Director of Economic Development details NC3 request, bioeconomy gains and warnings about sweeping site-building funds

Nebraska Department of Economic Development Director K.C. Balitz told the Appropriations Committee the agency supports the governor’s proposal to allocate $25.5 million in cash funds and to use $4.5 million in Site and Building Development Fund (SBDF) excess balances to help establish an NC3 (nuclear command, control and communications) Enterprise Center, calling the combined $30 million a strategic investment.

Balitz said Nebraska’s central location and the Offutt Air Force base assignment make the state a natural home for an NC3 ecosystem and argued the state could attract private-sector tenants and related defense, cyber and academic partners. She told senators the center would be primarily supported by private enterprise but that seed state funding would be an important signal to attract partners.

SBDF caution: Balitz also warned the committee that the apparent $37 million SBDF balance is largely already obligated. She listed existing commitments that reduce the available cushion—an electrical power project ($15 million), inland port sites ($6 million), a $9 million sweep from last year, and the proposed $4.5 million for NC3—leaving little uncommitted cash. She urged preserving the dock-stamp revenue stream that funds SBDF transfers, saying eliminating those transfers would “effectively eliminate a valuable and viable economic development tool.”

Bioeconomy and federal grants: Balitz described early results from the state’s bioeconomy initiative. Through a state partnership with Global Sustainable Development (GSD), the state has already secured roughly $507 million in federal grant and loan commitments tied to the program, a return Balitz characterized as “extraordinary.” The DED amended its contractor agreement to shorten the term and save more than $400,000 amid shifting federal timelines.

Housing funds and transfers: Balitz described the governor’s recommendation to transfer excess housing cash to the general fund—$8 million from the Affordable Housing Trust Fund and $2 million from the Rural Workforce Housing Fund—and said the department supports the recommendation only where the ongoing inflows to housing funds can preserve program continuity. She added the Rural Workforce Housing Fund will receive an expected additional $12.5 million by the end of the fiscal year, a reason the department supported a $2 million transfer there.

Workforce and organizational changes: Balitz said DED will align more closely with the Department of Labor on workforce development, shifting NDOL to take the lead while DED focuses on out-of-state recruitment and strategic industry development. She flagged targets such as military/veteran recruitment and announced continued coordination for the “Calling Nebraska” recruitment campaign.

Questions and risk: Senators pressed Balitz on contingency plans if federal funding shifts, timelines for NC3 construction (Balitz said construction could begin as early as this year), and the risk of sweeping site-building funds. Balitz warned discontinuing dock-stamp transfers into SBDF would diminish the state’s flexible tool for attracting projects and stressed that much of the apparent SBDF balance is already under obligation.

Bottom line: DED asked the committee to consider short-term state investments for strategic, high-leverage infrastructure (NC3, bioeconomy work) while preserving ongoing revenue flows that underpin site and building development work across Nebraska.