It is a busy time of the year for the Jacobson household. Julie and I both celebrated another birthday on November 26, and we had a great Thanksgiving meal the next day with both our children, their spouses, and Julie’s 96-year-old mother. Of course, we look forward to celebrating the birth of our savior on December 25, and we will also celebrate our 50^th wedding anniversary on December 29 as the year comes to a close.

The next session of the Legislature begins on January 7 for a 60-day session, adjourning in mid-April. As I mentioned last week, balancing the state’s budget will be a big focus of the 2026 Legislative Session. At this point, the Economic Forecasting Board is predicting a $471 million budget shortfall. Unlike some states that can take on debt, Nebraska has a balanced budget requirement, so addressing the deficit is not optional. My hope is that state spending cuts will be the main component of the solution.

There is already talk of dipping into the funds set aside for the Perkins County Canal to balance the budget. Regular followers of the Legislature will know that I’ve been a staunch supporter of the Canal and believe it’s vital to protect Nebraska’s water rights under the compact with Colorado.

I recently spoke with representatives from the Nebraska Department of Water, Energy, and Environment to get an update on the Perkins County Canal Project. They told me they are nearing completion of the project’s comprehensive plan and will be ready to file the application very soon. At that time, they will hold a meeting in the area to allow the public to see the plan. It will likely take two years to get final approval. Meanwhile, the courts should issue a ruling on the compact’s validity.

I have had some question why the project is so vital to Nebraska. I first focus on the Gerald Gentleman Station, the state’s largest energy plant and a significant regional employer with many high-paying jobs with great benefits. This plant, like other power plants, uses large quantities of water to cool the turbines. This is achieved through a large cooling pond fed by water diverted from the South Platte River. Without the Perkins County Canal, Colorado has shown it will cut off all flows from the South Platte River, leaving the plant without sufficient water.

Also at risk are irrigation resources for row crop farmers and drinking water resources for municipalities along the Platte River, including Lincoln. The South Platte and Platte River waterways are not only used by surface water users, but also recharge the groundwater sources along their paths. Walking away from this project would be a colossal mistake, one that we would regret for years to come. Colorado’s water needs continue to grow as development continues in the Front Range. I have no doubt that they will suck up every bit of water they can get access to, even to the detriment of those in far eastern Colorado. I will continue to fight for this project and protect the funding to build it.

Just as I believe in the value of the Perkins County Canal, everyone believes that their spending is necessary and must be preserved. Every Senator is receiving emails from constituents urging us to renew certain programs that they support or rely on. I am sympathetic to these individuals and know that the program would never have been approved to begin with if it did not serve an important need. In the end, we need to decide what we can afford and determine what our highest priorities are.

We also need to consider how new revenue plays a role. I would say most believe our revenue (tax) sources are out of balance today, but that any changes to tax policy need to achieve at least a net-neutral tax result. Every taxing authority needs to rely on growth in the tax base and the revenues it produces to offset inflationary costs. Raising tax rates or broadening the tax base without reducing other taxes is unsustainable.

It is a pleasure to serve as your District 42 State Senator, and I will do all I can to address the issues important to you. If you want to reach out to me, you can email me at mjacobson@leg.ne.gov or call my office at 402-471-2729.