Pillen promises no big government as Nebraska faces ballooning budget shortfall
By Noelle Annonen 
, Multimedia Reporter
April 20, 2026, 2 p.m. ·
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Gov. Jim Pillen said that state government will not grow, even as Nebraska faces a budget deficit of more than $630 million in the next biennium, which begins in July 2027.
Pillen addressed the shortfall and underlined his budget strategy during a roundtable with his cabinet Monday morning.
“As long as I’m your governor, we will not be growing government,” Pillen said. “(We will) make sure that Nebraskans are getting all their money, that we’re not storing it in pillowcases.”
The Legislature spent the majority of its 60-day session trying to solve a more-than $471 million budget deficit for the current biennium, which ends in July 2027. Even though senators balanced the budget, the Department of Revenue reported that March tax receipts came in much lower than anticipated, and the state now needs $72 million more for the current biennium.
But Pillen said he doubted if the budget deficit projections are realistic. As he faces a competitive race for governor, he confidently maintained his budget strategy.
“We’ll just keep working on running the government like a business and make sure we balance the budget every single day and every single year,” Pillen said.
Pillen also addressed the upcoming closure of a Tyson Foods meatpacking plant in Lexington, adding that he has biweekly discussions with Tyson’s leadership. Based on those conversations, Pillen estimated the plant will continue operating until August this year as the company works to finish its shutdown, and he expressed hope that the facility might continue to be an employer in some other fashion. Pillen added that Nebraska is key to Tyson’s success, on par with Arkansas, where the company is based.
In the meantime, Department of Labor commissioner Katie Thurber said she is working to secure new jobs for the Lexington residents who lost their jobs at Tyson. Thurber said her department is exploring transportation options for any former Tyson staff who may have to travel to new jobs.