Budget advances, revenue projections increase, hearing held on K-12 finance review committee

Budget advances, revenue projections increase, hearing held on K-12 finance review committee

The Appropriations Committee budget proposal was advanced to the second round of debate on Thursday.

Prior to Thursday’s debate on the budget, Sen. Heath Mello, chairman of the Appropriations Committee, spoke at an OpenSky budget briefing in Lincoln and said the 3.1 percent rate of appropriations growth achieved in this biennium’s budget may be difficult to maintain in future budgets.

One-time changes related to Medicaid and other factors helped keep appropriations growth down in this budget, Sen. Mello said, but those changes won’t be able to be made in future budgets. Challenges in areas such as corrections reform and education funding also could make it hard to keep appropriations growth near 3 percent, Sen. Mello said.

Forecasting board raises revenue projections

On Thursday afternoon, the Nebraska Economic Forecasting Advisory Board increased its revenue projections by $12 million for this year and for $22 million for the next three years. Sen. Mello at the OpenSky briefing indicated that the board’s projections may cause alterations to the Appropriations Committee budget between the first and second rounds of debate.

Before Thursday’s forecast, there was a projected shortfall of about $60 million in FY 18-19 if all bills that have passed the first round of debate were to be enacted. Thursday’s forecast reduced that projected shortfall but did not eliminate it, OpenSky executive director Renee Fry said.

The Legislature’s commitment to a strong cash reserve and fiscally-responsible tax policy will help protect Nebraska’s investments in services like schools, roads and public safety should the shortfall occur, Fry said.

Attend Monday’s briefing to get a budget update

You can learn more about the budget and the potential impact of the new revenue forecast at our Omaha budget briefing on Monday.

The briefing is free and open to the public and will run 8 a.m. to 9 a.m. at the Blue Cross Blue Shield of Nebraska Omaha Office, Aksarben Room, at 1919 Aksarben Drive. It will feature a presentation by OpenSky and a budget discussion with Sen. Mello. Parking is available in the north lot. RSVP online to attend.

Hearing held for K-12 finance review committee

On Friday, the Legislature’s Executive Board held a hearing on LR 201, which calls for the creation of the School Finance Modernization Committee. The committee would examine the state school funding system in order to address Nebraska’s property tax and school funding challenges.

OpenSky and several others testified in support of LR 201, which will allow the state to address the intrinsic link between school finance and property taxes.