Nebraska state budget and finances

From Ballotpedia
Jump to: navigation, search

BP-Initials-UPDATED.png This article does not contain the most recently published data on this subject. If you would like to help our coverage grow, consider donating to Ballotpedia.


Nebraska budget and finances
Budget Policy Logo.png
General information
Budget calendar:
Biennial
Fiscal year:
2017
State credit rating:
AAA (as of 2017)
Current governor:
Jim Pillen
Financial figures
Total spending (state and federal funds):
$11,610,000,000 (estimated 2016)
Per capita spending:
$6,088 (estimated 2016)
Total state tax collections:
$5,117,133,000 (2016)
Per capita tax collections:
$2,683 (2016)
State debt:
$1,809,126,000 (2014)
Per capita state debt:
$955 (2014)

Public Policy Logo-one line.png
State budget and finance pagesTotal state expendituresState debtTax policy in Nebraska
Note: In comparing dollar amounts across the states, it is important to note that the cost of living can differ from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis. This article, which is updated on an annual basis, was last updated in June 2017. It contains information from several sources; consequently, the currency of the information can vary from source to source.

In Nebraska, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

HIGHLIGHTS
  • Between fiscal years 2015 and 2016, total government spending in Nebraska increased by approximately $0.6 billion—from $11.0 billion in fiscal year 2015 to an estimated $11.6 billion in 2016. This represents a 5.7-percent increase.[1]
  • In Nebraska in fiscal year 2015, 49.9 percent of total tax revenues came from income taxes.
  • Education accounted for 38.1 percent of state expenditures in fiscal year 2015, while 16.9 percent went to Medicaid.
  • Definitions

    The following terms are used to describe a state's finances:

    • Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
    • Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
    • State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
    • The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
    • State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."[2]
    • Federal funds are "funds received directly from the federal government."[2]
    • Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

    Revenues

    2016 revenues

    See also: State government tax collections by source

    The table below breaks down state government tax collections by source in 2016 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2016 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2016 population" and "Per capita collections" have not been abbreviated.[3]

    State tax collections by source ($ in thousands), 2016
    State Property taxes Sales and gross receipts Licenses Income taxes Other taxes Total 2016 population Per capita collections
    Nebraska $123 $2,362,718 $185,082 $2,552,391 $16,819 $5,117,133 1,907,116 $2,683
    Iowa $1,410 $4,591,421 $925,958 $3,930,190 $109,584 $9,558,563 3,134,693 $3,049
    Kansas $663,841 $4,324,953 $396,648 $2,623,779 $49,728 $8,058,949 2,907,289 $2,772
    South Dakota N/A $1,440,041 $268,227 $32,684 $6,598 $1,747,550 865,454 $2,019
    United States $18,364,298 $442,909,995 $52,164,396 $392,286,910 $24,538,146 $930,263,745 322,762,018 $2,882.20
    Source: U.S. Census Bureau, "2016 annual survey of state government tax collections by category," accessed June 26, 2017

    The table below lists 2016 tax collections by source as percentages of total collections. About 49.9 percent of Nebraska's total state tax collections came from income taxes.[3]

    State tax collections by source (as percentages), 2016
    State Property taxes Sales and gross receipts Licenses Income taxes Other taxes
    Nebraska 0.0% 46.2% 3.6% 49.9% 0.3%
    Iowa 0.0% 48.0% 9.7% 41.1% 1.1%
    Kansas 8.2% 53.7% 4.9% 32.6% 0.6%
    South Dakota N/A 82.4% 15.3% 1.9% 0.4%
    Source: U.S. Census Bureau, "2016 annual survey of state government tax collections by category," accessed April 4, 2016


    Federal aid to the state budget

    See also: Federal aid to state budgets

    State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2014, federal aid to the states accounted for roughly 31 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.2 billion in federal aid in 2014, accounting for about 41 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2014, or just 17 percent of the state's general revenues, the lowest percentage in the nation.[4]

    The table below notes what share of Nebraska’s general revenues came from the federal government in 2014. That year, Nebraska received approximately $3.0 billion in federal aid, 31.0 percent of the state's general revenues. Taking into consideration the state's 2014 population, this came out to about $1,613 in federal aid per capita. Figures from surrounding states are provided for additional context.[4]

    Federal aid to state budgets, 2014
    State Total federal aid ($ in thousands) Federal aid as a % of general revenues Ranking (by % of general revenues) Est. 2014 population Aid per capita
    Nebraska $3,034,031 31.0% 29 1,881,145 $1,613
    Iowa $6,165,129 32.6% 26 3,108,030 $1,984
    Kansas $3,922,998 25.5% 44 2,899,360 $1,353
    South Dakota $1,547,210 37.2% 7 852,561 $1,815
    Sources: United States Census Bureau, "2014 State and Local Government Finances," accessed June 26, 2017
    Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2014.

    Spending

    Estimated 2016 expenditures

    See also: Total state expenditures

    The table below breaks down estimated spending totals for fiscal year 2016 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[5]

    The total estimated government spending in Nebraska in fiscal year 2016 was $11.6 billion.

    Total estimated state spending, FY 2016 ($ in millions)
    State State funds Federal funds Total spending Population Per capita spending
    Nebraska $8,621 $2,989 $11,610 1,907,116 $6,088
    Iowa $16,345 $6,349 $22,694 3,134,693 $7,240
    Kansas $11,505 $4,023 $15,528 2,907,289 $5,341
    South Dakota $2,686 $1,364 $4,050 865,454 $4,680
    Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates.
    Source: National Association of State Budget Officers, "State Expenditure Report (Fiscal 2014-2016)," accessed June 26, 2017

    Spending by function

    See also: State spending by function as a percent of total expenditures

    State spending in Nebraska can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2015 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[5]

    In fiscal year 2015, education accounted for 38.1 percent of Nebraska's total expenditures.

    State spending by function as a percent of total expenditures, FY 2015
    State K-12 education Higher education Public assistance Medicaid Corrections Trans-
    portation
    Other
    Nebraska 14.5% 23.6% 0.4% 16.9% 3.0% 7.7% 34.0%
    Iowa 16.1% 25.5% 0.5% 22.7% 2.1% 8.6% 24.7%
    Kansas 30.2% 17.7% 0.1% 21.7% 2.4% 7.7% 20.1%
    South Dakota 14.8% 17.8% 0.5% 21.4% 2.7% 14.2% 28.6%
    Source: National Association of State Budget Officers
    Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[5]

    Spending trends

    The table below details the spending trends in Nebraska in previous years. Figures are rendered as percentages, indicating the share of the total budget spent per category.[1][6][7]

    Spending by function from 2010 to 2015 (as percentages)
    Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
    2015 14.5% 23.6% 0.4% 16.9% 3.0% 7.7% 34.0%
    2014 14.4% 23.5% 0.5% 17.6% 2.5% 7.6% 33.9%
    2013 14.6% 23.3% 0.5% 17.9% 2.2% 7.8% 33.6%
    2012 15.3% 23.5% 0.5% 16.7% 2.3% 7.5% 34.3%
    2011 16.3% 22.8% 0.6% 16.4% 2.3% 6.6% 34.9%
    2010 15.7% 22.4% 0.6% 17.2% 2.3% 7.4% 34.4%
    Source: National Association of State Budget Officers
    Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[5]

    State debt

    See also: Nebraska state debt

    State debt refers to any debt owned by a state government. Debt may include any financial obligations a state has that have not been paid, such as bonds issued by state governments, money borrowed by a state government that has not been repaid, or post-retirement benefits promised to state employees. According to the U.S. Census Bureau, Nebraska had a debt of $1,809,126,000 in fiscal year 2015. The state debt per capita was $955. This ranked Nebraska 49th among the states in debt and 49th in per capita debt. The total state debt owned by the 50 states was $1.15 trillion with a per capita debt of $3,582.[8]

    Economic indicators

    See also: Economic indicators by state
    Nebraska's GDP increased by 0.7 percent in 2014. Click the image to view a larger version.

    Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.[9][10][11]

    In Nebraska, the median annual household income was about $55,107 from 2011 to 2013, which was highest among its neighboring states. The state had an unemployment rate of 3.6 percent in September 2014. Nebraska and its neighbors all had relatively similar economic indicators.[12][13][14][15]

    Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

    Various economic indicators by state
    State Distribution of population by FPL* (2013) Median annual income (2011-2013) Unemployment rate Total GSP (2013)
    Under 100% 100-199% 200-399% 400%+ Sept. 2013 Sept. 2014
    Nebraska 11% 17% 36% 36% $55,107 3.9% 3.6% $109,614
    Iowa 11% 18% 35% 36% $53,364 4.5% 4.6% $165,767
    Kansas 13% 18% 34% 34% $49,804 5.3% 4.8% $144,062
    South Dakota 11% 17% 35% 37% $50,488 3.7% 3.4% $46,732
    United States 15% 19% 30% 36% $52,047 7.2% 5.9% $16,701,415
    * Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government."
    Median annual household income, 2011-2013.
    In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state."
    Source: The Henry J. Kaiser Family Foundation, "State Health Facts"


    Budget process

    State documents and agencies
    Below are links to official Nebraska budget and financial documents. The first is the state's Comprehensive Annual Financial Report (CAFR). A CAFR is a detailed presentation of a government entity's financial condition. This includes fiscal activities and balances for a fiscal year. The second link is to the state's relevant budget agency or office.

    The state operates on a biennial budget cycle. The sequence of key events in the budget process is as follows:[16]

    1. Budget instructions are sent to state agencies in July.
    2. Agency requests are submitted to the governor by September 15.
    3. On or before January 15, the governor submits his or her proposed budget to the Nebraska State Senate. The deadline is February 1 for newly elected governors.
    4. The Senate adopts a budget in May. Two-thirds of elected members must vote for the budget in order for it to pass.

    Nebraska is one of 44 states in which the governor has line item veto authority.[16][17]

    The governor is constitutionally required to submit a balanced budget. In turn, the legislature is statutorily required to adopt a balanced budget.[16]

    Agencies, offices, and committees

    The following standing committee in the Nebraska State Legislature deals with budget and finance matters:[18]

    1. Appropriations Committee, Nebraska State Legislature

    The Nebraska Auditor of Public Accounts office is responsible for independent, accurate and timely audits, evaluations and investigations of the financial operations of Nebraska state and local governments. Nebraska's audit reports are published online.[19]

    Public Interest Research Group 2016 report

    The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2016. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. According to the report, Nebraska received a grade of A- and a numerical score of 90, indicating that Nebraska was "Leading" in terms of transparency regarding state spending.[20]

    Budget and finance ballot measures

    Voting on state and local government budgets, spending, and finance
    State finance.jpg
    Policy
    Budget policy
    Ballot measures
    By state
    By year
    Not on ballot
    See also: Spending and finance on the ballot and List of Nebraska ballot measures

    Ballotpedia has tracked the following ballot measures relating to state and local budget and financial matters in Nebraska.

    1. Nebraska Private Sector Endowment Fund Investment, Amendment 2 (2006)
    2. Nebraska Investment of Public Endowment Funds, Amendment 1 (May 2008)
    3. Nebraska State Spending Limit, Measure 423 (2006)
    4. Nebraska Tax and Spending Limits, Measure 413 (1998)
    5. Nebraska Spending Increase Limits, Amendment 6 (1990)
    6. Nebraska Taxes on Redeveloped Property, Amendment 6 (2006)
    7. Nebraska Investment for Educational Funds, Amendment 2 (1892)
    8. Nebraska Investment of Educational Funds, Amendment 9 (1896)
    9. Nebraska Investment of Educational Funds, Amendment 2 (1908)
    10. Nebraska City Armory Act, Referendum 2 (1914)
    11. Nebraska Temporary School Fund, Amendment 20 (September 1920)
    12. Nebraska State Aid for Sectarian Institutions, Amendment 23 (September 1920)
    13. Nebraska Depositors Guaranty Fund, Amendment 2 (1930)
    14. Nebraska State Aid for Schools, Amendment 2 (1946)
    15. Nebraska Educational Fund Investment, Amendment 12a (1966)
    16. Nebraska Investment of Funds, Amendment 12b (1966)
    17. Nebraska Educational Trust Funds, Amendment 11 (1970)
    18. Nebraska Private School Grants, Amendment 12 (1970)
    19. Nebraska Budget Bill, Amendment 3 (May 1972)
    20. Nebraska Educational Funds, Amendment 16 (May 1972)
    21. Nebraska Public School Support, Referendum 1 (1974)
    22. Nebraska Services for Handicapped Children, Amendment 6a (1976)
    23. Nebraska Student Loans and Grants, Amendment 6b (1976)
    24. Nebraska Financial Support for Public Schools, Referendum 1 (1978)
    25. Nebraska Political Subdivision Budgets, Initiative 2 (1978)
    26. Nebraska Public Education Financing, Amendment 4 (1980)
    27. Nebraska State Lottery Proceed Use, Amendment 1b (1992)
    28. Nebraska Lottery Proceeds for State Fair Board, Amendment 4 (2004)
    29. Nebraska Early Childhood Education Endowment Fund, Amendment 5 (2006)
    30. Nebraska Bonds for Nonprofits, Amendment 1 (May 2010)
    31. Nebraska Economic Development Funding, Amendment 1 (2010)

    Budget and finance legislation

    The following is a list of recent budget and finance bills that have been introduced in or passed by the Nebraska state legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

    Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

    Recent news

    The link below is to the most recent stories in a Google news search for the terms Nebraska budget. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

    Contact information

    Nebraska Budget Division
    Room 1320, State Capitol
    P.O. Box 94664
    Lincoln, NE 68509-4664
    Telephone: 402-471-2526
    Fax: 402-471-8074

    See also

    Footnotes

    1. 1.0 1.1 National Association of State Budget Officers, "State Expenditure Report (Fiscal 2014-2016)," accessed June 26, 2017
    2. 2.0 2.1 National Association of State Budget Officers, "State Expenditure Report: 2013-2015," accessed April 7, 2016
    3. 3.0 3.1 U.S. Census Bureau, "2016 annual survey of state government tax collections by category," accessed June 26, 2017
    4. 4.0 4.1 United States Census Bureau, "2014 State and Local Government Finances," accessed June 26, 2017
    5. 5.0 5.1 5.2 5.3 National Association of State Budget Officers, "Summaries of Fiscal Year 2015 Proposed and Enacted Budgets," July 11, 2014
    6. National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
    7. National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
    8. United States Census Bureau, "State Government Finances," accessed June 4, 2017
    9. Academy Health, "Impact of the Economy on Health Care," August 2009
    10. The Conversation, "Budget explainer: What do key economic indicators tell us about the state of the economy?" May 6, 2015
    11. Health Affairs, "Socioeconomic Disparities In Health: Pathways And Policies," accessed July 13, 2015
    12. The Henry J. Kaiser Family Foundation, "Distribution of Total Population by Federal Poverty Level," accessed July 17, 2015
    13. The Henry J. Kaiser Family Foundation, "Median Annual Household Income," accessed July 17, 2015
    14. The Henry J. Kaiser Family Foundation, "Unemployment Rate (Seasonally Adjusted)," accessed July 17, 2015
    15. The Henry J. Kaiser Family Foundation, "Total Gross State Product (GSP) (millions of current dollars)," accessed July 17, 2015
    16. 16.0 16.1 16.2 National Association of State Budget Officers, "Budget Processes in the States, Spring 2021," accessed January 24, 2023
    17. National Conference of State Legislatures, "Separation of Powers: Executive Veto Powers," accessed January 26, 2024
    18. Nebraska Legislature, "Standing Committees," accessed March 20, 2015
    19. Nebraska Auditor of Public Accounts, "Home page," accessed March 18, 2015
    20. U.S. Public Interest Research Group, "Following the Money 2016 Report," accessed June 29, 2017