Cash‑fund transfer bill sparks clash over Perkins County Canal, amendment fails
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Summary
Debate over LB10-72’s proposed cash‑fund transfers focused on whether interest from the Perkins County Canal fund should be used to backfill other sweeps; Sen. Raybould’s amendment to restore multiple funds failed 9–30 after extensive floor debate about guardrails and long‑term fiscal strategy.
Senator Raybould offered an amendment (AM2549) to LB10-72 that would have redirected approximately $78.7 million from the Perkins County Canal fund to replace money swept from cultural, veterans and environmental trust accounts. Raybould argued the amendment would return funding to programs that enhance quality of life while still preserving most Perkins Canal principal and interest for the project.
Opponents — including Appropriations leadership and several senators — warned that the canal fund does not carry the same legal guardrails as some other perpetual funds and that the state faces a structural deficit driven by prior tax reductions. Senator Clemens/Clements described the committee’s approach as trying to use excess cash funds that were not being spent while maintaining sustainability for cash‑funded programs; others warned that removing money from long‑term projects would be shortsighted.
After extended debate — which included arguments about pending federal litigation, bonding alternatives, and the timeline to complete the canal — the clerk recorded the roll-call: "9 ayes, 30 nays," and AM2549 was not adopted.
Why it matters: LB10-72 would authorize large cash transfers and policy changes across several state funds; the Perkins County Canal amendment crystallized tension between short-term deficit fixes and preserving long-term infrastructure and trust funds.
Next step: LB10-72 remains under consideration with other transfer items; senators signaled more select‑file work and potential legal challenges from affected trust boards if funds are swept.