LINCOLN — Days after signing an updated budget that he described as “fiscally sound,” Gov. Jim Pillen’s office quietly directed state agencies to slash $280 million. The goal: Help pay for a massive property tax cut he publicly unveiled a week before the expected start of a special legislative session Thursday.
The directive, which state lawmakers were not informed of, was sent in April to 14 state agencies responsible for everything from child welfare to patrolling Nebraska’s highways, according to emails obtained by the Flatwater Free Press.
The news shocked longtime state budget leaders, including the former director of the Legislature’s fiscal office. “Everything about this is totally unprecedented,” said Tom Bergquist, who analyzed finances, forecasts and budgets for the Legislature for 46 years before retiring in 2022.
Lee Will, director of the state’s budget division, said while restricting spending is usually reserved for times of economic peril, like a recession, reforming property taxes requires it.
“We’re committed to this thing, even if it’s unprecedented in good times,” he said.
Lawmakers of both parties said they weren’t told of the Pillen-led cuts.
Some, like Sen. Rob Clements, cheered the budget tightening. Clements, a Republican from Elmwood who chairs the Appropriations Committee, said high property taxes demand swift action. The governor and the state should always be looking to save money, he said.
“Why would we complain about that?” Clements said of departments spending less than their allocation.
