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Policy experts concerned with impact of Gov. Pillen's line-item vetoes including healthcare, foster care

Posted at 6:37 PM, May 25, 2023
and last updated 2023-05-25 19:37:53-04

OMAHA, Neb. (KMTV) — Almost every budget comes with line-item vetoes from a chief executive.

This year Gov. Jim Pillen submitted a number of vetoes including, cutting funding for workforce housing, Medicaid reimbursement, and a number of targeted projects for rural counties.

The vetoes themselves aren’t unusual but some are arguing that these cuts are targeting the most vulnerable Nebraskans.

“We are looking at reducing the funding for court-appointed special advocates for children who are in the court system. Looking at reductions in provider rates for child welfare. Those are children that are in the foster care system,” said Rebecca Firestone, executive director of OpenSky Policy Institute.

Another item potentially getting cut is workforce housing.

“Certainly we face a challenge in accessing affordable housing in this state. To go ahead with those vetoes makes less funds available to incentivize the creation of affordable housing,” said Firestone.

It isn’t just housing and childcare that hit the chopping block. Nebraska’s healthcare system might also take a hit.

“We were disappointed by the vetoes proposed by Gov. Pillen. Our hospitals and health services across the state are struggling with a very challenging financial situation,” said Jeremy Nordquist, president of the Nebraska Hospitals Association.

The vetoes include increasing provider Medicaid reimbursement rates.

In his veto statement, Pillen said his reason for the cuts was that Nebraska hospitals have seen record profits, but Nordquist says that isn’t the case.

“It's disappointing the Governor is using that rhetoric. We have told him and his staff multiple times the data we have shows our hospitals, more than half of them, are operating in the red. That's due to high cost,” said Nordquist.

Some lawmakers weren’t supportive of the Governor’s vetoes. On Thursday the Appropriations Committee voted 5-4 to override several of his vetoes, including his vetoes of provider rate hikes and workforce housing projects.

Those overrides still need to go through a floor vote but Nordquist is hopeful that lawmakers will have the hospitals' best interests at heart.

“We are gonna do everything we can to explain what’s happening and we are hopeful our legislators will pay attention to that,” said Nordquist.

Speaker John Arch said on Thursday that the votes on veto overrides will be taken up next Wednesday.

RELATED: Gov. Pillen signs budget into law, vetos millions in funding and spending

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