SENATORS ADVANCE CASH FUND BILL, REDUCING DEFICIT TO $42 MILLION

LINCOLN -  In a 35-12 vote Thursday, the Legislature successfully advanced the cash funds transfer budget bill, reducing the budget deficit by $83.2 million, after failing hours earlier to advance the main budget bill. 

During the second round of debate on the cash funds transfer bill (LB1072), lawmakers approved an amendment put forth by Appropriations Committee chair Sen. Robert Clements of Elmwood, reducing the remaining $125 million deficit to roughly $41.8 million through new or amended cash fund transfers. Clements' amendment reflects some of the work done by the committee between first and second rounds of debate on the bill.  

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HOLLAND CHILDREN'S INSTITUTE POLL SHOWS MOST THINK STATE IS 'ON THE WRONG TRACK'

LINCOLN — About two-thirds of Nebraskans believe the state is on the “wrong track,” according to a poll commissioned by the Omaha-based Holland Children’s Institute. That’s the highest level since the pandemic era’s 2020 poll in the institute’s ongoing series of polls.

About 500 registered voters across the state were surveyed March 4-6. A telling response for Holland officials this year followed the question: Generally speaking, do you think things in Nebraska are headed in the right direction, or do you feel things have gotten off on the wrong track? About 34% answered, “right direction.”

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STATE'S MEDICAL CANNABIS COMMISSION AWAITS PASSAGE OF BUDGET, REGULATORY BILL

LINCOLN — The voter-approved Nebraska Medical Cannabis Commission is banking on the Legislature to pass the state’s first-ever bill related to a medical cannabis program as a key step toward a regulated, functional system.

LB 1071 would give the Nebraska Liquor Control Commission, which houses the Medical Cannabis Commission, an additional $1.38 million this fiscal year ending June 30 and $1 million for the next fiscal year. LB 1235, the regulatory bill for the commission, advanced for the first time in early March,  Nebraskans for Medical Marijuana celebrated, noting the shift by an elected body that had “stood in the way” of a decade of fight from patients, caregivers and advocates. 

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BILL LINKED TO MASSIVE GOOGLE DATA CENTER PROPOSAL MOVES FORWARD

LINCOLN — Nebraska lawmakers gave first-round approval to a bill backed by Gov. Jim Pillen that may lay the foundation for a massive data center in southeastern Nebraska powered by a new natural gas power plant.

LB1261 would allow private companies to build large-scale power plants and partner with Nebraska's public power system. This would supply major power users and possibly supplement the public power grid. Pillen pushed the proposal, and State Sen. Barry DeKay of Niobrara is carrying it in the Legislature. DeKay's introduction of the bill did not mention a specific project. He instead described growing power needs that features like AI and data centers help drive.

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BRAND BILL AMENDMENT FACES SHARP OPPOSITION AT LEGISLATIVE HEARING

LINCOLN — While Nebraska state lawmakers are trying to balance the budget, Niobrara State Sen. Barry DeKay held an Agriculture Committee hearing on an amendment to his LB1187 that would change the makeup of the state’s Brand Committee.

The latest amendment from DeKay, AM2503, would replace all of his original bill, LB1187. If the amendment is approved, it would keep the adjustments to the inspection fees for the brand committee, but it would increase the number of people on the Brand Committee from five to seven members. It also would change the makeup of the committee to make sure it includes three people active in the cattle industry, one from each Brand Committee district. And also, “two owners or operators of a cattle feeding operation…one owner or operator of a livestock auction market that primarily sells cattle,” plus one “purebred cattle breeder.”

Every testifier opposed the amendment Thursday, as rural areas in the state deal with wildfires. No one showed up to support the change. 

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SECOND KEARNEY YRTC STAFFER ARRESTED ON ALLEGATIONS OF SEXUAL ABUSE

KEARNEY - A second employee is facing criminal charges in connection with sexual abuse allegations at the state-run youth center in Kearney. Katrina Fewkes, 44, was arrested Tuesday after being charged with second-degree sexual abuse of a protected individual, a felony that carries a maximum of three years in prison and $10,000 fine.

Her arrest came nearly five months after the state Department of Health and Human Services, which runs four youth centers, internally concluded there was no systemic problem at Kearney. A retired juvenile court judge called it “shocking” that DHHS hadn’t acknowledged a systemic problem, while a current judge questioned the department’s conclusion. 

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INSIDE THE BUDGET: WHY THE STATE FACES A DEFICIT AFTER A $1 BILLION SURPLUS

LINCOLN — Within the last two years, the outlook of Nebraska’s financial health has taken a U-turn from having a near $2 billion surplus to now facing a structural deficit that could last years. Lawmakers are in the midst of debating proposed budget adjustments to fill a projected deficit that grew to $646 million. Last year, the Legislature formed the two-year budget and filled a separate deficit.

Combining both years, lawmakers will have dealt with a total shortfall of well over $1 billion this budget cycle, using mostly cash fund sweeps and spending cuts.

Budget observers in Nebraska identified a pair of major contributors to the problem — increased spending on property tax relief eating state dollars and income tax cuts reducing the revenues the state collects.

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WILDFIRES: PILLEN, OFFICIALS GIVE UPDATE ON FIREFIGHTING EFFORT IN STATE HISTORY

OGALLALA — Nebraska is still dealing with the largest wildfire in the state’s history and a handful of other sizable fires burning at the same time. More than 700,000 acres have burned so far across the four major active fires around the state, according to disaster response officials. The Morrill Fire, which spans Keith, Arthur, Grant, Garden and Morrill Counties in western and west-central Nebraska, is by itself the largest wildfire in state history, covering 572,804 acres. The Morrill fire was 18% contained as of late Monday.

“There’s no question, Mother Nature’s throwing a doozy at us, but I’m betting the farm … we win, and we win big time,” Nebraska Gov. Jim Pillen said.

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BILL ADVANCES TO MAINTAIN CHILD CARE SUBSIDY INCOME ELIGIBILITY LEVELS

LINCOLN — Income eligibility for Nebraska’s child care subsidy program would remain at the higher caps the state set in 2021 under a legislative proposal advanced Thursday by two committees, including in the state budget.

The Legislature’s Health and Human Services Committee voted 5-1 to advance LB304, from State Sen. Wendy DeBoer of Omaha. It would permanently maintain income eligibility caps at 185% of the federal poverty level rather than lowering them back to 130% this Oct. 1. DeBoer led the 2021 bill to increase the eligibility levels for two years, which was extended again in 2023. The Appropriations Committee separately voted 7-0 to approve a motion that included incorporating the provisions of LB 304 into the state budget, which heads to the full Legislature next week.

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GOOGLE PROPOSES NEW DATA CENTER THAT WOULD REQUIRE MORE POWER THAN ALL OF LINCOLN

LINCOLN-  Google is considering building a data center in Nebraska that could require more than three times the amount of power the entire city of Lincoln uses at peak demand in the summer. 

The tech giant would power that massive data center — possibly the largest in state history — through a privately built utility-scale natural gas plant potentially capable of producing more power than the largest power plant in the state. And it would use carbon capture technology to reduce greenhouse gas emissions. The proposal could hinge on passage of a bill in the Nebraska Legislature. The legislation would allow for the creation of privately built and owned power facilities to power a large industrial customer.

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LEGISLATURE ADVANCES BILL TO FUND HOUSING GRANTS, INCREASE TAX AT CLOSING

LINCOLN —On Monday, senators advanced a bill to fund affordable housing efforts, LB1067. The bill will give a dedicated funding source to the Middle Income and Rural Workforce Housing Funds, funds managed by the Nebraska Department of Economic Development that provide matching grants to nonprofit developer via additional real estate closing costs placed on sellers. The Documentary Stamp Tax would increase from $2.32 to $3.32 per $1,000 in sales. The extra dollar would go to the funds. For sellers of a $300,000 home, it means they'd pay an additional $300 at closing.

State Sen. Bob Hallstrom introduced the bill. It originally called for a $1.50 increase in the tax for the funds. After a compromise amendment was accepted on Monday, it was reduced to the $1 increase and will expire after five years.

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SENATORS ADVANCE BILL REGULATING LARGE BATTERY PROJECTS

LINCOLN - Senators gave first-round approval on Thursday to a bill requiring the developers behind large-scale electric battery projects to partner with the state’s public power system.

Sen. Tom Brandt’s bill (LB1010) requires privately developed energy storage resources, or ESRs, to undergo review and approval by the Nebraska Power Review Board before construction can begin on those facilities.It also requires battery operators to enter into long-term agreements with public power providers outlining the purchase and release of energy, which Brandt said will give developers a steady stream of income while protecting public assets. The bill also requires companies to ensure the batteries can safely integrate into Nebraska’s electrical grid and prohibits them from selling electricity at retail or operating their own distribution systems.

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PILLEN CLAIMS SUCCESSFUL BALLOT MEASURES 'DO NOT REPRESENT THE PEOPLE SPEAKING'

LINCOLN — Gov. Jim Pillen downplayed the mandate of ballot measures as he asked lawmakers to debate a budget proposal to divert public dollars to help cover some costs of attending private schools. Pillen said he is “guilty” of not studying ballot measures before voting, which he estimates is “pretty normal.” He thinks 90% of Nebraska voters are like him and show up to vote without having fully studied the issues ahead of time.

“I believe the ballot initiative process today does not represent the people speaking,” Pillen said in a Feb. 5 interview with the Nebraska Examiner.

In the 2022 and 2024 election cycles, Nebraskans weighed in on voter ID, minimum wage, paid sick leave, abortion, private school funding and medical cannabis. Each of those issues has since returned to the Legislature.

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BILL TO GIVE STATE AUDITOR MORE OVERSIGHT ON NO-BID CONTRACTS ADVANCES FROM COMMITTEE

LINCOLN — A proposal backed by Nebraska State Auditor Mike Foley that would help his office provide more oversight over the state’s no-bid contracts advanced out of committee Thursday and is likely headed to the legislative floor.

LB997, from State Sen. Bob Andersen, comes on the heels of controversy involving the Nebraska Department of Economic Development’s $2.5 million, emergency no-bid contract with agricultural tech CEO Julie Bushell and her Global Sustainability Developers of Lincoln. Gov. Jim Pillen recommended her for the contract, according to Foley’s audit letter. The Foley-sought bill,  would require filing an extra copy of any state no-bid contract, including emergency ones, with the Nebraska State Auditor’s Office. The Nebraska Legislature’s Government, Military and Veterans Affairs Committee backed the bill 8-0.  

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LEGISLATURE KEEPS $3.5M IN PRIVATE SCHOOL FUNDING IN BUDGET, FOR NOW

LINCOLN — Lawmakers kept $3.5 million in Nebraska’s state budget Monday to help students using voter-repealed state funding to attend private K-12 schools with one-time “bridge” support until a new federal tax credit comes online. An amendment to LB1071 to remove the bridge funding and $150,000 in administrative costs failed 23-17. The change, from State Sen. Tom Brandt of Plymouth, needed 25 votes. Brandt said he was “disappointed” in the outcome and said he had 27 senators at one time, but a few backed out.

LB 1071 faces up to two more rounds of debate.

“This is not about taking a kid’s rights away,” Brandt said in debate. He said he was confident donors could seek to privately finance the $3.5 million, “if that gap needs to be filled.”

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PILLEN'S CHIEF CONSULTANT QUITS DAY AFTER POLICE CONFIRM CONTRACT PROBE

LINCOLN — Nebraska’s most influential political consultant has chosen to step away from the state’s highest-profile candidate, the governor, the consultant’s company confirmed Thursday. Jessica Flanagain helped elect Pillen in 2022, when the hog farmer and former university regent won a three-headed Republican primary that became the state’s most expensive governor’s race. Flanagain, when reached Thursday, declined to comment. But Rob Phillips, president  of her parent company, Axiom Strategies, said the firm had ended its contract with Pillen. 

Some politicos contacted about Flanagain’s departure noted the timing. She left Wednesday, a day after Lincoln police said the department is investigating a state contract Pillen steered.

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SENATORS INCH CLOSER TO FILLING PROJECTED DEFICIT AS THEY ENTER 'CRUNCH TIME' FOR THE SHORT SESSION

LINCOLN - An avenue has opened that would nearly close Nebraska’s projected budget deficit, but it will require the state Legislature to approve a slate of revenue-generating bills and a collection of spending cuts and cash transfers.

The Appropriations Committee met for the third day in a row to revisit ways to balance the state’s two-year budget. Lawmakers have just seven legislative days left before they must send their state budget adjustments to Gov. Jim Pillen’s desk for final approval and possible line-item vetoes. The committee voted on new adjustments Thursday that would reduce the deficit by about $8 million. Combined with other adjustments the committee greenlit earlier this week, Patent said that would bring the projected deficit to roughly $40.7 million.

Speaker John Arch told senators Thursday to brace for a sprint to the line marking the end of the 60-day session, also warning senators the session was constrained by time and that they would not have time to debate all the designated priorities this year.

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LARGE WILDFIRES BURN THOUSANDS OF ACRES ACROSS NEBRASKA

Several large wildfires broke out across Nebraska Thursday night, burning thousands of acres and forcing evacuations in some communities. The largest blaze, burning across Thomas, Custer, Logan and Blaine counties near Halsey in the Nebraska Sandhills, had consumed nearly 36,000 acres by midnight, according to federal fire officials. Evacuation resources were set up in nearby towns, including a school in Brady where displaced residents could access food, water and temporary shelter. 

Firefighters from multiple agencies have been battling the fast-moving grassfires, which spread quickly due to dry conditions and strong winds. Officials warned that the combination of dry vegetation and windy weather has created dangerous fire conditions across parts of the state, increasing the risk of additional fires as crews continue working to contain the blazes.

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‘THIRD TIME IS THE CHARM’: EPIC 2.0 AGAIN PAUSES PETITION CIRCULATION, AIMS FOR 2028 BALLOT

LINCOLN — Supporters of the EPIC Option ballot initiative have paused their effort to gather signatures to place the proposal on Nebraska’s 2026 ballot after concluding they will not collect enough support before the deadline. The initiative sought to amend the state constitution to eliminate property, income and inheritance taxes and replace them with a broad consumption tax. Organizers needed roughly 125,000 valid signatures statewide, plus a minimum number from at least 38 counties, to qualify for the ballot. 

Campaign leaders say the pause is a “reset,” not the end of the proposal. After failing to qualify a similar measure in 2024 and struggling again in the current effort, supporters plan to regroup and try for the 2028 ballot, this time using paid petition circulators instead of relying mainly on volunteers. The group hopes to raise about $1.86 million to fund the signature drive, while critics continue to question whether the consumption tax rate needed to replace existing taxes would be much higher than supporters estimate.

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NEW DETAILS ON “STADIUM DISTRICT” PROJECT IN DOWNTOWN OMAHA

OMAHA — A proposed “Stadium District” in north downtown Omaha would transform a roughly 25-acre vacant lot near Charles Schwab Field Omaha and CHI Health Center Omaha into a large mixed-use development anchored by a new soccer stadium. The overall project is estimated to cost more than $316.5 million, and developers are asking the city for over $48 million in tax-increment financing (TIF) to help fund it.

The stadium would serve as a permanent home for Union Omaha, seating about 6,500 fans with additional standing-room areas, and could host concerts, community events, and other sporting competitions throughout the year. Developers estimate the project could create around 200 jobs, bring in rental revenue, and potentially support a future women’s soccer team. If approved, developers hope to break ground this fall and open the stadium in 2028, with a public hearing on the redevelopment plan scheduled for April 7 before the Omaha City Council.

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