<figure>
 <img src="https://media.eaglewebservices.com/public/2024/9/1727691434816.png" alt="File photo former President Joe Biden -image courtesy CSPAN" />
 <figcaption>File photo former President Joe Biden -image courtesy CSPAN</figcaption>
 </figure><div><blockquote class="twitter-tweet" data-media-max-width="560">Former President Joe Biden diagnosed with prostate cancer. <a href="https://t.co/qszrloAsvR">pic.twitter.com/qszrloAsvR</a>&mdash; CSPAN (@cspan) <a href="https://twitter.com/cspan/status/1924199062443569402?ref_src=twsrc%5Etfw">May 18, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>

Former President Biden diagnosed with prostate cancer

By:&nbsp;<a href="https://stateline.org/author/rsequeira/">Robbie Sequeira</a>

There’s debate over whether classrooms need stricter control or a shift toward restorative justice.

In the wake of President Donald Trump’s executive order aiming to reinstate “common sense” school discipline, more states may follow and expand the authority of teachers and school officials to deal with disruptive students.

The&nbsp;<a href="https://www.whitehouse.gov/presidential-actions/2025/04/reinstating-common-sense-school-discipline-policies/" target="_blank">order</a>, signed in April, repeals prior federal guidance that encouraged schools to address racial disparities in discipline, arguing that such policies promoted “discriminatory equity ideology” and compromised school safety by pressuring administrators to underreport serious student misconduct.

In some states, new legislation already is trending toward giving teachers more authority to address student misbehavior.

In West Virginia, for example,<a href="https://www.wvlegislature.gov/Bill_Status/bills_text.cfm?billdoc=sb199%20sub1.htm&amp;yr=2025&amp;sesstype=RS&amp;i=199" target="_blank">&nbsp;a new law creates a structured process</a>&nbsp;for responding to violent, threatening or disruptive behavior among students in grades K-6.

Under the law, a student exhibiting such behavior can be immediately removed from class, evaluated by counselors or behavioral specialists and placed on an individualized behavior plan. If there’s no improvement after two rounds of intervention, the student could be moved into a behavioral intervention program or an alternative learning environment.

West Virginia Gov. Patrick Morrisey, a Republican, and supporters say the law empowers teachers to maintain safe classrooms.

“This legislation provides teachers with the tools to regain control of the classroom and ensure safe learning environments for our kids,” Morrisey&nbsp;<a href="https://governor.wv.gov/article/governor-patrick-morrisey-signs-school-discipline-bill-law" target="_blank">said</a>&nbsp;at the bill’s signing.

In April, the Texas House of Representatives&nbsp;<a href="https://legiscan.com/TX/bill/HB6/2025" target="_blank">passed</a>&nbsp;a bill referred to as the “Teacher’s Bill of Rights” with a bipartisan vote of 124-20.

That bill, now sitting in the Senate’s education committee, would significantly expand the grounds for out-of-school suspensions, allowing students to be suspended for repeated disruptions or threats beginning in third grade. It would reverse earlier changes that limited suspensions for younger students. It also would mandate that students making terroristic threats or assaulting school employees be placed in alternative education programs for at least 30 days.

Texas civil rights groups argue that the bill would impose a one-size-fits-all punitive approach, rather than addressing students’ developmental and behavioral needs.

Alycia Castillo, associate director of policy at the Texas Civil Rights Project and a former teacher, said state lawmakers are taking the wrong approach by mandating sweeping discipline policies for&nbsp;<a href="https://spectrumlocalnews.com/tx/south-texas-el-paso/news/2023/09/20/texas-diverse-state-in-u-s--" target="_blank">a state as diverse as Texas</a>.

During the 2020-21 school year, according to the latest data available from the U.S. Department of Education, Black students faced the highest rates of disciplinary action across all categories — suspension and expulsion — among all racial and ethnic groups.

They were 39% more likely than white students to receive in-school suspensions, 70% more likely to face out-of-school suspensions, and 71% more likely to be expelled.

The disparities were even starker for Black students with disabilities, who experienced suspension and expulsion rates far exceeding those of both their white peers and non-disabled students.

Reviving old, harsh disciplinary policies risks disproportionately harming students of color, students with disabilities and those from low-income backgrounds, Castillo said.

“What works in Austin may not work in West Texas,” Castillo said.

“Children are naturally disruptive — that’s part of their development,” she added. “Excluding them only harms their growth into functional adults.”

In recent years, some other states have passed laws promoting restorative practices in schools, in which students and teachers work through problems and focus on repairing the harm caused by disruptions or conflict.

Michigan’s 2017 law&nbsp;<a href="https://www.studentadvocacycenter.org/rethink-discipline-toolkit/" target="_blank">requires schools</a>&nbsp;to consider restorative approaches before suspensions or expulsions, aiming to repair harm rather than exclude students. Nevada began mandating restorative justice approaches in 2019, but&nbsp;<a href="https://nevadacurrent.com/2023/11/03/though-scaled-back-by-nv-lawmakers-restorative-justice-plans-still-making-progress-report-says/" target="_blank">scaled back</a>&nbsp;that approach in 2023.

This year, Maryland passed a&nbsp;<a href="https://legiscan.com/MD/text/HB197/2025" target="_blank">law</a>&nbsp;requiring the state to establish “restorative practices schools,” specific schools with trained educators who use the approach in everyday discipline.

Kimberly Hellerich, an assistant professor at Sacred Heart University and a former K-12 teacher, said discipline policies should go beyond punitive measures to foster accountability and community healing.

“Adding restorative practices to accompany codes of conduct can allow students to recognize the impact of their actions on themselves, peers, the teacher, the class and the school community,” Hellerich said.

In her own classrooms, Hellerich used what she called “community circles” to guide students in processing behavior, offering apologies and rebuilding trust. “The apology served as a way to restore the student’s relationship with the entire class community,” she said.

Calls for a cultural shift on expectations

While lawmakers debate discipline procedures, other education advocates warn that an even deeper issue is unfolding inside classrooms: the gradual erosion of behavioral expectations and academic rigor.

Jessica Bartnick, co-founder and CEO of the Dallas-based mentorship program Foundation for C.H.O.I.C.E., said that declining school discipline and lowered standards are quietly undermining educational outcomes.

“Discipline is the backbone of effective learning,” Bartnick, who supports the Texas legislation, told Stateline in an email. “Without it, classrooms become chaotic, instructional time is lost and teachers are forced to shift their focus from instruction to behavior management.”

Bartnick said efforts to promote equity sometimes inadvertently lower behavioral standards and deprive teachers of the tools they need to maintain safe learning environments.

She also criticized lenient grading policies and unlimited test retakes, arguing that they diminish the value of preparation, responsibility and resilience.

“If students are shielded from the discomfort of failure, they are also shielded from the growth that comes with it,” she wrote. “If we want to prepare students for a world that will not offer endless second chances, we must return to a classroom culture grounded in discipline, responsibility, and rigor.”

Stateline reporter Amanda Hernández contributed to this report. Stateline reporter Robbie Sequeira can be reached at&nbsp;<a href="mailto:rsequeira@stateline.org">rsequeira@stateline.org</a>.

<figure>
 <img src="https://media.eaglewebservices.com/public/2023/8/1691616488001.jpg" alt=" " />
 <figcaption> </figcaption>
 </figure>By:&nbsp;<a href="https://stateline.org/author/rsequeira/">Robbie Sequeira</a><h2>There’s debate over whether classrooms need stricter control or a shift toward restorative justice.</h2>In the wake of President Donald Trump’s executive order aiming to reinstate “common sense” school discipline, more states may follow and expand the authority of teachers and school officials to deal with disruptive students.The&nbsp;<a href="https://www.whitehouse.gov/presidential-actions/2025/04/reinstating-common-sense-school-discipline-policies/" target="_blank">order</a>, signed in April, repeals prior federal guidance that encouraged schools to address racial disparities in discipline, arguing that such policies promoted “discriminatory equity ideology” and compromised school safety by pressuring administrators to underreport serious student misconduct.In some states, new legislation already is trending toward giving teachers more authority to address student misbehavior.In West Virginia, for example,<a href="https://www.wvlegislature.gov/Bill_Status/bills_text.cfm?billdoc=sb199%20sub1.htm&amp;yr=2025&amp;sesstype=RS&amp;i=199" target="_blank">&nbsp;a new law creates a structured process</a>&nbsp;for responding to violent, threatening or disruptive behavior among students in grades K-6.Under the law, a student exhibiting such behavior can be immediately removed from class, evaluated by counselors or behavioral specialists and placed on an individualized behavior plan. If there’s no improvement after two rounds of intervention, the student could be moved into a behavioral intervention program or an alternative learning environment.West Virginia Gov. Patrick Morrisey, a Republican, and supporters say the law empowers teachers to maintain safe classrooms.“This legislation provides teachers with the tools to regain control of the classroom and ensure safe learning environments for our kids,” Morrisey&nbsp;<a href="https://governor.wv.gov/article/governor-patrick-morrisey-signs-school-discipline-bill-law" target="_blank">said</a>&nbsp;at the bill’s signing.In April, the Texas House of Representatives&nbsp;<a href="https://legiscan.com/TX/bill/HB6/2025" target="_blank">passed</a>&nbsp;a bill referred to as the “Teacher’s Bill of Rights” with a bipartisan vote of 124-20.That bill, now sitting in the Senate’s education committee, would significantly expand the grounds for out-of-school suspensions, allowing students to be suspended for repeated disruptions or threats beginning in third grade. It would reverse earlier changes that limited suspensions for younger students. It also would mandate that students making terroristic threats or assaulting school employees be placed in alternative education programs for at least 30 days.Texas civil rights groups argue that the bill would impose a one-size-fits-all punitive approach, rather than addressing students’ developmental and behavioral needs.Alycia Castillo, associate director of policy at the Texas Civil Rights Project and a former teacher, said state lawmakers are taking the wrong approach by mandating sweeping discipline policies for&nbsp;<a href="https://spectrumlocalnews.com/tx/south-texas-el-paso/news/2023/09/20/texas-diverse-state-in-u-s--" target="_blank">a state as diverse as Texas</a>.During the 2020-21 school year, according to the latest data available from the U.S. Department of Education, Black students faced the highest rates of disciplinary action across all categories — suspension and expulsion — among all racial and ethnic groups.They were 39% more likely than white students to receive in-school suspensions, 70% more likely to face out-of-school suspensions, and 71% more likely to be expelled.The disparities were even starker for Black students with disabilities, who experienced suspension and expulsion rates far exceeding those of both their white peers and non-disabled students.Reviving old, harsh disciplinary policies risks disproportionately harming students of color, students with disabilities and those from low-income backgrounds, Castillo said.“What works in Austin may not work in West Texas,” Castillo said.“Children are naturally disruptive — that’s part of their development,” she added. “Excluding them only harms their growth into functional adults.”<h2>Restorative justice models</h2>In recent years, some other states have passed laws promoting restorative practices in schools, in which students and teachers work through problems and focus on repairing the harm caused by disruptions or conflict.Michigan’s 2017 law&nbsp;<a href="https://www.studentadvocacycenter.org/rethink-discipline-toolkit/" target="_blank">requires schools</a>&nbsp;to consider restorative approaches before suspensions or expulsions, aiming to repair harm rather than exclude students. Nevada began mandating restorative justice approaches in 2019, but&nbsp;<a href="https://nevadacurrent.com/2023/11/03/though-scaled-back-by-nv-lawmakers-restorative-justice-plans-still-making-progress-report-says/" target="_blank">scaled back</a>&nbsp;that approach in 2023.This year, Maryland passed a&nbsp;<a href="https://legiscan.com/MD/text/HB197/2025" target="_blank">law</a>&nbsp;requiring the state to establish “restorative practices schools,” specific schools with trained educators who use the approach in everyday discipline.Kimberly Hellerich, an assistant professor at Sacred Heart University and a former K-12 teacher, said discipline policies should go beyond punitive measures to foster accountability and community healing.“Adding restorative practices to accompany codes of conduct can allow students to recognize the impact of their actions on themselves, peers, the teacher, the class and the school community,” Hellerich said.In her own classrooms, Hellerich used what she called “community circles” to guide students in processing behavior, offering apologies and rebuilding trust. “The apology served as a way to restore the student’s relationship with the entire class community,” she said.<h2>Calls for a cultural shift on expectations</h2>While lawmakers debate discipline procedures, other education advocates warn that an even deeper issue is unfolding inside classrooms: the gradual erosion of behavioral expectations and academic rigor.Jessica Bartnick, co-founder and CEO of the Dallas-based mentorship program Foundation for C.H.O.I.C.E., said that declining school discipline and lowered standards are quietly undermining educational outcomes.“Discipline is the backbone of effective learning,” Bartnick, who supports the Texas legislation, told Stateline in an email. “Without it, classrooms become chaotic, instructional time is lost and teachers are forced to shift their focus from instruction to behavior management.”Bartnick said efforts to promote equity sometimes inadvertently lower behavioral standards and deprive teachers of the tools they need to maintain safe learning environments.She also criticized lenient grading policies and unlimited test retakes, arguing that they diminish the value of preparation, responsibility and resilience.“If students are shielded from the discomfort of failure, they are also shielded from the growth that comes with it,” she wrote. “If we want to prepare students for a world that will not offer endless second chances, we must return to a classroom culture grounded in discipline, responsibility, and rigor.”Stateline reporter Amanda Hernández contributed to this report. Stateline reporter Robbie Sequeira can be reached at&nbsp;<a href="mailto:rsequeira@stateline.org">rsequeira@stateline.org</a>.

Some states reexamine school discipline as Trump order paves go-ahead

Following discussion of several proposed changes, lawmakers gave second-round approval May 12 to the state’s $10.8 billion budget package. The state budget is structured on a two-year basis, with the budget enacted in legislative sessions held in odd-numbered years.

<a href="http://nebraskalegislature.gov/bills/search_by_number.php?DocumentNumber=LB261&amp;Legislature=109th" target="_blank">LB261</a>, introduced by Speaker John Arch of La Vista at the request of Gov. Jim Pillen, is the mainline budget bill. Senators adopted an amendment on select file offered by&nbsp;<a href="http://news.legislature.ne.gov/app" target="_blank">Appropriations Committee</a>&nbsp;chairperson&nbsp;<a href="http://news.legislature.ne.gov/dist02" target="_blank">Sen. Robert Clements</a>&nbsp;of Elmwood that replaced the bill and made additional adjustments to close a shortfall.

Among those additional adjustments is a $10 million reduction in the Medicaid Managed Care Excess Profit Cash Fund and the reappropriation of a number of carryover funds, including $8 million from the Nebraska Crime Commission. The amendment also would allow several state agencies to utilize cash funds and correspondingly decrease their general fund appropriations.

Clements said the adjustments were needed because of projected reductions in revenue madeby the Nebraska Economic Forecasting Advisory Board after the committee’s initial proposal had been advanced to the full Legislature for debate.

Lincoln Sen. Danielle Conrad questioned the committee’s approach. She said shifting funds to “fill holes” in order to achieve a constitutionally required balanced budget this year would not address the “structural imbalances” lawmakers created in recent years that she said threaten the state’s long-term economic stability.

“We’ve moved from a historic fiscal surplus to a budget deficit in a matter of just a few years through unaffordable, inequitable, unsustainable tax cuts … that primarily benefit the wealthy at the expense of Nebraska consumers and communities,” Conrad said.

Senators considered a number of additional changes to the mainline budget bill, including an amendment offered by Bellevue Sen. Rick Holdcroft to restore $3 million in general fund appropriations to the Nebraska Supreme Court.

Holdcroft said the funds are necessary to maintain problem solving courts in Sarpy County and other areas, which the Supreme Court indicated would be halted under existing budget constraints. Problem solving courts are diversion programs that connect adults and youth with treatment services for mental health and substance use disorders.

Without these programs, Holdcroft said, people would cycle through courts and jail systems without getting real help. The average cost for an individual participating in a problem solving court is $4,400 compared to $41,000 to keep a person incarcerated for a year, he said, adding that problem solving court participants have a 10% recidivism rate compared to 30% for those exiting the state’s prison system.

“These are not theoretical programs,” Holdcroft said. “These are real people whose lives and outcomes are being changed through structured, accountable and therapeutic court interventions.”

Clements opposed the amendment. He said the Supreme Court could fund the problem solving courts with cash funds through this year and make a deficit request of the Appropriations Committee next session if additional funds are needed.

Sen. George Dungan of Lincoln supported the amendment, saying the courts need certainty in their funding in order to continue providing problem solving courts. Program participation often stretches over multiple years, he said, and without a guaranteed funding source, the courts likely would start winding down the programs.

The amendment would transfer $3 million from the state’s Cash Reserve Fund to the General Fund to cover the cost. Holdcroft said the move would leave $689 million in the state’s so-called “rainy day” fund, still above the 12% of state expenses that the Appropriations Committee has determined is a necessary balance.

“It’s the ‘rainy day’ fund,” Holdcroft said, “and folks, it’s raining.”

The amendment was adopted 26-17. Twenty-five votes were needed.

Also adopted was an amendment offered by Lincoln Sen. Carolyn Bosn that would provide $3 million in each of the next two fiscal years from the Medicaid Managed Care Excess Profit Cash Fund for domestic violence support services across the state.

Bosn said lawmakers approved the funding last session, but were unable to utilize Temporary Assistance to Needy Families as the source. She said 20 programs serve all 93 Nebraska counties and provide counseling, legal advocacy, transportation services, shelter and assistance navigating the court system.

Nine Nebraskans have lost their lives in domestic violence incidents so far this year, she said, and demand for services continues to rise, with the state’s domestic violence service network providing assistance to 12,000 people last year.

“These are not optional services,” Bosn said. “These are life-saving interventions and they are required in our state statutes under the Protection from Domestic Violence Act.”

Sen. Jason Prokop of Lincoln supported the amendment, saying “not a single dollar” of the funds approved last year made it to domestic violence survivors because the state Department of Health and Human Services was not able to access TANF funds for that purpose.

Several additional changes also were approved, including amendments from:• Norfolk Sen. Robert Dover to restore $1 million in funding to the Robert B. Dougherty Water for Food Global Institute at the University of Nebraska, on a 30-11 vote;• Glenvil Sen. Dave Murman to restore approximately $264,000 to the state’s Educational Service Units, on a 42-0 vote; and• Bennington Sen. Wendy DeBoer to reduce a reappropriation of lapsed funds from the Nebraska Broadband Bridge Program from $5 million to $4 million, on a 42-0 vote.

After four hours of debate and a successful cloture motion from Arch, senators advanced LB261 to final reading on a vote of 39-6.

Several amendments were considered to LB264, also introduced by Arch at the request of the governor, which would provide for fund transfers, change provisions governing the administration and use of funds and repeal previous expansions to aid and incentive programs.

Among the changes approved was an amendment brought by Syracuse Sen. Bob Hallstrom that would transfer $8 million from the Affordable Housing Trust Fund to the General Fund in fiscal year 2026-27 in order to restore $4 million in funding cuts to both the Rural Workforce Housing Fund and the Middle Income Workforce Housing Fund.

Hallstrom said he supports the free market but that incentives are needed to spur the workforce housing development Nebraska needs to grow the state’s economy. He said the Affordable Housing Trust Fund, which is funded by the documentary stamp tax on real estate transactions, should be able to make up the transfer in a year.

Conrad questioned the amendment, which she said simply would “paper over” a hole in the budget and likely would ultimately shift affordable housing funds away from Lincoln and Omaha.

The Hallstrom amendment was adopted on a 26-5 vote. Twenty-five votes were needed.

Also adopted was a Bosn amendment to effectuate the change she succeeded in making to the mainline budget bill. Adopted 36-0, the amendment would add domestic violence services to the list of allowable uses of the Medicaid Managed Care Excess Profit Fund.

On a 27-12 vote, lawmakers approved $1.25 million in transfers over the next two fiscal years from the Nebraska Litter Reduction and Recycling Fund to the General Fund offered by Clements.

Finally, Clements offered an amendment, adopted 40-3, which would increase a transfer from the Cash Reserve Fund to the General Fund from $142 million to $147 million. The increase was necessary to balance the budget following additional changes made to the committee package during select file debate, he said.

Senators rejected an amendment from Omaha Sen. Terrell McKinney on a vote of 15-32 that would maintain a policy directing interest on earmarked funds for the proposed Perkins County Canal project and the new state prison to a variety of economic recovery projects.

LB264 would end that policy and begin directing interest to the General Fund beginning July 1. McKinney said lawmakers had negotiated to divert those funds for three years and that the Legislature should honor that deal and continue investing in important economic development projects.

Clements opposed the amendment, saying diverting the interest to the General Fund was needed to help erase the budget deficit. Taken together, the budget package would leave a $1.1 million surplus, he said, and any additional changes would jeopardize the state’s bottom line.

Following four hours of debate and a successful cloture motion from Arch, senators advanced LB264 to the final round of debate by voice vote.

By Unicamiral UpdateFollowing discussion of several proposed changes, lawmakers gave second-round approval May 12 to the state’s $10.8 billion budget package. The state budget is structured on a two-year basis, with the budget enacted in legislative sessions held in odd-numbered years.<a href="http://nebraskalegislature.gov/bills/search_by_number.php?DocumentNumber=LB261&amp;Legislature=109th" target="_blank">LB261</a>, introduced by Speaker John Arch of La Vista at the request of Gov. Jim Pillen, is the mainline budget bill. Senators adopted an amendment on select file offered by&nbsp;<a href="http://news.legislature.ne.gov/app" target="_blank">Appropriations Committee</a>&nbsp;chairperson&nbsp;<a href="http://news.legislature.ne.gov/dist02" target="_blank">Sen. Robert Clements</a>&nbsp;of Elmwood that replaced the bill and made additional adjustments to close a shortfall.Among those additional adjustments is a $10 million reduction in the Medicaid Managed Care Excess Profit Cash Fund and the reappropriation of a number of carryover funds, including $8 million from the Nebraska Crime Commission. The amendment also would allow several state agencies to utilize cash funds and correspondingly decrease their general fund appropriations.Clements said the adjustments were needed because of projected reductions in revenue madeby the Nebraska Economic Forecasting Advisory Board after the committee’s initial proposal had been advanced to the full Legislature for debate.Lincoln Sen. Danielle Conrad questioned the committee’s approach. She said shifting funds to “fill holes” in order to achieve a constitutionally required balanced budget this year would not address the “structural imbalances” lawmakers created in recent years that she said threaten the state’s long-term economic stability.“We’ve moved from a historic fiscal surplus to a budget deficit in a matter of just a few years through unaffordable, inequitable, unsustainable tax cuts … that primarily benefit the wealthy at the expense of Nebraska consumers and communities,” Conrad said.The Clements amendment was adopted 37-2.Other changesSenators considered a number of additional changes to the mainline budget bill, including an amendment offered by Bellevue Sen. Rick Holdcroft to restore $3 million in general fund appropriations to the Nebraska Supreme Court.Holdcroft said the funds are necessary to maintain problem solving courts in Sarpy County and other areas, which the Supreme Court indicated would be halted under existing budget constraints. Problem solving courts are diversion programs that connect adults and youth with treatment services for mental health and substance use disorders.Without these programs, Holdcroft said, people would cycle through courts and jail systems without getting real help. The average cost for an individual participating in a problem solving court is $4,400 compared to $41,000 to keep a person incarcerated for a year, he said, adding that problem solving court participants have a 10% recidivism rate compared to 30% for those exiting the state’s prison system.“These are not theoretical programs,” Holdcroft said. “These are real people whose lives and outcomes are being changed through structured, accountable and therapeutic court interventions.”Clements opposed the amendment. He said the Supreme Court could fund the problem solving courts with cash funds through this year and make a deficit request of the Appropriations Committee next session if additional funds are needed.Sen. George Dungan of Lincoln supported the amendment, saying the courts need certainty in their funding in order to continue providing problem solving courts. Program participation often stretches over multiple years, he said, and without a guaranteed funding source, the courts likely would start winding down the programs.The amendment would transfer $3 million from the state’s Cash Reserve Fund to the General Fund to cover the cost. Holdcroft said the move would leave $689 million in the state’s so-called “rainy day” fund, still above the 12% of state expenses that the Appropriations Committee has determined is a necessary balance.“It’s the ‘rainy day’ fund,” Holdcroft said, “and folks, it’s raining.”The amendment was adopted 26-17. Twenty-five votes were needed.Also adopted was an amendment offered by Lincoln Sen. Carolyn Bosn that would provide $3 million in each of the next two fiscal years from the Medicaid Managed Care Excess Profit Cash Fund for domestic violence support services across the state.Bosn said lawmakers approved the funding last session, but were unable to utilize Temporary Assistance to Needy Families as the source. She said 20 programs serve all 93 Nebraska counties and provide counseling, legal advocacy, transportation services, shelter and assistance navigating the court system.Nine Nebraskans have lost their lives in domestic violence incidents so far this year, she said, and demand for services continues to rise, with the state’s domestic violence service network providing assistance to 12,000 people last year.“These are not optional services,” Bosn said. “These are life-saving interventions and they are required in our state statutes under the Protection from Domestic Violence Act.”Sen. Jason Prokop of Lincoln supported the amendment, saying “not a single dollar” of the funds approved last year made it to domestic violence survivors because the state Department of Health and Human Services was not able to access TANF funds for that purpose.The Bosn amendment was adopted 40-2.Several additional changes also were approved, including amendments from:• Norfolk Sen. Robert Dover to restore $1 million in funding to the Robert B. Dougherty Water for Food Global Institute at the University of Nebraska, on a 30-11 vote;• Glenvil Sen. Dave Murman to restore approximately $264,000 to the state’s Educational Service Units, on a 42-0 vote; and• Bennington Sen. Wendy DeBoer to reduce a reappropriation of lapsed funds from the Nebraska Broadband Bridge Program from $5 million to $4 million, on a 42-0 vote.After four hours of debate and a successful cloture motion from Arch, senators advanced LB261 to final reading on a vote of 39-6.Fund transfersSeveral amendments were considered to LB264, also introduced by Arch at the request of the governor, which would provide for fund transfers, change provisions governing the administration and use of funds and repeal previous expansions to aid and incentive programs.Among the changes approved was an amendment brought by Syracuse Sen. Bob Hallstrom that would transfer $8 million from the Affordable Housing Trust Fund to the General Fund in fiscal year 2026-27 in order to restore $4 million in funding cuts to both the Rural Workforce Housing Fund and the Middle Income Workforce Housing Fund.Hallstrom said he supports the free market but that incentives are needed to spur the workforce housing development Nebraska needs to grow the state’s economy. He said the Affordable Housing Trust Fund, which is funded by the documentary stamp tax on real estate transactions, should be able to make up the transfer in a year.Conrad questioned the amendment, which she said simply would “paper over” a hole in the budget and likely would ultimately shift affordable housing funds away from Lincoln and Omaha.The Hallstrom amendment was adopted on a 26-5 vote. Twenty-five votes were needed.Also adopted was a Bosn amendment to effectuate the change she succeeded in making to the mainline budget bill. Adopted 36-0, the amendment would add domestic violence services to the list of allowable uses of the Medicaid Managed Care Excess Profit Fund.On a 27-12 vote, lawmakers approved $1.25 million in transfers over the next two fiscal years from the Nebraska Litter Reduction and Recycling Fund to the General Fund offered by Clements.Finally, Clements offered an amendment, adopted 40-3, which would increase a transfer from the Cash Reserve Fund to the General Fund from $142 million to $147 million. The increase was necessary to balance the budget following additional changes made to the committee package during select file debate, he said.Senators rejected an amendment from Omaha Sen. Terrell McKinney on a vote of 15-32 that would maintain a policy directing interest on earmarked funds for the proposed Perkins County Canal project and the new state prison to a variety of economic recovery projects.LB264 would end that policy and begin directing interest to the General Fund beginning July 1. McKinney said lawmakers had negotiated to divert those funds for three years and that the Legislature should honor that deal and continue investing in important economic development projects.Clements opposed the amendment, saying diverting the interest to the General Fund was needed to help erase the budget deficit. Taken together, the budget package would leave a $1.1 million surplus, he said, and any additional changes would jeopardize the state’s bottom line.Following four hours of debate and a successful cloture motion from Arch, senators advanced LB264 to the final round of debate by voice vote.

State budget advanced with additional cuts, other adjustments

According to White House spokesperson Karoline Leavitt, President Trump, at the invitation of Crown Prince Mohammed bin Salman, met with Syrian President Ahmad al-Sharaa. President Erdogan of Turkey joined by phone. President Erdogan praised President Trump for lifting sanctions on Syria and committed to working alongside Saudi Arabia to encourage peace and prosperity in Syria. The Crown Prince also commended President Trump for his decision to lift the sanctions, calling it courageous. President Trump thanked President Erdogan and the Crown Prince for their friendship, and told President Al-Sharaa that he has a tremendous opportunity to do something historic in his country. President Trump encouraged President Al-Sharaa to do a great job for the Syrian people, and urged him to:

1. Sign onto the Abraham Accords with Israel 

2. Tell all foreign terrorists to leave Syria 

4. Help the United States to prevent the resurgence of ISIS 

5. Assume responsibility for ISIS detention centers in Northeast Syria

President Al-Sharaa thanked President Trump, the Crown Prince, and President Erdogan for their efforts to put together the meeting, and recognized the significant opportunity presented by the Iranians leaving Syria, as well as shared U.S.-Syrian interests in countering terrorism and eliminating chemical weapons. President Al-Sharaa affirmed his commitment to the 1974 disengagement with Israel. President Al-Sharaa concluded with his hope that Syria would serve as a critical link in facilitating trade between east and west, and invited American companies to invest in Syrian oil and gas.

The Russia-Ukraine war and the war in Gaza was also discussed.

<div><blockquote class="twitter-tweet">Today, President Trump, at the invitation of Crown Prince Mohammed bin Salman, met with Syrian President Ahmad al-Sharaa. President Erdogan of Turkey joined by phone. President Erdogan praised President Trump for lifting sanctions on Syria and committed to working alongside Saudi… <a href="https://t.co/0yhyZbQ1o0">pic.twitter.com/0yhyZbQ1o0</a>&mdash; Karoline Leavitt (@PressSec) <a href="https://twitter.com/PressSec/status/1922567846317392240?ref_src=twsrc%5Etfw">May 14, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>According to White House spokesperson Karoline Leavitt, President Trump, at the invitation of Crown Prince Mohammed bin Salman, met with Syrian President Ahmad al-Sharaa. President Erdogan of Turkey joined by phone. President Erdogan praised President Trump for lifting sanctions on Syria and committed to working alongside Saudi Arabia to encourage peace and prosperity in Syria. The Crown Prince also commended President Trump for his decision to lift the sanctions, calling it courageous. President Trump thanked President Erdogan and the Crown Prince for their friendship, and told President Al-Sharaa that he has a tremendous opportunity to do something historic in his country. President Trump encouraged President Al-Sharaa to do a great job for the Syrian people, and urged him to:1. Sign onto the Abraham Accords with Israel 2. Tell all foreign terrorists to leave Syria 3. Deport Palestinian terrorists 4. Help the United States to prevent the resurgence of ISIS 5. Assume responsibility for ISIS detention centers in Northeast SyriaPresident Al-Sharaa thanked President Trump, the Crown Prince, and President Erdogan for their efforts to put together the meeting, and recognized the significant opportunity presented by the Iranians leaving Syria, as well as shared U.S.-Syrian interests in countering terrorism and eliminating chemical weapons. President Al-Sharaa affirmed his commitment to the 1974 disengagement with Israel. President Al-Sharaa concluded with his hope that Syria would serve as a critical link in facilitating trade between east and west, and invited American companies to invest in Syrian oil and gas.The Russia-Ukraine war and the war in Gaza was also discussed.

Trump meets Syrian president, urges him to establish ties with Israel

LINCOLN, Neb. — Nebraska lawmakers advanced another key piece of the state’s two-year budget Monday, approving a series of funding changes after hours of debate.

Following passage of the main appropriations bill, LB261, senators turned their attention to LB264, which focuses on transferring money to and from various state agency cash funds. The bill advanced after a four-hour floor debate that included several amendments.

One of the most significant changes came from Sen. Bob Hallstrom, who proposed restoring $4 million each to the Rural Workforce Housing Fund and the Middle Income Housing Investment Fund. The original budget plan would have redirected that money to the state’s General Fund in an effort to help balance the budget.

Hallstrom argued the cuts would jeopardize more than $12 million in rural housing projects already approved across 13 legislative districts. To offset the restoration of funding, his amendment instead schedules an $8 million transfer from the state’s Affordable Housing Trust Fund to the General Fund in 2026.

Hallstrom acknowledged concerns about the long-term impact of that shift but said maintaining momentum in rural housing development was essential.

Sen. Danielle Conrad opposed the amendment, warning that urban areas like Lincoln and Omaha—where the Affordable Housing Trust Fund is more commonly used—would feel the brunt of the cut.

“I’m not convinced this is a net gain for housing,” Conrad said during the debate. “This appears to paper over a budget gap by cutting into affordable housing funding.”

Despite the criticism, lawmakers voted 26-5 to adopt the amendment.

Senators also approved amendments that redirected money from the Nebraska Litter Reduction and Recycling Fund and increased transfers from the state’s Cash Reserve Fund to the General Fund.

LB264, along with other key budget measures, must clear one final round of debate before heading to Gov. Jim Pillen for consideration.

LINCOLN, Neb. — Nebraska lawmakers advanced another key piece of the state’s two-year budget Monday, approving a series of funding changes after hours of debate.Following passage of the main appropriations bill, LB261, senators turned their attention to LB264, which focuses on transferring money to and from various state agency cash funds. The bill advanced after a four-hour floor debate that included several amendments.One of the most significant changes came from Sen. Bob Hallstrom, who proposed restoring $4 million each to the Rural Workforce Housing Fund and the Middle Income Housing Investment Fund. The original budget plan would have redirected that money to the state’s General Fund in an effort to help balance the budget.Hallstrom argued the cuts would jeopardize more than $12 million in rural housing projects already approved across 13 legislative districts. To offset the restoration of funding, his amendment instead schedules an $8 million transfer from the state’s Affordable Housing Trust Fund to the General Fund in 2026.Hallstrom acknowledged concerns about the long-term impact of that shift but said maintaining momentum in rural housing development was essential.Sen. Danielle Conrad opposed the amendment, warning that urban areas like Lincoln and Omaha—where the Affordable Housing Trust Fund is more commonly used—would feel the brunt of the cut.“I’m not convinced this is a net gain for housing,” Conrad said during the debate. “This appears to paper over a budget gap by cutting into affordable housing funding.”Despite the criticism, lawmakers voted 26-5 to adopt the amendment.Senators also approved amendments that redirected money from the Nebraska Litter Reduction and Recycling Fund and increased transfers from the state’s Cash Reserve Fund to the General Fund.LB264, along with other key budget measures, must clear one final round of debate before heading to Gov. Jim Pillen for consideration.

Nebraska Lawmakers Advance Budget Bill, Restore Rural Housing Funds Amid Urban Funding Concerns

21-year-old Edan Alexander from Tenafly, New Jersey is free, according to a statement from the Hostage and Missing Families Forum. Edan was abducted from his military base near the Gaza border on October 7th. 2023 and released after 584 days.At the age of 18 Edan made Aliyah (immigrated to Israel), moved in with his grandparents and enlisted in the Israeli Defense Forces, serving in the Golani Brigade. 

Edan is a competitive swimmer and a fan of extreme sports. He loves watching NBA games and enjoys listening to music in full volume while driving. Edan is coming home to his loving parents, Yael and Adi, his siblings Mika and Roy, his grandparents, adopting family in Kibbutz Hatzor and many friends, both in Israel and in the USA. We embrace you, Edan, and are so glad you are home. We hope your return is the beginning of a comprehensive agreement that is needed to bring all 58 hostages home. 

<figure>
 <img src="https://media.eaglewebservices.com/public/2024/10/1728311127875.png" alt="Edan Alexander-photo Hostage and Missing Families Forum" />
 <figcaption>Edan Alexander-photo Hostage and Missing Families Forum</figcaption>
 </figure>21-year-old Edan Alexander from Tenafly, New Jersey is free, according to a statement from the Hostage and Missing Families Forum. Edan was abducted from his military base near the Gaza border on October 7th. 2023 and released after 584 days.At the age of 18 Edan made Aliyah (immigrated to Israel), moved in with his grandparents and enlisted in the Israeli Defense Forces, serving in the Golani Brigade. <div><iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fbringhomenow%2Fposts%2Fpfbid026ZcxH2zxhNpcmiL2NR8bmVRJRsTMLv9uNKjgnV7Vs4g9envVmSC8kncaN5h1U8REl&show_text=true&width=500" width="500" height="690" style="border:none;overflow:hidden" scrolling="no" frameborder="0" allowfullscreen="true" allow="autoplay; clipboard-write; encrypted-media; picture-in-picture; web-share"></iframe></div>Edan is a competitive swimmer and a fan of extreme sports. He loves watching NBA games and enjoys listening to music in full volume while driving. Edan is coming home to his loving parents, Yael and Adi, his siblings Mika and Roy, his grandparents, adopting family in Kibbutz Hatzor and many friends, both in Israel and in the USA. We embrace you, Edan, and are so glad you are home. We hope your return is the beginning of a comprehensive agreement that is needed to bring all 58 hostages home.

Last living American-Israeli hostage held in Gaza is free

LINCOLN, Neb - A proposal that would extend term limits for members of the Nebraska Legislature was amended and advanced to the final round of consideration last week (May 9).

LR19CA, introduced by Norfolk Sen. Robert Dover, would extend the current limit of two consecutive four-year terms for state senators to three consecutive four-year terms.

As introduced, the proposal would be placed on the November 2026 general election ballot. If approved by voters, the measure would take effect in 2028.

The measure was amended on general file to instead move the ballot question to a special election that would coincide with the May 2026 primary. Under the Nebraska Constitution, the Legislature may call a special state election with approval of four-fifths of elected members, or 40 votes.

During the second round of debate, Dover offered an amendment, adopted 31-0, to remove the provision moving the measure to the primary ballot.

Dover said he was unsure if enough lawmakers supported the proposal to reach the 40-vote threshold required. In addition, he said, several senators indicated a desire to have the measure decided at a general election, when voter turnout likely would be higher.

Central City Sen. Loren Lippincott offered an amendment that would require term-limited members to sit out two full terms — or eight years — before being eligible to run again. Currently, lawmakers are eligible after sitting out four years.

If lawmakers are allowed to serve three terms, Lippincott said, the waiting period before being eligible again also should be adjusted. Doing so would “level the playing field,” he said, by removing a former senator’s electoral advantage due to “entrenched power networks.”

“Let’s embrace a system that balances experience with renewal,” Lippincott said.

Dover opposed the amendment, saying term-limited senators should have an opportunity to bring their acquired knowledge back to the Capitol and that voters can be trusted to decide who represents them.

Sen. John Arch of La Vista also opposed the amendment. He expressed concern that adding another variable to the proposed constitutional amendment would complicate what should be a simple, clear choice for voters regarding the extension of existing term limits.

The Lippincott amendment failed on a 5-24 vote and LR19CA then advanced to final reading by voice vote.

Story by Unicameral UpdateLINCOLN, Neb - A proposal that would extend term limits for members of the Nebraska Legislature was amended and advanced to the final round of consideration last week (May 9).LR19CA, introduced by Norfolk Sen. Robert Dover, would extend the current limit of two consecutive four-year terms for state senators to three consecutive four-year terms.<figure>
 <img src="https://media.eaglewebservices.com/public/2025/5/1747065049171.jpeg" alt="Norfolk Sen. Robert Dover" />
 <figcaption>Norfolk Sen. Robert Dover</figcaption>
 </figure>As introduced, the proposal would be placed on the November 2026 general election ballot. If approved by voters, the measure would take effect in 2028.The measure was amended on general file to instead move the ballot question to a special election that would coincide with the May 2026 primary. Under the Nebraska Constitution, the Legislature may call a special state election with approval of four-fifths of elected members, or 40 votes.During the second round of debate, Dover offered an amendment, adopted 31-0, to remove the provision moving the measure to the primary ballot.Dover said he was unsure if enough lawmakers supported the proposal to reach the 40-vote threshold required. In addition, he said, several senators indicated a desire to have the measure decided at a general election, when voter turnout likely would be higher.Central City Sen. Loren Lippincott offered an amendment that would require term-limited members to sit out two full terms — or eight years — before being eligible to run again. Currently, lawmakers are eligible after sitting out four years.If lawmakers are allowed to serve three terms, Lippincott said, the waiting period before being eligible again also should be adjusted. Doing so would “level the playing field,” he said, by removing a former senator’s electoral advantage due to “entrenched power networks.”“Let’s embrace a system that balances experience with renewal,” Lippincott said.Dover opposed the amendment, saying term-limited senators should have an opportunity to bring their acquired knowledge back to the Capitol and that voters can be trusted to decide who represents them.Sen. John Arch of La Vista also opposed the amendment. He expressed concern that adding another variable to the proposed constitutional amendment would complicate what should be a simple, clear choice for voters regarding the extension of existing term limits.The Lippincott amendment failed on a 5-24 vote and LR19CA then advanced to final reading by voice vote.

Potential third term for legislators amended, advanced

Lexington, Neb. — The Nebraska State Patrol is investigating an apparent murder-suicide in rural Dawson County.

Saturday morning at approximately 9:45 a.m., the Dawson County Sheriff’s Office was dispatched to a residence at Johnson Lake, Plum Creek Canyon #1. Upon arrival, deputies found four deceased individuals inside the residence. All four were residents of the home.

The deceased individuals have been identified as Jeremy, Bailey, Hudson, and Asher Koch. Following preliminary investigation, it is believed that Jeremy Koch, 42, killed each of his sons, Hudson, 18, and Asher, 16, and his wife, Bailey, 41, before taking his own life. All four were found with fatal knife wounds. A knife was found at the scene.

The Dawson County Sheriff’s Office was assisted by Eustis Fire &amp; Rescue, the Nebraska State Patrol, and the Dawson County Attorney.

The Nebraska State Patrol is the lead agency in the homicide investigation. The Dawson County Attorney has ordered autopsies of all four residents.

The investigation remains ongoing. The Nebraska State Patrol, the Dawson County Sheriff’s Office, Eustis Fire &amp; Rescue, and the Dawson County Attorney extend condolences to all, across multiple communities, who will be affected by this incident.

By NSPLexington, Neb. — The Nebraska State Patrol is investigating an apparent murder-suicide in rural Dawson County.Saturday morning at approximately 9:45 a.m., the Dawson County Sheriff’s Office was dispatched to a residence at Johnson Lake, Plum Creek Canyon #1. Upon arrival, deputies found four deceased individuals inside the residence. All four were residents of the home.The deceased individuals have been identified as Jeremy, Bailey, Hudson, and Asher Koch. Following preliminary investigation, it is believed that Jeremy Koch, 42, killed each of his sons, Hudson, 18, and Asher, 16, and his wife, Bailey, 41, before taking his own life. All four were found with fatal knife wounds. A knife was found at the scene.The Dawson County Sheriff’s Office was assisted by Eustis Fire &amp; Rescue, the Nebraska State Patrol, and the Dawson County Attorney.The Nebraska State Patrol is the lead agency in the homicide investigation. The Dawson County Attorney has ordered autopsies of all four residents.The investigation remains ongoing. The Nebraska State Patrol, the Dawson County Sheriff’s Office, Eustis Fire &amp; Rescue, and the Dawson County Attorney extend condolences to all, across multiple communities, who will be affected by this incident.

NSP investigating triple murder-suicide in Dawson County

<div><blockquote class="twitter-tweet">It cannot be overstated how big of a deal this Executive Order will be for American families and especially our seniors! Healthcare costs were the number one driver of Bidenflation. President Trump is tackling them head on. <a href="https://t.co/u8Wg2vW0Ll">pic.twitter.com/u8Wg2vW0Ll</a>&mdash; Karoline Leavitt (@PressSec) <a href="https://twitter.com/PressSec/status/1921711053487882665?ref_src=twsrc%5Etfw">May 11, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>

Read Trump's historic statement on cutting prescription drugs costs

By:&nbsp;<a href="https://stateline.org/author/khardy/">Kevin Hardy</a>

Fearing a financial ‘death spiral,’ transit providers say they need more support.

Compared with major American cities, the ridership on public buses in Minot, North Dakota, can seem relatively minuscule.

But the 82,000 rides taken each year allow people without cars to get to work, help those with disabilities get around and connect patients with crucial health care.

“The value of those rides is unmeasurable, because the people that are using our system need our system,” said Brian Horinka, the city’s transit superintendent.

Like in many cities — from sprawling metropolitan areas to smaller and rural communities — the financial future of public transit is questionable in Minot, population 48,000. While increasing, ridership remains below pre-pandemic levels. Federal funding and state budgets remain uncertain, while inflation is pinching transit services.

For example, Horinka said he’s looking to buy a new 30-foot heavy-duty bus. He expects it will cost up to $700,000 because of inflation. Just five years ago, a similar model could be had for about $400,000, he said.

“We’re in dire straits, from a financial standpoint,” he said.

North Dakota’s four largest cities, including Minot, asked lawmakers for millions in extra grant dollars this year to keep transit buses rolling. The state&nbsp;<a href="https://ndlegis.gov/assembly/69-2025/regular/documents/25-1109-05000.pdf" target="_blank">enacted a new law</a>&nbsp;awarding $2 million in grants — a welcome reprieve, but far less than the $15 million initially requested.

Republican state Rep. Dan Ruby, a sponsor of the legislation, said cities will likely need to increase local funding for bus systems.

“I don’t think it’s enough,” he said. “I think it is going to just be somewhat of a stopgap for some of them to be able to function.”

The law also calls for a study to develop a proposed funding formula for fixed-route bus systems. Ruby said he would prefer a permanent funding model that doesn’t require cities to continually rely on legislative grants.

“We also want to make sure that they’re not sitting on funds or running inefficiently just because they have the funding,” he said. “That’s the key to get support from most of the legislators, to show that they really do have a need and there’s no way to find any more cuts in their operations without affecting the people that need the rides.”

It’s indicative of discussions occurring in state capitals across the country as public transit faces existential funding challenges.

Public transit systems in major cities including Chicago, Dallas and San Francisco face the potential of deep service cuts without more funding. But the problems also extend to smaller systems that connect people in rural America and smaller cities.

In Pennsylvania, Democratic Gov. Josh Shapiro said the transit financial crisis affects residents in all 67 of the commonwealth’s counties.

“Let me just say, we face a dire situation for mass transit agencies all across Pennsylvania, from Pittsburgh to Philly and rural communities in between,”&nbsp;<a href="https://penncapital-star.com/government-politics/shapiro-says-pa-mass-transit-agencies-face-dire-situation-and-criticizes-trump-tariffs/" target="_blank">Shapiro said at a news conference in April.</a>

Transit funding has been stuck in a partisan battle in Harrisburg.

In November, to stave off cuts, Shapiro&nbsp;<a href="https://penncapital-star.com/transportation-infrastructure/shapiro-directs-153m-in-federal-highway-funds-to-stop-septa-death-spiral/" target="_blank">ordered the transfer of more than $150 million</a>&nbsp;in federal highway funds to the Southeastern Pennsylvania Transportation Authority, known as SEPTA, which serves the greater Philadelphia area with bus and regional rail lines. He’s also backed legislation to increase transit funding, which has found support in the Democratic-controlled state House but so far has not advanced in the GOP-controlled state Senate.

Late last month, House Republican Leader Jesse Topper proposed&nbsp;<a href="https://www.reptopper.com/News/36086/Press-Releases/Amid-Chronic-Budget-Issues--Topper-to-Introduce-Legislation-to-Privatize-Part-of-SEPTA-s-Operations" target="_blank">partially privatizing the Philadelphia-area transit agency&nbsp;</a>rather than increasing funding, which he said in a statement would “only serve to patch over the problems of a system chronically in crisis.”

“The same old, same old is clearly not working,” he said, according to&nbsp;<a href="https://www.wesa.fm/politics-government/2025-05-01/transit-agencies-prt-septa-privatize-topper" target="_blank">a report by public radio station WESA.</a>

The transit agency has said it already operates one of the most efficient systems in the nation. On&nbsp;<a href="https://wwww.septa.org/fundingcrisis/" target="_blank">a special website&nbsp;</a>it created to call attention to its $213 million budget deficit, SEPTA said there’s “nothing left to cut from the budget but service.”

The authority has said it may be forced to cut services by 45% and raise fares by 20% without help from the state.

Democratic state Rep. Malcolm Kenyatta, who represents a portion of North Philadelphia, said that would be “catastrophic” for the region.

“It makes this not only a less appealing place to live for people who are considering moving here,” he said, “but it also makes it difficult to live for folks who call this area home.”

Kenyatta, who dismissed the idea of privatization, said the state has a moral and economic obligation to ensure sustainable funding for public transportation.

“We’ve done patches here and there,” he said. “And that patchwork approach is not one that inspires the type of confidence and allows our transit agencies to do the type of long-term planning that they need to do.”

Mass transit saw some of the most immediate impacts of COVID-19 as people worked from home and avoided public spaces.

The federal government provided nearly $70 billion in pandemic aid to transit programs, which saw revenues drop sharply because of reduced fare collections.

But with the rise of remote and hybrid work, ridership remains below pre-pandemic levels even as costs for labor and equipment skyrocket. A recent&nbsp;<a href="https://www.bloomberg.com/news/features/2025-04-29/us-mass-transit-funding-crisis-threatens-commuters-travel?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc0NjE0OTczMiwiZXhwIjoxNzQ2NzU0NTMyLCJhcnRpY2xlSWQiOiJTVkhaT0FUMEcxS1cwMCIsImJjb25uZWN0SWQiOiI4QUQ0NTg2QkE2MTk0RkRGOEQyMkU3RDM5NzUyOUNCOCJ9.w3o4OPJC1dN3Bg7rJfaraes4Xb63p43Kk7j3XZrJ6VY&amp;leadSource=uverify%20wall" target="_blank">Bloomberg News analysis</a>&nbsp;estimates the nation’s largest transit systems are facing a $6 billion shortfall — only heightening fears of a&nbsp;<a href="https://www.npr.org/2023/11/15/1212879398/public-transit-ridership-down-covid-pandemic-death-spiral" target="_blank">so-called death spiral</a>&nbsp;in which a combination of service cuts and fare increases cause further erosion of riders and revenue.

In Oregon, Democratic lawmakers have proposed increasing the state’s dedicated transit payroll tax. Billed as “a starting point,” the plan would increase the tax from 0.1% to 0.18% — estimated to raise $269 million over each two-year budget cycle.

“That’s appreciated, but it’s nowhere near what it needs to be,” said Brian Vitulli, general manager of the Tillamook County Transportation District in western Oregon. “There could be some service reductions in the near future if we don’t get more funding.”

Aside from rising costs, Vitulli faces major hiring challenges: The district has 19 drivers but could use eight to 10 more. With too few drivers, bus service has been cut to six days a week.

For some riders, the transit services provide a lifeline. After last year’s closure of Tillamook’s only dialysis center, for example, the agency began offering rides to&nbsp;<a href="https://www.northcoastcitizen.com/news/tctd-steps-up-for-dialysis-patients/article_6fbac02e-766f-5c3e-a86b-ed9293b8d6be.html" target="_blank">other dialysis clinics well outside its service area.</a>

That has driven up costs and tied up drivers, making services such as the on-demand Dial-A-Ride less available for other residents.

“We’re kind of the only option for these dialysis patients,” he said. “And we’re kind of prioritizing those trips rather than somebody who just wants to go to the Elks Club for lunch or something.”

Vitulli also serves on the board of the Oregon Transit Association, which is lobbying instead for&nbsp;<a href="https://oregontransit.com/news/13489020" target="_blank">a 0.4% increase in the transit payroll tax phased in over eight years</a>. The association said the current 0.08% proposal could force transit providers across the state to cut services by as much as 25% in the next few years as inflation and decreased fare collections push many into deficits.

TriMet, which operates rail, bus and paratransit services across 533 square miles of the Portland region,&nbsp;<a href="https://news.trimet.org/2025/04/trimet-warns-of-cuts-to-transit-service-without-an-increase-in-transit-funding-in-2025-oregon-transportation-package/" target="_blank">said it would still need to cut services</a>&nbsp;even if the lawmakers’ proposed 0.08% funding increase were approved. The agency faces a deficit of nearly $75 million for the upcoming fiscal year.

Oregon lawmakers are broadly concerned about federal spending cuts, which could turn the state’s modest budget surplus into a gaping deficit,<a href="https://oregoncapitalchronicle.com/2025/03/19/oregon-lawmakers-share-38-billion-budget-framework-amid-federal-uncertainty/" target="_blank">&nbsp;the Oregon Capital Chronicle reported.&nbsp;</a>Nearly a third of the state’s budget comes from federal money.

Democratic state Rep. Susan McLain said budget uncertainty has heightened scrutiny of all state spending this session. She is one of the authors of&nbsp;<a href="https://oregoncapitalchronicle.com/2025/04/03/oregon-democrats-unveil-1-9-billion-transportation-funding-plan/" target="_blank">the state’s transportation proposal</a>, crafted after nearly two years of meetings across the state. Aside from increasing the transit payroll tax, it calls for boosting the gas tax and hiking vehicle registration costs to help pay for road improvements.

McLain, co-chair of the Joint Committee on Transportation, said budget negotiations are ongoing, with aims of having hearings later this month.

While the state wants to do more to ensure everyone can access medical care, schools and jobs, McLain noted that belt-tightening is imperative for all manner of agencies, including transit.

“We’re really trying to dig in and find ways to do more with less,” she said, “but also to make sure that we’ve got sufficient, adequate types of investment in areas that we value.”

Stateline reporter Kevin Hardy can be reached at&nbsp;<a href="mailto:khardy@stateline.org">khardy@stateline.org</a>.&nbsp;

<figure>
 <img src="https://media.eaglewebservices.com/public/2025/5/1746784865461.png" alt=" Driver Jeremy Bellante assists Martin Boge into a Tillamook County Transportation District van before an out-of-town trip last month to dialysis treatment. The western Oregon transit service is warning of potential service cuts if the state does not provide more funding. (Courtesy of Tillamook County Transportation District)" />
 <figcaption> Driver Jeremy Bellante assists Martin Boge into a Tillamook County Transportation District van before an out-of-town trip last month to dialysis treatment. The western Oregon transit service is warning of potential service cuts if the state does not provide more funding. (Courtesy of Tillamook County Transportation District)</figcaption>
 </figure>By:&nbsp;<a href="https://stateline.org/author/khardy/">Kevin Hardy</a><h2>Fearing a financial ‘death spiral,’ transit providers say they need more support.</h2>Compared with major American cities, the ridership on public buses in Minot, North Dakota, can seem relatively minuscule.But the 82,000 rides taken each year allow people without cars to get to work, help those with disabilities get around and connect patients with crucial health care.“The value of those rides is unmeasurable, because the people that are using our system need our system,” said Brian Horinka, the city’s transit superintendent.Like in many cities — from sprawling metropolitan areas to smaller and rural communities — the financial future of public transit is questionable in Minot, population 48,000. While increasing, ridership remains below pre-pandemic levels. Federal funding and state budgets remain uncertain, while inflation is pinching transit services.For example, Horinka said he’s looking to buy a new 30-foot heavy-duty bus. He expects it will cost up to $700,000 because of inflation. Just five years ago, a similar model could be had for about $400,000, he said.“We’re in dire straits, from a financial standpoint,” he said.North Dakota’s four largest cities, including Minot, asked lawmakers for millions in extra grant dollars this year to keep transit buses rolling. The state&nbsp;<a href="https://ndlegis.gov/assembly/69-2025/regular/documents/25-1109-05000.pdf" target="_blank">enacted a new law</a>&nbsp;awarding $2 million in grants — a welcome reprieve, but far less than the $15 million initially requested.Republican state Rep. Dan Ruby, a sponsor of the legislation, said cities will likely need to increase local funding for bus systems.“I don’t think it’s enough,” he said. “I think it is going to just be somewhat of a stopgap for some of them to be able to function.”The law also calls for a study to develop a proposed funding formula for fixed-route bus systems. Ruby said he would prefer a permanent funding model that doesn’t require cities to continually rely on legislative grants.“We also want to make sure that they’re not sitting on funds or running inefficiently just because they have the funding,” he said. “That’s the key to get support from most of the legislators, to show that they really do have a need and there’s no way to find any more cuts in their operations without affecting the people that need the rides.”It’s indicative of discussions occurring in state capitals across the country as public transit faces existential funding challenges.Public transit systems in major cities including Chicago, Dallas and San Francisco face the potential of deep service cuts without more funding. But the problems also extend to smaller systems that connect people in rural America and smaller cities.<h2>Partisan debates over transit funding</h2>In Pennsylvania, Democratic Gov. Josh Shapiro said the transit financial crisis affects residents in all 67 of the commonwealth’s counties.“Let me just say, we face a dire situation for mass transit agencies all across Pennsylvania, from Pittsburgh to Philly and rural communities in between,”&nbsp;<a href="https://penncapital-star.com/government-politics/shapiro-says-pa-mass-transit-agencies-face-dire-situation-and-criticizes-trump-tariffs/" target="_blank">Shapiro said at a news conference in April.</a>Transit funding has been stuck in a partisan battle in Harrisburg.In November, to stave off cuts, Shapiro&nbsp;<a href="https://penncapital-star.com/transportation-infrastructure/shapiro-directs-153m-in-federal-highway-funds-to-stop-septa-death-spiral/" target="_blank">ordered the transfer of more than $150 million</a>&nbsp;in federal highway funds to the Southeastern Pennsylvania Transportation Authority, known as SEPTA, which serves the greater Philadelphia area with bus and regional rail lines. He’s also backed legislation to increase transit funding, which has found support in the Democratic-controlled state House but so far has not advanced in the GOP-controlled state Senate.Late last month, House Republican Leader Jesse Topper proposed&nbsp;<a href="https://www.reptopper.com/News/36086/Press-Releases/Amid-Chronic-Budget-Issues--Topper-to-Introduce-Legislation-to-Privatize-Part-of-SEPTA-s-Operations" target="_blank">partially privatizing the Philadelphia-area transit agency&nbsp;</a>rather than increasing funding, which he said in a statement would “only serve to patch over the problems of a system chronically in crisis.”“The same old, same old is clearly not working,” he said, according to&nbsp;<a href="https://www.wesa.fm/politics-government/2025-05-01/transit-agencies-prt-septa-privatize-topper" target="_blank">a report by public radio station WESA.</a>The transit agency has said it already operates one of the most efficient systems in the nation. On&nbsp;<a href="https://wwww.septa.org/fundingcrisis/" target="_blank">a special website&nbsp;</a>it created to call attention to its $213 million budget deficit, SEPTA said there’s “nothing left to cut from the budget but service.”The authority has said it may be forced to cut services by 45% and raise fares by 20% without help from the state.Democratic state Rep. Malcolm Kenyatta, who represents a portion of North Philadelphia, said that would be “catastrophic” for the region.“It makes this not only a less appealing place to live for people who are considering moving here,” he said, “but it also makes it difficult to live for folks who call this area home.”Kenyatta, who dismissed the idea of privatization, said the state has a moral and economic obligation to ensure sustainable funding for public transportation.“We’ve done patches here and there,” he said. “And that patchwork approach is not one that inspires the type of confidence and allows our transit agencies to do the type of long-term planning that they need to do.”<h2>Transit’s pandemic ‘death spiral’</h2>Mass transit saw some of the most immediate impacts of COVID-19 as people worked from home and avoided public spaces.The federal government provided nearly $70 billion in pandemic aid to transit programs, which saw revenues drop sharply because of reduced fare collections.But with the rise of remote and hybrid work, ridership remains below pre-pandemic levels even as costs for labor and equipment skyrocket. A recent&nbsp;<a href="https://www.bloomberg.com/news/features/2025-04-29/us-mass-transit-funding-crisis-threatens-commuters-travel?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc0NjE0OTczMiwiZXhwIjoxNzQ2NzU0NTMyLCJhcnRpY2xlSWQiOiJTVkhaT0FUMEcxS1cwMCIsImJjb25uZWN0SWQiOiI4QUQ0NTg2QkE2MTk0RkRGOEQyMkU3RDM5NzUyOUNCOCJ9.w3o4OPJC1dN3Bg7rJfaraes4Xb63p43Kk7j3XZrJ6VY&amp;leadSource=uverify%20wall" target="_blank">Bloomberg News analysis</a>&nbsp;estimates the nation’s largest transit systems are facing a $6 billion shortfall — only heightening fears of a&nbsp;<a href="https://www.npr.org/2023/11/15/1212879398/public-transit-ridership-down-covid-pandemic-death-spiral" target="_blank">so-called death spiral</a>&nbsp;in which a combination of service cuts and fare increases cause further erosion of riders and revenue.In Oregon, Democratic lawmakers have proposed increasing the state’s dedicated transit payroll tax. Billed as “a starting point,” the plan would increase the tax from 0.1% to 0.18% — estimated to raise $269 million over each two-year budget cycle.“That’s appreciated, but it’s nowhere near what it needs to be,” said Brian Vitulli, general manager of the Tillamook County Transportation District in western Oregon. “There could be some service reductions in the near future if we don’t get more funding.”Aside from rising costs, Vitulli faces major hiring challenges: The district has 19 drivers but could use eight to 10 more. With too few drivers, bus service has been cut to six days a week.For some riders, the transit services provide a lifeline. After last year’s closure of Tillamook’s only dialysis center, for example, the agency began offering rides to&nbsp;<a href="https://www.northcoastcitizen.com/news/tctd-steps-up-for-dialysis-patients/article_6fbac02e-766f-5c3e-a86b-ed9293b8d6be.html" target="_blank">other dialysis clinics well outside its service area.</a>That has driven up costs and tied up drivers, making services such as the on-demand Dial-A-Ride less available for other residents.“We’re kind of the only option for these dialysis patients,” he said. “And we’re kind of prioritizing those trips rather than somebody who just wants to go to the Elks Club for lunch or something.”Vitulli also serves on the board of the Oregon Transit Association, which is lobbying instead for&nbsp;<a href="https://oregontransit.com/news/13489020" target="_blank">a 0.4% increase in the transit payroll tax phased in over eight years</a>. The association said the current 0.08% proposal could force transit providers across the state to cut services by as much as 25% in the next few years as inflation and decreased fare collections push many into deficits.TriMet, which operates rail, bus and paratransit services across 533 square miles of the Portland region,&nbsp;<a href="https://news.trimet.org/2025/04/trimet-warns-of-cuts-to-transit-service-without-an-increase-in-transit-funding-in-2025-oregon-transportation-package/" target="_blank">said it would still need to cut services</a>&nbsp;even if the lawmakers’ proposed 0.08% funding increase were approved. The agency faces a deficit of nearly $75 million for the upcoming fiscal year.Oregon lawmakers are broadly concerned about federal spending cuts, which could turn the state’s modest budget surplus into a gaping deficit,<a href="https://oregoncapitalchronicle.com/2025/03/19/oregon-lawmakers-share-38-billion-budget-framework-amid-federal-uncertainty/" target="_blank">&nbsp;the Oregon Capital Chronicle reported.&nbsp;</a>Nearly a third of the state’s budget comes from federal money.Democratic state Rep. Susan McLain said budget uncertainty has heightened scrutiny of all state spending this session. She is one of the authors of&nbsp;<a href="https://oregoncapitalchronicle.com/2025/04/03/oregon-democrats-unveil-1-9-billion-transportation-funding-plan/" target="_blank">the state’s transportation proposal</a>, crafted after nearly two years of meetings across the state. Aside from increasing the transit payroll tax, it calls for boosting the gas tax and hiking vehicle registration costs to help pay for road improvements.McLain, co-chair of the Joint Committee on Transportation, said budget negotiations are ongoing, with aims of having hearings later this month.While the state wants to do more to ensure everyone can access medical care, schools and jobs, McLain noted that belt-tightening is imperative for all manner of agencies, including transit.“We’re really trying to dig in and find ways to do more with less,” she said, “but also to make sure that we’ve got sufficient, adequate types of investment in areas that we value.”Stateline reporter Kevin Hardy can be reached at&nbsp;<a href="mailto:khardy@stateline.org">khardy@stateline.org</a>.&nbsp;

Deep cuts to bus and rail services loom across big cities, small towns

Lincoln, Ne - Lawmakers gave first-round approval this week to six components of the state’s roughly $10.8 billion budget package. The state budget is structured on a two-year basis, with the budget enacted during legislative sessions held in odd-numbered years.

<a href="http://news.legislature.ne.gov/dist02" target="_blank">Sen. Robert Clements</a>, chairperson of the&nbsp;<a href="http://news.legislature.ne.gov/app" target="_blank">Appropriations Committee</a>, said members were facing a $396 million shortfall after a late-April meeting of the Nebraska Economic Forecasting Advisory Board lowered revenue forecasts for the current and upcoming two fiscal years.

“The state’s been hit with $630 million of reductions of revenues — $350 million more of Medicaid expense [and] $280 million in forecast revenues — and we have absorbed those without making drastic cuts,” Clements said.

The passage of two bills by the Legislature earlier this session brought that number down to $262 million, he said, and the committee has identified additional cuts and transfers that will be offered as amendments on the next round of debate in order to balance the state’s budget.

Clements said the end result would be an approximately $3 million surplus and a $690 million balance in the Cash Reserve, also known as the state’s “rainy day fund.” The Cash Reserve balance would be equal to roughly 12.4% of state expenses, which Clements said is within an “acceptable range.”

Sen. Jason Prokop of Lincoln, a member of the committee, supported the budget package, which he said reflected “difficult tradeoffs” that had to be made given the state’s changed economic landscape after the forecasting board lowered revenue projections.

“What this budget does is respond to the moment we’re in and balance our checkbooks while keeping a modest reserve, and [it] does all of this in the context of declining revenues and high pressure to deliver on property tax relief,” Prokop said. “This budget reflects the reality of governing and the hard work that comes with making choices.”

<a href="http://nebraskalegislature.gov/bills/search_by_number.php?DocumentNumber=LB261&amp;Legislature=109th" target="_blank">LB261</a>, introduced by Speaker John Arch of La Vista on behalf of Gov. Jim Pillen, is the mainline budget bill. An Appropriations Committee amendment, adopted 38-5, replaces the bill and contains funding recommendations for state operations and aid programs.

Clements said the measure would require additional amendment on the second round of debate in order to result in a balanced budget. But, he said, the bill would do so without making across-the-board cuts to state agencies.

Among other provisions, the committee amendment would maintain funding for biomedical research at $15 million annually in each of the next two fiscal years. It also would increase funding to the University of Nebraska by roughly $13 million — less of an increase than the committee originally settled on.

Kearney Sen. Stan Clouse supported LB261 and the committee amendment, acknowledging the difficult task of balancing the budget in the face of shortfalls. He noted the importance of maintaining funding for biomedical research and the university in general.

“The University of Nebraska is one of the largest economic engines that we have in the state,” Clouse said.

Also included in the committee amendment are provisions of the following nine bills:• LB55, sponsored by Adams Sen. Myron Dorn, which would appropriate $1.5 million from the Hospital Quality Assurance and Access Assessment Fund to the state Department of Health and Human Services for reimbursement to certain mental health providers;• LB57, also introduced by Dorn, which would appropriate $1.4 million in cash funds from the Medicaid Managed Care Excess Profit Fund to increase the rural single occupancy daily rate to match the urban single occupancy daily rate of $73.91;• LB173, sponsored by Prokop, which would appropriate $5 million in general funds for each of the next two fiscal years to aid community colleges for dual enrollment purposes;• LB452, also introduced by Prokop, which would appropriate $500,000 in Temporary Assistance for Needy Families funds in each of the next two fiscal years for court-appointed special advocate aid;• LB505, sponsored by Prokop, which would appropriate $10 million in TANF funds in FY2025-26 for grants to nonprofits to provide food assistance;• LB580, introduced by Omaha Sen. Machaela Cavanaugh, which would reappropriate funds in the Lead Service Line Cash Fund for grants to metropolitan utilities districts for lead service line replacements;• LB581, also sponsored by Cavanaugh, which would appropriate $500,000 in FY2025-26 from the Health Care Cash Fund for grants to a nonprofit entity for construction costs related to a new facility;• LB621, introduced by Sen. Robert Dover of Norfolk, which would appropriate $500,000 in FY2026-27 from the Health Care Cash Fund to DHHS for expanded health care access to the Nebraska Medicine Midtown Health Center; and• LB627, also sponsored by Dover, which would appropriate $250,000 in general funds in FY2025-26 for a study related to a residential facility for nursing and allied health professionals and state legislative intent to appropriate $750,000 each year for 20 years to the University of Nebraska starting in FY2027-28.

Several lawmakers questioned the need to make cuts or hold agency funding flat in order to close the state’s budget gap as outlined in the committee amendment.

Lincoln Sen. Jane Raybould suggested that a different approach would be to pause the staggered implementation of corporate and individual income tax cuts approved in 2023, or to delay fund transfers related to large infrastructure projects such as the proposed Perkins County Canal.

“There can be no denying that when we passed the accelerated income tax rate reductions in 2023, we were setting ourselves up for a structural imbalance,” Raybould said.

Sen. George Dungan of Lincoln agreed, calling the budget shortfall a “self-inflicted wound” created by lawmakers cutting tax revenue in order to provide property tax relief. In doing so, he said, the Legislature created a false need to cut programming and possibly raise sales taxes, which disproportionately impact lower-income Nebraskans.

“Do you want to try to make up the hole in our budget on the backs of everyday working people … or do we potentially freeze the corporate tax cuts at 4.99% and recognize upwards of $50 million to $120 million dollars in the next year and the year following that?” Dungan said.

North Platte Sen. Mike Jacobson pushed back on that argument. He said the budget shortfall resulted from events beyond lawmakers’ control for the most part, including a $90.3 million reduction in the share of the state’s Medicaid costs that are federally funded.

“This hasn’t been reckless spending; this hasn’t been due to tax cuts,” Jacobson said. “This has been due to a slowdown in the economy and loss of federal support.”

An amendment offered by Omaha Sen. Dunixi Guereca to LB261 would provide $300,000 in each of the next two fiscal years from the Health Care Cash Fund to an entity “providing health care screening, sports competitions, educational opportunities and leadership training for people with developmental or intellectual disabilities.”

Guereca said the funds would ensure that Special Olympics impacts more communities in the western part of Nebraska. Twenty-nine other states provide tax dollars to Special Olympics, he said, and the amendment would not impact the sustainability of the Health Care Cash Fund.

Sen. Teresa Ibach of Sumner said the amendment was a “responsible” use of tobacco settlement funds and would allow Special Olympics to expand access to programs and services across the state.

Clements opposed the amendment, saying it was unclear how the entity used the $500,000 in one-time funds they received during the last budget cycle. As a nonprofit, he said, Special Olympics should reach out to donors rather than seeking additional state funding.

Ralston Sen. Merv Riepe said he would support the amendment if the state were “rolling in cash,” but that providing state funding to one specific nonprofit would set a bad precedent.

The Guereca amendment was adopted on a 29-7 vote.

Omaha Sen. Macheala Cavanaugh offered an amendment that she described as an alternative to the mainline budget bill. The proposal would replace the Appropriations Committee amendment and, among other provisions, would set aside $452 million currently directed to property tax relief for state aid to schools instead.

The amendment also would direct a percentage of the property tax credit to counties to help them defer jail and other costs. The result, she said, would “automatically” lower property taxes.

“[This amendment] is a balanced budget that looks at the resources available to us and how we can do the most good for the most Nebraskans while maintaining our obligations across the state,” Cavanaugh said.

Sen. Glen Meyer of Pender offered and later withdrew an amendment that would add his LB382 to the mainline budget bill. Those provisions would provide funding for area agencies on aging. Meyer withdrew the amendment on the understanding that his desired change to his proposal would be taken up separately after the budget debate.

Following eight hours of debate and a successful cloture motion from Arch, lawmakers advanced LB261 to select file on a 37-6 vote May 6.

LB264, also introduced by Arch at the request of the governor, would provide for fund transfers, change provisions governing the administration and use of funds and repeal previous expansions to aid and incentive programs.

A committee amendment, adopted 34-7, would make dozens of additional transfers from state agency cash funds and others to the state General Fund totaling $10.5 million in the current fiscal year and $149.8 million across the next two fiscal years.

By Unicamiral Update Staff<figure>
 <img src="https://media.eaglewebservices.com/public/2025/5/1746789018855.jpeg" alt="Sen. Robert Clements discussing budget with group: photo by Bess Ghormley" />
 <figcaption>Sen. Robert Clements discussing budget with group: photo by Bess Ghormley</figcaption>
 </figure>Lincoln, Ne - Lawmakers gave first-round approval this week to six components of the state’s roughly $10.8 billion budget package. The state budget is structured on a two-year basis, with the budget enacted during legislative sessions held in odd-numbered years.<a href="http://news.legislature.ne.gov/dist02" target="_blank">Sen. Robert Clements</a>, chairperson of the&nbsp;<a href="http://news.legislature.ne.gov/app" target="_blank">Appropriations Committee</a>, said members were facing a $396 million shortfall after a late-April meeting of the Nebraska Economic Forecasting Advisory Board lowered revenue forecasts for the current and upcoming two fiscal years.“The state’s been hit with $630 million of reductions of revenues — $350 million more of Medicaid expense [and] $280 million in forecast revenues — and we have absorbed those without making drastic cuts,” Clements said.The passage of two bills by the Legislature earlier this session brought that number down to $262 million, he said, and the committee has identified additional cuts and transfers that will be offered as amendments on the next round of debate in order to balance the state’s budget.Clements said the end result would be an approximately $3 million surplus and a $690 million balance in the Cash Reserve, also known as the state’s “rainy day fund.” The Cash Reserve balance would be equal to roughly 12.4% of state expenses, which Clements said is within an “acceptable range.”Sen. Jason Prokop of Lincoln, a member of the committee, supported the budget package, which he said reflected “difficult tradeoffs” that had to be made given the state’s changed economic landscape after the forecasting board lowered revenue projections.“What this budget does is respond to the moment we’re in and balance our checkbooks while keeping a modest reserve, and [it] does all of this in the context of declining revenues and high pressure to deliver on property tax relief,” Prokop said. “This budget reflects the reality of governing and the hard work that comes with making choices.”Mainline budget<a href="http://nebraskalegislature.gov/bills/search_by_number.php?DocumentNumber=LB261&amp;Legislature=109th" target="_blank">LB261</a>, introduced by Speaker John Arch of La Vista on behalf of Gov. Jim Pillen, is the mainline budget bill. An Appropriations Committee amendment, adopted 38-5, replaces the bill and contains funding recommendations for state operations and aid programs.Clements said the measure would require additional amendment on the second round of debate in order to result in a balanced budget. But, he said, the bill would do so without making across-the-board cuts to state agencies.Among other provisions, the committee amendment would maintain funding for biomedical research at $15 million annually in each of the next two fiscal years. It also would increase funding to the University of Nebraska by roughly $13 million — less of an increase than the committee originally settled on.Kearney Sen. Stan Clouse supported LB261 and the committee amendment, acknowledging the difficult task of balancing the budget in the face of shortfalls. He noted the importance of maintaining funding for biomedical research and the university in general.“The University of Nebraska is one of the largest economic engines that we have in the state,” Clouse said.Also included in the committee amendment are provisions of the following nine bills:• LB55, sponsored by Adams Sen. Myron Dorn, which would appropriate $1.5 million from the Hospital Quality Assurance and Access Assessment Fund to the state Department of Health and Human Services for reimbursement to certain mental health providers;• LB57, also introduced by Dorn, which would appropriate $1.4 million in cash funds from the Medicaid Managed Care Excess Profit Fund to increase the rural single occupancy daily rate to match the urban single occupancy daily rate of $73.91;• LB173, sponsored by Prokop, which would appropriate $5 million in general funds for each of the next two fiscal years to aid community colleges for dual enrollment purposes;• LB452, also introduced by Prokop, which would appropriate $500,000 in Temporary Assistance for Needy Families funds in each of the next two fiscal years for court-appointed special advocate aid;• LB505, sponsored by Prokop, which would appropriate $10 million in TANF funds in FY2025-26 for grants to nonprofits to provide food assistance;• LB580, introduced by Omaha Sen. Machaela Cavanaugh, which would reappropriate funds in the Lead Service Line Cash Fund for grants to metropolitan utilities districts for lead service line replacements;• LB581, also sponsored by Cavanaugh, which would appropriate $500,000 in FY2025-26 from the Health Care Cash Fund for grants to a nonprofit entity for construction costs related to a new facility;• LB621, introduced by Sen. Robert Dover of Norfolk, which would appropriate $500,000 in FY2026-27 from the Health Care Cash Fund to DHHS for expanded health care access to the Nebraska Medicine Midtown Health Center; and• LB627, also sponsored by Dover, which would appropriate $250,000 in general funds in FY2025-26 for a study related to a residential facility for nursing and allied health professionals and state legislative intent to appropriate $750,000 each year for 20 years to the University of Nebraska starting in FY2027-28.Several lawmakers questioned the need to make cuts or hold agency funding flat in order to close the state’s budget gap as outlined in the committee amendment.Lincoln Sen. Jane Raybould suggested that a different approach would be to pause the staggered implementation of corporate and individual income tax cuts approved in 2023, or to delay fund transfers related to large infrastructure projects such as the proposed Perkins County Canal.“There can be no denying that when we passed the accelerated income tax rate reductions in 2023, we were setting ourselves up for a structural imbalance,” Raybould said.Sen. George Dungan of Lincoln agreed, calling the budget shortfall a “self-inflicted wound” created by lawmakers cutting tax revenue in order to provide property tax relief. In doing so, he said, the Legislature created a false need to cut programming and possibly raise sales taxes, which disproportionately impact lower-income Nebraskans.“Do you want to try to make up the hole in our budget on the backs of everyday working people … or do we potentially freeze the corporate tax cuts at 4.99% and recognize upwards of $50 million to $120 million dollars in the next year and the year following that?” Dungan said.North Platte Sen. Mike Jacobson pushed back on that argument. He said the budget shortfall resulted from events beyond lawmakers’ control for the most part, including a $90.3 million reduction in the share of the state’s Medicaid costs that are federally funded.“This hasn’t been reckless spending; this hasn’t been due to tax cuts,” Jacobson said. “This has been due to a slowdown in the economy and loss of federal support.”AmendmentsAn amendment offered by Omaha Sen. Dunixi Guereca to LB261 would provide $300,000 in each of the next two fiscal years from the Health Care Cash Fund to an entity “providing health care screening, sports competitions, educational opportunities and leadership training for people with developmental or intellectual disabilities.”Guereca said the funds would ensure that Special Olympics impacts more communities in the western part of Nebraska. Twenty-nine other states provide tax dollars to Special Olympics, he said, and the amendment would not impact the sustainability of the Health Care Cash Fund.Sen. Teresa Ibach of Sumner said the amendment was a “responsible” use of tobacco settlement funds and would allow Special Olympics to expand access to programs and services across the state.Clements opposed the amendment, saying it was unclear how the entity used the $500,000 in one-time funds they received during the last budget cycle. As a nonprofit, he said, Special Olympics should reach out to donors rather than seeking additional state funding.Ralston Sen. Merv Riepe said he would support the amendment if the state were “rolling in cash,” but that providing state funding to one specific nonprofit would set a bad precedent.The Guereca amendment was adopted on a 29-7 vote.Omaha Sen. Macheala Cavanaugh offered an amendment that she described as an alternative to the mainline budget bill. The proposal would replace the Appropriations Committee amendment and, among other provisions, would set aside $452 million currently directed to property tax relief for state aid to schools instead.The amendment also would direct a percentage of the property tax credit to counties to help them defer jail and other costs. The result, she said, would “automatically” lower property taxes.“[This amendment] is a balanced budget that looks at the resources available to us and how we can do the most good for the most Nebraskans while maintaining our obligations across the state,” Cavanaugh said.The amendment failed on a vote of 4-32.Sen. Glen Meyer of Pender offered and later withdrew an amendment that would add his LB382 to the mainline budget bill. Those provisions would provide funding for area agencies on aging. Meyer withdrew the amendment on the understanding that his desired change to his proposal would be taken up separately after the budget debate.Following eight hours of debate and a successful cloture motion from Arch, lawmakers advanced LB261 to select file on a 37-6 vote May 6.Fund transfersLB264, also introduced by Arch at the request of the governor, would provide for fund transfers, change provisions governing the administration and use of funds and repeal previous expansions to aid and incentive programs.A committee amendment, adopted 34-7, would make dozens of additional transfers from state agency cash funds and others to the state General Fund totaling $10.5 million in the current fiscal year and $149.8 million across the next two fiscal years.Those transfers would include $27.7 million from the Water Recreation Enhancement Fund, $20.5 million from the Economic Development Cash Fund and $15 million from the Economic Recovery Contingency Fund.The amendment also would transfer $132 million from the cash reserve to the state General Fund and add the provisions of LB451, sponsored by Prokop. Those provisions would transfer the first $1 million in the Unclaimed Property Trust Fund to the Capitol Restoration Cash Fund each year on Nov. 1, from 2026 to 2035.Clements offered an amendment that would make nearly three dozen additional transfers from state agency cash funds to shore up general funds. The additional transfers were needed following the economic forecasting board projections, he said, and were made thoughtfully so as not to impact agency functions.“This has been probably the most difficult [budget process] that I’ve had to lead,” Clements said. “And we’ve been trying to keep agency services from being slashed and that’s why there were a lot of cash fund transfers.”Omaha Sen. Machaela Cavanaugh disagreed with his assessment. Calling the transfers “reckless and irresponsible,” she said many of them could have been avoided if lawmakers had not chosen to make funding property tax relief their overriding priority in previous legislative sessions.“Everything on here is to fund property taxes,” she said.Lincoln Sen. Danielle Conrad also questioned the transfers and the impact of the overall proposal on the state’s working families.“The point of a budget is not just to put together a number,” she said. “The point is putting together a budget to do the most good.”Other amendmentsAn amendment to LB264 offered by Lincoln Sen. Jane Raybould would transfer $500 million from the Perkins County Canal Project Fund to the General Fund.Raybould said the Perkins County Canal project could take up to 20 years to complete and that funds set aside for it would be a better way to balance the state budget than taking more than $100 million from the state’s cash reserve.Sen. Dave Murman of Glenvil opposed Raybould’s amendment. He said the state earmarked funds for the canal when it had a one-time influx of federal pandemic funds and needs to protect that investment in the state’s future water needs.“We made smart decisions when we had the revenue a couple of years ago … and we need to stick to those decisions that we made,” Murman said.The Raybould amendment failed 5-24.Senators adopted a technical amendment offered by Sen. Jana Hughes of Seward on a 34-0 vote, which she said would fix an issue with special education reimbursement recently discovered by the state auditor.Syracuse Sen. Bob Hallstrom offered and later withdrew an amendment that would have eliminated the transfer of $4 million each from the Rural Workforce Housing Fund and the Middle Income Workforce Housing Fund to the General Fund. Hallstrom said he would refile the proposal on the next round of debate.Senators advanced LB264 on a 34-6 vote May 7 after eight hours of debate and a successful cloture motion offered by Arch.Additional measuresLawmakers also advanced LB534, sponsored by&nbsp;<a href="http://news.legislature.ne.gov/bui" target="_blank">Business and Labor Committee</a>&nbsp;chairperson Sen. Kathleen Kauth of Omaha, which would provide for payment of claims against the state. If a person sues the state of Nebraska, he or she files a claim with the State Claims Board. Approved claims exceeding $50,000 must be reviewed by the Legislature.As introduced, LB534 includes:• three indemnification claims totaling $432,500;• two settlements totaling $482,700 reached by the state attorney general to be paid out of the state’s General Fund;• three Workers’ Compensation Court claims totaling $665,000 to be paid out of the Workers’ Compensation Revolving Fund; and• six tort claims totaling $1.396 million out of the State Insurance Fund.The bill also includes approximately $1.767 million in agency write-offs approved by the State Claims Board.Kauth said the measure reflects “good faith” settlements made by the State Claims Board and the attorney general.“These are debts the state owes the victims of accidents, officers who died in the line of duty, the cost of publishing the ballot initiatives and the victims of brutal murders,” she said.A committee amendment, adopted 36-0, would add the following additional claims:• a $49,826 additional tort claim;• a $395,000 indemnification claim;• six additional workers’ compensation claims totaling $595,000; and• two line of duty claims and a miscellaneous claim totaling $712,991.Following adoption of the committee amendment, senators voted 37-0 to advance LB534 to select file May 8.Lawmakers also gave first-round approval May 7 to three additional components of the budget package introduced by Arch:• LB260, which would make adjustments to appropriations in the current fiscal year, on a 41-0 vote;• LB262, which would appropriate funds for salaries of members of the Legislature, on a 40-1 vote; and• LB263, which would appropriate funds for salaries of constitutional officers, on a 38-0 vote.