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Governor's budget plan avoids state cash reserve




(11/02/2009) By Katie Ferrell - Governor Dave Heineman said he will not dip into the states multi-million dollar cash reserve to help balance the budget. He is instead proposing widespread cuts to make up for a projected $334 million shortfall.

Governor Heineman released his proposal Monday afternoon. He is calling for a 2.5 percent cut across the board this current fiscal year and a 5 percent reduction next year.

It would save an estimated $80 million.

Governor Heineman is also recommending canceling a scheduled increase in state aid for K–12 schools in 2010–2011 and, adjusting payment levels for Medicaid and other providers.

A total of $37 million would also be transferred from numerous cash funds into the general fund.

Governor Heineman said his plan is straight forward.

"My budget proposal is from the perspective of a middle class Nebraska family. When family income is down, families reduce spending, when business income is down, businesses reduce spending and when state government revenues are down, state government must reduce its spending," Heineman said.

A special session starts Wednesday in Lincoln. That is when lawmakers will have a chance to evaluate the governors proposal, make changes and finalize a plan for cuts.

Attached Files: 1102gov.jpg 


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