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Nebraska Department of Labor urges funding alignment for workforce programs, supports governor's transfers
Summary
Interim Labor Commissioner Katie Thurber told the Appropriations Committee the department supports the governor's FY26 recommendations, requests administrative flexibility for a workforce cash fund and flagged small variances on enterprise salary and health insurance items.
Interim Commissioner Katie Thurber told the Nebraska Legislature’s Appropriations Committee on the record that the Department of Labor supports Governor Jim Pillen’s budget recommendation and requests the committee adopt the governor’s proposed appropriations.
Thurber said the department’s role is to “create a skilled, stable workforce” through training, unemployment support and labor-market analysis and that the governor’s package “closely reflects a cost effective and efficient use of funds to serve Nebraskans.”
The department asked the committee to accept two enterprise items—public servant health insurance and a public servant salary increase—matching the governor’s recommendation, and noted there are “small differences” between the governor’s recommendation and the committee’s preliminary proposal. Thurber said the department will provide a fiscal analyst with detail on the roughly $7,000 difference she identified in one enterprise item.
On the workforce development cash fund, Thurber told senators the department supports Governor Pillen’s recommended transfers from FY26 fund balances and the proposal to make administrative funds available from the workforce development cash fund. She said the fund’s original appropriation was limited to aid and that allowing administrative use would help the department manage aid disbursements.
During questioning, Senator Kim Long asked about a $1,000,000 transfer and the fund’s original funding. Thurber replied that the workforce development cash fund currently has no permanent revenue source and that a one‑time transfer of $40,000,000 was made in 2024. On whether statutory changes are required to move workforce programs from the Department of Economic Development to the Department of Labor, Thurber said LB265 contains some of that language and that the workforce development cash fund’s statutory language “permits wide use,” but she could not speak to every DED program or bill number.
The committee did not take votes during the hearing. Thurber closed by thanking the committee and offering to answer follow-up questions about budget details.
Looking ahead, the department and committee staff said they will follow up on the enterprise reconciliations and the department’s request to mirror the governor’s recommendation.
