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Nebraska Association of County Officials warns bridge and program funding at risk amid state shortfall

5785379 · September 16, 2025
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Summary

John Cannon of the Nebraska Association of County Officials told Douglas County commissioners state fiscal pressure and federal changes could threaten county bridge matching funds, the riparian vegetation program and other supports, and encouraged local engagement with state legislators.

John Cannon, executive director of the Nebraska Association of County Officials (NACO), briefed the Douglas County Board of Commissioners on state and federal issues affecting counties, describing NACO's education programs, workshops and advocacy priorities and sounding an alert about several funding and policy risks ahead of the legislative session.

Cannon said NACO serves all 93 Nebraska counties and provides workshops and training for county officials, while also advocating on county priorities in Lincoln. He told commissioners that recent federal changes (referred to by Cannon as the passage of "HR 1" in the discussion) and lower receipts at the state Department of Revenue could leave Nebraska with an estimated $400 million-plus budget hole and that the state faces roughly a $500 million shortfall when combined with lower revenue estimates. "You couple that with $93,000,000 of receipts that they're down at the Department of Revenue, and you're looking at about $500,000,000 shortfall," Cannon said.

Cannon identified specific county programs at risk from state budget pressure: a county bridge match program that previously funded up to 55% of bridge replacement costs through a state match, and the riparian vegetation management program that had been used as mitigation in interstate compact litigation. He urged commissioners to engage senators to protect those programs.

He also summarized other priorities NACO is tracking: an attorney general opinion that raised trespass questions for assessors conducting property inspections (citing Nebraska Revised Statute section 77-13,111.03's statutory inspection duty was discussed), ongoing concerns with the statewide "pink postcard" property-tax notification process and several interim legislative studies, including hearings on the Open Meetings Act and unfunded mandates.

Commissioners asked questions during a lengthy Q&A about the possibility of a special legislative session, recodifying Nebraska's sales and income tax structure, local-option sales taxes and inheritance-tax discussions. Cannon said he had not heard imminent plans for a special session but that the fiscal picture increased the possibility, and he urged local officials to work directly with their legislative delegations.

Marcus and Martine from county administration clarified the interim-study numbering for commissioners: LR 192 corresponds to the Open Meetings Act study and LR 195 to unfunded mandates.

Cannon closed by listing NACO resources for counties, including a county data "explorer" on the NACO website, benefit services, the NACO retirement webinar and upcoming educational conferences. He said NACO would continue to advocate in Lincoln and encouraged commissioners to engage with their senators on the programs and funding issues he outlined.