LINCOLN- State lawmakers gave first-round approval Wednesday to the mid-biennium budget bill that made few changes from the spending proposals of Gov. Jim Pillen. The budget calls for a spending increase of 3.1%, which is slightly higher than the 2% increase called for by the governor because of an unexpected, $94 million increase in state aid to K-12 schools.

The “good news,” according to State Sen. Rob Clements of Elmwood, the chair of the budget-writing Appropriations Committee, is that $904 million will be left in the state’s cash reserve fund at the end of the two-year budget in June 2025, and the budget should show excess funds of nearly $575 million. During the debate, concerns were voiced about various spending cuts such as in developmental disabilities.

Concerns were also raised about whether the state can sustain the deep cuts in state income taxes passed a year ago, but there was also talk of amendments during second-round debate. State budget figures indicate that the excess $575 million in cash will shrink to $68.5 million at the end of the 2026-27 fiscal year, as the reduction in income tax revenue takes effect.

For the full article click HERE