LINCOLN- The Nebraska Legislature advanced a second budget bill, Legislative Bill 3, to help cover the costs of the property tax relief plan outlined in Legislative Bill 34, despite considerable debate and frustration among state senators. The bill reallocates $22 million in fees and interest from state agencies to the general fund, with the state’s cash reserves covering an additional $46 million, following the earlier passage of another bill that implemented $117 million in spending cuts. Although some senators, like State Senator Danielle Conrad, opposed the need for such funding during a special session, the Appropriations Committee, led by State Senator Rob Clements, defended their decisions, ultimately passing the bill with a 35-11 vote after eight hours of debate.

Throughout the day, lawmakers expressed dissatisfaction with the limited scope of property tax relief provided by LB 34 and sought ways to enhance the package. Despite efforts to filibuster the budget cuts, the Appropriations Committee maintained that their funding decisions were necessary to support the relief plan without harming individual state agencies. Amendments were considered, including one from State Senator Terrell McKinney to restore $250,000 in corrections funding which he got passed after much debate.

State Senators Conrad and Machaela Cavanaugh continued to argue against the urgency of the funding efforts, but the majority of senators pushed forward, aiming to finalize the budget adjustments necessary to implement the property tax relief measures. The debate highlighted the ongoing tension between providing immediate tax relief and ensuring long-term financial stability for the state, as lawmakers grappled with the limitations of the special session process.

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