Appropriations Committee
February 25, 2025
Committee Chair: Sen. Rob Clements | Bills Heard: 5 | Full Transcript (PDF)
LB627: Authorize design and construction of residential facilities for UNMC nursing students in Norfolk
Introduced by: Sen. Rob Dover | Testimony: 6 proponents, 0 opponents, 1 neutral | Read bill text (PDF)
Norfolk seeks $15 million in state funding over 20 years for nursing student housing to address critical workforce shortage. The UNMC College of Nursing Northern Division in Norfolk has become a regional success story, with 75% of graduates staying in the community. But housing barriers are preventing enrollment growth and limiting the program's ability to address Nebraska's critical nursing shortage—50% of registered nursing roles will go unmet given current talent pipeline. Why it matters: Nursing students who live in Norfolk are more likely to stay and work in the region, addressing rural healthcare access. The project would anchor downtown redevelopment and support the state's workforce development priorities. What they're saying: Proponents emphasized Norfolk's proven track record of private fundraising ($13 million for the nursing college, $10+ million for YMCA) and strong community commitment. "75% of its graduates from the northeast stay in the community," testified Kathy Nordby, CEO of Midtown Health Center. The university testified neutrally, saying it's not a budget priority but acknowledging the value of such partnerships. By the numbers: Current enrollment is about 50 nursing students; the program plans to double that. The state would invest $15 million over 20 years; Norfolk would raise approximately $8 million privately. The facility would house 100 students. What's next: No vote was taken. Sen. Dover will close on the bill.
Committee sentiment: Supportive: Sen. Spivey Unclear: Sen. Clements
Sentiment estimated from questions and comments — not stated positions.
LB11: Appropriate funds for Nebraska Statewide Workforce and Educational Reporting System (NSWERS)
Introduced by: Sen. Jana Hughes | Testimony: 3 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Legislature considers $523,572 appropriation to sustain data system tracking how education investments impact Nebraska's workforce. NSWERS, created by LB1160 in 2020, analyzes longitudinal data across K-12, higher education, and workforce systems to help policymakers make evidence-based decisions. The system was initially funded through partner institutions and private donations, but as it becomes operational, the Legislature is being asked to provide dedicated funding. Why it matters: NSWERS data shows that third-grade reading proficiency predicts graduation rates, internships boost college graduates' likelihood of staying in Nebraska by 5-8 percentage points, and Nebraska faces critical workforce gaps—50% of nursing roles and 70% of teaching positions will go unmet. Policymakers need this data to target investments effectively. What they're saying: "NSWERS is indispensable," testified Commissioner Brian Maher, explaining that it's virtually impossible to understand how K-12 education contributes to workforce outcomes without cross-system data. Chancellor Paul Turman noted the system helps identify which factors have the biggest impact on graduation rates. By the numbers: NSWERS operates on approximately $2 million annually. The bill appropriates $523,572 in FY 2025-26 and $719,180 in FY 2026-27, split evenly among four partner groups. For every public dollar invested, the system anticipates nearly $3 in private funding. What's next: No vote was taken. Sen. Hughes will close on the bill.
Committee sentiment: Supportive: Sen. Spivey Unclear: Sen. Prokop, Sen. Clements
Sentiment estimated from questions and comments — not stated positions.
LB307: Appropriate funds to cover cost of mandated tuition waivers for veterans, first responders, and military personnel
Introduced by: Sen. Teresa Ibach | Testimony: 5 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Universities and colleges ask Legislature to fund tuition waivers it mandated but never appropriated. Since 2018, the Legislature has created or expanded tuition waivers for veterans, first responders, and military personnel—but provided no state funding. Now institutions are absorbing nearly $6 million annually at the University of Nebraska alone, forcing difficult choices between raising tuition on other students, cutting scholarships, or reducing programs. Why it matters: These unfunded mandates are growing unsustainably—the University of Nebraska system saw a 115% cost increase since inception and 45% increase last year alone. Without dedicated state funding, institutions will have to make cuts that harm affordability and access for all students. What they're saying: "It's an unfunded mandate," testified Chancellor Joanne Li of UNO, which faces a $3.5 million annual burden (5% of its state-aided budget). "Without dedicated state funding, the university will face difficult choices such as raising tuition or fees for other students, reducing institutional scholarships, or scaling back academic programs." Chancellor Paul Turman noted that state colleges have seen a 700% increase in waiver costs since 2016-17. By the numbers: University of Nebraska granted $5.95 million in tuition remissions in FY 2023-24. Between 2018-2022, nearly 4,000 waivers were granted systemwide costing nearly $20 million. UNO saw a 55% increase last year and 180% increase since inception. What's next: No vote was taken. Sen. Ibach will close on the bill.
Committee sentiment: Supportive: Sen. Dorn, Sen. Spivey, Sen. Lippincott, Sen. Cavanaugh Skeptical: Sen. Clements
Sentiment estimated from questions and comments — not stated positions.
LB460: Create Nebraska Council on Economic Education Cash Fund and appropriate $300,000 annually for financial literacy education
Introduced by: Sen. Margo Juarez | Testimony: 6 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Legislature considers $300,000 annual appropriation to fund financial literacy education mandate it created without funding. In 2021, the Legislature required all high school students to complete a personal finance course before graduation—then provided no money to support it. The Nebraska Council on Economic Education has filled the gap through fundraising and savings depletion, but the model is unsustainable. LB460 would provide dedicated state funding to ensure teachers have quality resources and professional development. Why it matters: Financial literacy is foundational to economic mobility and workforce development. Nebraska ranks #2 nationally in financial literacy, partly due to NCEE's work. Without state support, the organization will have to cut programs or reduce teacher training, undermining the mandate the Legislature created. What they're saying: "It's important that Dr. Davidson and her team spend their time educating and not fundraising," testified Kirsten Soneson, NCEE board chair. Tanner Ellis, a high school teacher from Ravenna, noted that NCEE has saved his small district over $19,000 in eight years through free and reduced-cost programs. "Without NCEE, districts like mine would be forced to rely on expensive, one-size-fits-all curriculum." By the numbers: NCEE served 440 unique teachers from 85 of Nebraska's 93 counties last year. The organization's total annual budget is $350,000. Two all-female teams from Ravenna High School have been state Personal Finance Challenge champions for two consecutive years. What's next: No vote was taken. Sen. Juarez will close on the bill.
Committee sentiment: Supportive: Sen. Strommen, Sen. Spivey, Sen. Clements
Sentiment estimated from questions and comments — not stated positions.
LB678: Appropriate funds to Nebraska State Colleges to cover negotiated salary increases and fixed cost increases
Introduced by: Sen. Brian Hardin | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
State colleges ask Legislature to fund negotiated salary increases or face 15% tuition hike. The Nebraska State Colleges negotiated 3% salary increases with three unions representing 76% of employees, following Department of Administrative Services recommendations. But the governor's budget didn't include funding for the increases, leaving the colleges facing a choice: implement a 15% tuition increase or cut programs. Why it matters: State colleges serve 45% first-generation college students, many from low-income families. Tuition increases would undermine affordability and access. The colleges have already accumulated $9.5 million in shortfalls over the past decade by absorbing unfunded costs. What they're saying: "Without it, the state colleges will be forced to shift these costs onto students or they have to make significant program and service reductions, both of which would harm affordability and access," testified Sen. Hardin. Chancellor Paul Turman noted that the state colleges have aligned with DAS salary recommendations for two decades and that faculty earn approximately 25% less than University of Nebraska faculty. By the numbers: Fixed costs total $2.9 million in FY 2026 and $2.8 million in FY 2027. A 15% tuition increase would be required to cover these costs without state support. The governor's budget supports 3% salary increases and 11% health insurance increases for all other state employees at a cost of $97.2 million. For every $1 invested in State College System, it generates $9.50 in economic activity. What's next: No vote was taken. Sen. Hardin will close on the bill.
Committee sentiment: Unclear: Sen. Clements, Sen. Lippincott
Sentiment estimated from questions and comments — not stated positions.
Session Notes
The Appropriations Committee heard five bills on February 25, 2025. Committee Chair Rob Clements opened with procedural instructions, noting that testifiers were limited to 3 minutes and that online position comments must be submitted by 8:00 a.m. the day of the hearing. The committee also heard from the Nebraska State College System agency regarding their budget request earlier in the day (not detailed in this transcript). Position comments were submitted for the record on each bill heard. The hearing concluded after LB678 testimony.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.