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The first time I walked into the State Capitol, I wondered “what is making all these people walk like Olympic racers down these halls?”
I almost got run over by some walkers; the new guy needed to get out of the way.
To be sure, the Capitol hallways extend in a square, making them ideal for a quick walk around the square for exercise or just to clear the brain.
And if you hang around the Capitol long enough, you realize that people who work there – either as staffers or elected officials – need to walk off some steam every once in a while.
You’ll probably see a lot of that during this year’s session of the Nebraska Legislature. There’s plenty on the plate to raise the hackles and blood pressure of the Unicameral’s 49 senators, and it’s an election year, which always raises the temperature of a place known as the “Hall of Hot Winds.”
What’s ahead in the Unicameral’s 60-day session in 2026?
Money, money, money – or the lack of it. The state budget has a $471 million hole to fill, in large part (in my opinion) because state lawmakers got way too ambitious in cutting state revenue via a gradual, deep reduction in state income taxes adopted in 2023.
Everyone loves a tax cut. But you also have to fund government operations. After digging into the state’s cookie jars (reserve funds) last year to solve a $415 million budget shortfall, can legislators pull a similar rabbit out of the hat in ‘26? Can more state spending be cut? Or might senators opt to do what’s easiest and makes the most sense, which is to pause the stair-stepped tax cut for a year?
Expel a senator? – Expect a lot of debate over what State Sen. Dan McKeon of Amherst did, allegedly, at a post-2025 session party and whether he should be the first state lawmaker ever to be expelled.
Last month, the Legislature’s Executive Board voted unanimously to recommend expulsion for McKeon, for a “pattern” of conduct that included, allegedly, an inappropriate grab of a female staffer’s bottom, and an off-color sexual joke.
McKeon, who was elected in 2024, has vehemently rejected calls to resign, and insists that his poor attempt at humor was misunderstood.
But such conduct isn’t taken lightly in the Legislature. This debate could get hot.
Economic development – The unexpected closing of the huge meatpacking plant in Lexington – throwing 3,200 people out of work – and calls by the Omaha Chamber of Commerce to improve state tax incentives due to lackluster growth in the state’s biggest cities will get a serious airing.
The University of Nebraska estimates that the economic impact of the Tyson plant closing could be $3.3 billion. Yikes.
Omaha and Lincoln would have generated 68,000 more jobs over the past five years had they kept pace with peer cities, like Sioux Falls, Des Moines and Fayetteville, according to a report done for the Aksarben Foundation. Double yikes.
Haven’t we always been told that income tax cuts generate additional economic activity? Not so much it appears.
Property tax relief - The state’s ag economy, due to low crop prices and high input costs, isn’t exactly running on all cylinders. So some property tax relief would be welcome.
But given the state’s budget problems, will there be any money to increase state tax credits? Might there be a renewed appetite to eliminate more sales tax exemptions to reduce property taxes? It’s an election year, so expect some effort here.
The unexpected - There’s always an issue or two that bubbles up that no one anticipated, which makes the Legislature interesting.
But the “fasten seat belt” light is on. So is the sign that says “walk” around the State Capitol.
Paul Hammel has covered the Nebraska state government and the state for decades. Prior to his retirement, he was senior contributor with the Nebraska Examiner. He was previously with the Omaha World-Herald, Lincoln Journal Star and Omaha Sun. A native of Ralston, Nebraska, he loves traveling and writing about the state.
