military Department and the Office of the Chief Information Officer.
The move comes as Gov. Jim Pillen prepares to propose a $500 million reduction—about 10%—to the state’s general fund next year. Nebraska is facing a budget shortfall of more than $300 million, partly tied to federal tax cuts under President Donald Trump’s recent policy changes.
Justin Hubly, executive director of NAPE, questioned the administration’s decision to cut revenue agents who collect delinquent taxes, especially during a budget crisis. “Wouldn’t we want people collecting delinquent taxes if we’re having budgetary issues?” he asked.
Hubly also argued that the positions were already funded in the current budget, making the cuts premature. “The Legislature is not in session. The budget has not been cut. So I’m concerned we are cutting funded positions in preparation to cut the budget,” he said.
Lee Will, Nebraska’s chief operating officer, defended the decision, citing low call and foot traffic in Scottsbluff and stressing the administration’s focus on efficiency. “Not every agency should spend every penny that they’re appropriated,” Will said, adding that more layoffs could follow as agencies continue to evaluate staffing.
The move drew sharp criticism from Sen. Machaela Cavanaugh of Omaha, who called it inconsistent with Pillen’s recent executive order reallocating $20 million for property tax relief. “It’s not about efficiencies,” Cavanaugh said. “It’s about giving the governor his property tax relief … on the backs of Nebraskans, including state employees.”
Meanwhile, Sen. Rob Clements of Elmwood praised the layoffs, saying the administration was right to pursue efficiency.
For now, some affected employees may find new roles within state government under NAPE’s labor contract, but uncertainty remains over whether more cuts are on the horizon.
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