May 2, 2025

109th Legislature, 1st Session

Biennial Budget Advanced to the Full Legislature

The Appropriations Committee advanced the biennial budget on Tuesday. This comes after the Nebraska Economic Forecasting Advisory Board met last Friday to review tax receipts and revenue projections. The Board added $190 million to the projected budget deficit for the next two years. The state of Nebraska entered the session in January with a projected revenue shortfall of $432 million. After two meetings and adjustments, the deficit is once again closer to where the calendar year started. The first round of debate on the budget is scheduled to begin on Tuesday. The Legislature will have until day 80 – May 15 – to pass the budget.
 
Several bills aiming to shrink the deficit advanced this week, including LB 650, introduced by Senator Brad von Gillern (Omaha), and LB 645, introduced by Senator Beau Ballard (Lincoln). LB 650 pares back various tax incentives. LB 645 reduces annual contributions from the state to the Nebraska School Retirement Fund, which is currently more than 99.9% funded. Collectively, the two measures should reduce the deficit by $136 million. Several other bills await approval, including LB 169, which would impose new sales taxes on 18 so-called “luxury” items, and LB 170, which would impose sales taxes on soda and candy. Additionally, measures have been advanced to increase taxes on cigarettes, nicotine and vape products.

Minimum Wage Reform Advances

LB 258, introduced by Senator Jane Raybould (Lincoln), was the most controversial bill advanced this week, overcoming a filibuster on Thursday afternoon. LB 258 would, upon reaching $15.00 per hour next year, cap the minimum wage increase at 1.75% per year and establish a youth wage for 14 to 15-year-olds and a 90-day training wage for 16 to 19-year-olds, unless they are emancipated. As before, debate was negative and often personal between proponents and opponents of the bill. The motion to invoke cloture during the second round of debate was adopted on a vote of 33-16. Several amendments were considered to change the annual increase before proponents settled on a fixed increase of 1.75% per year.
 
The Legislature wrapped up the week by rapidly advancing 22 bills before noon when they took up LB 530, introduced by Senator Kathleen Kauth (Omaha). LB 530 served as a Judiciary Committee package that modifies a number of criminal provisions. After extended and, at times, heated debate, the bill advanced 33-0 with 16 senators present and not voting. The four-day weekend will provide a much-needed break for the Senators.

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