Nebraska Faces Projected 1.2 Billion Dollar Budget Deficit
Governor Jim Pillen calls for government spending cuts after state forecasters increased the projected 2028-2029 biennium budget deficit to 1.2 billion dollars.
The Nebraska Economic Forecasting Advisory Board has increased the projected budget deficit for the 2028-2029 biennium to approximately 1.2 billion dollars. This updated projection, released November 1, 2026, reflects a 355 million dollar decrease in expected revenues compared to previous estimates.
Jim Pillen, the Governor of Nebraska, stated that lawmakers must identify roughly 393 million dollars in annual savings over the next three years to balance the budget. He advocated for a reduction in the size of government to address the shortfall. State Senator Rob Clements, chair of the Appropriations Committee, characterized the upcoming period as a belt-tightening year.
For the current budget period ending June 30, 2027, the projected deficit remains flat at roughly 200 million dollars. A projected 23 million dollar revenue increase for this period will be diverted to the state cash reserve as required by law.
Board members noted that agricultural trends and data center development remain significant economic factors. While some members expressed differing views on the overall impact of these trends, former state treasurer Tom Briese noted that agriculture faces headwinds but also possesses some tailwinds.
