Nebraska Senate debates LB 650 revenue proposals amidst budget deficit concerns

The Nebraska Legislature's morning session on April 11, 2025, focused on critical discussions surrounding budgetary challenges and proposed revenue measures. Key among these was Legislative Bill 650 (LB 650), which aims to address the state's budget deficit by identifying new revenue sources. Senators expressed a mix of support and concern regarding the bill, particularly about potential cuts to certain programs.

Senator Dungan highlighted the collaborative efforts of the revenue committee, noting that while LB 650 represents a step forward, there are significant concerns about the impact of proposed tax increases on working families. He emphasized the need for caution in balancing the budget without disproportionately affecting everyday Nebraskans.

The session also touched on two additional bills, LB 169 and LB 170, which are expected to expand the sales and use tax base. Senator Dungan acknowledged the regressive nature of sales taxes and reiterated his opposition to such measures unless accompanied by a reduction in the overall sales tax rate.

Another significant proposal discussed was Senator Brandt's LB 171, which seeks to freeze income tax reductions for both personal and corporate taxes. This proposal is part of a broader strategy to fill the budget gap, with discussions ongoing about its implications.

As the session progresses, legislators anticipate further debates on tax issues and budgetary strategies, with a focus on finding solutions that do not unduly burden Nebraska residents. The urgency of these discussions is underscored by the limited time remaining in the legislative session, with only 30 days left to address these pressing financial matters.