The Legislature moved a $3.4 billion budget Friday to Gov. Dave Heineman for his review.
It includes a 2 percent cut for most state agencies — on top of a 5 percent cut approved in a November special session — and a $3 million transfer from the $324 million cash reserve, needed to help cover an approximate $45 million shortfall.
Speaker Mike Flood thanked the Appropriations Committee, its staff and the rest of the Legislature for passing the 2010-11 budget.
“Might I remind you, in every other state in the nation what we did today takes weeks, 24 hours of work, bitter fights and constant disagreement,” he said. “People in other states can’t believe what we accomplish when we work together.”
Nebraska has a unique situation with a nonpartisan Unicameral Legislature. Most of the hard work and disagreements happen in the Appropriations Committee as the nine members hammer out a budget proposal to present to the full Legislature.
By the time all senators get it, compromises have been worked out.
And the $45 million budget gap isn’t as bad some other state’s shortfalls.
Iowa, for example, is working on a $5.3 billion budget that includes a 10 percent across-the-board spending cut that will help to fill a $341 million budget gap.
Kansas is looking at a budget deficit that could reach $500 million and is considering proposals to cut millions in social services or a possible income tax increase.
Nebraska is anticipating more pain in the next two-year budget.
This session’s main budget bill included a requirement, proposed by Omaha Sen. Heath Mello, for state agencies to develop efficiency plans that could include consolidating programs, streamlining services and moving to a four-day work week.
Agencies are working on those plans along with figuring out how to cut another 2 percent.
State Education Commissioner Roger Breed said his department is looking at any and all considerations for its additional $230,000 cut.
He, his deputy and assistant will not get salary increases, but because of the minimal increases the staff has received the past several years, they will not be included in the freeze, he said.
The Foster Care Review Board will institute a wage freeze for its six administrative staffers, including Executive Director Carol Stitt, for an $11,000 savings toward its $27,708 cut. The remainder will be taken from personnel savings, including vacancies and filling one position with a 2/3 rather than full-time worker.
The Department of Health and Human Services is starting to look at how it will cut 2 percent more in its administrative division. It will consider leaving vacancies open and consolidating offices, for example, said CEO Kerry Winterer.
Nebraska officials say the state’s unemployment rate rose slightly to 4.8 percent in February — still less than half the national rate of 9.7 percent.
