Appropriations Committee
February 18, 2025
Committee Chair: Sen. Rob Clements | Bills Heard: 5 | Full Transcript (PDF)
LB260: Deficit appropriations bill for 2025-2027 biennium
Introduced by: Sen. Governor Pillen (presented by Neil Sullivan, State Budget Administrator) | Testimony: 0 proponents, 2 opponents, 0 neutral | Read bill text (PDF)
Governor's deficit budget diverts conservation funds to cover state operations, drawing fire from environmental groups. The $62.1 million general fund increase in LB260 relies partly on redirecting Nebraska Environmental Trust dollars—created by voters in 1992—away from conservation grants and toward Game and Parks operations. Conservation organizations say this violates the voter mandate and erodes their ability to leverage federal matching dollars.
Why it matters: The Environmental Trust has distributed funds to all 93 Nebraska counties over three decades, supporting habitat restoration, wetland protection, and local economic development. Diverting those dollars sets a precedent for future raids on dedicated conservation funding and undermines public-private partnerships that have multiplied the state's conservation impact.
What they're saying: - Opponents: "Diverting these funds to cover government grant operations violates the voter mandate and undermines the integrity of the trust that's been in place for over 30 years." (Kristal Stoner, Audubon Great Plains) - Proponents: The budget balances a $432 million gap through conservative decisions while maintaining $1.1 billion in reserves and investing in education and property tax relief.
By the numbers: LB260 includes $55 million for Medicaid shortfalls, $182.9 million in total fund transfers from 70 different sources, and rollback of $77 million in prior program expansions. Online comments: 2 opponents, 0 proponents.
What's next: No vote was taken. The bill remains in committee for further consideration as part of the broader budget package.
Committee sentiment: Skeptical: Sen. Ashlei Spivey Unclear: Sen. Paul Strommen
Sentiment estimated from questions and comments — not stated positions.
LB261: Cash fund transfers and appropriations adjustments
Introduced by: Sen. Governor Pillen (presented by Neil Sullivan, State Budget Administrator) | Testimony: 0 proponents, 8 opponents, 0 neutral | Read bill text (PDF)
Proposed $15 million cut to conservation trust threatens rural health recruitment and state park maintenance. LB261 would reduce Nebraska Environmental Trust funding by $7.5 million annually while also cutting $1.5 million from the Rural Health Provider Incentive Program, which has a 92% success rate in placing healthcare professionals in underserved rural areas.
Why it matters: The rural health program has 933 program completers and previously had 50+ applicants on waiting lists. Cutting funding now risks losing qualified providers who may relocate to states with better loan repayment support. The NET cuts also reduce state park maintenance funding, potentially forcing fee increases that reduce accessibility for lower-income Nebraskans.
What they're saying: - Opponents: "This $15 million loss means fewer funds for projects that protect water quality, habitat restoration, wildlife conservation, and pollution reduction. Many of these projects rely on matching private and federal dollars, so the impact of this cut would extend far beyond $15 million." (Ele Nugent, Ducks Unlimited) - Rural health advocates: The program is "an imperative part of recruitment and retention of health care providers to the rural communities, and its economic impact is meaningful."
By the numbers: Rural Health Provider Incentive Program has 92% success rate; 933 participants have completed the program. Online comments: 30 opponents, 1 proponent.
What's next: No vote was taken. The bill remains in committee for further consideration.
Committee sentiment: Skeptical: Sen. Machaela Cavanaugh, Sen. Jason Prokop
Sentiment estimated from questions and comments — not stated positions.
LB262: State aid and local government appropriations
Introduced by: Sen. Governor Pillen (presented by Neil Sullivan, State Budget Administrator) | Testimony: 0 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
LB262 addresses state aid and local government appropriations as part of comprehensive budget package. This bill was presented alongside LB260, LB261, LB263, and LB264 as part of Governor Pillen's 2025-2027 biennial budget recommendation. No specific testimony was offered on this bill during the hearing.
Why it matters: State aid to local governments and individuals represents a significant portion of the state budget and directly affects property tax relief, education funding, and social services delivery across Nebraska.
What's next: No vote was taken. The bill remains in committee for further consideration as part of the broader budget package.
LB263: Capital construction appropriations
Introduced by: Sen. Governor Pillen (presented by Neil Sullivan, State Budget Administrator) | Testimony: 0 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
LB263 funds major capital projects including UNMC hospital replacement and nuclear security infrastructure. The capital construction bill includes $50 million over six years for a $2.1 billion UNMC Clarkson Tower Hospital replacement project and $30 million for the Nuclear Command, Control, and Communication Center at Offutt Air Force Base.
Why it matters: These investments address critical infrastructure needs—healthcare capacity for the state and national security infrastructure supporting STRATCOM's nuclear mission.
What's next: No vote was taken. The bill remains in committee for further consideration as part of the broader budget package.
LB264: Cash fund transfers and statutory changes for 2025-2027 biennium
Introduced by: Sen. Speaker Mike Arch (presented by Neil Sullivan, State Budget Administrator) | Testimony: 2 proponents, 103 opponents, 1 neutral | Read bill text (PDF)
Sweeping cash fund transfers to balance budget draw fire from housing, broadband, conservation, and business groups. LB264 proposes $182.9 million in transfers from 70 different funds, including $65 million from Water Recreation Enhancement Fund, $8 million from Affordable Housing Trust Fund, and elimination of the Broadband Bridge Act. The bill drew 103 online opponent comments—the most of any bill heard.
Why it matters: The transfers target programs with proven return on investment: affordable housing development, rural broadband expansion, conservation matching grants that leverage federal dollars, and tourism promotion that generates nearly $1 billion in annual business earnings. Sweeping fee-funded programs will require 100%+ fee increases on regulated industries. The bill also raises constitutional concerns about transferring funds containing private donor dollars.
What they're saying: - Opponents: "Turning a competitive grant program into a fund for state agencies defeats the purpose of the trust and erodes local participation in conservation efforts." (Katie Torpy, The Nature Conservancy) - Opponents: "The budget is not sustainable in the long term. Relying on anticipated revenue growth without evidence that it's actually happening or will happen as the tax cuts further shrink the tax base is not sustainable or realistic." (Craig Beck, OpenSky Policy Institute) - Proponents: "The governor's budget reduction spending by an average of 0.5% per year over the biennium, provides an adequate cash reserve, and provides $302 million in property tax relief." (Mark McHargue, Nebraska Farm Bureau)
By the numbers: $182.9 million in total transfers from 70 funds; $65 million from Water Recreation Enhancement Fund; $8 million from Affordable Housing Trust Fund; $3 million from Financial Institution Assessment Cash Fund. Tourism generates $4.54 billion in visitor expenditures annually. Online comments: 103 opponents, 2 proponents.
What's next: No vote was taken. The bill remains in committee for further consideration. Committee chair noted that Department of Transportation (Broadband Office) and Public Service Commission will testify during agency hearings for further clarification on broadband programs.
Committee sentiment: Supportive: Sen. Paul Strommen Skeptical: Sen. Machaela Cavanaugh, Sen. Ashlei Spivey Unclear: Sen. Robert Dover
Sentiment estimated from questions and comments — not stated positions.
Session Notes
The Appropriations Committee heard the governor's comprehensive 2025-2027 biennial budget package (LB260-LB264) on February 18, 2025. State Budget Administrator Neil Sullivan presented all five bills collectively, explaining that the budget balances a $432 million gap through conservative fiscal decisions, $182.9 million in fund transfers from 70 different sources, and rollback of $77 million in prior program expansions. The governor's recommendation includes $245 million for property tax relief and $100-200 million annually for the Education Future Fund. Committee Chair Clements noted that several bills referenced in the budget (LB527, LB317, LB114, LB434, LB245, LB394, LB169, LB170, LB526) are not in the Appropriations Committee and will be heard elsewhere. The committee will receive a new revenue forecast on February 28, 2025. Online position comments received: LB260 (2 opponents, 0 proponents, 0 neutral); LB261 (30 opponents, 1 proponent, 0 neutral); LB264 (103 opponents, 2 proponents, 0 neutral). No votes were taken on any bills during this hearing.
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