Nebraska Governor Jim Pillen announced on Wednesday plans for additional cuts to the state’s budget and imposing a hiring freeze on positions.
Pillen said in a release the actions are a result of the state paying out $307 million more in refunds than expected for fiscal year 2026.
During the most recent legislative session lawmakers attempted to close the projected budget shortfall by making cuts. However, the state’s department of revenue reported March, April, and May tax receipts remained below projections, resulting in a deficit of about $172 million.
Attached with the release is a memo telling state agencies, boards, and commissions they must “exercise fiscal restraint.” It says they must reduce their spending in hiring, traveling, equipment purchases, and more.
The memo states positions shall not be created or filled without approval, but law enforcement and correctional officers are exempt.
All state entities’ budgets will be reduced by 5 percent, and they will be required to submit monthly cash flow projections.
Agencies are to consider alternatives to reduce their spending, such as consolidating responsibilities and reducing redundant services.
The order is not only for the current fiscal year but also for FY27-28 and FY28-29. All state entities are required to submit their plans for reducing their spending by July 31, 2026.
