Nebraska Commission addresses funding cuts to broadband and natural gas regulation programs

The Nebraska Legislature's Appropriations Committee convened on February 28, 2025, to discuss budgetary matters concerning various state programs, particularly focusing on the Public Service Commission (PSC) and its funding requests. The meeting highlighted significant concerns regarding proposed budget cuts and the implications for essential services.

The PSC presented its budget request, emphasizing a commitment to reducing reliance on general funds over the past decade by utilizing available cash funds. The commission expressed gratitude for the committee's preliminary recommendations but raised concerns about specific proposed vacancy reductions. The PSC indicated that while it would not fill two vacancies in its modular housing program and the 9-1-1 department, the committee's recommendations to reduce appropriations for administrative positions were problematic, as they did not reflect actual vacancies and could lead to detrimental staff cuts.

A key topic of discussion was the Broadband Bridge Program, which has successfully expanded broadband access to nearly 18,000 households since its inception in 2021. The PSC noted that the committee's preliminary decisions indicated a lack of future grant funding after the current fiscal year, which could hinder ongoing projects. The commission requested funding for administrative costs to ensure that existing grant obligations could be met, particularly as projects are completed and reimbursements are processed.

The meeting also addressed the proposed transfer of $250,000 from the Natural Gas Regulation Fund to the general fund. The PSC opposed this transfer, arguing that it would undermine the regulatory framework established for utilities and could lead to increased assessments on customers to replenish the fund. The commission highlighted the importance of maintaining adequate funding for regulatory activities, especially with an upcoming rate-making case for Black Hills Energy.

Concerns were raised regarding the permanent transfer of interest from the Nebraska Universal Service Fund (NUSF) to the general fund, which the PSC argued could violate legal precedents set by the Nebraska Supreme Court. The commission emphasized that the NUSF is critical for supporting telecommunications networks and related projects, and a permanent sweep of its interest could alter its intended purpose.

The meeting concluded with testimonies from various stakeholders, including representatives from Black Hills Energy and the Nebraska Telecommunications Association, who echoed the PSC's concerns about the proposed budget cuts and fund transfers. They stressed the importance of maintaining funding for regulatory processes and broadband initiatives to ensure continued service delivery to Nebraskans.

Overall, the Appropriations Committee's discussions underscored the delicate balance between fiscal responsibility and the need to support essential public services, with significant implications for the state's regulatory framework and broadband access initiatives. The committee's decisions in the coming weeks will be crucial in determining the future of these programs.