When the Legislature reconvenes on Tuesday, we will begin the 36^th day of the 60-day session. We will also begin all-day debate since committee bill hearings ended this past Friday. Even with all-day debate, it will be a challenge to move all the remaining priority bills with only 24 days remaining. The Speaker has reserved ten days to debate the budget bills, which must be approved by Day 50. Given the latest Forecasting Board revenue projections that added another $175 million to the deficit, the final changes to the budget will be difficult and painful.

It is important to understand that the Legislature creates a two-year, biennial budget in the odd-numbered years, and the budget must be balanced. The spending approved must not exceed the amount of revenue projected to be available by the Economic Forecasting Board in their most recent meeting prior to the end of the session. This frequently results in a mid-biennium budget adjustment in the even-numbered years, like what we are working on this year.

Some have asked me how the Legislature could be facing a $471 million deficit (prior to the most recent projection). The answer is simple: the Forecasting Board meets in October of each year to update its projections. These projections include state economic changes, as well as federal changes in tax laws. This year’s projections were negatively impacted by nearly $250 million when the One Big Beautiful Bill was approved by Congress. Keep in mind that our tax code is impacted by the federal tax changes. This means that the tax savings at the federal level also lowered taxes to Nebraska residents at the state level. This is not a bad thing for taxpayers, but it did leave a hole in our budget.

Based on discussions I have had with Senator Clements, who chairs the Appropriations Committee, we will likely need to tap the state’s “rainy day fund” to account for the latest forecast. However, the principal in the Perkins County Canal Fund will remain intact, as well as the prison construction fund. There will also be no changes to the last step down in the state’s income tax rate reductions. There will be additional cuts to various programs supported by many constituents. I have made it clear, however, that I strongly oppose any further reductions to the Veterans’ Assistance Fund. Preserving this fund is one of my highest priorities.

On a positive note, LB525, the Ag Data Privacy Act that I introduced on behalf of the Governor last session, was amended and brought back this year. After making several changes following the interim study this fall, the bill was re-heard by the Banking, Commerce, and Insurance Committee for advancement. The bill was voted out of committee on a vote of 8-0. I really appreciated the strong testimony from the Farm Bureau and the Nebraska Corn Growers Association at the hearing. I have named the bill my personal priority bill this session and expect it to be scheduled for floor debate very soon. This bill is the first of its kind in any state and will likely serve as a model for others to follow. The bill is heavily weighted to crop data, but also includes livestock data privacy. I fully expect changes to be made in future years, but this is a solid start to protecting producer data from others profiting from their personal data without prior permission.

In closing this week, I want to congratulate Kent Miller on a very distinguished 53-year career with the Twin Platte Natural Resources District. Kent has been a strong supporter of conservation programs and has helped shape conservation and water policy throughout the state. But for me, Kent has been a good friend and someone I could always call with any questions about water conservation policy. He will be hard to replace, but I am sure he will remain a phone call away.

It continues to be a privilege to represent you in the Nebraska Legislature, and I look forward to hearing from you regarding issues that are important to you. I can be reached at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov.