NEBRASKA MINIMUM WAGE WILL INCREASE NEXT YEAR BY 29 CENTS LESS THAN VOTERS CALLED FOR

LINCOLN — Legislative changes this year to annual bumps in Nebraska’s minimum wage mean workers’ increase next year will be 29 cents less than what voters approved in 2022.

New data from the U.S. Bureau of Labor Statistics released this month indicates a 3.6% annual rise in the Consumer Price Index for goods and services between August 2025 and August 2026 for the Midwest region. That’s the indicator voters approved to calculate minimum wage bumps beginning in 2027, after Nebraska’s minimum wage hit $15 this year. 

State Sen. Jane Raybould of Lincoln talks with state Sen. Stan Clouse of Kearney before debate on her priority bill to amend voter-approved annual increases to the state’s minimum wage. March 31, 2025. (Zach Wendling/Nebraska Examiner) Over the past 25 years, inflation for the Midwest averaged 2.4% and was at or below 1.75% 11 times, as low as -1.8% between 2008 and 2009 and as high as 8.1% between 2021 and 2022, according to data from the U.S. Bureau of Labor Statistics for the Midwest. Average inflation for the past five years was 4.1%, while over the past 10 years, it was 3.2%.

State Sen. Jane Raybould of Lincoln, who led the changes in Legislative Bill 258, and Sen. Stan Clouse of Kearney, who pushed for a consistent increase, said predictability was key. The bill passed 33-16, with Raybould, a Democrat, joining 32 of 33 Republicans in support of her bill. Raybould’s law also created a “youth minimum wage,” allowing employers to pay teens ages 14 or 15 a lower wage, $13.50 hourly, beginning July 19.

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NEBRASKA FARM BUREAU REMAINS NEUTRAL IN GOVERNOR’S RACE AFTER BACKING PILLEN IN 2022

LINCOLN — Nebraska Farm Bureau is remaining neutral in Nebraska’s 2026 governor’s race for now, a notable change from four years ago when the organization endorsed Jim Pillen during the Republican primary. Nebraska Farm Bureau President Mark McHargue told the Rural Radio Network on Thursday that the organization has surveyed its members but has not made an endorsement in the governor’s race.

“As of today, we’re neutral in the particular race,” McHargue told the Rural Radio Network. “We’re evaluating the race yet. We’ve surveyed our members, and we’re just trying to decipher that.” The comments come as Nebraska Farm Bureau announced its endorsements for the 2026 general election. The organization endorsed candidates in the U.S. Senate race, all three congressional districts, 12 Nebraska Legislature races and several statewide offices, but did not make an endorsement for governor. That stands in contrast to 2022.

Nebraska Farm Bureau endorsed Pillen on Feb. 1, 2022, months before the Republican gubernatorial primary. At the time, Farm Bureau said Pillen emerged as the “overwhelming consensus” choice following a grassroots process that included input from county Farm Bureau members across Nebraska. Pillen went on to win the Republican primary and the 2022 general election.

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LAWMAKERS DIVIDED ON INFLUENCE OF NEWEST NEBRASKA ECONOMIC FORECASTING BOARD PILLEN APPOINTEES

LINCOLN— Gov. Jim Pillen’s recent appointments to the Nebraska Economic Forecasting Advisory Board are drawing debate ahead of the board’s Oct. 30 meeting, when it will update revenue projections and determine the scale of Nebraska’s projected budget shortfall. Pillen appointed former state Sens. Tom Briese and Lou Ann Linehan, both of whom previously supported major income and property tax measures backed by the governor. Former Appropriations Committee Chair John Stinner and State Sen. Machaela Cavanaugh have questioned whether the appointments could make the board more political, while Briese, Linehan and other lawmakers maintain that the new members will independently evaluate the economic data.  

The forecasting board was created in 1984 to reduce political influence over state revenue projections and consists of four gubernatorial and five legislative appointees. Each member independently estimates revenues from major tax sources before the board reaches a consensus requiring at least five votes. Nebraska currently faces an estimated $208 million shortfall through June 2027, which could grow to nearly $847 million by July 2029 under existing projections. Supporters of the appointments argue that Briese and Linehan are only two of nine members and cannot independently change the forecast, while critics remain concerned that their previous involvement in tax policy could influence the process.   

The Oct. 30 forecast will come just days before the Nov. 3 general election and will help shape the Legislature’s budget debate when lawmakers return in 2027. Although the Legislature is not legally required to use the board’s forecast when writing the budget, lawmakers have historically relied on it. Despite disagreements surrounding the appointments and the causes of Nebraska’s budget situation, officials on multiple sides emphasized that producing an accurate and credible revenue forecast is essential for determining how the state addresses its upcoming budget gap.

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OPINION BY FORMER SEN. JOHN STINNER: CARELESS BUDGET DECISIONS THREATEN STATE'S STABILITY

Nebraska’s budget problems are being blamed on policy choices rather than an economic downturn. The criticism centers on the state prioritizing major initiatives like income tax cuts and property tax relief before fully protecting core obligations such as education, health and human services, public safety and basic agency operations. Education makes up about 41% of General Fund spending, programs serving individuals account for roughly 37%, and public safety about 13%, leaving a relatively small share for other state functions.

A major concern is that the state used one-time surpluses, cash fund sweeps, reserve funds and agency cuts to support ongoing tax reductions and property tax relief. Transfers out of the General Fund have also grown sharply, largely to support property tax programs. The argument is that reducing recurring revenue while increasing long-term commitments has weakened the budget’s structural stability and forced repeated cuts to state agencies.

Continued reductions could also make it harder for state agencies and higher education institutions to retain experienced employees and operate effectively. The broader point is that tax reform can be sustainable only when it is supported by predictable, recurring funding rather than temporary surpluses and repeated budget maneuvers.

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DOCTORS AND HOSPITALS TO SEE LOWER MEDICAID PAYMENTS IN THREE DOZEN STATES

NEBRASKA - New federal rules likely will force three dozen states to reduce their annual Medicaid payments to doctors and hospitals by a total of more than $50 billion — potentially shrinking the number of providers willing to see Medicaid patients, according to a new analysis.

The analysis in the peer-reviewed Health Affairs estimates that the 17 states with the highest provider reimbursement rates will have to cut their spending by between 10% and 25% of their overall Medicaid budgets. Medicaid is the joint state-federal health insurance program for people with low incomes.

“It means that more of these hospitals, and a few nursing homes that are wrapped up in our academic medical centers, are going to start limiting the numbers of Medicaid patients that they see,” said Debra Lipson, the independent health policy researcher who authored the report. “It’s going to make it more difficult for people who are on Medicaid to get essential care.”

Medicaid generally pays doctors and hospitals less money than private insurers and Medicare do for the same services. As a result, many providers refuse to care for Medicaid patients.

To address this problem, the federal government in 2016 began allowing the 40 states that contract with Medicaid managed care organizations to require those organizations to pay doctors and hospitals more for certain types of care. But in the years since, federal and state spending on these so-called state-directed payments has exploded, growing from about $27 billion in 2020 (4% of total Medicaid spending) to an estimated $97.8 billion in 2024 (12% of total spending). The federal Centers for Medicare and Medicaid Services estimates that 2025 spending topped $143 billion (14% of total Medicaid spending).

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GOV. PILLEN ANNOUNCES 90-DAY PAUSE ON DIESEL TAXES FOR NEBRASKA AG PRODUCERS

LINCOLN — Gov. Jim Pillen signed a pair of executive orders Thursday aimed at easing cost burdens for Nebraska’s agricultural producers on the same day a like-minded initiative was announced for the 2028 election cycle. The first executive order suspends diesel taxes for vehicles transporting Nebraska seasonally produced products or livestock for the next 90 days, effective immediately. Pillen said Nebraska ag workers can keep track of their fuel receipts and get refunds on their diesel taxes during this period.

According to a press release, the same executive order also allows highway-registered vehicles to hold, sell or use untaxed, dyed diesel fuel without facing state penalties. The second executive order raises weight limits for vehicles transporting seasonal products and livestock, increasing the maximum up to 25% over the current limits without requiring extra permits or fees. Pillen said this will allow Nebraska farmers to fill their trailers as much as they need without worrying about state restrictions. Pillen said both measures are intended to ease the energy burden on farmers during a period of higher fuel prices and continued impacts of historic wildfires in western Nebraska.

Wahoo farmer Doug Bartek said there is a lot of uncertainty in the state’s agricultural industry right now, primarily due to diesel and fertilizer prices. Though he said the executive orders aren’t a “silver bullet,” they will help.

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AS SHORTFALL LOOMS, NEW FORECASTING BOARD MEMBERS APPOINTED

LINCOLN— Gov. Jim Pillen has replaced three members of Nebraska’s nine-person Economic Forecasting Advisory Board, appointing former State Sens. Lou Ann Linehan and Tom Briese, along with accountant Tim Wilson. It is the first time in the board’s 40-year history that a governor has replaced a third of its members at once. The changes come as Nebraska is projected to face a $208 million deficit in 2027, after two years of budget gaps of at least $200 million. Linehan and Briese were influential supporters of income tax cuts that will lower Nebraska’s top individual and corporate rates to 3.99% by next year. 

The appointments have raised concerns from Sen. George Dungan, former Gov. Bob Kerrey and others who worry the forecasting process could become more political. The board was created in 1984 specifically after concerns that the previous forecasting system was subject to political influence. Pillen’s office defended the appointments, saying the new members bring valuable experience, while Linehan and Briese said they will base their forecasts on facts and data rather than political considerations.  

The board’s October forecast will be especially important because it will help determine the size of Nebraska’s projected budget shortfall and shape the next state budget. The board has overestimated revenues in each of the past two fiscal years, while Pillen has previously criticized aspects of its forecasts. Linehan, one of the new members, said she is not yet convinced Nebraska actually has a budget problem and will wait to see whether the projections materialize.

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48 NEBRASKA JUDGES FACE AN UP-OR-DOWN VOTE TO STAY IN OFFICE AFTER 2026

LINCOLN—Forty-eight Nebraska judges will face retention votes on the Nov. 3, 2026, ballot, meaning voters will decide whether each judge will serve another six-year term. The ballot includes two statewide Workers’ Compensation Court judges, 23 district court judges, 20 county court judges, judges from separate juvenile courts in Douglas and Sarpy counties, and Court of Appeals Judge Michael W. Pirtle. No Nebraska Supreme Court justices are up for retention this year.

Eighteen of the 48 judges are facing voters for the first time, while others have gone through multiple retention elections. Nebraska has used this system since 1964, and the last judge who failed to win retention was in 2008. The Nebraska State Bar Association’s attorney survey recommended retaining all but one of the 48 judges. Two other eligible judges, Timothy P. Burns and Mark D. Kozisek, did not file for retention, while Douglas County Juvenile Court Judge Vernon Daniels is also retiring at the end of 2026.

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7th OUT-OF-STATE PETITION CIRCULATOR ARRESTED IN ONGOING LANCASTER COUNTY FRAUD INVESTIGATION

LINCOLN— A seventh out-of-state petition circulator has been arrested in Nebraska’s ongoing investigation into suspected fraudulent petition signatures. Sergio Lacadin, 33, of St. Louis, turned himself in to the Lancaster County Sheriff’s Office and remains in custody. Six other out-of-state circulators had already been arrested; most face two Class IV felony charges for allegedly falsely swearing that they personally witnessed valid petition signatures. One circulator faces three charges. 

The investigation began after Lancaster County election officials identified thousands of potentially fraudulent signatures and has expanded to at least eight petitions associated with five different 2026 petition campaigns. Gov. Jim Pillen, Secretary of State Bob Evnen and county election officials have called for changes to Nebraska’s petition-circulator laws in response to the investigation. The investigation remains ongoing ahead of the Nov. 3 general election.

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TWO NEBRASKA OFFICIALS JOIN CAMPAIGN AGAINST ONLINE-SPORTS-BETTING BALLOT INITIATIVE

LINCOLN— A new group called Save Nebraska Sports has launched a campaign opposing Nebraska’s two November ballot measures that would legalize and regulate online sports betting. The group includes State Auditor Mike Foley, State Treasurer Joey Spellerberg, former Husker football coach Ron Brown, and Nebraska Family Alliance Executive Director Nate Grasz. They argue that expanded online betting could harm the integrity of college sports and dispute supporters’ claims about the amount of property tax relief it would generate.

The measures are backed by Tax Relief Nebraska. Initiative Measure 440 would amend the Nebraska Constitution to permit online sports wagering through vendors associated with the state’s six licensed racetracks, while Initiative Measure 441 would establish the regulatory framework and require the Nebraska Racing and Gaming Commission to adopt regulations by June 1, 2027. Supporters argue legalization would keep wagering revenue in Nebraska and generate additional money for property tax relief; a report commissioned by the campaign estimated nearly $87 million in state tax revenue over five years, with 70% directed toward property tax credits. Both measures will appear on the Nov. 3 ballot.

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EMBATTLED LANCASTER COUNTY TREASURER REJECTS GOP OFFICER’S CALL TO RESIGN

LINCOLN — Lancaster County Treasurer Rachel Garver rejected a call to resign in the wake of a state audit alleging “gross mishandling” of local tax revenues by her office. Jack Riggins, chair of the Lancaster County Republican Party, issued a media release seeking Garver’s immediate resignation, saying the findings released Wednesday by State Auditor Mike Foley represented a “serious failure of stewardship of the public’s trust and money.”

Riggins also called on Kristen Anderson, who was chief deputy to Garver during part of the period in question, to withdraw from the race for Lancaster County District Court clerk. Anderson, in a statement, also rejected his call. Both Anderson and Garver, who is running for reelection, are Democrats. The general election is Nov. 3. “I have no intention of resigning,” Garver told the Examiner. “I have a responsibility to the citizens of the county to take care of things. I fixed what needed to be fixed. … I have a couple of more things to work out. We’re working on new procedures.”

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RALSTON MIDDLE SCHOOL CUTS CHRONIC ABSENTEEISM RATE BY MORE THAN HALF

RALSTON - It’s a problem across Nebraska — students not showing up to class. Ralston Public Schools are focused on putting chronic absenteeism behind them, and so far their approach is paying off. At Ralston Middle School, the number of students missing too much school has dropped from 34% just after the pandemic to about 15% today. Teachers at Ralston Middle School say it comes down to one thing: making kids want to come to class.

Walk into a Ralston Middle School classroom, and it’s easy to see why students show up. Teacher Ms. Fleischman goes desk to desk — smiling, hands-on, checking in with every student. “She’s a really good teacher, and she taught me a lot in science. She was always energetic,” said McKenna Leveau, an eighth grader at Ralston Middle School. Leveau said Fleischman’s energy in the classroom made a difference for her. “She teaches science very well. She explains stuff very well, and she’s really nice…She was always energetic, and she would, when we played games in class, we would earn stuff like candy,” Leveau said.

Four years ago, one third of students at Ralston Middle School were chronically absent. “The first full year that we were back in session…we were actually at about 34% chronically absent,” said Andy Parizek, principal of Ralston Middle School. Today, that number is down to about one in seven.

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OMAHA METRO AGENCIES WORK ON REGIONAL RULES FOR E-BIKES, E-MOTOS ON TRAILS

OMAHA - Local agencies are working on a regional approach to regulating e-bikes and e-motos on metro-area trails, as newer, faster electric devices raise questions about where they belong and who should regulate them. What you’re allowed to ride, and where you’re allowed to ride it, can depend on the community, according to the report.

“In Papillion, we are seeing firsthand the boom in micromobility transportation for both youth and adults. Certainly, this has created some conflict or safety issues, but at the same time, we recognize the need for affordable transportation. We are interested in supporting efforts to create laws that are thoughtful and consistent across our region and state,” said Trenton Albers with the City of Papillion.

“There’s an e-bike for everybody... but I think a lot of it, honestly, probably should come down to the parents with education, letting them know instead of just buying these things and saying, here you go,” Kay said. Eric Williams, a natural resources planner with the Papio NRD, said the technology is advancing quickly. “Electric motors and electric batteries are getting smaller, faster, more powerful, and cheaper. And so, new devices are becoming available,” Williams said.

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NEBRASKA COUNTIES GOT MONEY MEANT TO COMBAT THE OPIOID CRISIS. SOME ARE SPENDING IT ON FLOCK CAMERAS AND OTHER POLICE TOOLS.

At least nine Nebraska counties and cities have used opioid settlement funds – money meant to be used to help the state and its residents recover from the opioid crisis – to buy controversial surveillance technology and other law enforcement tools. Harlan County’s board gave $15,000 to the county Sheriff’s Office for Flock cameras. Valley County spent $27,000 on nine Flock cameras of its own. 

Police departments in Dakota County, Madison County and Thurston County purchased new police dogs, supplies and training.

The source of those funds: national settlements with manufacturers, pharmacies and distributors of opioids, totaling more than $50 billion. Nebraska has started receiving payments that will eventually add up to more than $150 million over 18 years.

The historic settlements are intended to address the opioid crisis by preventing further harm and providing services to people who are impacted by opioid use. But the Flatwater Free Press found a series of purchases by law enforcement agencies across Nebraska using settlement dollars that experts said don’t fit the spirit of the settlements.

Flatwater, in partnership with students at the University of Nebraska-Lincoln’s College of Journalism and Mass Communications, filed public records requests related to opioid settlement spending from all 93 Nebraska counties, along with 16 cities and six behavioral health regions. 

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DROP IN NEBRASKANS RECEIVING PUBLIC FOOD ASSISTANCE HASTENS, DRAWING CONCERN AT HEARING

LINCOLN — The number of Nebraskans receiving public food assistance continues a downward slide, punctuated by recent back-to-back record drops in monthly participation since the state began releasing public SNAP data in 2014. The latest figures show that about 7,600 fewer Nebraskans were enrolled in the Supplemental Nutrition Assistance Program (SNAP) in July compared with the month before. Total participation was 116,703 Nebraskans, down from about 150,000 a year ago.

July beat June in terms of the biggest single-month loss of SNAP participants in more than a decade and since the summer of 2025, when Congress approved a massive tax-and-spending-cuts package described by President Donald Trump as big and beautiful. In a legislative hearing Thursday, a Nebraska Appleseed nutrition advocate sounded further alarm.

Records show that compared with July 2025, nearly 33,000 fewer people in Nebraska received public food assistance this July, a nearly 22% dip over the year. Eric Savaiano, the nonprofit Appeseed’s manager for food and nutrition access, said about half of that loss represents Nebraska youth and teens under age 19, with 13% of the total annual loss being infants and children under 5.

He called that shocking and said the decline does not mean “someone solved hunger last summer.”

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KEARNEY POSED TO GO ALL IN ON DATA CENTERS EVEN AS MANY NEBRASKA TOWNS THROTTLE BACK

KEARNEY— Kearney is positioning itself as a welcoming destination for data centers while other Nebraska communities impose temporary bans amid concerns about energy use, water consumption and noise. The city recently adopted one of Nebraska’s first zoning ordinances specifically regulating data centers, including a 55-decibel noise limit, water and wastewater studies, and a requirement that projects receive a conditional use permit from the City Council. The regulations come as Kearney considers Tech One Crossing, a massive data center campus that would replace an existing cryptocurrency mining operation and eventually consume 368 megawatts of electricity—more than Kearney, Grand Island and Hastings combined. The company that would ultimately use the facility has not been publicly disclosed.

Kearney has pursued data center development for more than a decade, viewing the industry as an opportunity to attract investment, jobs and significant tax revenue. Tech One Crossing would be developed in phases by Worldwide Mission Critical, with the first phase potentially completed in late 2027 and full capacity reached around 2030. While city officials say the new regulations balance economic development with protections for residents, some community members remain concerned about the project's enormous scale and the anonymity of its eventual customer. The Kearney City Council is scheduled to consider the project's conditional use permit on Sept. 8.

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NEBRASKA AWARDED OVER $5 MILLION IN FEDERAL GRANTS TO EXPEDITE TRANSPORTATION PROJECTS

 OMAHA— Nebraska has received $5.15 million in federal transportation grants aimed at accelerating major infrastructure projects across the state. The Nebraska Department of Transportation will receive funding through three federal programs, with projects including the proposed Lincoln East Beltway and improvements to congestion along the Interstate 80 corridor connecting with I-680 and I-480 in the Omaha area. Federal Highway Administration Administrator Sean McMaster said the grants are intended to speed up projects that have faced lengthy timelines or have yet to begin.

Gov. Jim Pillen emphasized the importance of completing infrastructure projects more quickly, arguing that delays lead to higher costs. Pillen said the funding will also support Nebraska’s broader economic development efforts and help change its reputation from a “flyover state” to a “fly-to state.” U.S. Rep. Don Bacon also supported the grants and agreed that reducing construction timelines could help control costs. Pillen noted that federal funding flowing to Nebraska has risen to $3.5 billion during his first term and described the latest transportation investments as another sign that Nebraska is “open for business.”

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NEBRASKA STATE EMPLOYEES UNION ENTERS NEGOTIATION PHASE FOR NEXT TWO-YEAR CONTRACT

LINCOLN— The Nebraska Association of Public Employees (NAPE/AFSCME), the state’s largest public employees union, is beginning negotiations with state officials for a new two-year contract covering July 2027 through June 2029. The union’s top priority is securing wage increases that keep pace with inflation, with leaders estimating annual raises of roughly 3% to 4% based on the Consumer Price Index. Union officials acknowledge Nebraska’s ongoing budget deficit could make those increases difficult to achieve and say they may need to explore other cost-saving measures, including greater use of remote work.

NAPE is also prioritizing rising health insurance costs, employee retention and expanded benefits. Union members said health insurance premiums have increased nearly 25% over two years, reducing the impact of previous wage gains. They also pointed to state employee turnover of nearly 20% and argued that competitive salaries and benefits are necessary to recruit and retain workers. Other proposals could include expanding paid parental leave and considering adjustments to health coverage to control costs. Negotiations are expected to continue through December, although union leaders said they will remain at the bargaining table as long as necessary to reach an agreement.

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STATE AUDITOR SOUNDS ALARM OVER $7.2M IN LINCOLN FIRE AND RESCUE 2025 OVERTIME PAY

LINCOLN— Nebraska Auditor Mike Foley is calling for a performance review of Lincoln Fire and Rescue after the department paid $7.2 million in overtime in 2025. The department’s top 25 overtime earners averaged more than $72,000 in additional pay, bringing their average total compensation to nearly $190,000. One firefighter received more than $164,000 in overtime alone. Foley said the amount warrants a closer examination of the department’s scheduling practices, particularly because some overtime is built into the negotiated work schedule.

Lincoln Fire Chief David Engler said overtime is necessary to maintain 24-hour emergency coverage and has been affected by new stations, additional medic units, training, employee leave and staffing requirements. Foley also criticized the city’s Performance Audit Committee for failing to conduct required audits for more than a decade and not meeting in roughly five years, though city officials have recently begun reactivating it. Engler said Lincoln has added 33 firefighter and firefighter-paramedic positions since 2019 and continues to evaluate staffing strategies to reduce overtime while maintaining emergency services.

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UNIVERSITY OF NEBRASKA FALL 2026 ENROLLMENT DOWN 1.4% FROM 2025

LINCOLN— Enrollment across the University of Nebraska system declined 1.4% from the same point last year, a decrease of about 700 students, with total enrollment at 48,948. The largest declines came among international students, down 11%, and graduate students, down 5.6%. NU attributed the changes partly to declining birthrates and reduced federal research funding affecting graduate enrollment. UNL enrollment fell 1.6%, UNO declined 1%, and UNK dropped 3.9%, while enrollment increased at UNMC and the Nebraska College of Technical Agriculture.

Despite the overall decline, NU reported a 2% increase in first-time freshmen, reaching 7,987 students, while total credit hours remained relatively stable. NU President Jeffrey Gold said students are taking more courses and moving through college faster, allowing them to enter the workforce sooner. The enrollment figures come as NU seeks a $166 million increase in state funding for the 2027-29 budget cycle while Gov. Jim Pillen has asked state agencies, including the university system, to reduce spending by 5% through the end of the current fiscal year.

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