650%

The Nebraska Legislature’s Appropriations Committee began hearings on the mid-biennial budget adjustments this week. The mainline budget bills, LB 1071 and LB 1072, received significant pushback from Nebraskans. Among them was OpenSky Policy Institute’s Research Director, Craig Beck, who raised concerns about the growth of cash fund sweeps and “transfers out” in recent years. In his testimony before the committee, Beck shared that with projected biennial revenues of $13.75 billion and general fund appropriations of just over $11 billion, Nebraska has more than enough revenue to cover general fund spending. It’s the growth in transfers out – which predominantly fund the state’s property tax spending – that is driving the $472 million shortfall. In FY 2019, transfers out totaled $230 million, or 4.7% of the state’s net tax receipts. Fast forward to FY 2026, transfers out total more than $1.7 billion, or 24.7% of projected tax receipts. That’s an increase of nearly 650% over seven years. This is the third year in which OpenSky has testified in front of the Appropriations Committee on the unsustainable use of cash fund sweeps to balance the budget when the state has committed to cutting revenues from income taxes for high-earners and large corporations.

The Appropriations Committee released their preliminary report prior to department-level hearings, which provides additional details on the cash fund sweeps to balance the budget and transfers out for continued spending on property tax breaks. The Committee has a deadline to advance their final recommendations to the full Legislature by March 9, 2026, or day 40 of the legislative session. 

$2.7 million

As the Appropriations Committee began budget hearings this week, details of Governor Jim Pillen’s proposed budget came into sharp focus. Among the recommendations in the executive budget was the cancellation of $2.7 million in funding for the University of Nebraska Medical Center earmarked for pediatric cancer research. This funding came from the Health Care Cash Fund, which was created in 2001 and initially seeded with tobacco settlement funds. The cut was not included in the Appropriations Committee’s preliminary budget, but final recommendations are forthcoming. 

According to the Pediatric Cancer Action Network, nearly 16,000 children will be diagnosed with cancer in the United States this year, which equates to more than a classroom of children per day. Nebraska ranks among the top states for incidence of pediatric cancer, the only Midwestern state with more than 18.2 cases per 100,000. Nebraska ranks 6th highest in the country for pediatric cancer deaths. 

Federal funding for pediatric cancer research is sparse, accounting for just 4% of the National Cancer Institute’s budget. Limited federal funding coupled by a reduction in state investment may make it challenging in the long run to reduce pediatric cancers in Nebraska. 

$1.2 Trillion

President Donald Trump signed legislation to cease a brief partial government shutdown after debates over health care and, more recently, the Department of Homeland Security (DHS), caused negotiations to stall. The bill extends funding for DHS for two weeks, giving lawmakers more time to negotiate on provisions related to Immigrations and Customs Enforcement. Other key spending bills, such as for the Department of Education or Department of Health and Human Services, have now passed, and these agencies are funded through September 30, 2026. Immigration enforcement actions were awarded $170 billion last July’s tax and spending package, the One Big Beautiful Bill Act, outside of the standard appropriations process. 

Although the debate over affordable health care drove last year’s government shutdown, little progress has been in recent weeks on a Congressional solution. Senator Bernie Moreno (R-OH) has put forward the Consumer Affordability and Responsibility Enhancement (CARE) act, is a proposal to extend premium tax credits (PTCs) for 2026, sunset the credits for households earning $200,000 or more annually, and require a minimum $25 per month premium. The White House has a separate framework for health care with provisions to increase price transparency and send funds to Americans to buy their own health insurance, rather than extend premium tax credits. Details of the plan remain sparse but could still increase health care costs for some.

According to KFF, a health care policy think tank, health care tops the list of Americans’ household affordability concerns. About 66% of the public expressed worry about paying for health care, including insurance premium costs, out-of-pocket costs for things like office visits and prescription drugs. This ranked higher as a financial concern than food, utilities, or mortgage payments, all three of which are still top of mind for the majority of Americans. 

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