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LINCOLN —The second session of the 109th Legislature convened this past Wednesday, Jan. 7.
Legislative sessions in even-numbered years last for just 60 days. Due to the shorter length of this session compared to last year, a good number of the bills introduced this year will likely not get to the floor or be debated due to a lack of time. Nonetheless, there is much work that needs to be done.
This week, I would like to give a preview of three of the many issues that I anticipate the Legislature will be debating: the state budget, taxes, and immigration.
As I mentioned in one of my interim newsletters last December, Nebraska has a projected deficit of $471.5 million below the minimum reserve for the current biennial budget (FY2025-2026 and FY2026-2027).
This deficit is in part driven by several factors including tax cuts passed by the Legislature in 2022 and 2023 and reductions to federal programs made due to the passage of H.R. 1, the Big Beautiful Bill Act, by Congress. Addressing this deficit will likely be the dominant issue facing the Legislature next year.
Given the size of this projected shortfall, I anticipate the Legislature will be devoting a significant amount of time to making adjustments to the state budget to reestablish a 3% General Fund minimum reserve that is requiredby statute.
Second, senators will again consider how to reduce taxes. When it comes to property taxes, I anticipate a number of proposals will be introduced that will include imposing stricter spending caps and levy limits on political subdivisions, limiting property valuations, increasing property tax credits, or adjusting school funding; for more context, note that local school property taxes accounted for about $2.9 billion out ofa S5.3 billion total in property taxes collected statewide in 2024.
Meanwhile, Senator Clements has indicated that he will renew his efforts to further decrease the state’s inheritance tax.
Third, the Legislature is on track to have immigration policy be a focal point in this year’s session. Already, several bills have been introduced covering a broad range of immigration policies, including LB 8 86 by Sen. Anderson to prohibit illegal and undocumented immigrants from having Nebraska drivers’ licenses, LB906 by Sen. Juarez to ban federal law enforcement officers from wearing face coverings, and LB881 by Sen. Guereca to require law enforcement agencies, jails, and the Nebraska State Patrol to receive approval prior to entering into agreements to enforce immigration law. Perhaps the most anticipated debate will concern whether the Nebraska Department of Corrections had the authority to convert the McCook state correctional facility to a federal migrant detention center. I anticipate there will be considerable committee and floor discussions rega rdm^tht^eb ill s. If you are interested in following what the Unicameral is doing, you can use Legislature’s website at www.nebraskalegislature. gov. Visitors to this website can read the text of bills, search state statutes, email senators, view the agenda for the day, read the Unicameral Update online, and even watch the Legislature live via video streaming on Nebraska Public Media. Additionally, I invite you to let me know your concerns. My office number is (402) 471-2801 while my email is [email protected]. My address is: Sen. Barry DeKay, District #40, P.O. Box 94604, State Capitol, Lincoln, NE 68509.
Dist. 40 Report Sen. Barry DeKay
