Special session is needed to address budget

The Legislature will go into Special Session beginning on Thursday to address a growing gap between state revenue projections and actual receipts.

The Legislature passed a balanced budget at the end of the regular session last May, but state receipts have come in under the projections used to establish our two-year budget. The first quarter of the first fiscal year saw receipts come in 6.5 percent under projections established last April. Actual receipts from September were more than 11 percent under what was forecasted for that month.

Gov. Heineman, in consultation with senators, Department of Revenue officials, economists and other interested parties, decided to call a budget-cutting special session of the Legislature to get ahead of the growing budget gap so that we can better address the way we do business in state government in Nebraska.

The Nebraska Economic Forecasting Board met on Oct. 27 to provide the Legislature and the governor with the latest revenue receipt projections. At that meeting, the Forecasting Board revised their revenue projections downward by nearly $300 million over the two-year state budget. With these revised figures, we can now go to work to reduce expenditures to get in line with projected future receipts.

The governor has indicated his formal call for a special legislative session will be limited to considering budget reductions only. In Article IV, Section 8 of our Nebraska Constitution, it states, "The Governor may, on extraordinary occasions, convene the Legislature by proclamation, stating therein the purpose for which they are convened, and the Legislature shall enter upon no business except that for which they were called together." This provision permits the governor to set parameters for our activity during special sessions. I think it is important during these tough economic times that we focus on reducing expenses wherever possible.

With that in mind, I will urge my colleagues to take a targeted approach to our budget reduction activities in order to most effectively address the shortfall. Some of our neighboring states have taken an across-the-board approach to reducing state expenditures. I think a better strategy is to make targeted reductions in certain programs while leaving other programs, some of which may be revenue producing programs, less affected by special session actions. It may be easier to take the across-the-board approach, but sometimes the easy route is the wrong route to take.

This upcoming special session will last at least seven legislative days, per the requirements of our Constitution. While it will be expedited (our normal sessions last 90 days in odd-numbered years and 60 days in even-numbered years), many of the same rules will apply. Each bill that is introduced will receive a public hearing. Each bill that has been advanced for consideration by the entire Legislature will have three rounds of debate before final passage. The governor may sign or veto legislation, and the Legislature has the opportunity to override any vetoes.

Since this special session will focus on the state budget, the Legislature’s Appropriations Committee will hold public hearings on each state agency and commission. I will be paying particularly close attention to efficiencies that may be achieved during these public hearings. We are known nationally for our open hearing process in Nebraska and much can be gained by thoughtful questions and examination during these hearings.

Please feel free to contact me with your budget priorities or budget reduction ideas as we go into special session. Several constituents have already provided valuable information and advice on possible budget changes. I can be reached at (402) 471-2625 or cjanssen@leg.ne.gov. My mailing address is: District 15, State Capitol, P.O. Box 94604, Lincoln, NE 68509. Thank you for your interest and support.

Sen. Charlie Janssen represents Nebraska’s 15th District. He can be reached at (402) 471-2625, Capitol Room 1403, Lincoln, NE 68509 or cjanssen@leg.ne.gov.