Enacted Mid-Biennium Budget Adjustments – Fiscal Years 2026-2027
During the 2025 legislative session, Nebraska enacted a biennial budget for fiscal 2026 and fiscal 2027. On April 7, 2026, Nebraska Governor Jim Pillen signed a mid-biennium budget adjustment bill with no line-item vetoes. The enacted budget with 2026 adjustments calls for a 0.3 percent increase in general fund spending in fiscal 2026 and a 2.1 percent decrease in fiscal 2027, for a two-year average of a 0.9 percent decrease. The mid-biennium adjustments are based on revenue forecasts made by the Nebraska Economic Forecast Advisory Board in February 2026. These forecasts project revenue growth of 5.8 percent in fiscal 2026 and 1.4 percent in fiscal 2027, for a two-year average growth rate of 3.6 percent. The estimated unobligated ending balance of the Cash Reserve Fund in fiscal 2027 is $546.0 million, which is approximately 8.2 percent of general fund net receipts and 10.3 percent of general fund appropriations.
In signing the budget, the governor said it adopts 91 percent of his budget recommendations, solves the state’s $627 million biennial budget variance, honors the state's commitment to providing tax relief for Nebraskans, and maintains nearly $900 million in unobligated reserves. Additionally, the Appropriations Committee noted the state’s shortfall was solved mainly through a variety of cuts to general fund appropriations, sweeps from state agency cash funds, and reappropriation of existing general fund dollars, with the passage of several revenue-generating proposals closing the remaining gap. The budget adjustment bill includes provisions providing funding for aid to federally qualified health centers; projects under the Nebraska Affordable Housing Act; a multi-trade apprenticeship pilot program; mentorship programs for nonprofit organizations; and wastewater treatment facility improvements.