Governor Jim Pillen has asked all state agencies to submit plans to cut general fund spending by 10% next year — a move that could trim more than $500 million across Nebraska state government.
The request follows news that June tax receipts were $86 million below projections.
However, former Nebraska Governor Dave Heineman called the proposal “unprecedented, especially without any economic contributors,” noting that during the Great Recession, his administration reduced general fund spending by about 4.8% — and still protected K–12 and higher education funding.
State agencies are now preparing their recommendations. These cuts could impact education, health care, public safety and other essential services.
What do you think? How should Nebraska respond to this challenge?