Legislature finishes session to mixed reviews

In its 2025 regular session, the Nebraska Legislature dealt with a budget shortfall and a series of economic and social issues. And there’s a wide range of views on how well senators dealt with all that.

In a speech as the Legislature was concluding its business this week, Gov. Jim Pillen tried his hand at headline-writing.

“To me, the headline for the First Session, 109th Nebraska Legislature, is really simple. It's positive. It's lasting impact serving Nebraskans well,” he said.

Sen. Machaela Cavanaugh gave a less-glowing review.

“Overall, I would say that this session represented undoing the will of the people of Nebraska that voted for things at the ballot, and it was a lot about big business versus the working man, and big business won,” she said.

As expected, budget issues dominated the session. Lawmakers started the year with a projected budget shortfall of $432 million. Pillen praised how they got out of that hole.

“Together, we worked through and passed a balanced, historically conservative budget package that said ‘no’ when we needed to, that put idle pillowcase money to work, invested in education and property tax relief and the safety of our state,” he said.

The budget increases spending about 1% a year. To help hold that down, lawmakers took money from the state’s cash reserve, swept cash funds held by agencies into the general fund, and allowed fee increases for government documents and services ranging from drivers’ records to restaurant and grocery store permits.

Sen. Danielle Conrad took a dim view of that approach.

“The governor touted the fact that we balanced the budget. We are constitutionally required to do so, and in fact, we did; however, what the governor neglected to mention is that we balanced the budget on the backs of low-income working families," she said.

While the budget is balanced for the next two years, projections show yet another shortfall for the next biennium.

In addition to budget work, senators spent lots of time trying to revise or implement several laws approved by voter initiatives, including requirements for paid sick leave and higher minimum wages.

Sen. Bob Hallstrom offered his analysis.

“I would probably say, from the perspective of the business community, balancing the paid sick leave to address some of the concerns of small business was probably a major accomplishment," he said. "One of the disappointments would have been not being able to provide the same type of balancing or relief for businesses on the minimum wage bill."

Senators narrowed the paid sick leave requirement so that it will not apply to businesses with 10 or fewer employees. They did not approve a bill to decouple minimum wage increases from inflation and allow lower wages for teen workers -- but that proposal’s poised for a final vote next year.

They also didn’t pass a bill to regulate medical marijuana, which Nebraskans voted to legalize last November. Dispensaries are supposed to begin operating as soon as Oct. 1, but Attorney General Mike Hilgers has challenged the validity of the initiative in court.

Another thing that didn’t happen this session was any major change in property taxes.

“We didn't do enough -- or anything, really, in my opinion -- for property tax relief," said Sen. Teresa Ibach. "And I really look forward over the interim to finding some solutions to the property tax issue."

The Legislature did approve adding $275 million over the next two years to existing property tax relief programs. But if previous growth in property taxes is any guide, that will at most hold them steady.

Senators did pass legislation, with Pillen’s support, creating a commission to study and recommend changes in school finance. Sen. Jana Hughes, sponsor of the legislation, highlighted a key question.

“Schools are your majority of the property tax, and then you get people saying, ‘Well, that's a local thing. It's local spending.’ But we all can agree that the state should put some funding to schools. From the special session last year, we heard loud and clear that locals don't want the state to take over all funding for schools. So where is that middle ground?” she asked.

On social issues, Sen. Kathleen Kauth partially succeeded in her quest for legislation she says is needed to protect women and girls. Senators voted to prohibit transgender athletes from school sports teams not consistent with their sex at birth. But requirements for locker rooms and bathrooms were dropped from the bill, after Sen. Merv Riepe said that was the price for his support.

“I would not support this bill if it continued down the path of micro- managing bathroom access or policing locker rooms. I didn't run for office to become part of the Nebraska state potty patrol,” Riepe said in debate.

Kauth says she’s not dropping the issue.

“We’ll be working with senators who are recalcitrant, but also keeping the subject first and foremost, making sure that parents who have kids who are dealing with this and the kids know that the work is continuing… just making sure that we have those girls protected in their locker rooms and bathrooms,” she said.

Whether senators have truly completed meeting this year may depend on factors outside their control. Sen. Machaela Cavanaugh predicts a special session will be needed to deal with proposed federal cuts to Medicaid and SNAP benefits. Sen. Ibach says unless the governor thinks there’s unfinished business, that won’t happen.

Whenever they reconvene, senators will face sharp disagreements. But Sen. Victor Rountree, reflecting on his first session, expressed satisfaction, and hope for the future.

“We had some wins, had some losses, but that's how democracy works, and so as long as we can hold up the institution of our democracy, however it pans out, I'm gonna be okay with that,” he said.

Nebraska Public Media News' Brian Beach contributed reporting to this story.