$396 million
The Appropriations Committee released the final budget report earlier this week, setting the stage for the proposal that will be debated by the Legislature starting May 6. The shortfall the body needs to close increased to $396 million after less-than-rosy revenue projections by the Nebraska Economic Forecasting Advisory Board. Two pieces of legislation passed by the body and signed by the Governor this week reduced the shortfall by $136 million. As the body works to close the remaining gap, OpenSky will continue to analyze the budget proposal as we gather more information – and proposed solutions for closing it. The budget must be passed by Day 80, which falls on May 15.
$66.3 million
Wyoming’s state legislature restored the $66.3 million full external cost adjustment (ECA) for K-12 public education after Laramie County District Court Judge Peter Froelicher ruled that the legislature’s implementation of the funding formula was unconstitutional. The external cost adjustment is part of a recalibration process in the school funding formula that, according to state law, takes place every five years and is designed to account for inflation and the changing nature of providing a “complete and uniform system of public instruction” as guaranteed by the state Constitution. The ruling is the result of a 2022 suit by the Wyoming Education Association (WEA) claiming that the state has consistently failed to meet its constitutional obligations to K-12 schools. Judge Froelicher affirmed all 6 points made by the WEA, declaring that recent implementation of the formula lacks constitutionality.
The suit, called a “bombshell” in local media, is not novel. Over the last several decades, state courts in 48 of the 50 states have seen challenges to state education finance systems brought by stakeholders such as parents, students, teachers and others who claim that funding for their schools is inadequate, inequitable, or both. This has resulted in many state legislatures seeking solutions to create more comprehensive overhaul before the issue is forced by the courts. In Maryland in 1999, the legislature created a commission composed of policymakers, business leaders, education leaders and other stakeholders. The Commission created a suite of recommendations including revamping the formula to make it less reliant on property taxes, expanding preschool education and full-day kindergarten programs. Their recommendations were adopted by the legislature in 2002 and credited with avoiding lawsuits.
Nebraska has a similar commission proposed in LB 303, introduced and prioritized by Senator Jana Hughes at the request of Governor Jim Pillen. The bill is currently sitting in the Education Committee, but the hearing drew a wide variety of support from stakeholders, signaling the potential for future work on the concept.
$1,125,231,601
Over a billion dollars in federal funds have contributed to disaster relief in Nebraska since September 2003, according to reporting by the Carnegie Endowment for International Peace. The majority of the recovery funds were allocated in response to 2019’s severe winter storm, straight-line winds and flooding. The Federal Emergency Management Agency (FEMA) was responsible for the majority of grants, though the Department of Housing and Urban Development (HUD) contributed as well.
Last week, FEMA denied federal assistance for tornadoes in Arkansas, flooding in West Virginia and a windstorm in Washington state. It also has refused North Carolina’s request for extended relief funding in the aftermath of Hurricane Helene. The presidential administration has been openly critical of FEMA, creating a commission to review the agency via executive order. The department was also part of widespread reductions in the federal workforce, leaving many with concerns about the availability of the federal government to offer support for the next natural disaster.
Additional FEMA impacts were felt nationwide by the sudden elimination of the Building Resilient Infrastructure and Communities program, which was established to bolster state and local government efforts to safeguard against widespread damage.
65%
A study by the American Medical Association in 2024 reported that 65% of rural areas had a shortage of primary care physicians, and most are completely without a psychiatrist. The problem puts the health and well being of rural residents in jeopardy, especially amid the threat of federal cuts to Medicaid, which would result in shuttering of rural hospitals as well as additional coverage gaps.
OpenSky hosted a webinar earlier this week, taking a deep dive into Nebraska’s rural health landscape and exploring potential solutions for maintaining health and wellness in our rural communities.
