03/06/2026
Weekly District 30 Update – 3/6/26
State Senator Myron Dorn
Monday, March 9th is the fortieth day of our sixty-day session. The state budget comes to the floor and will begin to take priority for debate. The Appropriations Committee has sent the budget bills to the floor. The main ones are LB 1071 which is referred to as the main-line budget bill because it contains the majority of funding to run state government and LB 1072 which deals with many of the state’s cash funds. The committee faced an approximately $470 million shortfall. Then the state Forecasting Board met at the end of February and added an additional $175 million to that shortfall. So, the total amount we needed to cut rose to $645 million. The committee took $130 million out of the cash reserve (our rainy-day fund). We cut spending in a number of programs, took money from other cash funds that had balances, and we are still $130 million short. When the budget comes to the floor, senators will see a green sheet which lays out all of the budget numbers, revenues, expenditures, cash transfers, and fund balances. We rely on this ‘green sheet’ to keep us up-to-date on every financial decision we make to reach a balanced budget. This green sheet is updated every day.
The Executive Board of the Legislature approved the Speaker of the Legislature's request to make the budget bills super priorities. This allows the Speaker to control the order of any proposed amendments. To attach those amendments, we only need 25 votes. This ensures that if a filibuster occurs on the budget, it can be amended and put in good form. To overcome a filibuster, 33 votes are needed. The budget will take up a significant number of remaining days. The budget must pass by the fifth day. If we don’t pass a new budget, last year’s budget remains, which means we have a $650 million deficit. If this happens, we could be back this summer in a special session.
Revenue Committee bills are coming to the floor for debate, which may help address the budget gap. One such bill was LB 1124, introduced by Senator Tony Sorrentino of Omaha, which would raise the excise tax on a package of ci******es from 64 cents to $1.64. The money would be used to help pay for Medicaid costs which are a significant portion of our state budget. Ninety-seven cents would go toward Medicaid and the additional three cents to the general fund. The bill was projected to raise $42 million dollars. This increase would put Nebraska in line with our surrounding states except Missouri. I supported this bill. Not just for the increased revenue, but I believe if a person uses to***co, which for decades has proven to cause significant and costly negative health outcomes, they should help pay to offset the costs of those behaviors. There was also an amendment adopted to increase the tax on v**e products by 30%. The bill as amended was filibustered and failed to advance.
Friday, debate began on a Revenue Committee package, LB 901. The package removes some sales and use tax exemptions covering data center, biochips, cemeteries, game birds, community-based energy development (C-BED) projects, and mineral oil used as a dust suppressant. It also sunsets tax credits for renewable energy and makes such credits non-refundable. There are some essential tax credits in the proposal. LB 1131 creates the Domestic Violence and Human Trafficking Service Providers Tax Credit Act, a new income tax credit program for the programs and providers assisting victims of domestic violence and human trafficking. It requires the Department of Revenue to issue $6 million dollars in refundable,
transferable income tax credits annually to qualifying tribal programs and nonprofit organizations. LB 1131 also strikes the personal property and sales and use tax exemptions for data centers.
With our budget deficit we still face, a possible sales tax increase could be an option. For example, a ½ cent (0.5%) increase in the state sales tax rate would raise roughly $265 million per year. So, a ¼ cent sales tax increase for 1 year could see us through this budget shortfall. The legislature can put a sunset date on a sales tax, just like what was done for Gage County to address the Beatrice 6 federal judgment against the county.
For more information on the Nebraska Legislature, the link is: nebraskalegislature.gov
Here you can find all the information on bills, hearing schedules, information on senators, legislative divisions, and legislative reports etc.
My contact information is [email protected] and 402-471-2620. As always, I appreciate hearing from you.
Nebraska Legislature