Nebraska Legislature’s Executive Board requests budget increase

Despite Nebraska’s state budget woes, the Legislature’s Executive Board on Wednesday voted to request a budget increase averaging almost 4% for each of the next two years.

The Legislature’s budget for the current fiscal year is about $32 million. The proposal approved unanimously Wednesday would increase that to about $36 million in each of the next two years. After accounting for about $2 million approved for last year but not used, the new proposal would require a general fund increase averaging 3.9% per year.

Meanwhile, the state faces a projected budget shortfall of more than $200 million this fiscal year and $800 million for the next two. Gov. Jim Pillen has ordered a 5% reduction in monthly allotments to agencies he controls, which does not include the Legislature, and has requested state agencies to propose further cost savings.

Sen. Ben Hansen, chair of the Executive Board, said he doesn’t think there’s a disconnect between the budget proposal and the state’s fiscal situation.

“This is not outside of the ordinary to request funds. Now it’s up to us to make some of the hard decisions,” said Hansen, who will be leaving office in January due to term limits.

Personnel costs account for about 90% of the legislative budget, according to Legislative Fiscal Analyst Keisha Patent. The budget proposal approved Wednesday assumes a 3% base salary increase and an additional 1% for a year of service. Patent described those as “placeholder” assumptions, with the actual figures more likely to parallel the outcome of negotiations between employee unions and the administration.

The Department of Administrative Services, controlled by the governor, has requested alternative budget scenarios that envision an 8% budget cut next year. That could require making some senatorial staff positions part time, and eliminating others.

Sen. John Fredrickson objected to that possibility. Fredrickson said it’s difficult to recruit qualified staff members currently, and would be even more so if the positions were made part time.

Pillen will make his budget proposal in January. It will then be up to the Appropriations Committee, and ultimately to the full Legislature, to decide on the budget.