LINCOLN- In a letter read aloud to the Nebraska Legislature on Wednesday, Gov. Jim Pillen announced that he would be enacting a line-item veto on LB818 and LB814, two substantial budget proposals. Between the two bills, around $140 million in proposed spending was cut by the veto, with Gov. Jim Pillen, a conservative Republican, saying that the state's government "must continue to fight against excessive government spending."
As announced, around $45 million in increases for provider rates for Medicaid providers, $40 million for the construction of workforce housing in rural and urban areas, and $10 for a study of gun violence in low-income areas of Omaha were cut from the budget proposals. According to the letter, the governor's budget reductions will save the state around $94.2 million in taxpayer funds, $10 million from a Health Care Cash Fund, and $87 million from the state's cash reserve over the next four years.
"Hard-working taxpayers are demanding that their money be returned," said Pillen in the letter, "Stand up to special interests who stand to gain from growing government spending and deliver the money back." Jeremy Nordquist, president of the Nebraska Hospital Association, said that the cuts in provider rates, from increases of 3% and 2% respectively over the next two years, to increases of 3% and 0%, will put the state's healthcare system at risk. "The Governor's veto will increase costs for everyday Nebraskans and will hurt our communities by closing essential rural health care services," said Nordquist in a response letter.
On Thursday, a divided Appropriations Committee voted 5-4 to dispute several of the vetoes. One of the most substantial overrides relates to the Pillen-led cut of over $45 million for increases in provider rates. An additional $40 million in cuts related to workforce housing projects in rural and urban areas, pay raises for legislative staff, and extra staffing for the State Auditor's Office from the Committee's original budget proposal will also be disputed.
Much of the discussion taken up in the Appropriations Committee centered around whether or not potential overrides would be a "slap in the face" to the new governor, who is still in the first half of his first year. Sens. Christy Armendariz and Rob Dover, both first-year lawmakers, brought up these concerns, but were allayed by Sens. Mike McDonnell and Myron Dorn, who told them overrides were part of the process.
The Appropriations Committee was particularly interested in maintaining legislative staff pay, as well as additional funding for the Auditor's Office, which Sen. Erdman said would pay for itself. Members of the committee argued that legislative staff pay hasn't kept up with the private sector, but Gov. Pillen argued that funds already existed to finance the increases. Senators will take up veto override motions on Wednesday of next week.
For the full article click HERE