Lincoln senators share priorities for upcoming legislative session

Ahead of a legislative session where budget cuts are likely on the horizon, Lancaster County senators made their case for the priorities they hope remain funded at a Lincoln Chamber of Commerce event Wednesday.

Gov. Jim Pillen has indicated he wants to reduce general fund spending by $500 million in the upcoming year while reducing local property tax burdens.

“Every indicator is that we are going to have a very difficult session coming up here, as far as tough decisions that we're going to have to make,” said Sen. Jason Prokop, who serves on the Legislature’s Appropriations Committee.

Pillen said his goal is due to a political philosophy of reducing the size of government and not due to economic indicators.

However, at Wednesday’s event, Hunter Traynor with the Nebraska Chamber of Commerce highlighted the state’s low GDP growth in the first quarter of 2025. At a drop of 6.1% from the last quarter, the mark was tied with Iowa for the lowest in the nation.

“Federal policy changes such as tariffs and increased immigration enforcement are taking their toll on the ag industry,” Traynor said. “The question when times get hard is one of diversification, and how can the state be supporting particularly a manufacturing and logistics climate here in Nebraska that is probably unrivaled by any state in the country.”

At the same time, senators are faced with calls for lower property taxes. In 2023, Nebraska’s effective property tax rate – that is, the amount of property taxes paid as a percentage of owner-occupied housing value – was the fourth highest in the country, according to the Tax Foundation. Since property taxes are collected at the local level, the state would likely have to take on additional spending responsibilities in an effort to lower levies.

Two property tax initiatives are already working to gain the signatures needed to be on the 2026 ballot, which would cut the taxable value of property in half and cap annual property valuation increases.

Amid such a political and economic climate, Traynor said senators need to be aware of two realities.

“One, the State of Nebraska is never going to cut their way to prosperity. And two, the strength and resilience of our economy historically has depended upon its diversification,” he said.

Senators from both sides of the aisle echoed those sentiments in their brief speeches, while highlighting distinct priorities.

Sen. Beau Ballard said the state should focus on opportunities for economic growth like workforce housing, water infrastructure and energy capacity.

“We have this mindset of transferring when we need a mindset of growth,” Ballard said. “We are not going to work our way out of this property tax crisis, property tax problem, without a focus on growth.”

Sen. Carolyn Bosn said she plans to continue working on social media protections for kids in the upcoming session. Bosn introduced the Age-Appropriate Online Design Code Act to limit the ability of tech companies to target children and give parents more control over their kids’ smartphone use. The bill passed and will become law Jan. 1.

“When we can provide those types of protections, we also then, all boats rise together, draw businesses into our communities, because people want to live in an area where they can safely raise their family and feel like they're able to do so and successfully,” Bosn said.

While each of the senators at Wednesday’s event said they supported growing the state, Sen. Eliot Bostar warned that’s not always the case at the capitol.

“There are a lot of people out there and a lot of interests out there that fundamentally do not want the state to grow, and that is something we run into often as we're trying to pursue policies that I think folks would instinctively identify as common sense,” he said.

Sens. Danielle Conrad, George Dungan and Jason Prokop each talked about the importance of the University of Nebraska to the state’s business success.

“We need to have a larger, stronger chorus of voices together to make sure that the university has the resources it needs to continue to keep access to high-quality higher education affordable and to keep those research dollars coming in and changing lives,” Conrad said.

After a lower-than-requested appropriation from the Legislature in the most recent session, the University of Nebraska-Lincoln announced a $27.5 million budget reduction proposal last month.

Sen. Jane Raybould was the lone Lincoln senator who did not speak Wednesday. She was out of state and could not attend the event.

The 2026 session is scheduled to begin Jan. 7.