Wrapping Up the Short Legislative Session
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On April 17, the Legislature adjourned its 60-day session. The primary focus this year centered around balancing the state budget. When the session began, we faced a budget shortfall of over $600 million. The budget deficit was largely caused by tax reductions in the One Big Beautiful Bill. The Nebraska income tax code is based on the federal tax code, so as reductions were made federally, it automatically reduced the state income tax paid by Nebraskans. I’ve always believed taxpayers can more wisely spend their hard earned money than the government. Another reason for the deficit was a loss of increased federal funds that had temporarily increased during COVID. As much of that funding declined, programs the state had created or expanded began to exceed the available funds.