LINCOLN, Neb. (KSNB) – Two sweeping budget bills introduced on behalf of Gov. Jim Pillen would eliminate multiple state programs and cut hundreds of millions of dollars from services for vulnerable Nebraskans, according to a Local4 analysis of the legislation.
LB 1071 and LB 1072, both exceeding 100 pages, represent the governor’s solution to Nebraska’s $432 million budget shortfall. The bills have already sparked protests, including a demonstration by veterans in Grand Island last week opposing cuts to veterans’ services.
$348 million cut to disability services
The largest single cut in the package would slash $348 million from Developmental Disability Aid, which provides home care, day services, employment supports and other assistance to adults with intellectual and developmental disabilities.
However, the cut is more nuanced than it appears. Under the bills, developmental disability funding would actually increase by $8.6 million from fiscal year 2025-26 to 2026-27. But that is a fraction of the $361 million expansion that was previously planned and already approved in last year’s budget.
Programs Facing Complete Elimination
Five programs would be entirely eliminated under the bills:
Violence Prevention Cash FundNebraska Mental Health First Aid Training ActNuclear and Hydrogen Development Fund and ActFoster Care Review Office Cash FundPublic Service Commission Pipeline Regulation Fund
The bills do not specify exact dollar amounts for these eliminations. Instead, they direct the state treasurer to transfer “remaining balances” from each fund to the state’s General Fund by June 30, 2026. The actual amounts will depend on how much money remains in each fund at that time.
The Foster Care Review Office provides independent citizen oversight of children in out-of-home care, monitoring their welfare and reporting to courts and the Legislature on child welfare system performance.
Major Cuts to Other Programs
Several other programs would see significant funding reductions over the next two years:
Veterans Affairs: $14.2 million cut
The cuts sparked opposition in Grand Island last week, with veterans saying they do not support the legislationHall County veterans oppose state plan to take $5 million from aid fund.
Nebraska Commission on Law Enforcement and Criminal Justice: $10 million cut
Represents a 44% reduction in programmingIncludes a 67% cut to salary limits
Behavioral Health Aid: $7 million cut
Comes from dedicated behavioral health cash funds despite General Fund increases
Child Welfare Aid: $4 million cut
Primarily from reductions in dedicated cash funds for child welfare servicesBy The NumbersWhat These Programs Do
Developmental Disability Aid: Provides home and community-based services, day programs, employment supports, residential services, personal assistance, respite care and behavioral health services for adults with intellectual and developmental disabilities.
Violence Prevention Cash Fund: Funds programs aimed at reducing street and gang violence, homicides and firearm-related injuries.
Mental Health First Aid Training Act: Provides training to help individuals recognize and respond to mental health crises.
Foster Care Review Office: Conducts independent citizen reviews of children in out-of-home care, monitors their welfare, and reports to courts and the Legislature on child welfare system performance.
Veterans Affairs: Provides services and support to Nebraska’s veteran population through various programs and facilities.
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