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Nebraska budget passes after showdown over state spending

May 10, 2017

LINCOLN, Neb. (AP) — Nebraska lawmakers have passed an $8.9 billion, two-year state budget after a showdown over state spending and tax collections.

The budget would increase spending by an average of 1.1 percent annually, well below the historical average, starting July 1. The final-round vote on Tuesday followed a contentious debate among lawmakers, some of whom argued that more cuts were needed.

Lawmakers began the session with a projected revenue shortfall of nearly $900 million. They balanced the budget with a combination of cuts, withdrawals from the state's rainy-day fund and tapping money from various cash accounts.

Some senators say the budget could force the Legislature into a special session in which lawmakers might have to consider sharper cuts or tax increases.

Gov. Pete Ricketts has voiced concerns about parts of the budget.

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