Senators get budget warning, pass multiple bills

By Fred Knapp , Senior Reporter/Producer Nebraska Public Media

6 de Marzo de 2025 a las 17:00 ·

Nebraska Capitol (Photo by Fred Knapp, Nebraska Public Media News)

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The Nebraska Legislature got more bad news about the state budget Thursday, even as lawmakers passed a slew of bills.

Just before senators settled into their seats to cast final votes on a series of bills, Sen. Rob Clements, chair of the budget-writing Appropriations Committee, called their attention to some updated budget numbers.

Clements said the state was already planning to have to spend an additional $235 million on Medicaid because of a federal formula known as FMAP, which adjusts payments based on each state’s per capita income. But he said a clerical error meant that calculation was missing another $90 million the state would have to make up. That means a projected budget shortfall, which had been reduced by improved revenue estimates by the Economic Forecasting Advisory Board last month, is now back up to $289 million, Clements told his fellow senators.

“This means it's going to be a tougher year than we thought on balancing the budget," Clements said. "We all need to work together to balance the budget. It's not just the Appropriation Committee's budget, it's the Legislature's budget, and we're required to balance it. So the shortfall is $289 million, and I'm asking for your help as the session progresses, and looking forward to working with you."

Lawmakers could still use some $100 million that is currently slated to go to the state’s cash reserve from the improved revenue forecasts, but that would leave a $189 million hole. This means proposed spending on everything from property tax relief to improved teacher pay will be that much more difficult to get approved.

After Clements delivered that warning, senators settled down to vote on bills. The first one they considered would appropriate $220,000 over the next two years to the attorney general’s office to enforce proposed restrictions on tech companies targeting advertising to young people.

Sen. Danielle Conrad used the occasion to criticize Attorney General Mike Hilgers’ management of his office.

“The Attorney General's Office has not only pursued a radical course of action in our name and with our money, pursuing politically-motivated litigation all around the country and locally, including attacking the sacrosanct and precious right of the people to the initiative process so that they can effectuate change,” Conrad said.

Hilgers has challenged last November’s voter-approved initiative legalizing medical marijuana, both because he alleges widespread fraud in the signature-gathering process, and because marijuana remains illegal under federal law.

Following the tradition of voting to appropriate money for bills that are advancing, even if a senator disapproves of the underlying bill, Conrad joined 40 other senators giving first-round approval of the money for the attorney general’s office. That office declined to respond to Conrad’s comments.

Senators then gave final approval to almost two dozen noncontroversial bills, ranging from allowing Natural Resources Districts to pay bills electronically, to changing residency requirements for bank directors.

One bill, sponsored by Sen. Jared Storm, would let municipalities decide if they want to allow the use of all-terrain and other utility vehicles to clear snow at night. Currently, such vehicles can’t operate on roads between sundown and sunrise. In a public hearing, supporters of the change said that can allow snow to accumulate overnight and create dangerous conditions that could be prevented by allowing nighttime operations.

The last bill up for final approval Thursday was one that has provoked considerable controversy: Sen. Bob Hallstrom’s proposal to put into state law that drivers for companies like Uber, Lyft, and DoorDash are independent contractors, not employees.

Critics say that’s already the case, and the bill would prevent future efforts at change that would entitle drivers to things like unemployment benefits. Among those speaking against the proposal, LB229, was Sen. Megan Hunt.

“LB229 picks winners and losers, and it's rigged for corporations and big business, not small business, not Nebraskan families and not workers. This bill isn't about fairness. It's not about free market. It's about giving billion dollar corporations a competitive advantage by the Legislature rewriting the rules in their favor,” Hunt said.

Hallstrom responded that not only the companies, but the drivers themselves support his proposal.

“The vast majority of drivers are individuals who have a separate eight-to-five job," Hallstrom said. "They're looking at needing a second and perhaps even a third job, for which benefits are not necessary. They're not interested in anything other than having the job to allow them -- those that are less fortunate, those that are eating from hand to mouth and need the extra employment on their terms -- to be able to make ends meet."

The Legislature adjourned for a three-day weekend without reaching a vote. When lawmakers resume work Monday, there will remain less than an hour of debate before Hallstrom can move for cloture to end the filibuster against his bill and proceed to a final vote. At the previous stage of consideration, it received 33 votes, precisely the number it would need to pass Monday.

Asked if he still has the votes, Hallstrom said “You never know, but I certainly hope so.”