Gov. Pillen Signs Budget, Announces Line Item Vetos

Gov. Pillen Signs Budget, Announces Line Item Vetos
May 25th, 2023 | Office of Gov. Pillen

LINCOLN – On Wednesday, Governor Jim Pillen signed the 2023-2025 Biennium budget and issued line item vetos.

“The budget passed by the Legislature and signed into law by me is one of the most fiscally conservative budgets in our state’s history,” said Governor Pillen. “This budget treats nickels like manhole covers. During a period of extraordinary inflation, we managed to limit budget growth to under 2%. To cut the growth of government and deliver transformative tax relief, we need the courage to say no. I urge senators to sustain these vetos.”

To balance our budget, Governor Pillen’s line item veto included:

  • Adjustment of Medicaid reimbursement rates to provide for a 3% increase in FY 2023-24, while holding rates flat in FY 2024-2025. 
  • Veto of child welfare rate increase of $6 million in General Funds in FY 2024-25.
  • Veto of $7 million General Fund appropriation in FY 2023-24 for a rural drinking water project in Cedar/Knox County.
  • Veto $10 million cash fund appropriation in FY 2023-24 and FY 2024-25 for Rural Workforce Housing and $10 million cash fund appropriation in 2023-24 and FY 2024-25 for Middle Income Housing.
  • Reduce the additional Shovel Ready Capital Recovery and Investment Act Funds from $90 million to $70 million in FY 2023-24 and eliminating funding of $10 million related to the Site and Building Development funding to Kimball for a ground-based nuclear deterrence project.
  • Veto of the $5 million appropriation from the Nebraska Health Care Cash Fund in FY 2023-24 and FY 2024-25 and the related intended transfers in the following three years from the Cash Reserve Fund for the pilot program related to gun violence.

Governor Pillen’s vetos will ensure Nebraska is investing in our core mission of providing quality services to the citizens of Nebraska, while delivering transformational tax relief. We must cut government spending, we must cut government red tape, and we must lead the charge in investing in our next generation. Over four years, these veto reductions will save the General Fund $94.2 million, Health Care Cash Fund $10 million, and Cash Reserve Fund $87 million. 


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