- Video shows lawmakers debating LB261 and its amendments.
- Lawmakers are still working to reduce a $262 million dollar budget shortfall and are considering sweeping state agency cash accounts to cover the difference.
BROADCAST TRANSCRIPT:
It’s no secret, Nebraska’s budget isn’t looking good.
A recent forecast from the Economic forecasting advisory board estimates lawmakers still have $262 million they need to make up to balance the budget.
And some lawmakers believe the solution to their budget woes could come from cash accounts.
“What is being proposed in the budgetary changes is going into funds that have excess dollars laying in that fund and taking away some of the unspent dollars,” said Senator Mike Jacobson.
The latest strategy from lawmakers, an amendment to LB 261, sweeping cash accounts at numerous state agencies to turn the $262 million shortfall into a $3 million surplus.
Supporters say those funds, for things like $250,000 for the State Patrol's vehicle replacement budget, $500,000 for public safety communications and $3.25 million for the Governor’s emergency fun sit unused and sweeping accounts gets the deficit down while preserving agency budgets but opponents say they don’t address the cause of our deficit problems income tax cuts and property tax relief slashing state revenue.
“We knew we couldn’t afford the tax cuts and we did it anyways. And we know the tax cuts are the reason we are in this situation,” said Senator Machaela Cavanaugh.
With hours of debate still ahead of them changes to the amendment are almost guaranteed but the sweeping of cash accounts has been the preferred strategy of Governor Pillen and his team.
Some lawmakers like Christy Armendariz hinted at the potential for a veto from the Governor if lawmakers decide to change course.
“They will want to go backwards, they will want to stop but we are healthy. This is the time to double down and keep working in the best interest of the taxpayer and going through every agency to find waste,” said Senator Armendariz
