$310 million

The amount of unpaid taxes owed to the state of Nebraska rose 15% in the past year, totaling more than $310 million, according to a press release issued by Nebraska Auditor of Public Accounts Mike Foley. The sum includes individual income taxes, sales and use taxes, partnership income taxes and withholding taxes. The increase is among the highest in recent history. Based on past data, the Department of Revenue projects that about 20% of the total will be recovered, or roughly $63 million.

In a comprehensive report sent to Tax Commissioner James Kamm, Foley notes that over the previous 10 fiscal years, delinquent tax balances have grown from about $140 million to $310 million, or about 124%. He also observed that in June of 2025, the Department of Revenue employed 385 full-time staff, but despite the increase in delinquent taxes, the Department eliminated 9 revenue agents involved in the collections process. The layoffs seem to be the result of a call by Governor Jim Pillen to carve $500 million from the state budget in 2026.

This move may run parallel to a national decrease in force at the Internal Revenue Service, which the Center for American Progress projected would result in a $909 billion reduction in federal income taxes collected over the next 10 years. The IRS has since partially reversed course, hiring back some of the reduced force.

$27.5 million

University of Nebraska-Lincoln Chancellor Rodney Bennett has finalized a proposed slate of cuts to the flagship university’s budget. Approximately $9 million of the proposed cuts will be subject to approval by the Board of Regents at their December 5 meeting, as they involve eliminating or combining academic departments. The departments proposed for elimination include Earth and Atmospheric Sciences, Statistics, Educational Administration and Textiles, Merchandising and Fashion Design, cutting a total of 51.5 full time equivalent employees.

In addition to academic program changes, the cuts include a $5.5 million dollar reduction achieved via a buyout program for tenured faculty with 10 years of experience who have reached a minimum age of 62. They also include 1% cuts in all state-aided budgets funded by appropriations from the Legislature, reductions in administrative offices, and tapping private philanthropic sources to cover mandated scholarships.

The Legislature has made several scholarships mandatory in recent years, totaling $8.8 million across the University system during the 2024–25 academic year, up nearly 36% since 2023-24, according to information shared during an interim hearing for LR 261. These programs saw 219% cost growth in 6 years, the equivalent of over 1% of the university’s total state-aided budget. Dr. Jeffrey Gold, President of the University of Nebraska system, also noted that nearly all other states fund and administer these programs directly or reimburse universities during the hearing.

The cuts come after the Legislature increased the University’s general fund appropriation by 0.6% each year of the biennium, far below the Regents’ request of 3.5%. The increase provided about $4 million more general funds each year, totaling to $704 million in FY 2026. General fund appropriations comprised 20% of the University’s operating budget in FY 2025. The $472 million budget shortfall and federal cost shifts to the state for several programs will make sustainable funding for the University system a challenge in upcoming budget cycles. Stagnant budgets could have long-term implications for Nebraska’s overall fiscal picture, as a recent report showed the University of Nebraska system’s academic activities have an annual impact of $6.4 billion on Nebraska’s economy and support over 52,000 jobs in the state.

3 million

Upon reopening of the federal government after the longest shutdown in the country’s history, participants in the Supplemental Nutrition Assistance Program (SNAP) received their November benefits in Nebraska and across the country. However, changes to the program made by the One Big Beautiful Bill Act (OBBBA) passed by Congress and signed by the President this summer, will impair the ability of 3 million Americans to access this critical food security program, according to estimates by the Congressional Budget Office.

Of the three million Americans who will lose SNAP access, about a third will be impacted by a change in work requirements, raising the upper age limit from 54 to 64 and removing an exemption for parents or other family members with responsibility for a dependent ages 14-18. These two changes are expected to eliminate benefits for 1.1 million participants nationwide.

Exemptions were also eliminated for veterans, young adults in foster care, and individuals experiencing homelessness, resulting in a projected loss of benefits for an additional 300,000 participants.

OBBBA also denies SNAP benefits to refugees and asylum seekers, as well as those granted legal protection for humanitarian reasons, including trafficking victims. It also eliminates benefits for Iraqi or Afghan citizens who aided the U.S. military during armed conflict. Lawful permanent residents will only be eligible for benefits 5 years after receiving their green card, with a few exceptions.

Analysis by the Center on Budget and Policy Priorities estimates that 9,000 Nebraskans are at risk of losing all or part of their SNAP benefits due to increased work requirements and elimination of exemptions. Additionally, 7,000 immigrants legally present in Nebraska will lose benefits. This increase in food insecurity is projected to lead to a loss of $37 million in state tax revenues, squeezing public budgets for vital services such as education and public safety.