LINCOLN — Nebraska Gov. Jim Pillen’s mid-biennium budget proposal sparked strong opposition at a recent public hearing, with critics from across the state lambasting his continued use of cash fund sweeps to balance a projected deficit. At the combined hearing for Legislative Bills 1071 and 1072 — aimed at closing an estimated $471 million shortfall — virtually no one spoke in support of the measures, which would cut overall state spending, reduce agency budgets and transfer money out of funds set aside for specific purposes. Opponents argued these “sweeps” divert money from dedicated uses — from environmental projects to public services — undermining public trust and jeopardizing long-term commitments. Testifiers also raised concerns about changes to how policy priorities are included in the state budget.

Supporters of Pillen’s plan, including the governor’s budget administrator, say reviewing more than 900 cash funds and reallocating excess balances is necessary to responsibly balance the budget without raising taxes. Still, the proposal drew significant written and spoken opposition — over 600 written comments and more than two dozen speakers against it — with critics warning that sweeping funds could stall projects, weaken services, and leave fewer resources available for future needs. Major cuts, such as significant reductions to the Department of Health and Human Services budget and repurposing funds from initiatives like the Nebraska Environmental Trust, were central points of contention.

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