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Committee wraps up budget cuts

By Martha Stoddard
WORLD-HERALD BUREAU

LINCOLN — Members of the Legislature's Appropriations Committee should get a rough idea today of how close they are to closing the state budget gap.

State Sen. Lavon Heidemann of Elk Creek, the committee chairman, said he couldn't predict whether budget changes made by the committee during the past two days will be enough to close the $334 million budget shortfall.

Committee members have been adding back money here, making more cuts there and shifting around pieces of the budget plan submitted by Gov. Dave Heineman.

They wrapped up the task Thursday, after moving $10 million formerly earmarked for roads into the general fund, restoring small rate increases for health and human services providers and tapping $5 million of unused job training funds.

The changes also would roll back expense reimbursements for state senators and take smaller cuts in the state court system than the governor had proposed.

Tempers flared at times as committee members wrestled with the choices before them.

Sen. John Harms of Scottsbluff, the vice chairman, said he has lost sleep over the votes, especially items within the Department of Health and Human Services budget.

But he said failing to make cuts would leave the state in a bad position.

“I don't know where else we're going to find it,” he said. “There's not a lot of loose change in the budget.”

Committee members found $10 million of loose change that was to be moved from the state's cash reserve fund to match federal funds for some major road-building projects.

The transfer had been approved two years ago to complete a new Kearney interchange on Interstate 80, Lincoln's South Beltway and three expressway projects.

But the projects have been delayed, and roads officials have said the money will not be needed in the near future.

The committee decided to transfer the money into the general fund instead.

At the same time, they boosted the road-building fund with about $12 million moved from the Roads Department administration.

The committee also agreed to take $2 million more from a job training cash fund than the governor had proposed, for a total transfer of $5 million.

Heidemann said the fund has plenty of money to cover its expenses. The fund had $23 million in it as of June 30, and the state spends less than $3 million a year from it.

The job training money is used to help encourage business growth in the state.

Committee members struggled over the governor's proposal to freeze rates paid to health and human services providers next year.

Among the providers affected would be community-based agencies serving people with developmental disabilities, caregivers to the elderly, residential treatment centers, hospitals and other health care providers.

The proposal would save about $22 million.

Sen. John Wightman of Lexington said that while he supports providers, he didn't know how the committee could spare them and still balance the budget.

But Sen. Danielle Conrad of Lincoln said the committee had not asked the same question when it came to sparing agriculture-related issues.

“I think it's wrong to balance the budget on the backs of those who are most vulnerable,” she said.

In the end, the committee voted for 1 percent increases in rates for developmental disability and aging services providers and 0.5 percent increases for all others, about one-third the increase previously planned.

Under the committee's plan, lawmakers would share in the budget cuts by rolling back an Oct. 1 increase in their per diem expenses.

The change means senators living more than 50 miles from the State Capitol would get $109 daily to cover expenses while the Legislature is in session, instead of $116. Those living closer would get $39 instead of $46. The per diem rates are based on federal per diems.

Contact the writer:

402-473-9583, martha.stoddard@owh.com


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