URBAN-RURAL DIVIDE FLARES DURING DEBATE ON $25 MILLION OF BUDGET PACKAGE

LINCOLN- Urban lawmakers prevailed in a fight over workforce housing money on Tuesday that split the Nebraska Legislature along geographic, rather than political, lines. The fight took place while lawmakers debated, and then advanced, this year's state budget package to the final round of consideration.

The package updates the current state budget, which was passed last year and covers the two fiscal years until June 2025. The new package provides for an average increase in state spending of 3.1% over the two-year budget period, up from the 2.3% approved last year. It also includes the transfer of about $230 million from various sources to fund Gov. Pillen's initiative to cut property taxes.

The urban-rural divide surfaced over a $25 million transfer out of the state's Affordable Housing Trust Fund. Pillen had called for putting all the money into a separate rural workforce housing fund. During debate, Sen. Terrell McKinney proposed splitting the $25 million evenly between an urban and rural housing fund. Lawmakers ended up voting 25-23 to approve the amendment, placing $12.5 million into each fund.

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