Gov. Pillen Unveils Plan to Address $432 Million Budget Shortfall

Governor Pillen’s budget proposal aims to tackle a $432 million shortfall while ensuring property tax relief and funding for essential services.

Gov. Pillen Unveils Plan to Address $432 Million Budget Shortfall
Gov. Pillen Unveils Plan to Address $432 Million Budget Shortfall

Lincoln: Governor Jim Pillen has laid out his plan to tackle a projected $432 million budget shortfall during his State of the State address. This budget covers the two fiscal years from July 2025 to June 2027.

His proposal aims to not only close the gap but also create a surplus of over $62 million in Nebraska’s budget, which is more than $17.5 billion. Key points include repealing certain laws that cost the state revenue, cutting spending in various agencies, and increasing taxes on items like cigarettes and gambling.

Pillen emphasized the need for fiscal responsibility, stating that the state must balance its budget and reduce spending. He also plans to grow property tax relief programs by over $400 million in the next two years.

Speaker John Arch noted that addressing the budget shortfall is the biggest issue for the upcoming legislative session. He pointed out that part of the shortfall stems from significant tax cuts for corporations and wealthy individuals that will take full effect in 2027.

State Senator Machaela Cavanaugh expressed concern that the shortfall is a result of aggressive tax cuts rather than economic downturns. She aims to ensure funding for essential services, especially for vulnerable populations.

Pillen’s budget also proposes cuts to various incentive programs and a reduction in funding for a veterans justice program. He plans to partner with State Senator Jana Hughes to reform school finance, aiming to lower property tax rates for K-12 schools.

Overall, while the budget proposal aims to address the shortfall, it also raises questions about the future of funding for education and essential services in Nebraska.

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