LINCOLN- State lawmakers advanced a controversial portion of the state budget on Thursday — $244 million in “sweeps” of state agency cash reserves — but not before adopting two minor amendments. The contentious portion is a proposed $70 million transfer from the state unemployment insurance trust fund, the largest of the transfers.

If removed from Legislative Bill 1413 it would “blow a hole” into the plan by Gov. Jim Pillen to provide interim government funding for his proposal to increase state taxes and funds, in order to lower local property taxes by 40%. The transfer is opposed by groups representing state businesses, who pay premiums into the unemployment insurance fund to cover payments to workers who find themselves unemployed.

Two amendments to LB 1413 that were adopted would drop a $5 million transfer out of the State Visitors Promotion Cash Fund. North Platte Sen. Mike Jacobson proposed the change, saying that sweeping the state lodging taxes would damage local tourism promotion. And, halt transfers of interest earned off the Universal Service Fund in June 2025. The bill had allowed such transfers indefinitely.

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