2 million

The newly-established Department of Government Efficiency (DOGE), led by billionaire Elon Musk and formerly co-chaired by Vivek Ramaswamy, signaled intent to reduce the federal workforce by 75% in an effort to streamline government services and eliminate bureaucracy. According to the Congressional Research Service, about 2 million civilian workers are employed by the federal government in every state and U.S. territory, many of whom were offered a buyout package to vacate their posts by President Donald Trump this week. The offer was temporarily blocked by U.S. District Judge George O’Toole Jr. yesterday, with hearings scheduled for further review on Monday. Some examples of impacted civilian workers could include individuals who support our nation’s veterans, inspectors of food processing facilities and air traffic controllers. According to an NPR report, about one third of federal workers are retired military personnel with a desire to continue serving their country. 

Federal buyouts have been tested before with little success, and instead created additional costs for the federal government. A report by the Government Accountability Office shared that five agencies stated their reduction in force left gaps in work they filled with contractors, many of whom were the same workers who had vacated the positions, who were now earning higher wages as contractors. 

NPR’s report identifies that nearly 12,500 federal employees reside in Nebraska, many employed by the Department of Defense. 

$2.7 Billion

The Congressional Budget Office is projecting a $2.7 billion deficit in the Pell Grant program heading into the coming fiscal year, after projecting an $11.4 billion surplus last June. The program offers access to post-secondary education for students experiencing poverty. The deficit is spurred by greater-than-expected enrollment numbers, increasing by 5% year over year and coming close to pre-pandemic levels. 

For the school year 2022-2023, 24% of Nebraska undergraduates across 39 different institutions received Pell Grants, according to the National Center on Education Statistics. The average award was $4,682.

10

Nebraska is one of just 12 states that currently outpaces its 15-year tax revenue trajectory for FY2024, although that pacing was modest at 0.2% over the 15-year average. Thirty eight states are currently sitting below their long-term revenue trend, with 11 states falling below trend during the second quarter of 2024, according to analysis by Pew Trusts. 

Total tax revenue across the nation was 2.8% below its 15-year trend during the second quarter of 2024, after adjusting for inflation and seasonality. Just two years ago, revenue collections were 15% above trend, which was the strongest position at any point since the Great Recession of 2007-2009, according to Pew. 

Lawmakers across the nation, including Nebraska, will face difficult budget decisions as the post-pandemic transition concludes. Governor Pillen’s proposed budget proposes closing the projected $432 million budget shortfall with a combination of tactics, including transfers from 56 different cash funds, the repeal of a wide swath of sales tax exemptions and 46 recently-passed pieces of legislation, and drawing down federal funds available to defer the cost of Medicaid programs. Another option is Senator Tom Brandt’s LB 171, which pauses aggressive income tax cuts implemented in 2023 via LB 754.