Budget Cycle

Governor Submits Budget
January 15

Fiscal Year Begins
July 1 

Governor Signs Budget 

Proposed Supplemental Budget - Fiscal Years 2022-2023

On January 13, Nebraska Governor Pete Ricketts announced proposed adjustments to the current fiscal 2021-2023 biennium budget. At the end of fiscal 2021, general fund tax receipts exceeded forecasts by $958 million. $533 million was transferred to the Cash Reserve Fund while also allowing the Property Tax Incentive Credit to reach $548 million in annual tax relief to Nebraskan property owners. In November 2021, the Nebraska Forecasting Advisory Board increased its anticipated General Fund tax receipts amounts for fiscal 2022 and fiscal 2023 by $475 million and $428 million, respectively. This provides an estimate of $475 million to be transferred to the Cash Reserve Fund which raises the balance to an estimated amount of $1.5 billion in fiscal 2022-2023. The governor proposes to use $575 million of the Cash Reserve Fund for one-time costs this year which leaves an ending unobligated balance of $941.2 million in the Cash Reserve Fund.

Proposed Budget Highlights 
The governor’s proposed adjustments focus on three main areas: providing tax relief, strengthening public safety, and investing in the state’s natural resources. Plans for using the American Rescue Plan Act (ARPA) funds are also included in the proposed adjustments. The governor’s recommendations include:

Tax Relief

  • Accelerate social security tax exemptions.
  • Reduce the top individual and corporate tax rate to 5.84 percent over a five-year period.
  • Ensure property tax relief is sustained at the current level of $548 million in annual relief through the property tax incentive credit.

Strengthening Public Safety

  • $155 million in cash reserve funding for replacement of the Nebraska Penitentiary.
  • $36.7 million of ARPA funds in fiscal 2022 and $62.4 million of general funds in fiscal 2023 to provide salary increases focusing on 24/7 public health and safety positions.
  • $47.7 million of ARPA funds for the Law Enforcement Training Center to expand capacity and enhance skills of new cadets.
  • $16.9 million of general funds to expand the State Patrol Crime Laboratory facility.

Investing in Nebraska’s Natural Resources

  • $400 million of cash reserve funds and $100 million of ARPA funds to construct the Perkins County Canal and protect Nebraska’s South Plate River water rights.
  • $150 million in general funds and $50 million in ARPA funds to establish new and update current recreational areas across the state.

ARPA Funds

  • $199.4 million for the public health response category, including:
    • $40 million to supplement the overall public health response.
    • $15 million for the Youth Rehabilitation Treatment Center in Kearney.
    • $10 million for the UNK-UNMC Rural Health Complex public-private partnership project.
  • $504.7 million for the negative economic impact category, including:
    • $100 million for shovel-ready projects throughout the state.
    • $60 million for site and building development to assist adversely impacted local economies.
    • $90 million for community colleges to facilitate high-skill workforce development.
    • $25 million for behavioral health and nursing scholarships.
    • $25 million to assist the meat packing industry supply chain.
    • $12 million for economic development to North Omaha.
    • $10 million for commercial real estate assistance.
  • Water, sewer, and broadband projects.
    • $274 million for water infrastructure improvements.