On April 29, Day 70 of the legislative session, the state budget will be introduced and deliberated by members of the Legislature, marking the beginning of debate on the two-year budget. The Appropriations Committee has been meeting regularly over the noon hour during full debate days to develop a preliminary version of the budget. The Committee has now reached an agreement, and is awaiting the finalized preliminary version from the fiscal office. Although the exact figure continues to evolve, Nebraska has yet to reach a balanced budget.
The state budget process involves two key committees within the Nebraska Legislature: the Revenue Committee, which handles how money is raised, and the Appropriations Committee, which decides how the money is spent. This process begins between September and January, when agencies submit their budget requests to the Department of Administrative Services (DAS). These requests are analyzed by the fiscal office. By January 15, the Governor presents a formal budget proposal plan.
From January through February, the Appropriations Committee collaborates with the fiscal office to review the proposal and develop recommendations. In March, the Committee conducts public hearings to gather input from agencies, interest groups, and the general public. By April, the Committee finalizes its recommendations and introduces budget bills to the full Legislature, which must be passed by the 80th day of the legislative session. The Governor has five days to either sign or veto the budget. If vetoed, the Appropriations Committee must respond within one day, and the Legislature can override the veto with a three-fifths majority vote.
The Nebraska Economic Forecasting Advisory Board plays a crucial role in guiding budget projections. The board meets in February and October each year, and also in April during odd-numbered years, to develop consensus projections of the state’s economic outlook. These forecasts consider key indicators such as unemployment, gross state product, and personal income.
At the board’s February meeting, a projected revenue increase of $165 million was announced. The Board is scheduled to meet again on April 25, and I’ll be sure to share an update on their revised forecast as soon as it becomes available.
As always, I appreciate your continued engagement on these important topics. If you have any feedback or concerns, please don’t hesitate to reach out. Your input is invaluable in shaping the future of our district and state.