LINCOLN, Neb. (AP) - In a story May 9 about the state budget, The Associated Press reported erroneously that passing a state budget bill without an emergency clause could have left agencies without key funding. State officials say failing to add an emergency clause to the bill would have delayed several cash transfers to various state accounts, including the general fund.
A corrected version of the story is below:
Nebraska budget passes after showdown over state spending
Nebraska lawmakers pass $8.9 billion, two-year state budget after showdown over state spending and tax collections
By GRANT SCHULTE
Associated Press
LINCOLN, Neb. (AP) - An $8.9 billion state budget won final approval Tuesday in the Nebraska Legislature after a showdown over spending and tax collections.
Lawmakers passed the two-year spending plan despite objections from some conservatives who argued that more cuts were needed.
On one of the budget bills, senators initially failed to muster enough support to put the law into effect by July 1, the start of the new fiscal year. The bill needed a 33-vote supermajority to pass with a so-called emergency clause, but only received 32 votes. Without the emergency clause, several cash transfers to various state accounts, including the general fund, would have been delayed under the bill.
“I’m just trying to get a grip on my feelings right now,” said Sen. John Stinner, chairman of the budget-writing Appropriations Committee. “There’s a little anger, a lot of disgust, a lot of frustration. You people had better wake up.”
Stinner said his committee crafted a budget through a “thoughtful, deliberative process” to try to avoid major damage to K-12 schools, health care services or the University of Nebraska.
Lawmakers voted again and passed the measure, 36-12, with an emergency clause.
The budget would increase spending by an average of 1 percent annually, well below the historical average. It would cover expenses from July 1, 2017, through June 30, 2019.
Lawmakers began the session with a projected revenue shortfall of nearly $900 million. The package balances the budget with a combination of cuts, withdrawals from the state’s rainy day fund and tapping money from various cash accounts. It also relies on an accounting change by temporarily lowering the minimum amount of money the state needs to keep in its reserves.
Another budget committee member, Sen. Kate Bolz of Lincoln, said passing the budget package without an emergency clause could have left key public safety positions unfilled and created budget uncertainty for schools and the university. The Nebraska Game and Parks Commission might not have been able to hire new staff members, affecting summer vacation plans, she said.
The initial failure to pass the bill “was not a responsible vote,” Bolz said. “We need to take responsibility for funding core services.”
Sen. Ernie Chambers of Omaha called the initial vote “sheer stupidity” and likened it to a moth flying too close to a fire. Chambers said opponents of the budget were secretly “crossing their fingers” that most senators would pass it as required.
Speaker of the Legislature Jim Scheer said opponents were “playing a game of chicken” with the state budget, which lawmakers are legally required to balance.
“How any of you in good conscience could vote against a budget bill knowing that it’s needed to run the government is beyond me,” Scheer said. “You’re not doing your job.”
Gov. Pete Ricketts has raised concerns about the budget, saying it relies on a “budget gimmick” rather than spending cuts.
“Making additional cuts now will protect the state budget against uncertain revenue streams and place the state on firmer financial footing,” Ricketts said in his weekly newspaper column, released Monday.
Some senators said the budget could force the Legislature into a special session in which lawmakers might have to consider sharper cuts or tax increases, especially if revenue continues to fall below expectations.
“There are legitimate needs, no question about that,” said Sen. Dan Hughes of Venango. “But did you hear from anybody who’s paying the bill? In my area, there’s a concern about the amount of money being taken out of our economy to fund the state.”
Sen. Steve Erdman of Bayard said the Appropriations Committee “took the easy way out” by advancing a budget that continues to increase spending.
“I don’t care what you or anyone else thinks,” he said to his colleagues. “I came here to do the right thing.”
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