The Nebraska Legislature reconvened Wednesday, January 7th as senators returned to Lincoln for the second year of the two-year biennium cycle of the 109th Legislative Session. Because this is the second year of the biennium, the session will last 60 working days and is scheduled to adjourn on April 17. During this time, lawmakers will be tasked with closing a significant budget gap.
With the start of the legislative session, we’re resuming our In the Legislative Loop series of zoom briefings. This will give you the chance to sign on to a members-only biweekly Zoom call for a 30-minute update on the latest news from the State Capitol. Our first “In the Legislative Loop” Zoom call will be on Monday, February 9th at 11:30AM. We’ll review ‘behind the scenes’ items from the session, as well as let you know what to expect coming up at the Legislature over the next few weeks. Please check our Status of the Session next week to sign up for this new bi-weekly legislative opportunity.
The dominant issue looming over the session is the state’s projected budget shortfall, currently estimated at approximately $471 million, which has been driven by slower-than-anticipated revenue growth, and large transfers out of the general fund to the Property Tax Credit Fund, totaling nearly a quarter of the state’s total budget. Legislative leaders have been clear that closing this gap will be a top priority, with discussions centered on spending discipline, long-term sustainability, and avoiding policies that could undermine Nebraska’s economic momentum.
Protecting recently enacted personal and corporate income tax reductions will be a critical focus of the Greater Omaha Chamber throughout the session. Since 2022, Nebraska has been implementing a multi-year tax reform strategy to lower personal and corporate income tax rates from 6.84% and 7.81%, respectively, to 3.99% by 2027. These reforms are essential to maintaining Nebraska’s competitiveness with neighboring states and peer regions. Rolling back, pausing or weakening these tax cuts will drive employers and investors to look outside the state, especially to our neighbors with lower rates, at a time when Nebraska must remain focused on growth. The Greater Omaha Chamber strongly supports preserving these reductions while encouraging lawmakers to address the budget deficit through responsible spending controls, efficiency measures, and policies that expand the tax base through economic growth rather than tax increases.
Looking ahead, the first ten days of session will be devoted to bill introduction, which you can track here. Starting this morning, the Legislature began floor debate. Through February 27, the daily schedule will generally be floor debate at 9 a.m., followed by a noon lunch break, and public hearings on introduced legislation at 1:30 p.m. Starting on March 3rd the schedule will switch to full-day floor debate for the remainder of session. At the moment, debate on the state budget is scheduled for March 10-25, and must be completed by the 50th day of session.
While your Greater Omaha Chamber Public Policy team is hard at work right now at the State Capitol working to strengthen our business climate and advocating for our bold Omaha COMPETES agenda, never hesitate to share your insights with us on your state legislative priorities at advocacy@omahachamber.org.