Former State Treasurer Tom Briese, a former state senator and member of the Nebraska Economic Forecasting Advisory Board, participated in a board meeting at the Nebraska State Capitol on Oct. 30, 2026, in Lincoln. Nebraska lawmakers are expected to address a projected budget deficit of around $200 million during the 2027 legislative session, but a larger issue has emerged for the next two-year budget cycle. The Nebraska Economic Forecasting Advisory Board updated state revenue projections for the ongoing budget cycle and provided new forecasts for the next biennium. Legislative fiscal analyst Keisha Patent noted that the current projected deficit remains flat, but expected revenues for the next cycle have been lowered by about $355 million. Before Friday’s update, the projected deficit stood at $208 million by the end of the current budget period ending June 30, 2027, and $846 million at the end of the next biennium. The board projected revenues would increase by about $23 million by the end of fiscal year 2027, but Patent stated these additional dollars will automatically go into the state’s cash reserve under existing law.
Projections for the next biennium, spanning fiscal years 2028 and 2029, indicate a lower revenue outlook, bringing the projected deficit for Nebraska’s next budget to about $1.2 billion. These are not the final numbers lawmakers will use in January, as Patent mentioned the projections will change again after the next Tax Rate Review Committee meeting in November, with the forecasting board updating their projections in February. This marks the third consecutive legislative session expected to deal with a projected deficit. State Sen. Rob Clements of Elmwood, the term-limited chair of the Appropriations Committee, said the board’s projections for the next biennium were more extreme than he expected. However, he anticipates that Gov. Jim Pillen’s ongoing initiative to cut state spending will aid the budget-balancing effort. Clements stated, “It’s still going to be a belt-tightening year.”
In a press release, Pillen estimated the latest forecast means lawmakers must find about $393 million each year for the next three years to balance the budget. He said accomplishing this will require “tough decisions” and continued advocacy for his plan to shrink government. Pillen stated, “The foundations of Nebraska’s economy are stable and resilient. We must have the courage to reduce the size of government instead of growing it. Just like ordinary Nebraskans, state government must live within its means.”
In September, Pillen faced criticism over two new appointments to the board – former state Sens. Tom Briese of Albion and Lou Ann Linehan of Elkhorn. Both were key allies who helped pass several of Pillen’s tax proposals. Pillen elevated Briese to state treasurer in 2023, a position he held for two years, and appointed both Briese and Linehan to the new School Financing Review Commission last year. Clements doubted that the board’s new members had any impact on the latest projections. State Sen. Brad von Gillern of the Elkhorn area, chair of the Revenue Committee, agreed and said Friday’s meeting was conducted the same as previous meetings he has attended. Though she acknowledged she was a Pillen ally, Linehan attributed the suspicions to the proximity of the midterm elections and claimed people were “making things up that aren’t true.” Linehan said, “Who else would you appoint? It’s just a silly season.”
