Governor Pillen Orders State Agencies To Find Ways To Cut Spending

In an effort to reduce taxes, the governor made the order this week.

Governor Jim Pillen is directing that state agencies, boards and commissions do their part in reducing state spending, to ensure that Nebraska taxpayers continue to receive the benefit of reduced income tax rates and investments into property tax relief. In fiscal year 2026, the State paid out $307 million more in refunds than was anticipated, but efforts must continue to close the gap in state revenue.

In his memo, the Governor made clear that appropriations in the current fiscal year as well as fiscal years 27/28 and 28/29 would be reduced.  Agencies, boards and commissions have been ordered to exercise fiscal restraint in the areas of travel, hiring, membership dues, implementation of technology upgrades and equipment purchases. In addition, those entities are encouraged to consider additional avenues for budget savings like reduction of redundant processes and services, consolidation of duties and ensuring that programs are meeting their stated objectives for Nebraskans.

To ensure compliance, Gov. Pillen is requesting the submission of monthly reports beginning July 31 that detail, among other things, the amount of appropriation saved as a result each entity’s initiatives. The State Budget Division will be responsible for receiving and reviewing those reports, as well as providing final approval for newly created positions and hiring.