state of nebraska€¦ · state of nebraska fy2017-18 / fy2018-19 biennial budget as proposed by...

STATE OF NEBRASKA

FY2017-18 / FY2018-19

BIENNIAL BUDGET

As Proposed by the

Appropriations Committee

105th Legislature-First Session

Members of the Appropriations Committee

Sen John Stinner (C) Sen Mike McDonnell

Sen Kate Bolz (VC) Sen Tony Vargas

Sen Robert Clements Sen Dan Watermeier

Sen Robert Hilkemann Sen Anna Wishart

Sen John Kuehn

April 2017

Page i

Table of Contents

I. Highlights .................................................................................................................................... 1

II. General Fund Financial Status ...................................................................................... 5

A. General Fund Financial Status .................................................................................................. 6

B. Chronology of the Financial Status ............................................................................................ 7

C. Estimated Financial Status for the Following Biennium ............................................................ 12

D. Cash Reserve Fund ................................................................................................................... 15

III. General Fund Revenues ................................................................................................... 19

A. Revenue Forecasts .................................................................................................................... 20

B. Chronology of Revenue Forecasts ............................................................................................ 22

C. Historical Revenues ................................................................................................................... 23

D. General Fund Transfers-Out .................................................................................................... 24

E. General Fund Transfers-In ........................................................................................................ 25

IV. General Fund Appropriations ...................................................................................... 28

A. Overview .................................................................................................................................... 29

1. State Totals and Summary by Operations and Aid ............................................................. 29

2. Historical Appropriations ...................................................................................................... 33

a. Breakdown of Historical Appropriations (FY98, FY08, FY18) ....................................... 33

b. Historical Appropriations by Year and biennial budget ................................................. 34

B. Significant Increases and Reductions ........................................................................................ 35

C. Highlights-General Fund State Aid to Individuals ...................................................................... 37

1. Behavioral Health Aid .......................................................................................................... 37

2. Community Based Developmental Disabilities .................................................................... 38

3. Children’s Health Insurance Program (SCHIP) ................................................................... 39

4. Public Assistance ................................................................................................................ 40

5. Child Welfare Aid ................................................................................................................ 41

6. Medicaid ............................................................................................................................... 42

7. Health aid ............................................................................................................................ 44

8. Aid to Aging Services ........................................................................................................... 44

9. Higher Education Student Aid.............................................................................................. 45

D. Highlights-General Fund State Aid to Local Governments........................................................ 46

1. Aid to K-12 Schools ............................................................................................................. 46

a. Special Education.......................................................................................................... 47

b. High Ability Learner program ........................................................................................ 47

c. Early Childhood program ............................................................................................... 47

d. Early Childhood Endowment ......................................................................................... 47

e. Learning Community Aid ............................................................................................... 48

f. Master Teacher Program ............................................................................................... 48

g. Other K-12 aid programs ............................................................................................... 48

h. State Aid to Schools (TEEOSA) .................................................................................... 48

2. Aid to ESU's ......................................................................................................................... 50

Page ii

3. Homestead Exemption ........................................................................................................ 51

4. Personal Property Tax Relief Act ........................................................................................ 51

5. Community Based Juvenile Services aid ............................................................................ 52

6. Aid to Community Colleges ................................................................................................. 52

E. Highlights-General Fund Agency Operations ........................................................................... 53

1. Court System ...................................................................................................................... 54

2. Dept. of Education .............................................................................................................. 54

3. Dept. of Agriculture ............................................................................................................. 55

4. Dept. of Health and Human Services System .................................................................... 55

5. Dept. of Correctional Services ............................................................................................ 57

6. State Colleges .................................................................................................................... 59

7. University of Nebraska ........................................................................................................ 59

8. Defined Benefit / Cash Balance Retirement Plans ............................................................. 59

9. State Employee Salary Increases ...................................................................................... 60

10. State Employee Health Insurance ..................................................................................... 61

F. General Fund Appropriations By Agency ................................................................................. 63

G. General Fund State Aid by Individual Aid Program .................................................................. 66

V. Appropriations – All Funds ............................................................................................. 68

A. State Totals and Summary ........................................................................................................ 69

B. Cash Funds ................................................................................................................................ 70

1. Dept. of Roads ..................................................................................................................... 70

2. Vehicle Title Registration System Modernization ................................................................ 71

3. Property Tax Credit Cash Fund ........................................................................................... 72

C. Federal Funds ............................................................................................................................ 73

D. Revolving & Other Funds .......................................................................................................... 74

E. Historical Appropriations-All Fund Sources ............................................................................... 75

F. Appropriations by Agency - All Fund Sources ........................................................................... 76

VI. Capital Constructions ........................................................................................................ 86

A. Summary .................................................................................................................................... 87

B. Listing of General Fund & NCCF Construction Projects ............................................................ 88

C. Project Listing - Reaffirmations .................................................................................................. 90

D. Project Listing - New Construction ............................................................................................ 92

VII. Adjustment of Current Year Appropriations (Deficits) ............................ 93

A. Summary ................................................................................................................................... 94

B. Listing – Adjustment of Current Year (FY2016-17) General Fund Appropriations .................... 95

VIII. Narrative Description by Agency ........................................................................... 100

Highlights

This report contains a summary of the FY2017-18 and FY2018-19 biennial budget as proposed by the

Appropriations Committee. Details as to specific funding items, revenues, and balances are contained in

the following sections. However, there are several highlights to address at the start.

BALANCING THE BUDGET

The large projected budget shortfall that faced the Legislature at the beginning of the legislative session

can be largely attributed to the revenue growth of .3% in FY15-16 and 1.3% in the FY16-17 (current

forecast), a two year average of .8%. This would be the third lowest back to back revenue growth years

over the past 36 years. Not only was this a very low revenue growth but it occurred very quickly. At the

end of last session, the two year average revenue growth was 5.1% This low growth coupled with a 3.7%

average growth in appropriations created a negative $313 million imbalance of on-going revenues versus

appropriations at the end of FY2016-17 excluding deficits.

This structural imbalance is returned to a positive structural balance under the Committee proposal. Low

spending growth of 2.0% in total spending (1.0% per year average) coupled with current revenue

forecasts which translate to a 5.1% average growth. The following table compares the growth in

revenues (rate and base adjusted), appropriations, and the positive or negative gap between on-going

revenues and appropriations, commonly referred to as a structural balance or imbalance. Note that with

respect to the “out years”, a structural balance is still achievable at a 4.4% average growth rather than the

5.9% average using the LFO methodology (see page 20 for discussion of methodology)

Revenue Appropriation On-going Revenue

Fiscal Yr Growth Growth Difference vs Appropriation

FY2015-16 0.3% 4.0% -3.7% (116,021,399)

FY2016-17 1.3% 3.3% -2.0% (313,840,837)

FY2017-18 5.0% 0.3% 4.7% (27,374,597)

FY2018-19 5.2% 1.7% 3.4% 90,403,635

FY2019-20 5.9% 5.4% 0.5% 64,699,126

FY2020-21 5.9% 4.4% 1.5% 152,102,229

With a structural balance re-established, the remaining issue was to meet the 3% minimum reserve

requirement. In the committee proposal, this was accomplished by (1) above normal transfer of cash

funds to the General Fund (roughly $100 million) and (2) a $173 million transfer from the Cash Reserve

Fund. The use of the additional cash fund transfers maintains the Cash Reserve Fund at a higher level

than what would otherwise be possible and available to respond to possible future declines in revenue

forecasts.

WHILE THESE ARE ONE TIME SOURCES OF REVENUES, THEY ARE USED TO “REPLENISH” THE

RESERVE TO THE MINIMUM 3% LEVEL AND NOT TO FUND NON-SUSTAINABLE SPENDING

LEVELS INTO FUTURE YEARS AS CAN BE SEEN IN THE TABLE ABOVE.

GENERAL FUND FINANCIAL STATUS

The Appropriations Committee proposed budget results in an unobligated ending balance at the end of

the FY18/FY19 Biennial Budget of which is $3.5 million above the minimum 3% reserve. This $3.5 million

positive variance from the minimum reserve is an amount that could be available for A Bills or revenue

legislation that the Legislature may wish to enact. In terms of the following biennium, the Committee

proposed budget results in a projected ending balance that is $182.0 million above the minimum 3%

reserve.

This projected status is based on the February 2017 forecasts from the Nebraska Economic Forecast

Advisory Board (NEFAB) and the budget as proposed by the Appropriations Committee. The NEFAB is

scheduled to meet April 26, 2017 to review those existing forecasts. Revenue performance in the current

year, including April final income tax data, and any changes in the national forecast services estimates

could cause the NEFAB to alter its’ forecasts and have a significant impact on the projected status as

shown in this report. With revenue estimates at a $4.5 billion level, a small percentage change,

compounded over the three years being forecast, can cause relatively large dollar variations.

BUDGET GROWTH

Budget growth in the Committee proposed budget is .3% in FY18 and 1.7% in FY19 for a two year

average of 1.0%. This is very close to the .9% two year average growth in the Governors

recommendation, and would be the third lowest growth in the last 17 biennial budgets. A more detailed

description of the major budget changes can be found starting on page 29.

REVENUE FORECASTS

Revenue estimates for FY2016-17, FY2017-18 and FY2018-19 are the February 2017 forecasts from the

Nebraska Economic Forecast Advisory Board (NEFAB).

The Board forecast for FY2016-17 equates to a 1.3% growth. With the FY2015-16 growth of only .3%

growth, the two year average growth is .8% as compared to the 35 year average of 4.9%

Rate and base adjusted revenue growth implied by the forecasts for the FY18/FY19 biennium average

5.1% (5.0% in FY17-18 and 5.2% in FY18-19). Although these are relatively close to the historical

average growth, they do not necessarily reflect robust economic growth coming on the heels of the very

low growth in the two prior years. When including the 1.3% growth in the FY16-17 forecast, there is an

average growth of 3.8% over the three years that affect the financial status for the upcoming biennium.

For the “following biennium”, revenue growth is calculated at 5.9% per year using the historical average

methodology. The target growth is the historical average of 4.9% but adjusted down to 4.75% to exclude

growth that is now negated by indexing of the income tax brackets. Because the revenue growth in the

NEFAB forecasts is below average, the revenue growth needed to yield a 4.7% five year average is 5.9%

in both FY19-20 and FY20-21

The Nebraska Economic Forecast Advisory Board (NEFAB) is scheduled to meet April 26, 2017 to review

their existing forecasts. Changes in those forecasts could have a significant impact on the projected

status as shown in this report.

CASH RESERVE FUND

The projected unobligated ending balance at the end of the FY20/FY21 biennium based on current

forecasts and proposed 2017 session actions is $369.1 million. This would be approximately 7% of

General Fund revenues. While this is lower than in recent years, the average over the life of the Cash

Reserve Fund is 7%. The ending balance at the end of the next biennium is referenced as there are

some current statutory obligations that extend into the next biennium

The Appropriations Committee proposed budget utilizes $248.2 million of Cash Reserve Fund (CRF)

monies for two different items: (1) $173 million transfer to the General Fund to help replenish the reserve

to the 3% statutory level, and, (2) $75 million transfer to the Nebraska Capital Construction Fund to pay

for the Department of Correctional Services Reception and Treatment Center (RTC) project

Things to consider in evaluating the proper level for the Cash Reserve Fund can be found on page 16.

That discussion indicates an appropriate level of the Cash Reserve Fund would about 16% of annual net

receipts or approximately $746 million applied to the average forecast from FY16 to FY19. Note that this

discussion of the appropriate level of the Cash Reserve Fund is applicable to where the CRF should be at

its peak after that part of the cycle with positive revenue growth and positive variances from the forecast.

As we turn into the negative part of this cycle, the question is how much of the CRF can or should be

utilized to address the projected budget shortfall.

A key to answering this question is whether the use the Cash Reserve Fund is only a bridge until a

structural balance is achieved or a short term solution which covers up an on-going structural imbalance.

In terms of the Appropriations Committee proposed budget there is a structural balance between on-

going revenues and on-going appropriations at the end of the biennial budget. This shows that the use of

the Cash Reserve Fund relates to restoration of the 3% reserve and not financing an unsustainable level

of spending.

PROPERTY TAX CREDIT

Under this program transfers are made to the Property Tax Credit Cash Fund at the discretion of the

Legislature. Enacted in 2007, the amount available for credits was $105 million in FY07-08, and $115

million in FY08-09 through FY13-14. During the 2014 session, the FY14-15 amount was increased to

$140 million. In the 2015 session, the credit was increased by $64 million increase to a total of $204

million.

In the 2016 session, LB 958 made several changes dealing with the Property Tax Credit Act. Previously

the property tax credit was distributed based on 100% of the taxable value of real property. Under LB

958, the credit is distributed using “credit allocation valuation” which is 120% of agricultural and

horticultural land taxable value and 100% for all other real property except agricultural and horticultural

land. This change would shift $20 million of the property tax credit amounts from residential, commercial

and industrial, and public service sectors to agriculture so to hold these other sectors harmless, LB958

provided language that the credit amount should be increased by $20 million to a total of $224 million.

This additional $20 million per year transfer is included in the Appropriations Committee proposed budget.

Although accounted for as a transfer not an expenditure, in terms of using available General Funds, this

two year increase of $40 million would be the second largest increase in the budget only exceeded by

TEEOSA school aid at $62 million.

TEEOSA SCHOOL AID

The Committee budget includes funding for state aid to schools (TEEOSA) based on proposed changes

contained in LB409 (with AM474). The overall net change in total TEEOSA aid is an increase of $20.6

million (2.1%) in FY2017-18 followed by a $26.8 million (2.7%) increase in FY18-19. The General Fund

amounts (excluding the amount financed by allocated Insurance Premium Tax monies and lottery funds

for reorganization incentives) reflect a $17.9 million (1.9%) increase in FY17-18 followed by a $26.7

million (2.8%) increase in FY18-19.

JUSTICE REINVESTMENT ACT FUNDING

In the 2015 session, the Legislature enacted LB 605 to begin addressing overcrowding in the correctional

system. This bill was the result of a study conducted by the Nebraska Justice Reinvestment Working

Group, an inter-branch working group established under LB 907-2014, in cooperation with the Council of

State Governments Justice Center. LB 605 expands the use of probation in lieu of incarceration, ensures

that more people receive supervision upon release from prison, and bolsters parole supervision practices

to reduce recidivism.

At the time of passage, General Fund costs to implement the bill totaled $1,763,046 in FY2015-16 and

$4,939,695 in FY2016-17. Costs were projected to increase over the following three years as more

offenders are applicable to the bill provisions. The Appropriations Committee proposed budget funds the

third and fourth years of the plan, providing additional funds of $4,240,517 in FY2017-18 and $7,126,150

in FY2018-19.

CORRECTIONAL SERVICES

Funding for the Department of Correctional Services increases by $3,749,449 in FY2017-18 (1.8%) and

an additional $4,514,312 (2.1%) in FY2018-19. This is a net change after reallocating $4.6 million for the

expiration of the program where inmates were housed in county jails.

The budget recommendation adds a net of 55 positions in FY2017-18 and 80 in FY2018-19. Positions

added include Custody or Protective Services staff (Corrections Officers, Corporals, Sergeants,

Caseworkers), teachers, programming staff, clinical staff (LPN, RN, medical technologists), and staff such

as Food Service Specialists, Facility Maintenance Specialists, a Training Specialist, an Intelligence

Administrator, and a Grievance Coordinator. The agency would also establish a Transportation Unit (7

FTE) to coordinate all transfers between NDCS facilities.

Beginning in December 2016, an agreement reached by the state and the employee bargaining unit

produced special pay adjustments for key inmate-contact employee classifications. For the remainder of

that fiscal year, these increases were funded with vacancy savings. The committee proposed budget

adds $3.2 million each year to the on-going base budget to continue funding these increases.

The budget proposal for additional Custody or Protective Services staff is below the agency request and

Governors recommendation in FY18 and FY19. The committee phased-in the additional staff over three

years recognizing the current issue of vacancies and high turnover and providing more time to address

those issues in existing staffing levels prior to adding larger numbers of additional staff. The additional

amount to fully fund at the request and Governors level is included in the projected budget for FY19-20.

DHHS PROVIDER RATES

A significant issue every biennial budget is the level of rate increases provided for the various providers in

the Dept. of Health and Human Services (DHHS) programs. This includes behavioral health,

developmental disability, and Medicaid. The committee proposed budget reflects no change in provider

rates except it includes a 3% reduction for hospitals and physicians. This is one of the most significant

differences when compared to the Governors recommendation which included a 3% reduction in all

DHHS provider rates.

GENERAL FUND FINANCIAL STATUS

General Fund Financial Status

Committee Proposed Budget

Current Year Biennial Budget Est for Following Biennium

FINANCIAL STATUS FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21

1 Beginning Balance

2 Beginning Cash Balance $531,652,199 $45,620,037 $13,245,440 $271,649,075 $331,348,201

3 Cash Reserve Fund transfer-automatic 0 0 0 0 0

4 Carryover obligations from FY14 (310,603,783) 0 0 0 0

5 LB 22 Lapse FY16 reapproriations 72,170,032 no estimate 0 0 0

6 LB 149 Restore LB 22 reapproriation lapse (700,000) 0 0 0 0

7 Allocation for potential deficits 0 (5,000,000) (5,000,000) (5,000,000) (5,000,000)____________ ____________ ____________ ____________ ____________

8 Unobligated Beginning Balance 292,518,448 40,620,037 8,245,440 266,649,075 326,348,201

9 Estimated Receipts

10 Net Receipts (April 2015 NEFAB+Hist Avg) 4,315,000,000 4,515,000,000 4,735,000,000 5,039,000,000 5,333,000,000

11 General Fund transfers-out (as amended) (217,100,000) (234,970,000) (234,970,000) (232,500,000) (232,500,000)

12 General Fund transfers-in (as amended) (50,000) 116,627,103 90,956,000 0 0

13 Cash Reserve transfers (current law) 0 0 0 0 0

14 LB 332 Cash Reserve Fund transfers 0 0 173,000,000 0 0

15 Bills Enacted Into Law 0 0 0 0 0

16 Bills Passed 0 0 0 0 0____________ ____________ ____________ ____________ ____________

17 General Fund Net Receipts 4,097,850,000 4,396,657,103 4,763,986,000 4,806,500,000 5,100,500,000

18 Appropriations

19 LB 327 Mainline Budget Bill 4,411,690,837 4,373,704,589 4,439,115,958 4,681,463,559 4,889,697,316

20 LB 328 Legislator Salaries 0 632,982 632,982 632,982 632,982

21 LB 329 Constitutional Officers Salaries 0 27,860,129 28,031,635 28,031,635 28,031,635

22 LB 330 Capital Construction 0 21,834,000 32,801,790 31,672,698 30,035,838

22 LB 149 Deficits (revisions) (2,449,528) 0 0 0 0

23 LB 22 Deficits (64,887,751) 0 0 0 0

24 LB 171 State Claims 394,853 0 0 0 0

26 Select File amendments 0 0 0 0 0

27 Vetoes-Mainline bills 0 0 0 0 0

28 Veto overrides-Mainline bills 0 0 0 0 0

29 Bills Enacted Into Law 0 0 0 0 0

30 Bills Passed 0 0 0 0 0____________ ____________ ____________ ____________ ____________

31 General Fund Appropriations 4,344,748,411 4,424,031,700 4,500,582,365 4,741,800,874 4,948,397,771

32 Ending Balance

33 $ Ending balance (Financial Status as Shown) 45,620,037 13,245,440 271,649,075 331,348,201 478,450,430

34 $ Ending balance (at Minimum Reserve) -- -- 268,143,587 -- 296,465,507

35 Difference = Variance from Minimum Reserve -- -- 3,505,488 -- 181,984,923

36 Biennial Reserve (%) -- -- 3.0% -- 4.9%

37 Annual Spending Growth (w/o deficits) 3.3% 0.3% 1.7% 5.4% 4.4%

38 Two Year Average Growth 3.7% -- 1.0% -- 4.9%

39 Est. Revenue Growth (rate/base adjusted) 1.3% 5.0% 5.2% 5.9% 5.9%

CASH RESERVE FUND FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21

Beginning Balance 730,655,108 637,639,649 562,574,336 379,569,207 379,569,207 Transfer amounts above forecasts (line 3) 0 0 0 0 0

To/from Gen Fund per current law 0 0 0 0 0

To Nebr Capital Construction Fund (NCCF) (43,015,459) 0 (10,005,129) 0 (10,431,585)

To Transportation Infrastructure Fund (50,000,000) 0 0 0 0

From Excess from Oral Health Training & Services Fund (LB 22) 0 150,000 0 0 0

LB 332 To General Fund 0 0 (173,000,000) 0 0

LB 332 To NCCF (Corrections) 0 (75,215,313) 0 0 0___________ ___________ ___________ ___________ ___________

Projected Ending Balance 637,639,649 562,574,336 379,569,207 379,569,207 369,137,622

Chronology of the

General Fund Financial Status

END OF 2016 SESSION (SINE DIE)

At Sine Die 2016, the projected financial status for the FY18/FY19 biennium reflected a $234.5 million

projected shortfall from the minimum reserve. At that point, FY18/FY19 was the “out year” in the five year

financial status and there was no projection for FY20/FY21 biennium. Items which significantly

contributed to this shortfall was the use of $99 million of one-time lapsed appropriations to balance the

FY16/FY17 biennium and annualization of the bills enacted in the 2016 session which cost $5.4 million in

FY16-17 but $54.2 million in FY17-18 and $64.4 million in FY18-19.

At the July 2016 meeting of the Tax Rate Review Committee (TRR), the General Fund financial status

declined to $352.7 million below the minimum reserve. FY2015-16 revenues were $120 million below

forecast. This previous forecast was $17 million above the certified forecast so with forecasts well below

the certified, the automatic transfer that had been assumed was negated.

July 2016 TRR Committee

Impact on Variance from Min Reserve (Millions of Dollars) FY17 FY18 FY19 Total FY16 Actual vs Est General Fund Net Receipts 0.0 0.0 0.0 (120.0) FY16 Actual vs Est CRF transfers-automatic 17.0 0.0 0.0 17.0 FY16 Actual vs Est Accounting adjustment 0.0 0.0 0.0 (6.0) NDR change in withholding, impact of (indexing (12.9) 0.0 0.0 (12.9) Assumed lapse, FY16 unexpended appropriations 0.0 0.0 0.0 0.0 Change in Minimum Reserve 3.5 0.0 (0.0) 3.5 ______ ______ ______ ______ Total Change – July 2016 TRR Committee (118.3) 0 0 (118.3)

2016 INTERIM

The financial status deteriorated significantly in November 2016 when the TRR committee again met.

The shortfall from the minimum reserve increased from $352.7 million to $895.3 million due mostly to

revenue forecasts. Original NEFAB forecasts for FY18 and FY19 were a combined $402.8 million below

the previously used preliminary LFO revenue estimates. The NEFAB also reduced their FY16-17 forecast

by $172.2 million largely reflecting the $120 million below forecast revenue the prior year.

There was some offset with overall lower spending projections. Those projected appropriation levels

used the latest estimates for TEEOSA school aid and information from the agency budget request.

November 2016 TRR Committee

Impact on Variance from Min Reserve (Millions of Dollars) FY17 FY18 FY19 Total

Revenue Forecasts (revised / original Oct 201) (172.2) (200.3) (202.5) (575.1) Change in Minimum Reserve 0.0 0.0 17.1 17.1 _______ _______ _______ _______

Subtotal - Revenue (172.2) (200.3) (185.4) (557.9) Deficit requests higher than $5M allocation (13.4) 0.0 0.0 (13.4) Retirement - defined benefit plans, actuarial contributions 0.0 (16.8) (18.1) (34.8) DHHS – Higher federal FMAP 0.0 14.7 18.5 33.2 DHHS – aid programs, eligibility/utilization/specific items/rates 0.0 (7.9) 15.4 7.5 Revised estimate of budget increases, all other 0.0 8.7 14.2 22.9 _______ _______ _______ _______

Subtotal - Appropriations (13.4) (1.3) 30.1 15.4 Total Change – November TRR Committee (185.6) (201.6) (155.3) (542.5)

APPROPRIATIONS COMMITTEE PRELIMINARY BUDGET

The Appropriations Committee Preliminary Budget as set forth here, reduces that $895 million “shortfall”

to a $134.7 million level. Although not achieving a balanced budget at this point, the remaining shortfall is

at a level that Cash Reserve Fund transfers which have not been incorporated at this point could be

utilized to achieve a balanced budget. Going forward, the combination of these actions results in a $54

million structural balance in FY18-19 when comparing on-going revenues and spending.

This $771 million swing was accomplished through a combination of $160 million of reductions in FY16-

17 new and carryover appropriations (LB 22), $70.8 million from sales tax due to voluntary collection

compliance by Amazon.com, and $124 million of transfers from several cash funds. On the

appropriations side, the committee preliminary budget level was substantially below that estimated at the

November Tax Rate Review Committee meeting including TEEOSA school aid ($98.1 million), University

of Nebraska and State Colleges ($98.7), and DHHS provider rates ($106.5 million)

Committee Preliminary Budget


GF Transfers-in (0.1) 73.1 51.2 124.3 GF Transfers-Out (change vs Nov TRR) 0.0 1.8 1.8 3.7 Assumed Amazon.com sales tax 11.2 28.2 31.3 70.8 "Above certified" forecast to CRF (Amazon sales tax) 0.0 (11.2) 0.0 (11.2) Change in Minimum Reserve 0.0 0.0 (10.1) (10.1) ______ ______ ______ ______

Subtotal - Revenue 11.2 92.0 74.3 177.4 LB 22 - Specific & ATB cuts 88.4 0.0 0.0 88.4 LB 22 - Lapse FY16 / FY17 reappropriations 72.2 0.0 0.0 72.2 Deficits and Claims vs Nov TRR (5.6) 0.0 0.0 (5.6)

DHHS provider rates (compared to Nov TRR 2% per yr) 0.0 41.7 64.8 106.5 University & State Colleges (lump sum vs Nov TRR) 0.0 35.7 63.0 98.7 TEEOSA School Aid (2.1% per yr vs Nov 2016 current law estimate 0.0 30.0 68.1 98.1 DHHS aid programs – eligibility, utilization, specific items 0.0 18.6 19.8 38.4 Retirement - Defined Benefit plans (current est vs Nov TRR) 0.0 15.5 13.2 28.7 All Agencies – Modification cuts (operations) 0.0 12.7 12.6 25.3 All Agencies – Salary & Health Insurance (vs Nov 2016 TRR) 0.0 6.7 16.5 23.2 Special Education (1% per yr vs Nov TRR estimate) 0.0 3.3 6.8 10.1 Corrections - Staffing & Security, annualize special salary increase 0.0 (4.7) (9.5) (14.2) All Other appropriation changes (net) (3.8) 9.9 (0.4) 13.4 ______ ______ ______ ______

Subtotal - Appropriations 158.9 169.5 254.8 583.2 Total Change – Appropriations Committee Prelim Budget 170.1 261.5 329.1 760.6

FEBRUARY 2017 REVISED REVENUE FORECASTS

In February the Nebraska Economic Forecasting Advisory Board (NEFAB) made significant revisions to

their previous forecasts, a $91.2 million reduction in FY17-18, a $51.2 million reduction in FY18-19, and

$26.3 million reduction in FY18-19 for a cumulative reduction of $168.8 million over the three fiscal years.

Year to date revenue performance triggered the large reduction in FY17-18.

Revenues in excess of "certified" forecasts are required by statute to be transferred to the Cash Reserve

Fund. As noted above the Amazon.com adjustment of $11.2 million was above the certified forecast and

was thus shown as a subsequent transfer to the Cash Reserve Fund. With the February reduction in the

forecast this potential transfer is negated.

Revised Revenue Forecast


Revenue Forecasts (Feb 2015) - Base Forecast Changes (91.2) (51.2) (26.3) (168.8) Previous "Above certified" FY17 forecast to CRF negated 0.0 11.2 0.0 11.2 Change in Minimum Reserve 0.0 0.0 4.6 4.6 ______ ______ ______ ______

Total Change – February 2017 Forecast revisions (91.2) (40.0) (21.8) (153.0)

APPROPRIATIONS COMMITTEE POST HEARING ADJUSTMENTS

After weeks of budget hearings, the Appropriations Committee finalized their recommendation with a

variety of funding and transfer adjustments. The total impact of these actions amounted to $291.2 million

over the three year period, offsetting the $134.7 million shortfall still remaining at the Preliminary Budget

and the impact of the revised February forecasts.

The largest adjustment was a $173 million transfer from the Cash Reserve Fund. Although the largest

item it was the last item approved after review of all other measures. Additional budget savings were

generated within DHHS with a revision of funding due to a preliminary FFY19 FMAP, elimination of the

1% provider rate increase that had been included in the Preliminary Budget, and a reduction in the

Federal Clawback increase due to new estimates available from the Federal Fund Information System

(FFIS). This most significant increase in the budget post hearing was $11.5 million per year for Child

Welfare for annualizing the deficit and contract revisions with Nebraska Families Collaborative (NFC).

Committee Proposed Budget


General Fund transfers-in (additions to Prelim) 0.0 43.7 39.8 83.4 Cash Reserve Fund - transfer to General Fund 0.0 0.0 173.0 173.0 Change in Minimum Reserve 0.0 0.0 (7.5) (7.5) ______ ______ ______ ______

Subtotal - Revenue 0.0 43.7 205.3 250.7 DHHS - Higher preliminary FFY19 FMAP 0.0 0.0 15.6 15.6 DHHS - Provider Rates, eliminate 1% per yr increase 0.0 4.2 8.4 12.6 DHHS - Federal Clawback, adjust based on April FFIS estimate 0.0 6.0 4.0 10.0 DHHS - Child welfare, reduce contracts for kinship foster care 0.0 4.5 4.5 9.0 Corrections - Staffing & Security, phase in staffing over three years 0.0 1.6 5.0 6.6 Education - Remove added funding, IT Systems of Support 0.0 2.4 2.0 4.3 DHHS - Child welfare, end GF support, Right Turn post-adoption. 0.0 2.1 2.1 4.1 DEQ - Eliminate GF funding, stormwater grant program. 0.0 1.7 1.7 3.3 DHHS - BSDC base reduction, reflect rightsizing of the facility 0.0 1.6 1.6 3.2 Corrections - delays in adding new staff 0.0 0.7 0.7 1.4 Education - Eliminate funding, IT academy 0.0 0.5 0.5 1.0 Education - Eliminate funds, Master Teacher program 0.0 0.5 0.5 1.0 Education - Aid to ESU's, Governors level 3% reduction 0.0 0.4 0.4 0.8 Education - Early Childhood grant, continue LB22 reduction (4%) 0.0 0.2 0.2 0.3

DHHS - Child welfare, base adjustment and/or NFC contract 0.0 (11.5) (11.5) (23.0) DHHS - Medicaid, increase base of PPS hospitals by 3% 0.0 (2.6) (2.6) (5.2) Education - Adjust TEEOSA to LB409 (am474) level 0.0 2.1 (4.2) (2.0) University - Global Center for Advanced Interprofessional Learning 0.0 0.0 (3.0) (3.0) University - adjust base reductions 0.0 2.9 (4.1) (1.1) Adjust out year projected budget 0.0 0.0 0.0 0.0 All Other appropriation items 0.0 0.5 1.1 1.6 Defict adjustments 1.7 0.0 0.0 1.7 ______ ______ ______ ______

Subtotal - Appropriations 1.7 17.8 22.8 40.6 Total Change – Appropriations Committee Proposed Budget 1.7 61.3 228.1 291.2

Table 1 Chronology of the Financial Status

FY18 / FY19 FY20 / FY21

(millions of dollars) Biennium Biennium

Sine Die 2016 Session (April 20, 2016) (234.5) NA

FY16 Actual vs Est General Fund Net Receipts (120.0) --

FY16 Actual vs Est CRF transfers-automatic 17.0 --

FY16 Actual vs Est Accounting adjustment (6.0) --

NDR change in withholding, impact of (indexing (12.9) --

Change in Minimum Reserve 3.5 --

July 2016 Tax Rate Review Committee (352.7) NA

Revenue Forecasts (revised / original Oct 2016) (575.1) --

Change in Minimum Reserve 17.1 --

Deficit requests vs $5M allocation (13.4) --

Retirement - defined benefit plans (34.8) --

DHHS - FMAP 33.2 --

DHHS aid programs, (eligibility, utilization, specific items, rates) 7.5 --

Revised estimate of budget increases, all other 22.9 --

Nov 2016 Tax Rate Review Committee (895.3) (1,180.4)

General Fund transfers-in (not in pre-session) 124.3 124.3

General Fund transfers-out (change from Nov TRR) 3.7 12.3

Assumed Amazon.com sales tax 70.8 143.2

"Above certified" forecast to CRF (Amazon sales tax) (11.2) (11.2)

Change in Minimum Reserve (10.1) (24.9)

Reduce carryover obligations from FY17 3.8 3.8

LB 22 - Lapse FY16 / FY17 reapproriations 72.2 72.2

LB 22 - Specific & ATB cuts 88.4 88.4

Deficits and Claims vs Nov TRR (5.6) (5.6)

DHHS - Provider Rates, cut vs 2% per yr 106.5 245.0

University+State Colleges (lump sum vs Nov TRR) 98.7 224.7

Education - TEEOSA at 2.1%/yr vs Fall 2016 estimate 98.1 81.8

DHHS aid programs – eligibility, utilization, specific items 38.4 81.3

Retirement - Defined Benefit plans (current est vs Nov TRR) 28.7 55.1

All Agencies - Modifications 25.3 50.5

All Agencies – Salary & Health Insurance (vs Nov 2016 TRR) 23.2 56.1

Education - Special Education vs Nov TRR estimate 10.1 24.2

Corrections - Staffing & Security (14.2) (33.2)

All Other Appropriations items 9.5 12.4

Committee Preliminary Budget (134.7) 20.0

Revenue Forecasts (Feb 2017) - Base Forecast Changes (168.8) (229.2)

"Above certified" FY17 forecast to CRF 11.2 11.2

Change in Minimum Reserve 4.6 6.3

Post February 2017 NEFAB forecasts (287.7) (191.6)

Correct Fund transfer, error in prelim amount, other minor errors (0.2) (0.2)

Errors and corrections to preliminary budget 0.0 0.0

General Fund transfers-in (additions to Prelim) 83.4 83.4

Cash Reserve Fund - transfer to General Fund 173.0 173.0

Defict adjustments 1.7 1.7

Change in Minimum Reserve (7.5) (8.7)

FY18 / FY19 FY20 / FY21

(millions of dollars) Biennium Biennium

DHHS - Higher preliminary FFY19 FMAP 15.6 48.9

DHHS - Provider Rates, eliminate 1% per yr increase 12.6 30.5

DHHS - Federal Clawback Increase, adjust based on April FFIS estimate 10.0 17.9

DHHS - Child welfare, reduce contracts, kinship foster care and shift to HHS. 9.0 18.7

Corrections - Staffing & Security, phase in staffing over three years 6.6 6.6

Education - Remove added funding, IT Education Systems of Support 4.3 8.3

DHHS - Child welfare, end GF support for the Right Turn post-adoption contract. 4.1 8.6

DEQ - Eliminate GF funding, stormwater grant program. 3.3 6.6

DHHS - BSDC base reduction, reflect rightsizing of the facility 3.2 6.4

Corrections - delays in adding new staff 1.4 2.8

Education - Eliminate funding, IT academy 1.0 2.0

Education - Eliminate aid for the Master Teacher Education Program 1.0 2.0

Education - Aid to ESU's, at Governors recommendation, 3% reductione 0.8 1.7

Education - Early Childhood grant program, continue LB22 4% reduction 0.3 0.6

DHHS - Child welfare, base adjustment and/or NFC contract (23.0) (47.6)

DHHS - Medicaid, Increase base of PPS hospitals by 3% (5.2) (10.8)

Education - Adjust TEEOSA to LB409 (am474) level (2.0) 15.6

University - Global Center for Advanced Interprofessional Learning (3.0) (9.0)

University - adjust base reductions (1.1) (9.3)

Adjust out year projected budget 0.0 22.0

All Other appropriation items 1.6 1.6

Committee Budget to the Floor 3.5 181.9

Estimated Financial Status -

Following Biennium

For planning purposes, an estimated financial status is constructed for the biennium following the two-

year biennial budget currently being considered. This allows the Legislature to see the future implications

of budget actions being considered.

Revenues

The NEFAB does not make official forecasts for the following biennium or what’s commonly referred to as

the “out years”. Although different methodologies could be utilized, the revenue estimates used for the

following biennium (FY19-20 and FY20-21) in the current financial status are derived using a “capped”

historical average methodology. This “smoothing” technique derives “out year” revenue estimates by

calculating the level of revenues that would yield a five year average growth (FY16 to FY21) roughly

equal to the 36 year historical average (5.0%) less .25% which is the projected impact of indexing the tax

brackets. Inherent in this methodology is the concept that within any five-year period, below average

revenue growth in some years will be offset by above average growth in others and is visually seen in the

line graph of historical adjusted revenue growth on page 23.

The “capped” provision of this methodology means that if the derived growth needed in the out-years to

achieve the historical average is above the “above average” years, growth is then capped at the average

of the “above average years”. Likewise if the historical average method calls for below average growth in

the out years, the growth is capped at the average of the “below average years”. Over the past 35 years,

there were 12 years in which revenue growth was "below average" (1.0% average) and 23 years in which

revenue growth was above average (7.3% average).

Appropriations

For the “following biennium” (FY19-20 and FY20-21), the mainline budget numbers reflect the annualized

impact of the current budget actions plus an estimate of future year increases in entitlement programs,

salary and health insurance increases, and other funding requirements that are normally not optional.

Obviously the actual funding needs in these areas will not be known until the biennial budget process

starts again in two years. However for planning purposes, some level of funding for these items must be

acknowledged and shown as likely funding commitments

AID TO LOCAL GOVERNMENTS

State Aid to Schools (TEEOSA) The estimates for FY20 and FY21 are based on the same

methodology utilized for the November 15 estimates required under current law for the proposed biennial

budget but with Fiscal Office assumptions and should be considered Fiscal Office estimates. The

estimates reflect a growth in overall school aid of 9.4% in FY20 and 7.1% in FY21. About half of the large

increase in both years is the result of expiration of LB 409 and the TEEOSA formula returning to its

original form.

Special Education: Increases for FY20 and FY21 reflect a 2.5% per year increase. Although statute

allows for a growth up to 5% the 2.5% is equal to the basic allowable growth rate under the K-12 school

spending limitation and TEEOSA calculations.

Aid to Community

Colleges A 3.5% per

year annual increase is

included for the following

biennium budget reflecting

increased state aid to

support operations budget

increases. This increase

amounts to about a $3.5

million per year increase.

Homestead

Exemption A 3% per

year annual increase is

included for the following

biennium budget reflecting

some level of inflationary

increases.

Aid to ESU's The

amount of aid to ESU's is

based on funding of a

certain level of core

services and technology

infrastructure. Growth in

aid is set at the same rate

as the basic allowable growth rate under the K-12 school spending limitation (2.5% per year).

AID TO INDIVIDUALS

Medicaid For the following biennium, the average growth is 4.5% per year. This reflects projected

growth of 2.0% per year for population client eligibility and utilization and 2.5% per year for provider rates.

This estimate also assumes no change in the federal match rate.

Public Assistance A basic growth rate of 3.5% per year is utilized for the various Public Assistance

programs for the following biennium. This reflects no growth for population client eligibility and utilization

and 2.5% per year for provider rates and 5% for child care rates.

Child Welfare A basic growth rate of 4.5% per year is utilized for the various Child Welfare programs

for the following biennium. This reflects a 2% per year growth for population client eligibility and utilization

and 2.5% per year for provider rates.

Children’s Health Insurance (CHIP) For the following biennium, a 4.5% per year increase is

used which is the same as Medicaid. However, the large increase is attributed to the federal match rate.

The Affordable Care Act (ACA) included a provision that increased the regular SCHIP match rate by 23

percentage points for FFY2015 to FFY2019. This provision expires during the following biennium

requiring an increase of $20 million in FY19-20 and an additional $6 million (annualize at a full $26 million

level) in FY20-21.

Table 2 Projected Budget Increases-Following Biennium

Two Yr Est for Following Biennium

Numbers are annual increases Average FY2019-20 FY2020-21

Aid to K-12 Schools (TEEOSA GF only) 8.2% 93,270,362 77,756,234

Special Education 2.5% 5,663,165 5,804,744

Community Colleges 3.5% 3,493,991 3,616,280

Homestead Exemption 3.0% 2,430,000 2,502,900

Personal Property Tax Relief Act 3.0% 486,000 500,580

Aid to ESU's 2.5% 340,755 349,274

Medicaid 4.5% 38,206,555 39,925,850

Public Assistance 3.5% 3,783,292 3,915,708

Child Welfare Aid 3.5% 7,429,870 7,764,214

Developmental Disability aid 4.0% 6,052,632 6,294,737

Behavioral Health aid 2.5% 1,835,747 1,881,640

Children’s Health Insurance (SCHIP) 186.4% 21,404,399 7,737,597

Employee Salaries 2.9% 15,363,479 12,202,148

Employee Health Insurance 6.0% 5,568,003 5,902,083

University/Colleges increased funding 3.7% 23,804,096 24,575,810

Operations increase 2.0% 2,970,803 3,030,219

Justice Reinvestment Act (LB605-2015) specific $ 1,571,931 0

Juvenile Services - Courts 2.5% 1,350,000 1,383,750

Inmate per diem costs (Corrections) 3.0% 1,384,455 1,425,989

Protective Services staffing (Corrections) specific $ 5,006,066 0

Retirement (defined benefit plans) specific $ 932,000 1,664,000

Capital Construction Reaff Only (1,129,092) (1,636,860)

Net Annual $ Increase 241,218,509 206,596,897

Annual % Increase 5.4% 4.4%

Developmental Disability Aid A 4% per year increase is included. This provides the equivalent

of 2.5% per year for rate equity similar to the employee salary assumption and 1.5% for clients

transitioning from K-12 programs. As this projected budget assumes no expanded programs, nothing is

assumed for funding of the waiting list.

Behavioral Health Aid. This area includes substance abuse and mental health aid. The increases

in the following biennium reflect a 2.5% increase to reflect some annual increase in provider rates.

AGENCY OPERATIONS / CONSTRUCTION

Employee Salary Increases Although salary increases will be the result of bargaining, some level

of increase is factored in more for illustration than planning purposes. A 2.5% per year increase is

included which approximates inflation and the current biennium funding. Also in FY19-20 funds are

included to annualize the January 1, 2019 1.5% salary increase. This equates to a .75% increase.

Employee Health Insurance For planning purposes, an 6% per year increase in health insurance

is included for the following biennium, similar to the prior biennium.

Operations Inflation Included in the projected status is a general 2% increase in agency non-

personnel operating costs. Although not provided as an across the board increase, this amount

historically covers increases in utility costs at state and higher education facilities as well as food and

other inflationary cost increases at 24/7 state facilities such as veterans homes, BSDC, etc…

Juvenile Justice services As part of the juvenile justice reform, funding for juvenile services was

shifted from DHHS to the courts. Much of these funds are to purchase services from outside vendors.

The projected budget includes a 2.5% for provider rate increases similar to DHHS providers.

Justice Reinvestment Act. The $1,571,931 increase shown in FY19-20 fully funds the last year of

the justice reinvestment act as laid out in the fiscal note for LB605-2015.

Inmate Per Diem Costs While some costs at the Dept. of Correctional Services such as staffing are

“fixed” within a range of inmate population, some costs change directly with each inmate. This includes

items such as food, clothing, and medical care. A 3% per year increase is included to reflect both

DCS Protective Services Staffing In FY18 and FY19 the committee proposed funding was

below the agency request and Governors recommendation. The committee phased-in the additional staff

over three years recognizing the current issue of vacancies and high turnover and providing more time to

address those issues in existing staffing levels prior to adding larger numbers of additional staff. This

$5,066,000 funds the additional 80 staff.

Defined Benefit Retirement Plans The increase in funding for the defined benefit retirement

plans for FY20 and FY21 are based on the Cavenaugh Macdonald actuary presentation to the Retirement

Committee in November 2016. This includes a slight increase in additional state contribution amounts for

the Judges and Patrol plans plus an increase in the 2% of pay contribution in the school plan.

Capital Construction General Fund dollars included in the projected budget for the following

biennium for capital construction reflect reaffirmations only based on the proposed FY18/FY19 biennial

budget. These are dollar amounts needed to complete funding of previously approved projects.

Cash Reserve Fund The Cash Reserve Fund (CRF) is not included as part of the "General Fund Reserve" (which is the 3% to

7% statutorily defined ending General Fund balance for a biennium) and was created as a separate and

distinct fund to cover cash flow needs within a month or several month period. The Cash Reserve Fund

also serves as a “rainy day fund” in that revenues in excess of a “certified forecast” are transferred from

the General Fund to Cash Reserve fund at the end of a fiscal year. As the certified forecast is basically

the revenue estimate at Sine Die when the budget is finalized, these transfers sequester revenues in

excess of that which is needed to balance the budget.

As there are some obligations in the Cash Reserve Fund that extends into the next biennium, the

projected unobligated ending balance is that shown at the end of the FY20/FY21 biennium based on

current forecasts and proposed 2017 session actions and is $369.1 million.

Committee Proposal The Appropriations Committee proposed budget utilizes $248.2 million of

Cash Reserve Fund monies. This includes: (1) a $173 million transfer to the General Fund to help

replenish the reserve to the 3% statutory level, and (2) $75 million transfer to the Nebraska Capital

Construction Fund to pay for the Department of Correctional Services Reception and Treatment Center

(RTC) project

Table 3 Cash Reserve Fund Status

Actual Estimated Estimated Estimated Estimated FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21 Beginning Balance 730,655,108 637,639,649 562,574,336 379,569,207 379,569,207

Excess of certified forecasts 0 0 0 0 0

To General Fund per current law 0 0 0 0 0

To Nebr Capital Construction Fund (NCCF) (43,015,459) 0 (10,005,129) 0 (10,431,585)

To Transportation Infrastructure Fund (50,000,000) 0 0 0 0

2017 - Excess from Oral Health Fund 0 150,000 0 0 0

2017 - To NCCF-Corrections RTC project 0 (75,215,313) 0 0 0

2017 - To General Fund 0 0 (173,000,000) 0 0

__________ __________ __________ __________ __________

Ending Balance 637,639,649 562,574,336 379,569,207 379,569,207 369,137,622

EXCESS OF CERTIFIED FORECASTS

Shown on line 3 of the Financial Status, revenues in excess of "certified" forecasts are required by statute

to be transferred from the General Fund to the Cash Reserve Fund. These would take place in July of

the fiscal year following completion of that year. FY2015-16 actual receipts were well below the certified

forecast thus no transfers in FY2016-17. Also the current forecast for FY2016-17 is the current certified

forecast.

TRANSFERS TO / FROM GENERAL FUND

Unlike the automatic transfers that occur after the close of the fiscal year and are statutorily required,

other transfers can take place as specifically enacted by the Legislature. At the start of the 2017 session,

no transfers to the General Fund are currently authorized for the five year status.

TRANSFERS TO/FROM OTHER FUNDS

In the 2013 session, LB 200 provided for a $43,015,459 transfer from the Cash Reserve Fund to the

Nebraska Capital Construction Fund (NCCF) sometime between July 1, 2013 and June 30, 2017 at the

discretion of the Budget Administrator for construction of a new Central Nebraska Veterans Home to

replace the existing facilities. Originally this transfer was shown in FY13-14, however it has been shifted

to FY16-17 since the actual transfer has not yet been made.

In the 2015 session, the enacted budget called for a $28.2 million of transfers to the NCCF for the State

Capitol HVAC project. This included $7,804,292 in FY2015-16, and future transfers of $7,160,412 in

FY2018-19, $9,492,568 in FY2020-21, and $3,783,734 in FY2022-23

In the 2016 session, LB 960 provided for a $50 million transfer to a newly created Transportation

Infrastructure Bank Fund

CONSIDERATIONS FOR AMOUNT TO RETAIN IN THE CASH RESERVE FUND

When created, the initial purpose of Cash Reserve Fund (CRF) was to set aside money as a “safety net”

for the General Fund, sustaining the ability of the General Fund to pay bills when balances would

otherwise be insufficient for day to day cash flow. In addition to cash flow another major purpose of the

CRF was added later; protection against forecast errors and periods of low year over year revenue

growth. Monies are accumulated in the CRF when receipts exceed certified forecast levels and are then

available to offset instances when receipts are below forecasts.

The level of “protection” or in other words the level of funds to retain in the Cash Reserve fund, can be

derived by looking at historical variances derived by comparing forecasts at Sine Die of the legislative

session when the budget was enacted and actual receipts which are known anywhere from 13 to 15

months later (See Table 4). Over the 30 year period the average negative variance is -4.3% clustered in

groups of 3 to 4 years. For simplicity, using a 4% negative variance clustered for four consecutive years

would require a balance equal to about 16% of annual net receipts. Applied to the average forecast from

FY16 to FY19 the target balance would be $746 million.

Another factor to keep in mind is the need for supplemental funds during a budget down period. One

recent illustration is the latest budget shortfall which occurred during the 2008 through -2011 legislative

sessions. During that time a total of $986 million of one-time funds were utilized to balance the budget in

addition to the various budget cuts that were made. The largest amount of these one-time funds, $653.8

million, came from the federal government through several ARRA programs (FMAP, General and

Education stabilization) followed by Cash Reserve Fund transfers ($259 million) and extraordinary cash

fund lapses ($73.2 million). While this was a time of unprecedented revenue declines, it illustrates the

cumulative impact of multiple year shortfalls.

Note that this discussion of the appropriate level of the Cash Reserve Fund is applicable to where the

CRF should be at its peak after that part of the cycle with positive revenue growth and positive variances

from the forecast. As we turn into the negative part of this cycle, the question is how much of the CRF

can or should be utilized to address the projected budget shortfall.

A key to answering this question is whether the use the Cash Reserve Fund is only a bridge until a

structural balance is achieved or a short term solution which covers up an on-going structural imbalance.

In terms of the Appropriations Committee Proposed Budget there is a structural balance between on-

going revenues and on-going appropriations at the end of the biennial budget. This shows that the use of

the cash reserve fund relates to restoration of the 3% reserve and not financing an unsustainable level of

spending.

Table 4 Historical Variance, Projected vs Actual General Fund Receipts

Projected at Actual $ % Variance FY Session Sine Die ** Receipts Variance Negative Positive

FY 1986-87 Sine Die 1986 878.0 886.4 8.4 1.0%

FY 1987-88 Sine Die 1987 924.3 1,016.3 92.0 10.0%

FY 1988-89 Sine Die 1988 988.4 1,133.5 145.1 14.7%

FY 1989-90 Sine Die 1989 1,110.9 1,152.7 41.8 3.8%

FY 1990-91 Sine Die 1990 1,334.6 1,367.1 32.5 2.4%

FY 1991-92 Sine Die 1991 1,493.2 1,490.4 (2.8) -0.2%

FY 1992-93 Sine Die 1992 1,537.3 1,524.7 (12.6) -0.8%

FY 1993-94 Sine Die 1993 1,662.5 1,653.7 (8.8) -0.5%

FY 1994-95 Sine Die 1994 1,729.9 1,706.0 (23.9) -1.4%

FY 1995-96 Sine Die 1995 1,834.3 1,836.7 2.4 0.1%

FY 1996-97 Sine Die 1996 1,918.0 2,009.6 91.6 4.8%

FY 1997-98 Sine Die 1997 1,993.8 2,105.4 111.6 5.6%

FY 1998-99 Sine Die 1998 2,102.9 2,123.9 21.0 1.0%

FY 1999-00 Sine Die 1999 2,326.3 2,403.9 77.6 3.3%

FY 2000-01 Sine Die 2000 2,484.3 2,456.8 (27.5) -1.1%

FY 2001-02 Sine Die 2001 2,646.0 2,365.5 (280.5) -10.6%

FY 2002-03 Sine Die 2002 2,725.7 2,456.4 (269.3) -9.9%

FY 2003-04 Sine Die 2003 2,732.0 2,718.7 (13.3) -0.5%

FY 2004-05 Sine Die 2004 2,775.5 3,037.2 261.7 9.4%

FY 2005-06 Sine Die 2005 3,092.3 3,352.2 259.9 8.4%

FY 2006-07 Sine Die 2006 3,217.0 3,408.3 191.4 5.9%

FY 2007-08 Sine Die 2007 3,389.2 3,506.1 116.9 3.5%

FY 2008-09 Sine Die 2008 3,531.7 3,357.5 (174.3) -4.9%

FY 2009-10 Sine Die 2009 3,446.7 3,204.7 (242.0) -7.0%

FY 2010-11 Sine Die 2010 3,422.2 3,499.7 77.4 2.3%

FY 2011-12 Sine Die 2011 3,591.1 3,695.9 104.8 2.9%

FY 2012-13 Sine Die 2012 3,767.1 4,052.4 285.3 7.6%

FY 2013-14 Sine Die 2013 4,020.7 4,117.4 96.7 2.4%

FY 2014-15 Sine Die 2014 4,220.5 4,305.1 84.6 2.0%

FY 2015-16 Sine Die 2015 4,481.9 4,308.0 (173.9) -3.9%

FY 2016-17 est Sine Die 2016 4,591.3 4,315.0 (276.3) -6.0%

Average Variance (36 years) $17.3

Average: Below Estimate (15 years) ($100.4) -4.7% Average: Above Estimate (21 years) $101.4 4.4%

Table 5 Cash Reserve Fund – Historical Balances

Beginning

Direct

Deposit Automatic Legislative Cash Ending

Balance

as % of

Fiscal Yr Balance and Interest Transfers Transfers Flow Balance revenue

FY1983-84 0 37,046,760 na 0 0 37,046,760 4.7%

FY1984-85 37,046,760 (1,472,551) na 0 0 35,574,209 4.5%

FY1985-86 35,574,209 227,855 na (13,500,000) 0 22,302,064 2.7%

FY1986-87 22,302,064 1,428,021 na 0 0 23,730,085 2.7%

FY1987-88 23,730,085 1,654,844 na (7,700,000) 0 17,684,929 1.7%

FY1988-89 17,684,929 139,000 na 32,600,000 0 50,423,929 4.4%

FY1989-90 50,423,929 113,114 na (10,500,000) 0 40,037,043 3.5%

FY1990-91 40,037,043 0 na (8,100,000) 0 31,937,043 2.3%

FY1991-92 31,937,043 0 na (5,000,000) 0 26,937,043 1.8%

FY1992-93 26,937,043 0 na (9,500,000) 0 17,437,043 1.1%

FY1993-94 17,437,043 0 3,063,462 7,250,000 0 27,750,505 1.7%

FY1994-95 27,750,505 0 (8,518,701) 1,250,000 0 20,481,804 1.2%

FY1995-96 20,481,804 0 (20,481,804) 18,189,565 0 18,189,565 1.0%

FY1996-97 18,189,565 0 19,740,786 3,032,333 0 40,962,684 2.0%

FY1997-98 40,962,684 0 91,621,018 0 0 132,583,702 6.3%

FY1998-99 132,583,702 0 111,616,422 (98,500,000) 0 145,700,124 6.9%

FY1999-00 145,700,124 0 20,959,305 (24,500,000) 0 142,159,429 5.9%

FY2000-01 142,159,429 0 77,576,670 (49,500,000) 0 170,236,099 6.9%

FY2001-02 170,236,099 0 0 (60,170,000) 0 110,066,099 4.7%

FY2002-03 110,066,099 66,476,446 0 (87,400,000) (30,000,000) 59,142,545 2.4%

FY2003-04 59,142,545 59,463,461 0 (61,577,669) 30,000,000 87,028,337 3.2%

FY2004-05 87,028,337 8,170,556 108,727,007 (26,758,180) 0 177,167,720 5.8%

FY2005-06 177,167,720 0 261,715,297 (165,266,227) 0 273,616,790 8.2%

FY2006-07 273,616,790 0 259,929,524 (17,458,523) 0 516,087,791 15.1%

FY2007-08 516,087,791 0 191,436,773 (161,978,767) 0 545,545,797 15.6%

FY2008-09 545,545,797 0 116,976,571 (84,330,505) 0 578,191,863 17.2%

FY2009-10 578,191,863 0 0 (110,990,237) 0 467,201,626 14.6%

FY2010-11 467,201,626 0 0 (154,000,000) 0 313,201,626 8.9%

FY2011-12 313,201,626 8,422,528 145,155,092 (33,439,198) (4,461,676) 428,878,372 11.6%

FY2012-13 428,878,372 0 104,789,781 (154,008,427) 4,461,676 384,121,402 9.5%

FY2013-14 384,121,402 0 285,292,610 49,651,294 0 719,065,306 17.5%

FY2014-15 719,065,306 0 96,721,232 (87,951,112) 0 727,835,426 16.9%

FY2015-16 727,835,426 0 84,599,532 (81,779,850) 0 730,655,108 17.0%

FY2016-17 Est 730,655,108 0 0 (93,015,459) 0 637,639,649 14.8%

FY2017-18 Est 637,639,649 150,000 0 (75,215,313) 0 562,574,336 12.5%

FY2018-19 Est 562,574,336 0 0 (183,005,129) 0 379,569,207 8.0%

FY2019-20 Est 379,569,207 0 0 0 0 379,569,207 7.5%

FY2020-21 Est 379,569,207 0 0 (10,431,585) 0 369,137,622 6.9%

GENERAL FUND REVENUES

General Fund Revenue Forecasts

Table 6 - General Fund Revenue Forecasts

NEFAB NEFAB NEFAB LFO Prelim LFO Prelim

FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21

Actual/Forecast

Sales and Use Tax 1,570,000,000 1,645,000,000 1,715,000,000 1,812,000,000 1,913,000,000

Individual Income Tax 2,290,000,000 2,425,000,000 2,560,000,000 2,725,000,000 2,895,000,000

Corporate Income Tax 235,000,000 265,000,000 285,000,000 310,000,000 340,000,000

Miscellaneous receipts 220,000,000 180,000,000 175,000,000 192,000,000 185,000,000 ___________ ____________ ____________ ____________ ____________

Total Receipts 4,315,000,000 4,515,000,000 4,735,000,000 5,039,000,000 5,333,000,000

Adjusted Growth

Sales and Use Tax 2.5% 3.6% 3.9% 5.1% 5.1%

Individual Income Tax 4.0% 5.7% 5.9% 6.4% 6.2%

Corporate Income Tax -20.5% 12.0% 6.9% 8.1% 9.0%

Miscellaneous receipts -1.6% -1.9% 4.5% 2.3% 3.2% _________ _________ _________ _________ _________

Total 1.3% 5.0% 5.2% 5.9% 5.9%

Five Yr Average 3.9% -- 3.6% -- 4.7%

Forecasts for the FY18 / FY19 Biennial Budget

Revenue estimates for FY2016-17, FY2017-18 and FY2018-19 are the February 2017 forecasts from the

Nebraska Economic Forecast Advisory Board (NEFAB).

The Board forecast for FY2016-17 equates to a 1.3% growth. With the FY2015-16 growth of only .3%

growth, the two year average growth is .8% as compared to the 35 year average of 4.9%

Rate and base adjusted revenue growth implied by the forecasts for the FY18/FY19 biennium average

5.1% (5.0% in FY17-18 and 5.2% in FY18-19). Although these are relatively close to the historical

average growth, they do not necessarily reflect robust economic growth coming on the heels of the very

low growth in the two prior years. When including the 1.3% growth in the FY16-17 forecast, there is an

average growth of 3.8% over the three years that affect the financial status for the upcoming biennium.

The Nebraska Economic Forecast Advisory Board (NEFAB) is scheduled to meet April 26, 2017 to review

their existing forecasts. Changes in those forecasts could have a significant impact on the projected

status as shown in this report.

Forecasts for the Following Biennium (FY20 / FY21)

The NEFAB does not make official forecasts for the following biennium or what’s commonly referred to as

the “out years”. Although different methodologies could be utilized, the revenue estimates used for the

following biennium (FY19-20 and FY20-21) are derived by the Legislative Fiscal Office (LFO) using a

“capped” historical average methodology. This “smoothing” technique derives “out year” revenue

estimates by calculating the level of revenues that would yield a five year average growth (FY16 to FY21)

roughly equal to the 35 year historical average. Inherent in this methodology is the concept that within

any five-year period, below average revenue growth in some years will be offset by above average

growth in others and is visually seen in the line graph of historical adjusted revenue growth.

The “capped” provision of this methodology means that the derived growth needed in the out-years to

achieve the historical average cannot be higher than the “above average” growth years nor lower than the

“below average” growth years. Over the past 35 years, there were 12 years in which revenue growth was

"below average" (1.0% average) and 23 years in which revenue growth was above average (7.3%

average).

There has been one change in the implementation of this methodology. In the past, the target growth

was the 35 year historical average which is 4.9%. Part of this revenue growth can be attributed to

“bracket creep” in the income tax where the income tax brackets remained constant while inflation moved

up incomes. Some of this bracket creep was subsequently offset by periodic legislatively enacted

increases in the income tax brackets. However, because this was accomplished through legislation, the

impact was adjusted out as part the base and rate adjustments and the 5% historical growth still includes

the impacts of “bracket creep”. LB 987 enacted in the 2014 session provided that the income brackets

will be indexed for inflation starting with taxable years beginning on or after January 1, 2015 effectively

eliminating the growth historically achieved through bracket creep. Therefore the target historical average

growth used in this methodology is 4.70%, the historical growth less .25% attributed to bracket creep.

Because the 3.8% revenue growth in the three NEFAB forecasts is below average, the revenue growth

needed to yield a 4.7% five year average is 5.9% in both FY19-20 and FY20-21.

Alternative Forecasts for the Following Biennium

Alternative methods are also available for purposes of deriving revenue estimates for the following

biennium. In addition to the historical average methodology used in the financial status, in February 2017

both the Nebraska Dept. of Revenue (NDR) and Legislative Fiscal Office (LFO) have calculated revenue

estimates for these two “out

years” using the same

models and input from

Global Insight and Moody’s,

the national forecasting

services used as input into

the tax forecast models.

While these forecasts work

well for the 1 to 3 year

forecasts, when extended

further they have a tendency

to flatten out and follow the 3

year trend into the 4th and 5th

year. In other words, they

have difficulty picking up

changes in the trend. The

historical average

methodology has been used

since 1991 and the

“smoothing” technique used for the most part relies on the trend changes. As shown in Table 7, the

preliminary estimates for the two “out years” arrived at using the historical average concept (as used in

the Financial Status) tends to the low end however there are very large difference in the various numbers.

Table 7 Alternate "Out Year" Revenue Forecasts

Based on February 2017 Current Average Average High Est Low Est

Revenue Forecasts Status (IHS Econ) (All Forecasts) LFO-Moodys NDR-IHS

Dollar Forecast ( thousands of $)

FY2019-20 Prelim 5,039,000 5,001,139 5,033,249 5,101,664 4,961,950

FY2020-21 Prelim 5,333,000 5,210,008 5,241,910 5,298,316 5,183,996

Calculated Growth ( rate and base adjusted )

FY2019-20 Prelim 5.9% 5.1% 5.8% 7.2% 4.3%

FY2020-21 Prelim 5.9% 4.3% 4.3% 4.0% 4.6%

Two Year Average 5.9% 4.7% 5.0% 5.6% 4.5%

Five Year Average 4.7% 4.2% 4.3% 4.5% 4.1%

$ Difference from Status

FY2019-20 Prelim 0 (37,862) (5,752) 62,664 (77,050)

FY2020-21 Prelim 0 (122,992) (91,090) (34,684) (149,004)

Cumulative Total 0 (160,854) (96,842) 27,980 (226,054)

Chronology of Revenue Forecasts Table 8 contains a chronology of the revenue forecasts for FY2015-16 through FY2018-19. The first

column shows the total revenue forecast. The last four columns breaks down the total dollar change in

the forecast whether caused by bills enacted by the Legislature, other items such as federal tax changes,

or simply a change in the revenue expectations (base).

Table 8 Chronology of Revenue Forecasts

Change in Forecast due to: Total Base Other Bills Total

FY2015-16

Board Est-October 2014 4,418,000 -- -- -- --

Board Est-February 2015 4,413,000 (5,000) 0 0 (5,000)

Board Est-April 2015 4,430,000 17,000 0 0 17,000

Sine Die-2015 Session 4,473,856 0 0 43,856 43,856

Board Est-October 2015 4,403,000 (70,856) 0 0 (70,856)

Board Est-February 2016 4,420,000 17,000 0 0 17,000

Sine Die-2016 Session 4,428,000 0 0 8,000 8,000

Actual Receipts FY2015-16 4,307,981 (120,019) 0 0 (120,019)

FY2016-17

Board Est-October 2014 4,538,000 -- -- -- --


Board Est-April 2015 4,610,000 (7,000) 0 0 (7,000)

Sine Die-2015 Session 4,645,441 0 0 35,441 35,441



Sine Die-2016 Session 4,580,110 0 0 5,110 5,110

Sine Die-2016 Session with WH 4,567,238 0 (12,872) 0 (12,872)


Board Est-Oct 2016 (adjusted)* 4,406,201 0 11,201 0 11,201


FY2017-18

LFO Prelim-October 2014 4,797,000 -- -- -- --

LFO Prelim-February 2015 4,797,000 0 0 0 0

LFO Prelim-April 2015 4,797,000 0 0 0 0

Sine Die-2015 Session 4,790,502 0 0 (6,498) (6,498)

LFO Prelim-October 2015 4,742,502 (48,000) 0 0 (48,000)

LFO Prelim-February 2016 4,747,502 5,000 0 0 5,000

Sine Die-2016 Session 4,738,297 0 0 (9,205) (9,205)




FY2018-19

LFO Prelim-October 2014 4,955,000 -- -- -- --


LFO Prelim-April 2015 4,955,000 0 0 0 0

Sine Die-2015 Session 4,948,411 0 0 (6,589) (6,589)

LFO Prelim-October 2015 4,948,411 0 0 0 0


Sine Die-2016 Session 4,932,539 0 0 (15,872) (15,872)




* Adjusted to include amounts related to Amazon.com voluntary collection of sales tax

Historical General Fund Revenues From the numbers shown above, a simple percent change over the prior year can be calculated. While

these simple percent changes are appropriate when looking at the actual changes over time, they do not

represent what is commonly referred to as revenue growth. For purposes here, revenue growth means

the growth in revenues caused by economic activity and inflation as arrived at by adjusting for items such

as tax base and rate changes, legislation enacted, and one-time extraordinary items. The objective is to

measure underlying patterns of revenue growth ignoring such changes.

The average growth over the past 35 years is 4.9%. This revenue growth over time reflects the ebb and

flow of economic activity and economic cycles. It reflects new businesses created and existing

businesses that close. It reflects new products and services added to the tax base and existing products

and services that are eliminated or expire. The key is the net impact. The new or expanded businesses,

products or services more than offsets those that decline or disappear leaving a net overall increase

averaging a 4.9% growth.

Table 9 Actual and Projected General Fund Revenues

Sales and Individual Corporate Miscellaneous Total Net Adjusted

Fiscal Year Use Tax Income Tax Income Tax Taxes and

Fees

Receipts Growth

FY 1995-96 711,008,684 846,550,249 126,801,468 152,380,385 1,836,740,786 7.0% FY 1996-97 755,907,807 944,117,130 137,337,967 172,241,113 2,009,604,017 8.5%

FY 1997-98 803,805,374 981,643,795 142,150,133 177,852,119 2,105,451,422 8.0%

FY 1998-99 744,650,752 1,078,522,994 135,033,658 165,661,901 2,123,869,305 6.7%

FY 1999-00 900,427,469 1,180,363,301 140,021,942 183,111,959 2,403,924,670 7.4%

FY 2000-01 905,023,176 1,233,363,553 138,040,082 180,435,044 2,456,861,855 2.9%

FY 2001-02 918,889,782 1,159,810,647 107,628,074 179,180,246 2,365,508,749 -3.0%

FY 2002-03 1,028,931,065 1,129,421,651 111,597,405 186,449,714 2,456,399,835 -0.5%

FY 2003-04 1,114,374,321 1,249,890,025 167,429,431 187,033,230 2,718,727,007 8.3%

FY 2004-05 1,231,011,089 1,400,076,680 198,380,442 207,726,086 3,037,194,297 9.5%

FY 2005-06 1,263,678,691 1,545,338,061 262,295,456 280,875,316 3,352,187,524 9.9%

FY 2006-07 1,303,826,416 1,650,895,394 213,027,010 240,582,953 3,408,331,773 7.3%

FY 2007-08 1,321,867,139 1,726,145,405 232,851,654 225,298,373 3,506,162,571 7.7%

FY 2008-09 1,326,161,017 1,600,418,236 198,483,786 232,405,148 3,357,468,187 -4.4%

FY 2009-10 1,289,796,877 1,514,830,114 154,332,137 245,720,545 3,204,679,673 -4.8%

FY 2010-11 1,372,784,033 1,735,208,600 154,944,966 236,717,493 3,499,655,092 9.4%

FY 2011-12 1,436,909,373 1,822,884,254 234,266,237 201,828,916 3,695,888,780 5.9%

FY 2012-13 1,474,942,641 2,101,912,041 275,562,990 199,940,938 4,052,358,610 7.2%

FY 2013-14 1,524,793,763 2,060,758,896 306,591,027 225,264,546 4,117,408,232 4.4%

FY 2014-15 1,535,419,516 2,205,463,903 346,477,378 217,738,529 4,305,099,326 6.2%

FY 2015-16 1,528,023,310 2,221,088,817 307,669,694 251,199,454 4,307,981,275 0.3%

FY 2016-17 NEFAB 1,570,000,000 2,290,000,000 235,000,000 220,000,000 4,315,000,000 1.3% FY 2017-18 NEFAB 1,645,000,000 2,425,000,000 265,000,000 180,000,000 4,515,000,000 5.0%

FY 2018-19 NEFAB 1,715,000,000 2,560,000,000 285,000,000 175,000,000 4,735,000,000 5.2%

FY 2019-20 LFO 1,812,000,000 2,725,000,000 310,000,000 192,000,000 5,039,000,000 5.9%

FY 2020-21 LFO 1,913,000,000 2,895,000,000 340,000,000 185,000,000 5,333,000,000 5.9%

AVG GROWTH:

Above Avg Years (23) 7.3% Below Avg Years (12) 1.0% Hist Average (35 yrs) 4.9%

General Fund Transfers-Out This area tabulates funds that are transferred from the General Fund to another fund within the state

treasury. These items have the same effect as an appropriation but are not expended as such and thus

are shown under the revenue category (see line 10 on the Financial Status).

Table 10 General Fund Transfers-Out

Excludes CRF Transfers FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21

Property Tax Credit Fund (202,000,000) (221,000,000) (221,000,000) (221,000,000) (221,000,000)

Water Resources Cash Fund (3,300,000) (3,300,000) (3,300,000) 0 0

Cultural Preservation Endowment Fund (750,000) 0 0 (500,000) (500,000)

Water Sustainability Fund (11,000,000) (10,670,000) (10,670,000) (11,000,000) (11,000,000)

Victim's Compensation Fund (50,000) 0 0 0 0

Total-General Fund Transfers-Out (217,100,000) (234,970,000) (234,970,000) (232,500,000) (232,500,000)

PROPERTY TAX CREDIT CASH FUND


Legislature. Based on the amount of funds available, monies are then allocated to counties by the ratio of

the real property valuation in the county to the real property valuation in the state. Counties then allocate

funds as credit to each tax payer again based on their proportionate value. Enacted in 2007, the amount

available for credits was $105 million in FY07-08, and $115 million in FY08-09 through FY13-14. During

the 2014 session, the FY14-15 amount was increased to $140 million. In the 2015 session, the credit

was increased by $64 million increase to a total of $204 million.






-5.0%

-3.5%

-2.0%

-0.5%

1.0%

2.5%

4.0%

5.5%

7.0%

8.5%

10.0%

11.5%

13.0%

82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21

General Fund Revenue Growth

Historical

Average

4.9%

(Adjusted for Tax Rate and Base Changes)



The General Fund transfer amounts shown here are $3 million less than the credit amount. This is

because the credit amount is funded through these General Fund transfers plus an estimated $3 million

from any interest that will be earned on the fund balance from the time of transfer to the time of

reimbursement payments to the counties, and credits calculated but unpaid relating to properties

receiving homestead exemptions.

WATER RESOURCES CASH FUND

These transfers were originally enacted by LB 701 (2007) for the purpose of (1) aiding compliance efforts

regarding the reduction of consumptive uses of water dealing with those natural resources districts which

are deemed over or fully appropriated or are bound by an interstate compact or decree; and (2) for a

statewide assessment of short- and long-term water management activities and funding needs that are

statutorily required. The bill included transfers of $2.7 million in both FY07-08 and FY08-09 and intent

language for a $2,700,000 General Fund transfer to occur annually from FY2009-10 through FY2018-19.

LB229 enacted during the 2011 Session increased this transfer amount from $2.7 million to $3.3 million

per year with no change in the FY2018-19 sunset. Under this current language the transfers are deleted

starting in FY2019-20.

NEBRASKA CULTURAL PRESERVATION ENDOWMENT FUND

The Cultural Preservation Endowment Fund was originally created in 1998 with a transfer of $5 million

from the General Fund. LB 1165 (2008) provided for an additional $5 million for the endowment fund

through a $1 million transfer from the Cash Reserve Fund and another $4 million from the General Fund

provided over a series of years. After multiple alterations of the fiscal year transfers, the final transfers,

which averaged $500,000 were scheduled to expire at the end of FY2016-17. LB957 (2016) extends the

transfers at $500,000 per year starting in FY2017-18 through FY2026-27.

The Appropriations Committee Preliminary Budget proposes to not do the transfers for the two years of

the current biennium, but extend the transfers another two years through FY2028-29.

WATER SUSTAINABILITY FUND

This fund was created through LB906 passed in the 2014 session. Monies for the fund came from

General Fund transfers; $21,000,000 in FY2014-15. Of this transfer, $10,000,000 is considered one-time

as it was financed by a like transfer from the Cash Reserve Fund to the General Fund. Intent language

was include that $11,000,000 General Funds be transferred to the Water Sustainability Fund in each

fiscal year beginning in FY2015-16. The Appropriations Committee proposed budget includes the

transfer at $10,670,000 for FY18 and FY19, a 3% reduction as included in the Governors

recommendation.

General Fund Transfers-In Cash funds are funds which contain earmarked revenue sources and monies in those funds can only be

used for the purposes authorized by statute. In many instances (since the 2009 special session) an

authorized use of monies in a cash fund is transfers to the General Fund at the discretion of the

Legislature. For accounting purposes, these are shown as “Transfers in” and are included as General

Fund revenues. Such transfers for the current year (FY2016-17) and proposed biennial budget are

shown in Table 11. The transfers shown for FY2016-17 were enacted in the 2015 and 2016 legislative

sessions and are already incorporated into the “Net Receipts” figures of the NEFAB forecasts

All the transfers shown for FY2017-18 and FY2018-19 are new transfers included in the Appropriations

Committee proposed budget. About 60% of all the cash fund transfers were included in the Governors

recommendation, $72.9 million in FY18 and $51.2 million in FY19. The difference was that in the

Governors recommendation, $21.6 million of transfers were in FY2016-17 as part of the early deficit

adjustments. The committee delayed these transfers and added them to the FY2017-18 amounts.

The committee also included $83.4 of additional cash fund transfers, $43.7 million in FY17-18 and $39.8

million in FY18-19. Many of these require statutory authorization including $30 million from the Roads

Operations Fund, $20 million from the Medicaid Intergovernmental Transfer Trust Fund (related to the

Health Care Cash Fund), and $9 million from the Game & Parks Capital Maintenance Fund.

Table 11 General Fund Transfers-In

FY16-17 FY17-18 FY18-19 FY19-20 FY20-21

Securities Act Cash Fund 30,000,000 30,000,000 32,000,000 0 0

Tobacco Products Admin Cash Fund 10,000,000 11,000,000 10,000,000 0 0

Dept of Insurance Cash Fund 8,250,000 8,250,000 9,250,000 0 0

Severance Tax Admin Cash Fund (2) 100,000 0 0 0 0

Job Training Cash Fund 250,000 0 0 0 0

Records Management Cash Fund 0 530,000 356,000 0 0

Uniform Commercial Code Cash Fund 0 1,000,000 0 0 0

Medicaid Fraud Control Unit Cash Fund 0 500,000 0 0 0

State Settlement Cash Fund (3) 0 750,000 750,000 0 0

Enhanced Wireless 911 Fund (3) (4) 0 300,000 300,000 0 0

Universal Services Fund (3) (4) 0 700,000 700,000

Treasury Management Cash Fund 0 150,000 0 0 0

Life Insurance Demutualization Trust Fund 0 400,000 0 0 0

Charitable Gaming Operations Fund 0 2,800,000 800,000 0 0

State Athletic Commissioner's Cash Fund 0 200,000 0 0 0

Energy Conservation Improvement Fund 0 12,730 0 0 0

Marijuana & Controlled Substances Admin. Fund 0 25,000 0 0 0

Revenue Enforcement Fund 0 200,000 0 0 0

Property Assessment Cash Fund 0 50,000 0 0 0

Motor Fuel Tax Enforcement & Collection Fund 0 1,200,000 0 0 0

Mechanical Safety Inspection Fund (3) 0 150,000 0 0 0

Boiler Inspection Cash Fund (3) 0 150,000 0 0 0

Contractor & Professional Employer Org. Reg. (3) 0 1,700,000 0 0 0

Dept. of Motor Vehicles Cash Fund 0 1,000,000 0 0 0

Dept. of Motor Vehicles Ignition Interlock Fund 200,000 400,000 150,000 0 0

DHHS Cash Fund (Wholesale Drug Distributors) 0 3,700,000 0 0 0

DHHS Cash Fund (Cancer Research Fund) 0 7,000,000 0 0 0

DHHS Cash (False Medicaid Claims Act) 0 1,200,000 0 0 0

Medicaid Intergovernmental Transfer Trust Fund (3) 0 10,000,000 10,000,000 0 0

Roads Operations Cash Fund (3) 0 15,000,000 15,000,000 0 0

Veteran Cemetery Construction Fund 0 97,000 0 0 0

Nebraska Snowmobile Trail Cash Fund 0 79,121 0 0 0

Game & Parks Capital Maintenance Fund (3) 0 4,500,000 4,500,000 0 0

Racing Commission's Cash Fund 0 150,000 0 0 0

Workers Compensation Court Cash Fund (3) 0 1,500,000 0 0 0

Brand Committee Cash Fund (3) 0 100,000 0 0 0

Nebr Motor Vehicle Industry Licensing Fund (3) 0 500,000 0 0 0

State Real Estate Commission's Fund (3) 0 200,000 200,000 0 0

Engineers and Architects Registration Cash Fund (3) 0 300,000 0 0 0

Metropolitan Class Development Fund 0 22,427 0 0 0

Primary Class Development Fund 0 14,825 0 0 0

Building Renewal Allocation Fund (3) 0 783,667 200,000 0 0

FY16-17 FY17-18 FY18-19 FY19-20 FY20-21

State Building Renewal Assessment Fund 0 4,067,333 2,900,000 0 0

Resource Recovery Cash Fund 0 100,000 0 0 0

Clean‐burning Motor Fuel Development Fund 0 200,000 0 0 0

Affordable Housing Trust Fund 0 2,250,000 2,250,000 0 0

Civic and Community Center Fund 0 500,000 500,000 0 0

Waste Reduction and Recycling Incentive Fund 0 900,000 400,000 0 0

Nebr Litter Reduction & Recycling Cash Fund (3) 0 700,000 200,000 0 0

Petroleum Release Remedial Action Cash Fund 0 1,200,000 500,000 0 0

Legal Education for Public Service Loans Fund 0 95,000 0 0 0

Total General Fund Transfers-In 48,000,000 116,627,103 90,956,000 0 0

(1) FY2016-17 amounts enacted in the 2015 and 2016 Session and are already included in the revenue forecast

(2) Reduce from $150,000 to $100,000, 2017 Session

(3) Require statutory authorization language

(4) Transfer is the amount of investment income earned from the funds, dollars shown are estimates

GENERAL FUND APPROPRIATIONS

General Fund Overview

Table 12 contains a summary of the Appropriations Committee proposed General Fund budget for the

FY2017-18 and FY2018-19 biennium. Subsequent sections of this report contain a more detailed

explanation of the various increases and reductions which are included in the totals shown below. The

numbers in the Committee proposed budget are the net result of over 330 individual issues which reflect

both increases to and reductions from the current year appropriation. The average spending growth for

the two years of the biennium is 1.0%.

Table 12 Appropriations Committee Proposed General Fund Budget

Committee Proposed Change over Prior Yr Change over Prior Yr % of

w/o Deficits Committee Budget FY17-18 (w/o deficits) FY18-19 (w/o deficits) 2 Yr Avg Total

FY2016-17 FY2017-18 FY2018-19 $ % $ % % Change FY17-18

Agency Operations

University & State /Colleges 635,472,980 625,872,980 635,872,980 (9,600,000) -1.5% 10,000,000 1.6% 0.0% 14.1%

Health & Human Services System 262,140,415 261,981,780 266,646,606 (158,635) -0.1% 4,664,826 1.8% 0.9% 5.9%

Correctional Services 204,158,501 207,907,950 212,422,262 3,749,449 1.8% 4,514,312 2.2% 2.0% 4.7%

Courts 179,806,832 185,235,781 190,520,542 5,428,949 3.0% 5,284,761 2.9% 2.9% 4.2%

State Patrol 60,113,441 61,353,850 61,849,342 1,240,409 2.1% 495,492 0.8% 1.4% 1.4%

Revenue 27,551,068 27,209,016 27,447,549 (342,052) -1.2% 238,533 0.9% -0.2% 0.6%

Retirement Board 47,303,239 48,588,600 52,179,000 1,285,361 2.7% 3,590,400 7.4% 5.0% 1.1%

Other 40 Agencies 164,113,227 158,864,762 160,788,784 (5,248,465) -3.2% 1,924,022 1.2% -1.0% 3.6%____________ ____________ ____________ _________________ _________________ ______ ________

Total-GF Operations 1,580,659,703 1,577,014,719 1,607,727,065 (3,644,984) -0.2% 30,712,346 1.9% 0.9% 35.6%

State Aid to Individuals/Others

Medicaid 850,259,344 844,875,774 849,034,547 (5,383,570) -0.6% 4,158,773 0.5% -0.1% 19.1%

Child Welfare Aid 160,193,618 165,108,214 165,108,214 4,914,596 3.1% 0 0.0% 1.5% 3.7%

Public Assistance 108,094,067 108,094,067 108,094,067 0 0.0% 0 0.0% 0.0% 2.4%

Developmental disabilities aid 150,667,981 152,452,372 151,315,794 1,784,391 1.2% (1,136,578) -0.7% 0.2% 3.4%

Behavioral Health aid 73,844,769 73,429,873 73,429,873 (414,896) -0.6% 0 0.0% -0.3% 1.7%

Childrens Health Insurance (SCHIP) 6,440,394 6,163,940 6,208,871 (276,454) -4.3% 44,931 0.7% -1.8% 0.1%

Aging Programs 10,449,701 10,449,701 10,449,701 0 0.0% 0 0.0% 0.0% 0.2%

Higher Ed Student Aid programs 7,853,156 7,853,156 7,853,156 0 0.0% 0 0.0% 0.0% 0.2%

Public Health Aid 6,917,612 6,192,491 6,192,491 (725,121) -10.5% 0 0.0% -5.4% 0.1%

Business Innovation Act 6,760,000 6,221,200 6,221,200 (538,800) -8.0% 0 0.0% -4.1% 0.1%

Community health centers 5,783,060 5,783,060 5,783,060 0 0.0% 0 0.0% 0.0% 0.1%

All Other Aid to Individuals/Other 11,256,968 10,541,398 10,581,588 (715,570) -6.4% 40,190 0.4% -3.0% 0.2%____________ ____________ ____________ _________________ _________________ ______ ________

Total-GF Aid to Individuals/Other 1,398,520,670 1,397,165,246 1,400,272,562 (1,355,424) -0.1% 3,107,316 0.2% 0.1% 31.6%

State Aid to Local Govts

State Aid to Schools (TEEOSA) 952,153,581 970,011,577 996,731,953 17,857,996 1.9% 26,720,376 2.8% 2.3% 21.9%

Special Education 222,063,117 224,283,748 226,526,585 2,220,631 1.0% 2,242,837 1.0% 1.0% 5.1%

Property Tax Credit Transfer Transfer Transfer -- -- -- -- -- --

Aid to Community Colleges 100,828,308 100,828,308 99,828,308 0 0.0% (1,000,000) -1.0% -0.5% 2.3%

Homestead Exemption 72,515,000 78,200,000 81,000,000 5,685,000 7.8% 2,800,000 3.6% 5.7% 1.8%

Personal Property Tax Relief Act 19,600,000 15,200,000 16,200,000 (4,400,000) -- 1,000,000 100.0% -9.1% 0.3%

Aid to ESU's 14,051,761 13,630,208 13,630,208 (421,553) -3.0% 0 0.0% -1.5% 0.3%

High ability learner programs 2,342,962 2,342,962 2,342,962 0 0.0% 0 0.0% 0.0% 0.1%

Early Childhood programs 8,770,164 8,619,357 8,619,357 (150,807) -1.7% 0 0.0% -0.9% 0.2%

Community Based Juvenile Services 6,300,000 6,300,000 6,300,000 0 0.0% 0 0.0% 0.0% 0.1%

Resources Development Fund 3,140,325 3,140,325 3,140,325 0 0.0% 0 0.0% 0.0% 0.1%

Other Aid to Local Govt 8,506,246 5,461,250 5,461,250 (3,044,996) -35.8% 0 0.0% -19.9% 0.1%____________ ____________ ____________ _________________ _________________ ______ ________

Total-GF Aid to Local Govt 1,410,271,464 1,428,017,735 1,459,780,948 17,746,271 1.3% 31,763,213 2.2% 1.7% 32.3%

Capital Construction 22,239,000 21,834,000 32,801,790 (405,000) -1.8% 10,967,790 50.2% 21.4% 0.5%

Total Appropriations 4,411,690,837 4,424,031,700 4,500,582,365 12,340,863 0.3% 76,550,665 1.7% 1.0% 100.0%

AGENCY OPERATIONS

This area accounts for the costs of actually operating state agencies including costs such as employee

salaries and benefits, data processing, utilities, vehicle and equipment purchases, fuel and oil, etc... In

the FY2017-18 proposed budget, 35.8% of all General Fund appropriations are for agency operations.

Although there are 47 state agencies that receive General Fund appropriations, higher education

(University of Nebraska and State Colleges) and the six largest agencies (Health and Human Services,

Corrections, Courts, State Patrol,

Revenue, and Retirement Board)

account for 90% of state operations.

Note that all of the General Funds for

the Retirement Board are actually state

contributions for the K-12 School

employee retirement plan. They are not

shown under aid to local governments

as the monies are placed directly into

the retirement fund and are not actually

paid to a school district.

General Funds for agency operations shows a net $3.6 million reduction (-0.2%) in FY17-18 and a $30.7

million increase (1.9%) in FY18-19. The most significant increases in operations in FY17-18 are $3.8

million for additional staffing and programming in the Dept. of Correctional Services, $4.2 million for

additional probation funding as called for in LB605-Justice Reinvestment Act, $3.2 million to provide on-

going base funding for the special pay adjustments certain Correctional Services staff in December 2016,

and $5.8 million for two DHHS computer system projects. The budget also includes, $6.4 million for a

1.0% salary increase for state employees, and $4.9 million for a 5.75% increase in health insurance for

state employees

These increases were offset by several reductions including $11.6 million of individual modification

reductions in 31 different agencies, a $10.0 million reduction in support for the University of Nebraska,

and a $9.7 million reduction in base funding needs for the Beatrice State Development (BSDC) of which

$2.4 million was reallocated to other DHHS programs. Other major operations items include a $4.6

million reduction in the Dept. of Correctional Services to remove the funding for housing inmates in county

jails considered one-time pending longer term solutions to the overcrowding issue.

The larger increase in FY18-19 reflects the fact that most budget reductions in the FY18 base remain at

the same level while the base reduction in the University was reduced to -$3.0 million. Additional funds

Agency Operations

35.6%

Aid to Individuals

31.6%

Aid to Local Govt

32.3%

Const.0.5%

By Major CategoryFY2017-18

University & State Colleges39.7%

DHHS16.6%

Corrections13.2%

Courts11.7%State Patrol

3.9%Revenue

1.7%

Retirement Board3.1%

Other 40 Agencies10.1%

General Fund Operations

FY2017-18

are provided for second year salary and health insurance costs ($4.0 million and $5.1 million respectively,

Correctional Services staffing and programming (additional $1.4 million), and continued phase-in of

LB605-Justice Reinvestment Act (additional $2.9 million.

STATE AID TO INDIVIDUALS / OTHERS

This area also shows a small net reduction of $1.3

million (-0.1%) in FY2017-18. Increases in eligibility

and utilization in DHHS aid programs ($18.9 million)

are mostly offset by $15.4 million savings due to an

increase in the Federal Medical Assistance

Percentage (FMAP). A large increase of $11.5

million is included in each year for Child Welfare as

a base adjustment and to cover increases in the

Nebraska Families Collaborative (NFC)

No increases were included for DHHS

provider rates. In the Medicaid Program

hospitals, physicians, and

reimbursements for items such as durable

medical equipment, hearing and

prosthetics are cut by 3% percent in FY18

resulting in an overall $12.4 million

reduction in FY2017-18. All other

providers are held flat including nursing

homes. Child welfare providers of

congregate care, drug testing and family

support services are held flat as well as all others. Similarly, providers of developmental disabilities

services and the behavioral health regions are also held flat.

Other significant increases include annualizing two Medicaid deficits for Medicare Part B premiums ($5.7

million) and federal clawback provisions ($4.4 million). These are partially offset by two reductions in

Medicaid related to managed care savings on avoidable episodes of care (-$6.1 million) and increased

drug rebates (-$2.3 million). The committee also included two reductions in the child welfare program;

reduce contracts for 50% of relative and kinship foster care (-$4,516,875) and shift funding for post-

adoption services (Right Turn) contract from General Funds to TANF Federal Funds

STATE AID TO LOCAL GOVERNMENTS

Aid to local governments is the only category with a net increase in FY2017-18, $17.7 million (1.3%) and

another $31.7 million (2.2%) increase in FY2018-19. This does not include the almost 10% increase in

funds for the Property Tax Credit program which are accounted for as General Fund transfers-out and

then subsequently a cash fund appropriation.

Because TEEOSA school aid accounts for 69% of all aid to local governments, TEEOSA also significantly

influences the growth rate in this category. The committee budget includes funding for state aid to

schools (TEEOSA) based on proposed changes contained in LB409 (with AM474). The overall net

change in total TEEOSA aid is an increase of $20.6 million (2.1%) in FY2017-18 followed by a $26.8

million (2.7%) increase in FY18-19. The General Fund amounts (excluding the amount financed by

allocated Insurance Premium Tax monies and lottery funds for reorganization incentives) reflect a $17.9

million (1.9%) increase in FY17-18 followed by a $26.7 million (2.8%) increase in FY18-19.

Medicaid61.7%

Child Welfare Aid12.1%

Public Assistance7.9%

Developmental disabilities11.1%

Behavioral health5.4%

All Other1.8%

General Fund Aid to Individuals

FY2017-18

The budget also provides for a 1% per year increase in Special Education ($2.2 million each year).

Funding for Community College aid was held

flat for the first year but a $1 million reduction in

FY2018-19.

Homestead Exemption reimbursement and the

Personal Property Tax Relief act are both

based on estimated funding required under

current law taking into consideration actual

FY16-17 funding needs inflated into the next

two. This results in a $5.7 million increase in

Homestead exemption reimbursements and a

$4.4 million reduction in funding for the

Personal Property Tax Relief act.

CAPITAL CONSTRUCTION

Virtually all of the General Funds included in the committee budget for capital construction are to cover

the dollar amounts needed to complete funding of projects approved in previous sessions, commonly

referred to as reaffirmations. There is virtually no change in FY2017-18 relative to the FY2016-17 base

budget. The $10.6 million increase in FY2018-19 is attributed to the State Capitol HVAC project.

With respect to new construction, the Governor and Appropriation Committee included funding for Phase

1 of the Reception and Treatment Center (RTC) project under the Dept. of Correctional Services. This

$75 million project, financed with a Cash Reserve Fund transfer to the Nebraska Capital Construction

Fund, will combine the Diagnostic and Evaluation Center (DEC) and the Lincoln Correctional Center

(LCC) into one facility currently known as the Reception and Treatment Center (RTC).

Phase One will expand and/or renovate core support function portions of DEC and LCC to better meet

the operational requirements of an inmate population of 1371. It will add 124,236 gross square feet for

the following areas: Public Lobby, Administration, Staff Support, Custody Operations, Visitation, Intake

and Release, Outpatient Medical/Mental Health (Health Clinic), Medical and Mental Health Housing, and

Food Service. The RTC also prepares the secure perimeter and infrastructure to be scaled up for future

growth needs.

In Phase One, 64 additional medical and behavior health housing beds will be built. The most critical

health care bed needs are for skilled nursing and acuity-related medical beds, including isolation, hospice

and skilled nursing for chronically, seriously ill inmates who cannot be treated at a lower level of care, and

secure behavior health.

TEEOSA School Aid

69%

Special Ed16%

Community Colleges

7%Homestead Exemption

6%

All Other2%

General Fund Aid to Local Govt FY2017-18

Historical General Fund Appropriations While the previous sections provide an overview of the FY2017-18 and FY2018-19 General Fund biennial

budget, Table 13 provides an historical perspective showing appropriations for the twenty year period

FY1997-98 through the proposed budget for FY2017-18 by major area. Average spending growth over

the 20 year period is 4.1%. Aid for developmental disabilities and Child Welfare have two of the largest

average growth over the 20 year period.

Table 14 provides a breakdown by year of General Fund appropriations for the past by major category

and percent changes by year and biennial budget.

Table 13 Breakdown of General Fund Appropriations – Last 20 Years

Avg %

New Approp New Approp Proposed 20 Yr

APPROPRIATIONS FY1997-98 FY2007-08 FY2017-18 98 to 18

AGENCY OPERATIONS

University + Colleges 371,935,365 515,872,239 625,872,980 2.6%

Health & Human Services System 136,405,504 212,029,026 261,981,780 3.3%

Correctional Services 72,647,583 142,067,755 207,907,950 5.4%

Court System (includes probation) 41,964,631 65,212,791 185,235,781 7.7%

State Patrol 28,264,733 49,848,038 61,353,850 4.0%

Retirement Board 13,936,501 19,140,688 48,588,600 6.4%

Revenue 19,447,203 23,659,757 27,209,016 1.7%

Other 40 Agencies 96,996,142 144,934,023 158,864,762 2.5%__________ __________ __________ ________

Total-GF Operations 781,597,662 1,172,764,317 1,577,014,719 3.6%

AID TO INDIVIDUALS

Medicaid 277,655,356 576,715,481 844,875,774 5.7%

Child Welfare aid 43,661,180 140,646,255 165,108,214 6.9%

Public Assistance 62,386,693 93,406,432 108,094,067 2.8%

Developmental disabilities 35,708,981 66,634,494 152,452,372 7.5%

Behavioral Health aid 20,855,090 60,328,781 73,429,873 6.5%

Childrens Health Insurance (CHIP) 0 10,826,659 6,163,940 na

Public Health Aid and health centers 1,841,372 7,469,700 11,975,551 9.8%

Aging programs 3,566,761 6,497,868 10,449,701 5.5%

Higher Ed Student Aid 3,727,933 6,766,815 7,853,156 3.8%

Business Innovation Act 0 0 6,221,200 na

Other Aid to Individuals/Other 11,835,568 9,234,190 10,541,398 -0.6%__________ __________ __________ ________

Total-State Aid to Ind/Other 461,238,934 978,526,675 1,397,165,246 5.7%

AID TO LOCAL GOVT

State Aid to Education (TEEOSA) 454,273,986 753,555,548 970,011,577 3.9%

Special Education 124,965,414 179,508,584 224,283,748 3.0%

Property Tax Credit 0 Transfer Transfer --

Aid to Community Colleges 39,164,305 84,066,476 100,828,308 4.8%

Homestead Exemption 36,588,232 70,056,960 78,200,000 3.9%

Personal Property Tax Relief Act 0 0 15,200,000 na

Aid to ESU's 0 11,362,638 13,630,208 na

Aid to Cities 17,631,500 11,257,193 0 -100.0%

Aid to Counties (all programs) 13,297,500 10,375,866 0 -100.0%

Early Childhood+High Ability Learner 560,000 5,963,188 10,962,319 16.0%

Community Based Juvenile Services 0 1,492,500 6,300,000 na

Other Aid to Local Govt 9,199,358 18,620,196 8,601,575 -0.3%__________ __________ __________ ________

Total-GF State Aid to Local Govt 695,680,295 1,146,259,149 1,428,017,735 3.7%

CAPITAL CONSTRUCTION 41,250,742 8,150,822 21,834,000 -3.1%__________ __________ __________ ________

GENERAL FUND TOTAL 1,979,767,633 3,305,700,963 4,424,031,700 4.1%

Table 14 Historical General Fund Appropriations

Agency Aid to Aid to %

(Excludes deficits) Operations Individuals Local Govt Construction Total Change

FY1997-98 Approp 781,597,662 461,238,934 695,680,295 41,250,742 1,979,767,633 5.0% FY1998-99 Approp 818,104,542 489,445,789 860,034,724 60,994,066 2,228,579,121 12.6%

FY1999-00 Approp 877,214,679 523,395,392 868,657,713 54,676,163 2,323,943,947 4.3% FY2000-01 Approp 928,262,744 598,336,773 885,742,858 46,446,858 2,458,789,233 5.8%

FY2001-02 Approp 989,205,923 646,333,088 944,027,473 27,384,852 2,606,951,336 6.0% FY2002-03 Approp 1,003,728,744 647,793,727 951,729,511 18,044,257 2,621,296,239 0.6%

FY2003-04 Approp 999,655,261 705,616,238 929,503,078 20,515,031 2,655,289,608 1.3% FY2004-05 Approp 1,018,017,210 785,572,536 935,446,662 19,046,316 2,758,082,724 3.9%

FY2005-06 Approp 1,079,894,592 850,904,771 1,018,289,225 23,350,481 2,972,439,069 7.8% FY2006-07 Approp 1,151,463,639 938,524,594 1,058,983,563 31,878,981 3,180,850,777 7.0%

FY2007-08 Approp 1,172,764,317 978,026,675 1,146,759,149 8,150,822 3,305,700,963 3.9% FY2008-09 Approp 1,221,557,978 1,015,815,632 1,236,048,810 8,238,322 3,481,660,742 5.3%

FY2009-10 Approp 1,210,527,988 880,256,943 1,220,339,540 14,172,233 3,325,296,704 -4.5% FY2010-11 Approp 1,253,663,584 946,598,966 1,191,036,509 13,802,233 3,405,101,292 2.4%

FY2011-12 Approp 1,225,276,661 1,057,283,733 1,173,944,302 14,027,233 3,470,531,929 1.9% FY2012-13 Approp 1,259,610,962 1,135,669,688 1,216,370,872 20,772,233 3,632,423,755 4.7%



FY2017-18 Proposed 1,577,014,719 1,397,165,246 1,428,017,735 21,834,000 4,424,031,700 0.3%

FY2018-19 Proposed 1,607,727,065 1,400,272,562 1,459,780,948 32,801,790 4,500,582,365 1.7%

Average Annual Growth

FY08 / FY09 Biennium 3.0% 4.0% 8.0% -49.2% 4.6% FY10 / FY11 Biennium 1.3% -3.5% -1.8% 29.4% -1.1% FY12 / FY13 Biennium 0.2% 9.5% 1.1% 22.7% 3.3% FY14 / FY15 Biennium 6.5% 7.2% 5.2% 12.8% 6.3% FY16 / FY17 Biennium 5.2% 3.5% 2.4% -8.3% 3.7%

FY08 / FY09 Biennium 3.0% 4.0% 8.0% -49.2% 4.6%

FY18/FY19 Biennium 0.9% 0.1% 1.7% 21.4% 1.0% Avg FY99 to FY09 (10 yr) 4.1% 7.6% 3.7% -18.1% 4.6%

Avg FY09 to FY19 (10 yr) 2.8% 3.4% 1.7% 14.8% 2.7%

Avg FY99 to FY19 (20 yr) 3.5% 5.5% 2.7% -3.1% 3.6%

-5.0%

-3.0%

-1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

11.0%

13.0%

99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

General Fund Budget Growth - Past 20 Years

20 Yr Average

Significant General Fund

Increases and Reductions

The FY2017-18 / FY2018-19 proposed budget represents the result of numerous areas where the budget

was increased, offset to some extent by areas that were reduced. There were over 330 individual issues

plus three items that affected all agencies and programs including salary and health insurance increases.

In terms of using available General Funds, one of the single largest items is not on the list. The

Committee included an additional $20 million each year, $40 million two year total, for the Property Tax

Credit program per LB958 passed in the 2016 legislative session. For accounting purposes this is shown

as a transfer-out not a General Fund expenditure.

Table 15 Significant General Fund Increases / Reductions In Rank Order

Committee Proposed

Numbers are $ change compared to FY17 base FY2017-18 FY2018-19 Two Yr total

1 SIGNIFICANT INCREASES:

2 TEEOSA Aid to Schools (General Funds only) 17,857,996 44,578,372 62,436,368

3 Medicaid (other than FMAP) 7,332,814 28,268,148 35,600,962

4 Salaries & Health Insurance (Agencies) 11,433,705 20,708,152 32,141,857

5 Staffing, programs, equipment (Corrections) 6,965,917 8,401,575 15,367,492

6 Homestead Exemption 5,685,000 8,485,000 14,170,000

7 Information technology projects (DHHS) 5,816,448 7,816,448 13,632,896

8 Justice Reinvestment Act (Courts) 4,240,517 7,126,150 11,366,667

9 Capital Construction (405,000) 10,562,790 10,157,790

10 Child Welfare aid (other than FMAP) 4,914,596 4,914,596 9,829,192

11 Developmental Disability aid (other than FMAP) 4,036,415 5,813,933 9,850,348

12 Special Education 2,220,631 4,463,468 6,684,099

13 Retirement, K-12 School / Judges / Patrol 1,285,361 4,875,761 6,161,122

14 Specific Items (University) 400,000 3,400,000 3,800,000

15 YRTC staffing (DHHS) 1,412,624 1,446,528 2,859,152

16 Open 5th Unit, Norfolk Sex Offender Treatment (DHHS) 683,638 1,022,261 1,705,899 __________ ____________ ____________

17 Subtotal-Increases Listed 74,747,062 165,760,745 240,507,807

18 SIGNIFICANT REDUCTIONS:

19 Federal Medicaid Match rate (op & aid) (15,413,204) (35,229,686) (50,642,890)

20 Budget Reductions not specifically listed (State Agencies) (12,326,820) (12,335,514) (24,662,334)

21 Reduction & rightsizing net of reallocations (DHHS-BSDC) (7,307,398) (7,307,398) (14,614,796)

22 General reduction (University) (10,000,000) (3,000,000) (13,000,000)

23 Use of county jail housing (Corrections) (4,607,147) (4,607,147) (9,214,294)

24 Personal Property Tax Relief Act (4,400,000) (3,400,000) (7,800,000)

25 Storm Water Management grants (1,824,996) (1,824,996) (3,649,992)

26 Funds shifts (DHHS) (1,601,139) (1,601,139) (3,202,278)

27 Interstate Water Litigation (Attorney General) (921,500) (921,500) (1,843,000)

28 Public/Community Health Aid (725,121) (725,121) (1,450,242)

29 Business Innovation Act (538,800) (538,800) (1,077,600)

30 IT Academy, eliminate funding (Education) (500,000) (500,000) (1,000,000)

31 Riparian Vegetation grants (Agriculture) (500,000) (500,000) (1,000,000)

32 Community Colleges 0 (1,000,000) (1,000,000) __________ ____________ ____________

33 Subtotal-Reductions Listed (61,238,485) (74,063,661) (135,302,146)

34 OTHER NOT LISTED (NET) (1,167,714) (2,805,556) (3,973,270)

35 TOTAL GENERAL FUND CHANGE 12,340,863 88,891,528 101,232,391

Table 16 Significant General Fund Increases / Reductions by Budget Category

Committee Proposed

Numbers are $ change compared to FY17 base FY2017-18 FY2018-19 Two Yr total

1 TEEOSA Aid to Schools 17,857,996 44,578,372 62,436,368

2 Special Education 2,220,631 4,463,468 6,684,099

3 Early Childhood grant program (150,807) (150,807) (301,614)

4 Aid to ESU's (421,553) (421,553) (843,106)

5 Master Teacher Program Aid (470,000) (470,000) (940,000)

6 Homestead Exemption 5,685,000 8,485,000 14,170,000

7 Personal Property Tax Relief Act (4,400,000) (3,400,000) (7,800,000)

8 Riparian Vegetation grants (Agriculture) (500,000) (500,000) (1,000,000)

9 Governors Emergency Fund (250,000) (250,000) (500,000)

10 Community Colleges 0 (1,000,000) (1,000,000)

11 Storm Water Management grants (1,824,996) (1,824,996) (3,649,992)

12 Other Not Listed (net) 0 0 0

13 AID TO LOCAL GOVERNMENTS 17,746,271 49,509,484 67,255,755

14 Medicaid (w/o SCHIP) (5,383,570) (1,224,797) (6,608,367)

15 Public Assistance 0 0 0

16 Child Welfare aid 4,914,596 4,914,596 9,829,192

17 Developmental Disability aid 1,784,391 647,813 2,432,204

18 Behavioral health aid (414,896) (414,896) (829,792)

19 Childrens Health Insurance (SCHIP) (276,454) (231,523) (507,977)

20 Public/Community Health Aid (725,121) (725,121) (1,450,242)

21 Aging programs 0 0 0

22 Nebr Water Conservation Fund (436,669) (436,669) (873,338)

23 Higher Ed Student aid programs 0 0 0

24 Business Innovation Act (538,800) (538,800) (1,077,600)

25 Tourism Marketing Assistance (250,000) (250,000) (500,000)

26 Other Not Listed (net) (164,810) (164,810) (329,620)

27 AID TO INDIVIDUALS / OTHER (1,355,424) 1,751,892 396,468

28 Salaries (State Agencies) 6,449,354 10,453,008 16,902,362

29 Health Insurance (State Agencies) 4,984,351 10,255,144 15,239,495

30 DAS related rates (State Agencies) 466,400 477,563 943,963

31 Budget Reductions not specifically listed (State Agencies) (12,326,820) (12,335,514) (24,662,334)

32 Annualize Justice Reinvestment Act (Courts) 4,240,517 7,126,150 11,366,667

33 Interstate Water Litigation (Attorney General) (921,500) (921,500) (1,843,000)

34 IT Academy, eliminate funding (Education) (500,000) (500,000) (1,000,000)

35 Funds shifts (DHHS) (1,601,139) (1,601,139) (3,202,278)

36 Open 5th Unit, Norfolk Sex Offender Treatment (DHHS) 683,638 1,022,261 1,705,899

37 FMAP-operations related (DHHS) (420,729) (530,184) (950,913)

37 Base reduction, rightsizing, reallocations (DHHS-BSDC) (9,723,154) (9,723,154) (19,446,308)

38 BSDC funds shifted to Prog 33, Bridges & DD issues 2,415,756 2,415,756 4,831,512

38 Information technology projects (DHHS) 5,816,448 7,816,448 13,632,896

39 YRTC staffing (DHHS) 1,412,624 1,446,528 2,859,152

40 Inmate per diem costs (Corrections) 0 0 0

41 Annualize FY17 special staff salaries (Corrections) 3,189,305 3,189,305 6,378,610

42 Staffing, security and health services (Corrections) 3,776,612 5,212,270 8,988,882

43 Use of county jail housing (Corrections) (4,607,147) (4,607,147) (9,214,294)

44 Net Change, base GF approp (Colleges) 0 0 0

45 Net Change, base GF approp (University) (10,000,000) (3,000,000) (13,000,000)

46 Specific Items (University) 400,000 3,400,000 3,800,000

47 Retirement, K-12 School / Judges / Patrol 1,285,361 4,875,761 6,161,122

48 Other Not Listed (net) 1,336,139 2,595,806 3,930,945

49 AGENCY OPERATIONS (3,644,984) 27,067,362 23,422,378

50 CAPITAL CONSTRUCTION (405,000) 10,562,790 10,157,790

51 TOTAL GENERAL FUND CHANGE (without deficits) 12,340,863 88,891,528 101,232,391

General Fund Aid to Individuals

Behavioral Health Aid

The Committee proposed budget for behavioral health aid shows a small overall reduction. This includes

no change in provider rates but several reduction issues.

Table 17 Behavioral Health Aid

Program 38-Behavioral Health aid Current Biennium Committee Proposed

(General Funds only) FY2015-16 FY2016-17 FY2017-18 FY2018-19

Base Year appropriation 67,444,214 67,444,214 73,844,769 73,844,769

Mental Health provider rates 2,081,958 4,205,555 0 0

ACA savings, insurance coverage Reapprop 2,500,000 0 0 Reduce, drugs for indigent persons (105,000) (105,000) 0 0 LB 911 systems of care plan, shift funds 0 (200,000) Reduce Family Navigator contracts 0 0 (93,582) (93,582) Reduce training contracts 0 0 (77,200) (77,200) Reduce vouchers through the rural hotline 0 0 (52,408) (52,408) Reduce Office of Consumer Affairs 0 0 (30,905) (30,905) Reduce Mental Health First ed activities 0 0 (10,000) (10,000)

Reduce Tribal Outpatient Contracts 0 0 (150,801) (150,801)

Total 69,421,172 73,844,769 73,429,873 73,429,873

$ Change over Prior Year 1,976,958 4,423,597 (414,896) 0

% Change over Prior Year 2.9% 6.4% -0.6% 0.0%

Provider Rates The committee proposed budget included no additional funds or reductions for

provider rates.

Reduce Family Navigator contracts The recommendation reduces contracts with providers of

family navigation services by about 10%. The Family Navigator Program was created in 2010 to respond

to children’s behavioral health needs. The program provides peer support connections to existing

behavioral health services to families, including the identification of community-based services. A

reduction in funding means families may be unable to access navigation services or have an increased

wait before assistance may be given. Approximately 33 families may be affected by this reduction

Reduce training contracts for behavioral health services The reduction represents a

25% decrease in training funds used by the Division of Behavioral Health to achieve strategic initiatives of

increasing accessibility, improving quality, increasing effectiveness, and increasing cost efficiency of

consumer services in the state.

Reduce vouchers for behavioral health services through the rural hotline Vouchers

provided to individuals seeking behavioral health services through the rural hotline coordinated by

Interchurch Ministries of Nebraska will be reduced. Individuals experiencing crises in rural settings use

the hotline to access, resources, information and referrals. If the initial screening indicates the caller may

benefit from services and is unable to afford services, then a voucher is provided to access evaluative

services. The person is connected with alternative services to assist with on-going treatment, if

necessary. Funding is decreased by about 25% for this program. It is estimated that about 175 – 200

persons may be impacted by the reduction.

Reduce Office of Consumer Affairs Contracts for recovery based activities by the Office of

Consumer Affairs are reduced. This decreases access to peer-led wellness and recovery supports. The

impact may include things such as increases in illnesses or hospitalizations for individuals who do not get

access to these tools, trainings, and events. The activities are created or run by peer oriented groups

such as the National Alliance on Mental Illness or League of Human Dignity

Reduce funding for Mental Health First educational activities Funding for Mental Health

First educational activities is reduced by 10%. The Legislature established the program in 2014 to provide

courses to help the public identify, understand and respond to signs of mental health or substance abuse

disorders before appropriate professional assistance or other supports as secured. The availability of the

courses is required by current law. Courses are provided for agencies and organizations, including

schools, universities, law enforcement, local health departments and other entities. The contracts to the

six behavioral health regions to provide the services will be reduced which will impact the availability of

courses statewide.

Reduce contracts with tribal providers of behavioral health services Funding for

contracts for outpatient services with providers who serve the four federally recognized tribal nations in

the state are reduced by about 12%. Approximately 80 to 100 individuals will not have access to

outpatient treatment. This will impact the availability of mental health and substance abuse evaluations

as well as on-going treatment to mitigate health risks to the individual and others.

Community Based Developmental Disabilities Aid

The Committee proposed budget includes a relatively small increase in developmental disability aid, 1.2%

increase in FY2017-18 and -0.7% in FY2018-19. This includes additional funds for the waiting list,

transfers from BSDC due to the closing of the Bridges program, and reductions in General funds

attributed to a higher Medicaid FMAP rate.

Table 18 Developmental Disability Aid

Program 424-Developmental Disability aid Current Biennium Committee Proposed


Base Year Appropriation 137,040,195 137,040,195 150,667,981 150,667,981

Provider Rates/Rate Equity 2,977,678 6,090,001 0 0

Transition 1,338,335 2,528,063 0 0

Waiting List 0 0 1,697,234 3,474,752

Fed match rate, Medicaid 4,188,878 4,496,184 (2,252,024) (5,166,120)

State Ward Permanency Pilot 0 500,000 0 0

Custody Act 0 0 302,042 302,042

Shift BSDC funds, Bridges and waiting list 0 0 2,037,139 2,037,139

Total - New Appropriation 145,556,246 150,660,905 152,452,372 151,315,794

$ Change over Prior Year 8,516,051 5,111,735 1,784,391 (1,136,578)

% Change over Prior Year 6.2% 3.5% 1.2% -0.7%

Waiting List / Transition The committee preliminary budget included $1,697,234 in FY17-18 and

$3,474,752 in FY18-19 for clients transitioning from K-12 school programs to community based programs.

LB 830 (1991) established an entitlement to services for persons with developmental disabilities who

graduate from high school or reach age 21. This provided funding for an estimated net additional 146

graduates in FY18 and 152 in FY 19. The general fund appropriation will be matched with $1,697,234 of

federal Medicaid waiver funds in FY18 and $3,825,147 in FY19.

The state can no longer receive federal Medicaid funds for this clientele if they are prioritized over other

individuals. LB 495 (pending in the 2017 session) repeals the entitlement to services for transitioning

students. The recommended funding was repurposed to serve individuals on the waiting list for

developmental disability services.

Provider Rates The committee proposed budget included no change for provider rates.

Transfer BSDC funds to serve six Bridges residents and clients on the waiting list Bridges, located in Hastings, is licensed as a community-based service which is operated by the state to

serve about twelve persons with developmental disabilities in three four-bedroom homes located adjacent

to the Hasting Regional Center. It has been determined that the program still functions similarly to an

institution, so it will no longer be in compliance with the Home and Community-based Services Final Rule.

HHS is closing the program at the end of the current fiscal year and transferring six residents to other

developmental disability community-based providers. Approximately $1,637,139 of general funds will be

expended to serve six current Bridges clients transferred from the state-operated program to community-

based services. An additional $400,000 is estimated to be available for 12 to 52 clients on the waiting list.

Federal Medicaid matching funds will also be available for services.

Federal Medicaid Match Rate (FMAP) Starting October 1, 2017 (FFY18) the Federal Medical

Assistance Program (FMAP) is increasing from 51.85% to 52.55%. The higher FMAP allows for a

reduction in General Fund appropriations of $2,252,024 in FY17-18 with a fully annualized savings of

$2,899,480 in FY18-19. Also FFY19 FMAP calculations done by Federal Funds Information for States

(FFIS) based on preliminary state personal income data shows the FMAP to increase to 53.50%. This

allows for an additional General Fund savings of $2,266,640 in FY18-19.

Custody Act The committee includes $302,042 General Funds in both FY18 and FY19 for increased

costs related to the custody act. The Developmental Disabilities Court Order Custody Act was passed in

2005 and first used in 2009. The act provides procedures for district court-ordered custody and treatment

for a person with developmental disabilities when the individual poses a threat of harm to others. HHS is

required to evaluate an individual when a petition is filed by the Attorney General or county attorney and

make recommendations for programming. If an individual is found to need court-ordered treatment, then

HHS pays for the treatment costs. The initial treatment plan cannot be for greater than one year. The

number of persons treated pursuant to the act is increasing each year. Ten persons were served in FY13;

11 in FY14; 13 in FY15; and, 16 in FY16. In December, 2016, there were 7 people waiting for evaluations.

The number of individuals served through the act is growing to the extent that normal attrition from DD

programs is not sufficient to handle the new population. The estimated total cost of services for persons

served via the act in the current year is $3,249,848 ($1,570,327 GF). The general fund appropriation will

be matched with $332,500 of federal Medicaid waiver funds each fiscal year.

Children’s Health Insurance Program (SCHIP)

This program provides medical coverage for children up to age 19 who do not have credible health

insurance and whose family income is below 200% of poverty. Funding for this program began in 1998

and had originally been funded through a one-time $25 million transfer from the Health Care Cash Fund.

Those funds were exhausted in FY2003-04. A combination of General Funds and a $5 million allocation

from the Health Care Cash fund offset the expiration of the original amounts.

The amount of General Funds appropriated for SCHIP declines by an average of 1.8% per year. The

reduction can be attributed to an increase in the federal match rate and small increases in rates and

eligibility and utilization.

Table 19 Childrens Health Insurance (SCHIP)

Program 344-SCHIP Current Biennium Committee Proposed


Base Year appropriation 27,560,027 27,560,027 6,440,394 6,440,394

Fed Medicaid match rate 1,596,943 1,609,188 (444,796) (570,621)

Utilization 333,708 1,680,221 168,342 339,098

Cost Increases 301,480 408,916 0 0

Affordable Care Act (ACA) enhanced FMAP (17,383,901) (23,712,590) 0 0

Physical Health Managed Care Expansion 0 (12,989) 0 0

LB 500 Medicaid plan, multi systemic therapy 0 129,516 0 0

Total - New Appropriation 12,408,257 6,440,394 6,163,940 6,208,871

$ Change over Prior Year (15,151,770) (5,967,863) (276,454) 44,931

% Change over Prior Year -55.0% -48.1% -4.3% 0.7%

Federal Medicaid Match Rate (FMAP) The Federal Medical Assistance Program (FMAP) is

increasing to 89.79% in FFY 18, up from 89.30% in FFY 17 in the Children’s Health Insurance Program

(CHIP). This allows for General Fund savings of $444,796 in FY18 and $570,621 in FY19 when fully

annualized. Due to the relatively low amount of General Funds, no adjustment was made for the

preliminary FFY19 FMAP change.

The Affordable Care Act (ACA) included a provision that increased the regular SCHIP match rate by 23

percentage points for FFY2015 to FFY2019. For example, the FFY17 match rate of 89.30% consists of

the basic match rate of 66.30% plus the enhanced match of 23%. This provision will expire during the

following biennium requiring an increase of $20 million in FY19-20 and an additional $6 million (annualize

at a full $26 million level) in FY20-21.

Eligibility and Utilization Increases The committee budget includes $168,342 in FY18 and

$339,098 in FY19 for projected increases in eligibility and utilization. Rates of growth used in calculating

these amounts were 1.5% each year for utilization based on historical utilization patterns. This also

includes a price increase of 4% per year for drug costs.

Provider Rates Provider rates are the same as for the Medicaid program.

Public Assistance

This budget area includes several different aid programs related to economic assistance, food, or special

services such as AFDC/TANF, child care, and SSI state supplement. Overall the proposed budget leaves

all programs at the FY16-17 base level with no adjustments for eligibility and utilization or provider rates.

Child care Under current law, the rates must be adjusted every odd number year to a level between

the 60th and 75th percentile based on a market rate survey. The market rates are established based on

factors of child care facility type, geographic area and types of service based on the age groups. Some

rates may exceed the 60th percentile and would not be adjusted. Only those below the 60th percentile

would be increased.

For this biennium, the proposed budget incorporates LB335 which delays implementation until 2019.

Provider Rates The committee proposed budget included no change for provider rates.

Table 20 Public Assistance by Program (General Funds Only)

Approp. Committee Proposed $ Change vs FY17 base

(General Funds only) FY2016-17 FY2017-18 FY2018-19 FY17-18 FY18-19

Birth Certificates 150,000 150,000 150,000 0 0

Tribal/TANF/MOE 460,908 460,908 460,908 0 0

Food stamp employment 20,000 20,000 20,000 0 0

Medically handicapped children 1,515,491 1,515,491 1,515,491 0 0

Disabled persons/family support 910,000 910,000 910,000 0 0

State Disability-Medical 3,666,035 3,666,035 3,666,035 0 0

State Disability-Maintenance 466,684 466,684 466,684 0 0

Title XX Social Services 6,821,370 6,821,370 6,821,370 0 0

State supplement (AABD) 8,570,485 8,570,485 8,570,485 0 0

AFDC / TANF 10,162,761 10,162,761 10,162,761 0 0

Title IV-D Child Care 71,212,431 71,212,431 71,212,431 0 0

Emergency Assistance 1,588,126 1,588,126 1,588,126 0 0

Employment First 2,549,776 2,549,776 2,549,776 0 0

Total Public Assistance (General Funds) 108,094,067 108,094,067 108,094,067 0 0

Child care provider rates (net) (to 60th percentile) 0 0

Other provider rates 0 0

Utilization/Eligibility/Cost Increases 0 0

Total Public Assistance (General Funds) 0 0

Child Welfare

This budget area includes many different social service programs relating to child welfare such as child

welfare services, educational assistance for state wards, foster care, and adoption assistance. Overall

the proposed budget reflects an increase of 3.1% in FY2017-18 ($4.9 million) and 0.0% increase in FY18-

19.

Table 21 Child Welfare by Program (General Funds Only)

Approp Committee Proposed $ Change vs FY17 base

(General Funds only) FY2016-17 FY2017-18 FY2018-19 FY17-18 FY18-19

Juvenile predisposition detention 0 0 0 0 0

Post-adoption and post-guardianship services 2,109,900 2,109,900 2,109,900 0 0 Protection and Safety of Children 1,886,507 1,886,507 1,886,507 0 0 Title IV-E Foster Care 7,104,958 7,104,958 7,104,958 0 0 Title IV-E Adoption 11,937,883 11,937,883 11,937,883 0 0 Title IV-E Guardianship 147,234 147,234 147,234 0 0 State subsidized adoption 6,499,040 6,499,040 6,499,040 0 0 Domestic Violence 1,533,736 1,533,736 1,533,736 0 0 Education Assistance, State Wards 17,540,376 17,540,376 17,540,376 0 0 Child Welfare Services 111,433,984 116,348,580 116,348,580 0 0

Total Child Welfare aid (General Funds) 160,193,618 165,108,214 165,108,214 4,914,596 4,914,596

Provider rates 0 0

Utilization/Eligibility/Cost Increases 0 0

Federal match rate change (FMAP) 0 0

Base Adjustment, NFC contract 11,500,000 11,500,000

Reduce contracts, relative/kinship foster care, shift to HHS. (4,516,875) (4,516,875)

Right Turn post-adoption contract, shift to fed funds. (2,068,529) (2,068,529)

Total Child Welfare aid (General Funds) 4,914,596 4,914,596

Child care As noted in the Public Assistance, area funds are included to increase child care provider

rates up to the 60th percentile. For this biennium, the proposed budget incorporates LB335 which delays

implementation until 2019.

Other Provider Rates The committee proposed budget included no additional funds or reductions

for provider rates.

Base Adjustment and NFC Contract The Eastern Service Area contract bid was awarded to

Nebraska Families Collaborative (NFC). The bid is $11.5 million higher than the amount in the base for

the contract.

Reduce contracts for relative and kinship foster care and shift to DHHS. This will

decrease by 50% referrals to child placing agencies to provide support to new relative and kinship foster

homes. State staff will assume the responsibilities for supporting the children placed in these homes.

Developing and maintaining a close relationship with relative and kinship foster homes through ongoing

support improves placement stability for foster children.

Contract reduction amounts to $4,516,875. Sixteen resource specialists will be added at a cost of

$740,560 GF each year. The net savings is $3,776,315 each year.

Shift the Right Turn contract.to federal funds General Fund support for the Right Turn post-

adoption, post-guardianship program is shifted to Temporary Assistance for Needy Families (TANF)

federal funding.

Medicaid

For the FY17-18/FY18-19 biennium the proposed budget reflects an average increase in General Fund

appropriations for Medicaid of 1.0% per year. Basic increases in eligibility and utilization and annualizing

deficits for Medicare Part B premiums and Clawback provisions where mostly offset by savings from a

higher federal Medicaid match rate and an overall net reduction in provider rates.

Federal match rate change (FMAP) The Federal Medical Assistance Percentage (FMAP) is the

share of Medicaid costs paid by the federal government. The FMAP is calculated based on a three-year

average of state per capita personal income compared to the national average. No state can receive less

than 50% or more than 83%.

The regular federal Medicaid match rate is changing from 51.85% to 52.55% beginning October 1, 2017.

This budget assumes that the FMAP will remain at this level throughout the biennium. General Fund

savings due to the higher FMAP amount to $12,716,384 in FY18 and $16,276,590 in FY19. %. Also

FFY19 FMAP calculations done by Federal Funds Information for States (FFIS) based on preliminary

state personal income data shows the FMAP to increase to 53.50%. This allows for an additional

General Fund savings of $13,216,355 in FY18-19.

Provider Rates Provider rates for inpatient and outpatient hospital services, physicians and other

providers such as case management are reduced by 3%. All other provider rates are held flat. Rate

reductions require Centers for Medicare and Medicaid Services (CMS) approval. CMS does not require

states to pay specific rates, but rates must ensure that its Medicaid payments are consistent with

efficiency, economy and quality of care and sufficient to ensure access. General Fund savings amount to

$12,404,494 in FY18 and FY19. No additional change in FY19.

Table 22 Medicaid (General Funds)

Current Biennium Committee Proposed

FY2013-14 FY2014-15 FY2015-16 FY2016-17 Base Year appropriation 777,723,897 777,723,897 850,259,344 850,259,344

Revised program cost estimates, base adjustment (22,000,000) (32,000,000) 0 0

Federal match rate (FMAP) 27,468,499 28,275,587 (12,716,384) (29,492,945)

Utilization 21,434,884 44,203,043 17,029,722 34,427,687

Cost Increases / Provider Rates 14,617,514 29,851,568 (12,404,494) (12,404,495)

Balancing Incentive Program (shifted to Prog 33) (2,629,187) (2,629,187) 0 0

Hepatitis C and Other Medication Impacts 1,800,000 1,800,000 0 0

Physical Health Managed Care Expansion 0 (89,576) 0 0

LB 72-2015 Reimburse liens, inheritance tax petitions (21,258) (21,258) 0 0

LB 243-2015 Create a pilot project, family finding services 9,871 16,216 0 0

LB 366-2015 Change personal needs allowance, Medicaid 347,687 421,802 0 0

LB 500-2015 Medicaid plan, multisystemic therapy 0 425,405 0 0

Shift GF from Spec Ed to Early Intervention LB276 0 2,526,847 0 0

MIPS operations, shift funds Prog 348 to 033 0 (245,000) 0 0

Increase base by 3%, PPS hospitals (half of rate restoration) -- -- 2,600,000 2,600,000

Medicare Part B Premiums Increase (annualize deficit) -- -- 5,761,146 5,539,296

Federal Clawback (annualize deficit, adjusted April FFIS est) -- -- 4,399,059 8,228,279

Fiscal agent for home care -- -- (819,185) (819,185)

Terminate the Telligen Contract -- -- (119,648) (119,648)

Reduce aid to cover cost of financial auditor contract -- -- (220,000) (290,000)

Managed Care Savings on Avoidable Episodes of Care -- -- (6,114,252) (6,114,252)

Increased Medicaid Drug Rebates -- -- (2,300,000) (2,300,000)

Rural Health Clinics -- -- (76,160) (76,160)

Cap the maximum payment for adult dental servcies at $750. -- -- (403,374) (403,374) _____________ _____________ _____________ _____________

Medicaid Total General Funds 798,751,907 850,259,344 844,875,774 849,034,547

Annual $ Change 41,028,010 31,507,437 (5,383,570) 4,158,773

Annual % Change 5.3% 3.8% -0.6% 0.5%

Eligibility and Utilization Increases relating to eligibility and utilization result in additional General

Fund dollars of $17.0 million in FY17-18 and $34.4 million in FY18-19. Overall utilization is anticipated to

grow 1.67% each year overall. This is a weighted average based the following projected increases in

utilization based on historical utilization patterns: Aged 1.5% Disabled 3.0% Adults 1% Children 1.5%.

The cost for drugs is projected to increase 4%.

Federal Clawback Increase The amount the state is required to reimburse the federal government

for Medicaid/Medicare Dual eligible prescription drug costs paid through Medicare Part D increased by

10.1 percent effective January 1, 2017. The increase was initially annualized. A notice from the Federal

Funds Information Service (FFIS) showed a .4% decrease in Calendar Year 2018. The amount was

adjusted based on the lower projected cost of these payments to the federal government commonly

referred to as clawback payments. Increased General Fund costs of $4,399,059 in FY18 and $8,228,279

in FY19.

Medicare Part B Premium Increase The state Medicaid program is required by federal law to

contribute to Medicare Part B premiums for certain enrollees. Medicare Part B premiums increased

significantly in 2017. The increases are the annualize costs of the 2017 Medicare Part B premium

increase. Increased General Fund costs of $5,761,146 in FY18 and $5,539,296 in FY19.

Increased Medicaid Drug Rebates System enhancements allow for General Fund and federal

fund reductions by capturing additional drug rebates for prescription drugs administered directly by

physicians. This savings represents anticipated recurring annual increases in rebate collections, allowing

for offset to General Fund appropriation requirements. General fund savings of $2.3 million each year.

Restore half of Prospective Payment System (PPS) hospital base reduction The

Department of Health and Human Services implemented a new payment mechanism called the All-

Patient Refined Diagnosis-Related Group in 2014. The change was intended to be cost neutral. After

implementation it was discovered that overall rates were approximately 6% less. Twenty-seven hospitals

paid under a Prospective Payment System (PPS) were impacted. Funding is provided to rebase the

payments to the affected hospitals by 3%; half of the unintended reduction. Increased General fund cost

of $2.6 million each year.

Managed Care Savings on Avoidable Episodes of Care The Medicaid Program is

planning an array of strategies intended to reduce unnecessary costs through efficiencies in the managed

care program, Heritage Health. General Fund savings amounts of $6,114,252 are estimated savings

from targeted efforts to reduce potentially preventable episodes of care, hospitalizations, and re-

hospitalizations.

Fiscal agent for home care A fiscal intermediary will be paid on a per-member, per-month basis

for home and community based services. The fiscal agent will use enhanced technology for submission of

claims and timesheets and provide training on the provision of services. For clients who self-direct their

services, the fiscal agent will pay the providers, manage withholding and handle the filing and payment of

taxes. For those not self-directing their care, the intermediary will manage the providers including hiring

and firing personnel, scheduling and supervision of the providers’ activities. Savings are based on

studies. General fund savings are $819,185 million each year.

Health Aid

The current budget includes $6.9 million General Funds for a variety of health aid programs. This

includes programs such as Chronic Renal Disease, HIV/AIDS Prevention and Ryan White program,

Breast and Cervical Cancer Screening, Every Woman Matters program, Stay in the Game Program,

Immunization, Newborn Screening and Genetics, Reproductive Health, Emergency Medical Services

Training, Native American health services, and Nebraska Advocacy Services and the home visitation

program.

The committee proposed budget includes a base reduction of $705,121 as included in the Governors

recommendation which was attributed to rebasing a number of programs within the Health Aid program

budget to more accurately align individual program budgets with projected program expenditures. No

additional details were provided as to which specific program would be adjusted.

Aid to Aging Services

The Appropriations Committee proposed budget includes no change in aid from the current FY17 level.

No reductions but also no increase in provider rates.

Program FY2016-17 FY2017-18 FY2018-19

Prog 559 Care management 2,315,560 2,315,560 2,315,560

Prog 571 Area agencies on aging 7,530,229 7,530,229 7,530,229 _________ _________ _________

Total General Funds 9,845,789 9,845,789 9,845,789

Dollar Change 0 0

% Change 0.0% 0.0%

Higher Education Student Aid

The committee budget includes no change in General Funds in FY17-18 and FY18-19 compared to the

current year funding level. There is a $500,000 per year increase in cash funds for the Nebraska

Opportunity Grant Program from the earmarked education lottery monies. This increase in cash funds

allows for an overall average increase in student aid of about 2.7%.

Table 23 Coordinating Commission Student Aid Programs

Current Biennium Committee Proposed General and Cash Funds FY2015-16 FY2016-17 FY2017-18 FY2018-19

Nebraska Opportunity Grant Program 6,868,156 6,868,156 6,868,156 6,868,156

Access College Early Scholarship 735,000 985,000 985,000 985,000

Subtotal-General Funds 7,603,156 7,853,156 7,853,156 7,853,156

Lottery funds (Nebr Opportunity Grant) 10,000,000 10,080,146 10,580,146 11,080,146

__________ __________ Combined General and Cash Funds 17,603.156 17,933.302 18,433,302 18,933,302

$ Change over Prior Year 50,000 330,146 500,000 500,000

% Change over Prior Year 0.3% 1.9% 2.8% 2.7%

General Fund Aid to Local Governments

State Aid to K-12 Schools

Table 24 shows the total amount of General Fund state aid to K-12 schools from the various aid

programs. In terms of General Funds, the average percent change over the two year period is a positive

1.9%.

TEEOSA aid is based on proposed changes contained in LB409 (with AM474) and Special Education

reimbursement is increased by 1% per year. All other K-12 General Fund aid programs are continued at

the current FY17 level. A description of the various programs follows the table

Table 24 Total General Fund State Aid to K-12 Schools

Approp Approp Approp Approp Committee Proposed

FY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY2018-19

State Aid to Education (TEEOSA) 884,888,317 913,571,842 950,651,625 952,153,581 970,011,577 996,731,953

Special Education 203,588,534 213,767,961 219,112,160 222,063,117 224,283,748 226,526,585

High ability learner programs 0 0 0 2,342,962 2,342,962 2,342,962

Early Childhood program 1,915,962 5,235,164 1,820,164 3,770,164 3,619,357 3,619,357

Early Childhood Endowment 4,000,000 4,000,000 4,000,000 5,000,000 5,000,000 5,000,000

Nurturing Healthy Behaviors 0 400,000 400,000 400,000 400,000 400,000

School Lunch 392,032 392,032 392,032 392,032 392,032 392,032

Textbook loan program 465,500 465,500 465,500 465,500 465,500 465,500

School Breakfast reimbursement 453,008 453,008 542,595 561,042 561,042 561,042

Adult Education 214,664 214,664 214,664 214,664 214,664 214,664

Learning Communities Aid 725,000 725,000 500,000 500,000 500,000 500,000

Summer Food Service grants 130,000 130,000 130,000 130,000 130,000 130,000

High School Equivalency Assistance 750,000 750,000 750,000 750,000 750,000 750,000

Quality Child Care – Scholarships 0 100,000 100,000 100,000 100,000 100,000

Quality Child Care – Bonuses 0 26,700 69,000 69,000 69,000 69,000

Master Teacher Program 0 0 470,000 470,000 0 0 ___________ ___________ ___________ ___________ ___________ ___________

Total Gen Fund Aid - K-12 Districts 1,097,523,017 1,140,231,871 1,179,617,740 1,189,382,062 1,208,839,882 1,237,803,095

General Funds:

$ Change over Prior Yr 64,226,611 42,708,854 39,385,869 9,764,322 19,457,820 28,963,213

% Change over Prior Yr 6.2% 3.9% 3.5% 0.8% 1.6% 2.4%

Special Education The Committee proposal includes a 1.0% per year increase in funding for special

education reimbursement amounting to $2,220,631 in FY17-18 and $4,463,468 in FY18-19. The

maximum allowed growth is 10% per year per Section 79-1145. This growth limitation was originally

enacted at 3% in 1997 increased to 5% in 2000 and then increased to 10% in 2014.

Special Education Biennial Budget (w/o deficits) Biennial Budget (w/o deficits) Committee Proposed Following Biennium

Special Education (General Funds only) FY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY2018-19

Base Year Appropriation 193,893,842 193,893,842 213,767,961 213,767,961 222,063,117 222,063,117

Cost/Client increases 9,694,692 19,874,119 5,344,199 10,822,003 2,220,631 4,463,468

Shift GF from Spec Ed to Medicaid, LB276 0 0 0 (2,526,847) 0 0__________ __________ __________ __________ __________ __________

Total - New Appropriation 203,588,534 213,767,961 219,112,160 222,063,117 224,283,748 226,526,585

$ Change over Prior Yr 9,694,692 10,179,427 5,344,199 2,950,957 2,220,631 2,242,837

% Change over Prior Yr 5.0% 5.0% 2.5% 1.3% 1.0% 1.0%

High Ability Learner Program In the 2011 legislative session, funding for the High Ability Learner

program was shifted from General Funds to the Education Innovation Fund (lottery) for FY2011-12 and

FY2012-13 as provided for in LB 333 enacted during that session. LB495 (2013) provided for a

continuation of lottery funds to fund this program in FY13-14, FY14-15, and FY15-16. The FY16-17

budget shifted back to General Funds to replace the use of education lottery funds for this program at the

FY16 level of $2,342,962. The committee proposed budget for FY2017-18 and FY2018-19 continues

funding at the FY17 level.

Early Childhood Grant Program In the 2011 legislative session, funding for the Early Childhood

grant program was shifted from General Funds to the Education Innovation Fund (lottery) for FY2011-12

and FY2012-13 as provided for in LB 333 enacted during that session. Under LB 333 funding would

revert back to General Funds starting in FY2013-14. LB495 (2013) provided for a continuation of lottery

funds at level of $1.75 million in FY13-14, $1.85 million in FY14-15 and $1.95 million in FY15-16. The

budget for FY16-17 included $1,950,000 increase in General Funds to replace the use of education

lottery funds for this program.

The committee proposed budget for FY2017-18 and FY2018-19 reduces the FY17 base level by 4% in

essence extending the one-time reduction in LB22..

Early Childhood Endowment In the 2006 legislative session, LB1256 was enacted creating the

Nebraska Early Childhood Education Endowment fund and board of trustees. Income from the

endowment is then used to provide grants to school districts, cooperatives of school districts, and

educational service units for early childhood education programs for at-risk children from birth to age

three as determined by the board of trustees. The bill provided that the Department of Education select

an endowment provider for the Nebraska Early Childhood Education Endowment where such provider

had (1) experience in managing public and private funds for the benefit of children and families in multiple

locations in Nebraska and (2) irrevocably commit no less than twenty million dollars in a private

endowment to be used solely as part of the Nebraska Early Childhood Education Endowment.

Biennial Budget (w/o deficits) Biennial Budget (w/o deficits) Committee Proposed Following Biennium

High Ability Learners FY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY2018-19

Base Year Appropriation 0 0 0 0 2,342,962 2,342,962

ATB Cuts 0 0 0 0 0 0

Other cuts 0 0 0 0 0 0

Shift to lottery funds 2 yrs (LB333-2011) 0 0 0 0 0 0

Increase in aid 0 0 0 0 0 0

Restore GF, lottery earmark expires 0 0 0 2,342,962 0 0__________ __________ __________ __________ __________ __________

Total - New Appropriation GF 0 0 0 2,342,962 2,342,962 2,342,962

Education Innovation Fund (lottery) 2,230,065 2,285,816 2,342,962 0 0 0__________ __________ __________ __________ __________ __________

Total Funding 2,230,065 2,285,816 2,342,962 2,342,962 2,342,962 2,342,962

Biennial Budget Biennial Budget Committee Proposed Following Biennium

Early Childhood Grant Program FY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY2018-19

Base Year Appropriation 0 0 5,235,164 5,235,164 3,770,164 3,770,164

Shift to lottery funds 2 yrs (LB333-2011) 3,365,962 3,365,962 0 0 0 0

Continue use of lottery (LB495-2013) (1,700,000) (1,700,000) 0 0 0 0

Increase in aid 250,000 250,000 0 0 0 0

One-time funds to be used over 3 yrs 0 3,415,000 (3,415,000) (3,415,000) 0 0

Shift aid to tech assistance 0 (95,798) 0 0 0 0

Restore GF, lottery earmark expires 0 0 1,950,000 0 0

Extend LB22 4% cut 0 0 0 0 (150,807) (150,807)__________ __________ __________ __________ __________ __________

Total - New Appropriation GF 1,915,962 5,235,164 1,820,164 3,770,164 3,619,357 3,619,357

Education Innovation Fund (lottery) 1,750,000 1,850,000 1,950,000 0 0 0__________ __________ __________ __________ __________ __________

Total Funding 3,665,962 7,085,164 3,770,164 3,770,164 3,619,357 3,619,357

The program known as Sixpence, is currently administrated by Nebraska Children and Families

Foundation and governed by the Nebraska Early Childhood Education Endowment Fund Board of

Trustees. The endowment fund consists $40 million transferred from the State Permanent School Fund

(after a successful constitutional amendment authorizing such allocation) and $20 million from private

donations.

In the 2013 session, the legislature provided the first General Funds to supplement the endowment

income, $4 million in both FY13-14 and FY14-15. An additional $1 million was also provided from the

Education Innovation Fund (lottery) for FY14, FY15, and FY16. The FY17 budget includes an additional

$1,000,000 General Funds in FY2016-17 to replace the expiration of the Education Innovation Fund

earmark. The committee proposed budget for FY2017-18 and FY2018-19 continues funding at the FY17

level for General Funds.

Learning Community Aid The committee proposed budget includes $500,000 in both FY18 and

FY19 for aid to the Learning Community. This is no change from the current FY17 level.

Master Teacher Program The Master Teacher Program Act was enacted in 2000 but funding was

never provided for the act at that time. In the 2015 legislative session, the budget included $500,000

each year to fund the program. This includes $470,000 for the master teacher bonus and $30,000 for

administrative costs. The aid is allocated to teachers to pay for application and registration fees

associated with obtaining master teacher credentials. Half of the fees are awarded when a teacher

begins the program and half are awarded when a teacher completes the program and receives the

credentials. The number of teachers receiving the first half of a registration award is capped at 40 per

year. The aid funds are also awarded as a salary bonus of $5,000 per year to each teacher with master

teacher status. The total for the salary bonus is capped at $1 million per year and the funds are prorated

if funding is not sufficient.

The committee proposed budget for FY2017-18 and FY2018-19 eliminates funding for the program.

Other K-12 Aid Programs The committee budget includes no change in funding for all other

programs; School Lunch ($392,032), School Breakfast ($561,042), Adult Education ($214,664), textbook

loan ($465,500), Summer Food Service grants ($130,000), High School Equivalency Assistance

($750,000), Step Up to Quality Child Care Scholarships ($100,000) and Step Up to Quality Child Care

Bonuses ($69,000).

Tax Equity and Educational Opportunities Support Act (TEEOSA) The Committee budget includes funding for state aid to schools (TEEOSA) based on proposed changes

contained in LB409 (with AM474). The overall net change in total TEEOSA aid is an increase of $20.6

million (2.1%) in FY2017-18 followed by a $26.8 million (2.7%) increase in FY18-19. The General Fund

amounts (excluding the amount financed by allocated Insurance Premium Tax monies and lottery funds

for reorganization incentives) reflect a $17.9 million (1.9%) increase in FY17-18 followed by a $26.7

million (2.8%) increase in FY18-19.

Biennial Budget (w/o deficits) Biennial Budget (w/o deficits) Committee Proposed Following Biennium

Early Childhood Endowment FY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY2018-19

Base Year Appropriation 0 0 4,000,000 4,000,000 5,000,000 5,000,000

Provide state GF support 4,000,000 4,000,000 0 0 0 0

Replace use of lottery monies 0 0 0 1,000,000 0 0__________ __________ __________ __________ __________ __________

Total - New Appropriation GF 4,000,000 4,000,000 4,000,000 5,000,000 5,000,000 5,000,000

Education Innovation Fund (lottery) 1,000,000 1,000,000 1,000,000 0 0 0

Endowment Fund income 1,580,440 1,580,440 1,580,440 1,580,440 2,080,440 2,080,440

Federal Funds 0 0 1,306,152 1,741,536 1,741,536 1,741,536__________ __________ __________ __________ __________ __________

Total Funding 6,580,440 6,580,440 7,886,592 8,321,976 8,821,976 8,821,976

Table 25 provides a summary of TEEOSA aid including the allocation of the overall aid amount by funding

source and the dollar and percent change in both total aid and General Fund amounts for the past two

years, the current biennial budget and estimates for the following two years.. Also shown are the major

assumptions used in making the estimates. The higher growth rates in FY20 and FY21 reflect the

expiration of the impacts of LB409.

Table 25 TEEOSA Aid

The overall change in TEEOSA aid in FY18 and FY19 are the cumulative impact of changes in the data

elements of TEEOSA such as school spending and property valuations, as well as annualized impacts of

legislation enacted. Table 26 shows the impact in total dollars of those components and those amounts

as the equivalent of an annual percent change.

Table 26 Components of Change in TEEOSA Aid

Table 27 provides a history of TEEOA state aid since its’ initial implementation in FY90-91 and full

implementation in FY91-92. The table also shows the amount of aid the year prior to enactment of

TEEOSA.

Certified Certified Committee Committee Committee Committee

FY2015-16 FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21

Key Assumptions

Legislation -- -- LB 409 LB 409 LB 409 --

School Disbursements 3.5% 3.8% 3.3% 4.2% 4.0% 4.0%

Property Valuations (assessed) 11.8% 10.4% 4.6% 3.5% 3.5% 3.5%

Adjusted to Assessed Valuation Ratio 100.17% 100.11% 100.64% 100.64% 100.64% 100.64%

Cost Growth Factor 5.00% 5.00% 4.00% 3.00% 4.00% 5.00%

Local Effort Rate $1.0000 $1.0000 $1.0203 $1.0203 $1.0000 $1.0000

Certified / Estimated

State General Funds 946,539,661 952,153,581 970,011,577 996,731,953 1,090,002,315 1,167,758,549

Insurance Premium Tax 26,496,964 27,159,388 28,256,841 29,104,536 29,832,150 30,577,953

Lottery funds, reorg incentives 0 0 1,602,891 801,446 0 0________________________________________________ ____________ ____________

Total TEEOSA Aid 973,036,625 979,312,969 999,871,309 1,026,637,935 1,119,834,465 1,198,336,502

General Funds - Change over Prior Yr

Dollar Change 34,149,574 5,613,920 17,857,996 26,720,376 93,270,362 77,756,234

Percent Change 3.7% 0.6% 1.9% 2.8% 9.4% 7.1%

All Funds - Change over Prior Yr

Dollar Change 40,064,784 6,276,344 20,558,339 26,766,626 93,196,530 78,502,038

Percent Change 4.3% 0.6% 2.1% 2.7% 9.1% 7.0%

Change over FY17 Base Annual % Change EquivalentFY2017-18 FY2018-19 FY2017-18 FY2018-19

Formula data elements 45,593,726 96,284,875 4.7% 4.8%

LB 959 (2016) Change TEEOSA, minimum levy, QCPUF levy 8,578,525 8,578,525 0.9% 0.0%

LB 1067 (2016) Change provisions relating to learning communities 13,458,373 15,752,888 1.4% 0.2%

LB 977 (2016) Divert MV tax to title system, impact on "other receipts 0 1,572,308 0.0% 0.2%____________ ____________ _________ _________

Total Increase per current law 67,630,624 122,188,596 6.9% 5.2%

LB 409 (2017) LER from $1.000 to $1.0203 (23,042,793) (24,335,855) -2.4% -0.1%

LB 409 (2017) FY18 allowable growth to 1.5% (cost growth 4%) (21,000,272) (24,343,520) -2.1% -0.3%

LB 409 (2017) FY19 allowable growth to 1.5% (cost growth 3%) 0 (23,779,032) 0.0% -2.3%

LB 409 (2017) Net Option at 95.5% (2,385,809) (2,405,224) -0.2% 0.0%

Adjust to NDE printout number (643,409) 0 -0.1% 0.1%____________ ____________ _________ _________

Impact of LB 409 (47,072,283) (74,863,629) -4.8% -2.7%

Total Increase with LB409 (am474) 20,558,339 47,324,966 2.1% 2.6%

Table 27 Historical TEEOSA Aid

General Insurance ARRA & TEEOSA Dollar Pct

Fiscal Yr Funds Premium EDJOBS (Total Aid) Change Change

FY1989-90 133,720,830 0 0 133,720,830 4,730 0.0%

FY1990-91 311,462,100 0 0 311,462,100 177,741,270 132.9%

FY1991-92 357,283,727 0 0 357,283,727 45,821,627 14.7%

FY1992-93 370,668,616 0 0 370,668,616 13,384,889 3.7%

FY1993-94 383,069,609 0 0 383,069,609 12,400,993 3.3%

FY1994-95 400,230,135 0 0 400,230,135 17,160,526 4.5%

FY1995-96 414,933,814 0 0 414,933,814 14,703,679 3.7%

FY1996-97 434,834,334 12,409,260 0 447,243,594 32,309,780 7.8%

FY1997-98 454,273,986 11,670,497 0 465,944,483 18,700,889 4.2%

FY1998-99 579,978,752 11,261,483 0 591,240,235 125,295,752 26.9%

FY1999-00 581,552,195 12,490,055 0 594,042,250 2,802,015 0.5%

FY2000-01 549,272,990 12,053,426 0 561,326,416 (32,715,834) -5.5%

FY2001-02 630,212,142 14,868,591 0 645,080,733 83,754,317 14.9%

FY2002-03 647,477,820 14,450,387 0 661,928,207 16,847,474 2.6%

FY2003-04 625,337,469 15,364,409 0 640,701,878 (21,226,329) -3.2%

FY2004-05 618,298,707 16,018,569 0 634,317,276 (6,384,602) -1.0%

FY2005-06 683,473,181 17,121,101 0 700,594,282 66,277,006 10.4%

FY2006-07 704,377,213 14,090,116 0 718,467,329 17,873,047 2.6%

FY2007-08 753,555,548 15,058,425 0 768,613,973 50,146,644 7.0%

FY2008-09 825,056,857 14,333,724 0 839,390,581 70,776,608 9.2%

FY2009-10 824,960,159 15,247,109 93,668,750 933,876,018 94,485,437 11.3%

FY2010-11 795,941,721 13,992,839 198,897,916 1,008,832,476 74,956,458 8.0%

FY2011-12 804,689,087 17,151,812 212,958 822,053,857 (186,778,619) -18.5%

FY2012-13 838,452,050 13,415,035 212,958 852,080,043 30,026,186 3.7%

FY2013-14 884,888,317 21,693,014 0 906,581,331 54,501,288 6.4%

FY2014-15 912,390,088 20,581,754 0 932,971,842 26,390,511 2.9%

FY2015-16 946,539,661 26,496,964 0 973,036,625 40,064,784 4.3%

FY2016-17 952,153,581 27,159,388 0 979,312,969 6,276,344 0.6%

FY2017-18 est 970,011,578 28,256,841 0 999,871,309 20,558,340 2.1%

FY2018-19 est 996,731,953 29,104,536 0 1,026,637,935 26,766,625 2.7%

FY2017-18 est 1,090,002,315 29,832,150 0 1,119,834,465 93,196,530 9.1%

FY2018-19 est 1,167,758,549 30,577,953 0 1,198,336,502 78,502,037 7.0%

Avg % Change

First 12 Yrs of TEEOSA 4.8%

Last 13 Yrs of TEEOSA 3.3%

All 25 Years 4.0%

AID TO ESU’S

The committee budget includes a 3% reduction in funding for aid to ESU’s as proposed by the Governor.

Aid to ESU's Biennial Budget (w/o deficits) Biennial Budget (w/o deficits) Committee Proposed Following Biennium

Aid to ESU's FY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY2018-19

Base Year Appropriation 14,051,761 14,051,761 14,051,761 14,051,761 14,051,761 14,051,761

3% base reduction in aid 0 0 0 0 (421,553) (421,553)__________ __________ __________ __________ __________ __________

Total - New Appropriation 14,051,761 14,051,761 14,051,761 14,051,761 13,630,208 13,630,208

$ Change over Prior Yr 0 0 0 0 (421,553) 0

% Change over Prior Yr 0.0% 0.0% 0.0% 0.0% -3.0% 0.0%

Homestead Exemption

This program provides property tax relief to special categories of homeowners through state funded

reimbursements to local governments for property taxes not collected due to the granting of homestead

exemptions. Although some form of homestead reimbursement has existed since 1969 the core of the

existing program was created by LB 65 in 1979. It is found in Sections 77-3501 through 77-3529 of the

Nebraska Revised Statutes.

The Dept. of Revenue estimates the homestead exemption amount using a linear regression model. The

variables used in the model to explain Homestead reimbursement are: 1) Homestead reimbursement for

the prior year; 2) capital gains reported on Nebraska resident income tax returns; 3) medical expenses

reported by Homestead applicants; and 4) a time trend variable. Because most of the spending in the

Homestead Exemption program is to assist low-income elderly homeowners, income is the major

determining factor in the number of qualified applicants.

The proposed budget for FY2017-18 and FY2018-19 is $78.2 and $81.0 million respectively reflects a

4.1% average annual increase. This includes annualizing the FY17 deficit and projected increases in

reimbursement claims.

Personal Property Tax Relief Act

LB 259 enacted in the 2015 session, adopted the Personal Property Tax Relief Act. The bill provided for

an exemption from the property tax on the first $10,000 of valuation of tangible personal property in each

tax district in which a personal property tax return is required to be filed. Tax district is defined in Section

77-127 and means, “an area within a county in which all of the tangible property is subject to property

taxes at the same consolidated property tax rate.” In addition, the bill creates a compensating exemption

factor for companies that are centrally assessed by the state to be used in determining the tax exemption

for those companies.

On or before November 30 of each year, each county treasurer shall certify to the Tax Commissioner the

total locally-assessed tax revenue lost to all taxing subdivisions within the county due to the exemption

provided for in LB 259. The state then reimburses each county, and subsequently each subdivision, for

funds lost due to the exemption for both the locally-assessed taxes and the centrally assessed

companies. The reimbursement shall be made in two equal installments on the last business days of

February and June.


Homestead Exemption - Prog 108 FY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY2018-19

Base Year appropriation 72,500,000 72,500,000 73,521,000 73,521,000 72,515,000 72,515,000

Base adjustment per base yr actual data (5,062,000) (4,605,000) (6,121,000) (6,121,000) 2,235,000 2,235,000

Change due to eligibility, valuation, and tax rates 4,162,000 7,005,000 2,347,000 4,204,000 3,411,900 6,206,400

Midbiennium Changes 0 (6,000,000) 0 1,200,000 0 0

LB 683 (2016) Change homestead exemptions, surviving spouses 0 0 0 0 38,100 43,600

LB 591 (2015) Achieving a Better Life Experience (ABLE), changes in income for credit purposes0 0 0 (1,685,000) 0 0

LB 986 (2014) Change income limitations 0 4,621,000 847,000 980,000 0 0

LB 1087 (2014) Disabled veterans provisions 0 0 406,000 416,000 0 0__________ __________ __________ __________ __________ __________

Total General Funds (without deficits) 71,600,000 73,521,000 71,000,000 72,515,000 78,200,000 81,000,000

Deficit (6,500,000) (6,121,000) 600,000 2,235,000 ? ? __________ __________ __________ __________ __________ __________

Total General Funds (with deficits) 65,100,000 67,400,000 71,600,000 74,750,000 78,200,000 81,000,000

$ Change (including deficits) (2,400,000) 2,300,000 4,200,000 3,150,000 3,450,000 2,800,000

% Change (including deficits) -3.6% 3.5% 6.2% 4.4% 4.6% 3.6%

Based on the 2016 certifications from the counties for the locally assessed personal property tax loss and

the Department’s most recent estimate for the centrally assessed personal property, tax loss for the

current fiscal year equals $13,660,000 significantly below the original estimated and budgeted level of

$19.6 million. This allowed for a reduction in the FY17 appropriation level of $13.8 million.

From this lower base level, the department requested a $1 million per year increase in the program.

While this is an average growth of 8.4% from that first year level, there is likely going to be a greater

utilization of this program in its second year.

Community Based Juvenile Services Aid

LB561 enacted in the 2013 session, expanded the Nebraska Juvenile Service Delivery Project statewide

in a three step, phase-in process. That bill also renamed the County Juvenile Services Aid Program as

the Community-based Juvenile Services Aid Program, and increased funding to the program by

$1,522,425 in FY14 and $3,522,425 in FY15 bringing the total amount of aid funding to $3,000,000 in

FY14 and $5,000,000 in FY15. During floor debate on LB561, it was further stated that it was intended

that funding for this program increase to $7.0 million in FY16 and then $10 million in FY17. The

Appropriations Committee includes an additional $2 million to achieve the $7 million level in FY15-16 but

keeps it at that level for FY16-17 as well.

LB 265 passed in the 2015 session, provided that ten percent of the annual General Fund appropriation

to the Community-based Juvenile Services Aid program be set aside for the development of a common

data set and evaluation of the effectiveness of the Community-based Juvenile Services Aid program. It

allocates the 10% between the Crime Commission and the University of Nebraska at Omaha, Juvenile

Justice Institute. With this language $700,000 of the $7 million aid level is shifted to operations leaving

$6.3 million as the aid amount for the program.

The committee proposed budget for FY2017-18 and FY2018-19 continues funding at the $6.3 million per

year level.

Aid to Community Colleges

Aid to community colleges is held flat for FY2017-18 and a $1 million (1%) reduction in FY2018-19. In

contrast the Governor recommended a 3% reduction in FY2017-18 and 2% reduction in FY2018-19.


Personal Property Tax Relief Act - Prog 109 FY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY2018-19

Base Year appropriation -- -- -- 0 19,600,000 19,600,000

Base reduction per base yr actual data -- -- -- 0 (5,400,000) (5,400,000)

Change due to eligibility, valuation, and tax rates -- -- -- 0 1,000,000 2,000,000

LB 259 Adopt the Personal Property Tax Relief Act -- -- -- 19,600,000 0 0__________ __________ __________ __________ __________ __________

Total General Funds (without deficits) -- -- -- 19,600,000 15,200,000 16,200,000

Deficit -- -- -- (5,800,000) 0 0__________ __________ __________ __________ __________ __________

Total General Funds (with deficits) -- -- -- 13,800,000 15,200,000 16,200,000

$ Change (including deficits) -- -- -- -- 1,400,000 1,000,000

% Change (including deficits) -- -- -- -- 10.1% 6.6%

General Fund Agency Operations

Agency Budget / Base Reductions

Faced with a large projected shortfall, a

certain level of budget reductions were

necessary. Although no general across the

board reduction was applied, in many

executive branch agencies, the agency

request included a variety of budget

reductions to fully or partially offset the added

costs of salary and health insurance cost

increases. The Committee proposed budget

includes many of those reductions as well as

reductions using either a general “base”

reduction or some combination of issues

offered in the modification process.

About two-thirds of the FY18 operations cuts

are in the Dept of Health and Human Services

and University of Nebraska. In light of the

prison population issue, the Court System

(including probation and the justice

reinvestment initiative) and Dept of

Corrections were virtually exempt from these

reductions.

These reductions are listed individually under

each agency in the second part of this report.

A summary at the agency level is shown

below:

Cuts Cuts

Agency Number and Name FY2017-18 FY2018-19

3 Legislative Council (293,447) (365,947)

5 Supreme Court (750,000) 0

7 Governor (138,046) (139,703)

8 Lt. Governor (2,085) (1,900)

9 Secretary of State 0 0

10 State Auditor (15,000) (15,000)

11 Attorney General 0 0

12 State Treasurer (14,811) (17,611)

13 Education (500,000) (500,000)

14 Public Service Comm (113,933) (111,970)

15 Pardons & Parole (215,000) (215,000)

16 Revenue (769,723) (769,723)

18 Agriculture (685,905) (701,665)

21 Fire Marshal (320,866) (344,337)

23 Labor 0 (17,430)

25 DHHS-System (10,726,310) (11,251,612)

28 Veterans Affairs (77,476) (77,476)

29 Natural Resources (1,126,480) (1,126,480)

31 Military Dept (160,246) (172,179)

32 Ed Lands & Funds 0 0

33 Game and Parks (360,956) (382,311)

34 Library Commission (295,380) (304,138)

35 Liquor Control (23,103) (23,103)

46 Corrections 0 (27,636)

47 NETC (299,652) (299,652)

48 Postsecond Coord Comm (142,837) (138,332)

50 State Colleges 0 0

51 University of Nebraska (10,000,000) (3,000,000)

54 Historical Society (383,710) (445,178)

64 State Patrol (852,275) (1,098,829)

65 Administrative Services (300,988) (306,160)

67 Equal Opportunity Comm 0 0

68 Mexican-American Comm (6,235) (6,235)

69 Arts Council (54,997) (54,997)

70 Foster Care (12,571) (14,951)

71 Energy Office 0 0

72 Economic Development (520,137) (520,137)

76 Indian Commission (24,413) (24,413)

77 Industrial Relations (12,807) (12,807)

78 Crime Commission (310,109) (310,109)

81 Blind & Visually Impaired 0 0

82 Deaf & Hard of Hearing (30,000) (30,000)

84 Environmental Quality (298,770) (299,396)

85 Retirement Board 0 0

87 Accountability/Disclosure (24,705) (24,705)

93 TERC (5,974) (5,974)

TOTAL BY AGENCY (29,868,947) (23,157,096)

Court System

Justice Reinvestment Act, Continue Phased-In Funding In the 2015 session, the

Legislature enacted LB 605 to begin addressing overcrowding in the correctional system. This bill was

the result of a study conducted by the Nebraska Justice Reinvestment Working Group, an inter-branch

working group established under LB 907-2014, in cooperation with the Council of State Governments

Justice Center. LB 605 expands the use of probation in lieu of incarceration, ensures that more people

receive supervision upon release from prison, and bolsters parole supervision practices to reduce

recidivism.

At the time of passage, General Fund costs to implement the bill totaled $1,763,046 in FY2015-16 and

$4,939,695 in FY2016-17. Costs were projected to increase over the following three years as more

offenders are applicable to the bill provisions. The following table summarizes the impact by agency over

the full five years as envisioned under LB605.

The committee proposed budget includes the increased funding for FY2017-18 and FY2018-19 per the

original fiscal note except for the additional amounts for Court Administration. These basically related to

additional judges which would require further legislative changes. The breakdown of additional funding

by budget program is shown below.

Committee Budget FY2017-18 FY2018-19

Prog 52 30,280 167,968

Prog 67 2,304,828 2,765,817

Prog 435 1,935,689 4,360,333 ________ _________

Total General Funds 4,240,517 7,126,150

Department of Education (NDE)

Eliminate funding for the IT Academy The Appropriations Committee initiated a pilot project for

an IT Academy in FY2014-15 with a $250,000 general fund appropriation. The initiative was continued in

FY16 and FY17 with an earmarked appropriation of $500,000 in each year of the current biennium. In

FY16, eighty high schools and twelve community college sites were granted licenses to implement the

Academy. There were 211 teachers certified through the program and 2,764 students received

certifications in various areas such as Word, PowerPoint, Excel and Access. The committee proposal

eliminates funding for the initiative.

$ Amount $ Amount $ Amount $ Amount $ Amount Biennial Increase: $

LB 605 Projected Cost FY2015-16 FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2017-18 FY2018-19

Probation (Field) 475,592 2,959,038 4,544,636 5,501,962 6,287,653 1,585,598 2,542,924

Probation (Reporting Centers) 769,373 1,785,628 2,521,759 2,997,807 3,147,306 736,131 1,212,179

Probation (Administration) 427,435 1,053,813 1,531,990 1,735,210 1,818,461 478,177 681,397

Probation (Offender Program Expenses)664,500 3,721,740 5,162,351 6,411,390 6,939,375 1,440,611 2,689,650

Court Administration 308,328 422,651 718,870 1,146,806 1,172,311 0 0__________ __________ __________ __________ __________ ____________________

GF Total - Courts 2,645,228 9,942,870 14,479,606 17,793,175 19,365,106 4,240,517 7,126,150

Corrections (net change) (882,182) (5,603,284) (5,603,284) (5,603,284) (5,603,284) 0 0

Crime Commission 0 600,109 600,109 600,109 600,109 0 0__________ __________ __________ __________ __________ ____________________

Total General Funds 1,763,046 4,939,695 9,476,431 12,790,000 14,361,931 4,536,736 7,850,305

Employee FTE 20.8 59.6 89.0 103.7 112.5 29.4 44.1

Department of Agriculture

The Appropriations Committee recommendation includes a General Fund reduction in the Department of

Agriculture of $685,905 in FY18 and $701,039, roughly 11% of their FY17 base appropriation. Although

the dollar amount was derived by using issues identified through the budget modification process, the

committee did not specify the functional areas that must be reduced giving the department the discretion

to make reductions in areas that will best allow the agency to continue essential regulatory services.

Department of Health and Human Services (DHHS)

The Committee proposed budget for the operation of the DHHS System has many significant items

included both increases and reductions.

Economic Assistance (EA) Eligibility System The committee budget includes General funds

of $3,900,000 in FY17-18 and $5,900,000 in FY18-19 for a new eligibility system utilizing the same

platform as the Medicaid eligibility system. The MMIS system development receives 90/10 federal

funding. Implementing a new economic assistance eligibility system will allow the state to receive the

same federal match for some parts of the EA system; bringing the overall match to 85/15 done before

December 18, 2018. Otherwise the federal match rate would be 50/50; a difference of $14 million in

general funds. The new economic assistance system would allow information to be shared by both

economic assistance and Medicaid. Examples of the information used by both systems are household

composition, residency, citizenship, income and expense. Eligibility would be determined on a real-time

basis when rules allow for it and increase the amount of processing completed with minimal case

manager involvement."

Remove MLTC from NFOCUS Medicaid is implementing a new eligibility system and will no

longer be part of NFOCUS. NFOCUS is the eligibility system that has been used by Medicaid and

economic assistance programs. The Affordable Care Act changed the manner in which Medicaid

eligibility is determined for non-elderly and non-disabled adults and children. Removing Medicaid from

NFOCUS increases the general fund cost of NFOCUS. Medicaid contributed 48% of the operating and

maintenance costs. The Economic Assistance Programs are refugee assistance, Low-Income Energy

Assistance, child care, guardianship, adoption, Aid to Dependent Children, Supplemental Nutrition

Assistance Program, child welfare the Social Services Block Grant. Additional General Fund costs total

$1,916,448 each year.

Federal Medicaid Match Rate (FMAP) Starting October 1, 2017 (FFY18) the Federal Medical

Assistance Program (FMAP) is increasing from 51.85% to 52.55%. Also FFY19 FMAP calculations done

by Federal Funds Information for States (FFIS) based on preliminary state personal income data shows

the FMAP to increase to 53.50%. The higher FMAP allows for a reduction in General Fund

appropriations, Prog 33 -Administration ( $113,957 FY18 and $262,144 FY19) and Prog 421-BSDC

($306,772 FY18, $383,465 FY19).

Additional Youth Rehabilitation and Treatment Centers (YRTC) staffing The

committee proposed budget includes additional General funds of $1,412,624 in FY18 and $1,446,528 in

FY19 for additional staffing at the YRTC’s. The Prison Rape Elimination Act (PREA) requires minimum

staffing levels for juvenile facilities by October 1, 2017. The staffing ratios are 1:8 during waking hours

and 1:16 during sleeping hours. The Youth Rehabilitation and Treatment Centers at Kearney and

Geneva require additional staff to be compliant. The Office of Juvenile Services (OJS) has conducted a

thorough review of the YRTCs operations. These reviews highlighted areas in need of improvement to

assure the safety of the youth and staff. Geneva needs four staff and Kearney 27 to be compliant.

Beatrice State Developmental Center (BSDC) Funding The budget for BSDC was reduced

in the recommendation to reflect efficiencies that do not directly impact the quality of care at the

institution. The recommendation for BSDC reflects the elimination of several contracts for services for

program support for medical services, education, consulting and day services. The staff at BSDC will

assume the duties currently contracted out.

The budget request by DHHS included a decrease in the general fund base for BSDC of $2,927,063.

DHHS indicates that services for clients will not be impacted by the budget base reduction. Since

oversight by federal agencies has ended, a lower funding level is adequate for the facility.

In addition to the request to reduce the budget base, the agency announced a decision to right-size

BSDC in February of 2017. The decision was based upon an evaluation of each area of the facility to

understand systems, needs and requirements, including a review of federal and state requirements,

licensing requirements and policies and procedures. Vacant positions were eliminated and 37 filled

positions were reduced in non-front line employee classifications. The changes result in annual savings

of $1.6 million of general funds.

Several transfers of funds from the BSDC budget were authorized. The recommendation includes a

transfer of $750,000 of general funds each fiscal year of the biennium to rebase rates for developmental

disability providers and to redesign the Objective Assessment Process. The transfer of 29 FTE from the

BSDC budget to the administrative Program 33 budget ($1,356,851) reflect the scope of the employees’

work to support all individuals with developmental disabilities and to allow compliance with the Medicaid

waiver.

Bridges Program – Hastings The committee budget proposal also reflects the closure of the

Bridges program, located in Hastings. It is a state-operated program serving up to 12 persons with

developmental disabilities in three homes located adjacent to the Hastings Regional Center. It has been

determined the program functions similarly to an institution, so it will no longer be in compliance with the

Medicaid waiver. DHHS is closing the program at the end of the current fiscal year and transferring the

current six residents to community-based developmental disability programs. The recommendation

reflects a transfer of $2,037,139 of general funds from BSDC to developmental disability aid to provide

services for the transferred clients. In addition, it is estimated that approximately $400,000 of this transfer

will be available to serve individuals on the waiting list for developmental disability services.

Also, $308,905 and 12.0 FTE are transferred from BSDC to Program 33 due to closure of the Bridges

Program. Staff will be repurposed to support quality management initiatives for community-based

developmental disability programs.

Open 5th Unit at Norfolk Sex Offender Treatment Program (NSOP) The committee

budget includes $683,638 in FY18 and $1,022,261 in FY19 to open a fifth unit for patient care at the

NSOP. The Legislature authorized the use of a reappropriation of up to $800,000 of general funds in the

current biennium to increase medical staff at the facility to provide additional patient care. DHHS

indicates beds were not opened with the reappropriated funds because there was no indication of

continued funding. None of the funds were expended for this purpose. The only committed funding at

this time is for some dressers. DAS has agreed to pay for facility upgrades (window screens, sinks, etc.)

that are needed. The program is currently staffed to serve 95 patients. Census ranges from 85 to 90 on

any given day. A process is currently being undertaken to help address capacity problems at the Lincoln

Regional Center (LRC) through the transfer of 10 individuals back to Norfolk to a new Transitions

Program which is designed to meet their specialized needs. This change will likely mean the NSOP will

be at full capacity. Individuals are committed to the NSOP from the correctional system for Phase I sex

offender treatment. Phases II and III are provided at the LRC. It is anticipated that a fifth unit will be

needed in FY18 to achieve the capacity required for the number of individuals that will be committed. The

recommendation will fund 11.0 FTE and related operating expenses.

Veterans Home Funding The budget contains several adjustments in Veterans Home funding.

The proposed budget shifts $1,601,139 funding for temporary contract staff from general to federal funds

at the Grand Island Veterans Home. The facility is currently having some difficulty recruiting and retaining

staff due to the movement of the facility from Grand Island to Kearney. The new facility is projected to be

completed in late 2018 or early 2019.

The budget also shifts $494,800 funding for transportation, staff recruiting and Certified Nursing Assistant

classes from general funds to cash funds. The agency indicates there are funds included in the proposal

from the City of Kearney that can be used for these types of services in the next two years. The authority

to spend cash funds needs to be increased to access the available funds.

The budget includes a reduction of $601,258 to reflect savings from medication dispensing machines.

The Legislature earmarked $1.4 million as a reappropriation in the current biennium for the veterans’

homes to purchase automated medication dispensing carts. DHHS is currently in the process of

purchasing the machines. Upon purchase, the agency will terminate contracts with a private pharmacy

that repackages medications at the Norfolk and Eastern Nebraska Veterans' Homes and will terminate

contracts for pharmacy services that are provided at the Grand Island and Western Nebraska Veterans'

Homes.

Department of Correctional Services (DCS)

Funding for the Department of Correctional Services increases by $3,749,449 in FY2017-18 (1.8%) and

an additional $4,514,312 (2.1%) in FY2018-19. The table below summarizes the individual items.

Committee Proposed

Issue Description FY2017-18 FY2018-19

Special pay adjustments for key NDCS employee classifications 3,189,305 3,189,305

Protective Service and Construction Staffing 1,500,000 3,000,000

Critical Under Resourced areas 959,775 970,712

Information Technology and Radios 741,580 740,950

Health Services and staffing 701,034 508,941

Education and cognative programs (Evidence Based Practice) 574,223 691,667

Annualize LB 867 (2016) Changes, Admin Procedure Act 43,621 43,621

State Radio System Device Fees 0 (27,636)

County Jail funding, let program expire (4,607,147) (4,607,147)

Phased in Funding of Additional Staffing (700,000) (700,000)

One Time Cash Appropriation Increase (1,000,000) 0 __________ __________ Subtotal - Issues 1,402,391 3,810,413

Salary increase 1,232,794 2,160,871

Health Insurance increase 1,114,264 2,292,477 __________ __________ Total Increases 3,749,449 8,263,761

Special pay adjustments for key NDCS employee classifications Negotiations between

the state and the employee bargaining unit produced special pay adjustments for key inmate-contact

employee classifications, beginning in December 2016. The classifications include Corrections Unit

Caseworkers, Corrections Officers, Corporals, Sergeants, Mental Health Practitioners I and II, Registered

Nurses, and Food Service Specialists. The average increase was 4.4% but specific increases varied by

classification pay lines. For the remainder of that fiscal year, these increases were funded with vacancy

savings. The committee proposed budget adds funding to the on-going base budget to continue funding

these increases.

County Jail program In the 2014 session, in order to temporarily ease current DCS capacity issues,

funding was provided for DCS to contract with willing counties to house up to 150 Nebraska inmates in

county jails. The funding amounts, all General Funds, were $723,604 in FY2013-14 (two months) and

$4,226,625 in FY2014-15 (full year). This was considered one-time funding with longer term solutions

part of the prison population reform. The program was extended for FY2015-16 and FY2016-17 at

$4,607,147. The committee proposed budget eliminates funding for this program allowing for a

reallocation of the monies for staffing and programming.

Protective Service and Construction Staffing The budget recommendation provides funds

for additional Custody or Protective Services staff (Corrections Officers, Corporals, Sergeants,

Caseworkers), 26 in FY18 and 50 in FY19. In FY18 and FY19 the committee proposed funding is below

the agency request and Governors recommendation. The committee phased-in the additional staff over

three years recognizing the current issue of vacancies and high turnover and providing more time to

address those issues in existing staffing levels prior to adding larger numbers of additional staff.

Item FY2017-18 FY2018-19 FY2019-20

$ Funding Agency Request 3,190,484 8,072,345 8,072,345

Committee Proposed 1,500,000 3,000,000 8,066,000

# Staff Agency Request 55.0 135.0 135.0

Committee Proposed 26.0 55.0 135.0

Critical Under Resourced areas Positions are needed to meet internal and external workload

demands, including: Food Service Specialists, Facility Maintenance Specialists, a Training Specialist, an

Intelligence Administrator, and a Grievance Coordinator. The agency would also establish a

Transportation Unit to coordinate all transfers between NDCS facilities, pick up out state parole violators,

absconders, medical transport orders, court transports, and reentry paroles and discharges. The staff that

would make up this unit currently are transporting inmates to county jails under the County Jail Program

which is scheduled to end June 30, 2017.

Information Technology and Radios Increased costs relate to rate changes (FY18 $205,422

and FY19 - $205,296; Microsoft Cloud Suite costs (FY18 $550,729 and FY19 $550,225, and $18,000

annual fee for radios.

Health Services and staffing Funding is provided for eight clinical staff that were requested. This

includes: (1) a licensed practical nurse (LPN) for the Nebraska Correctional Center for Women, (2) four

additional registered nurses (RN), two at the Diagnostic and Evaluation Center, and one each at the

Lincoln Correctional Center and the Nebraska State Penitentiary, (3) a Nurse Supervisor at the Lincoln

Correctional Center, (4) two medical technologists for the Nebraska State Penitentiary

Education and Cognitive programs (Evidence Based Practice) These funds add 1.5

teachers for educational services at the Omaha Correctional Center and Tecumseh Correctional Center,

and 7 staff for reentry programming and transition services at Tecumseh Correctional Center

Phased in Funding of Additional Staffing The budget recommendation adds a net of 55

positions in FY18 and 80 in FY19. Positions added include Custody or Protective Services staff

(Corrections Officers, Corporals, Sergeants, Caseworkers), teachers, programming staff, clinical staff

(LPN, RN, medical technologists), and staff such as Food Service Specialists, Facility Maintenance

Specialists, a Training Specialist, an Intelligence Administrator, and a Grievance Coordinator. The

agency would also establish a Transportation Unit (7 FTE) to coordinate all transfers between NDCS

facilities. An adjustment was made to reflect the reality that not all these positions will be hired

immediately.

One Time Cash Appropriation Increase This issue is a one-time cash fund appropriation

increase to use excess cash and reduce General Funds

Inmate Per Diem Costs Inmate per diem costs are those expenses associated with the daily living

expenses of inmates. These costs include food, institutional supplies (cleaning, cell and food service

supplies), and clothing. The agency did not request additional funds for inmate per diem or medical per

diem costs.

State Colleges

Appropriations for the Nebraska State College System for 2017-18 and 2018-19 are maintained at the

level appropriated for 2016-17.

University of Nebraska

The proposed budget for the University of Nebraska for FY2017-18 reduces the original current year

General Fund appropriation by $10,000,000 or 1.7%. For FY2018-19, the original current year General

Fund appropriation is reduced by $3,000,000 or .5%.

The proposal also includes $400,000 General Funds for FY2017-18 and $400,000 General Funds for

FY2018-19 for the University to partner with the Department of Correctional Services and/or the Regional

Centers to develop and offer programs for students studying to become behavioral health professionals.

The proposal also includes a $3,000,000 General Fund increase in FY2018-19 for programming,

operating and maintaining the Global Center for Advanced Interprofessional Learning at UNMC. The

additional funding brings the total to $5,000,000 General Funds for the Center. The $25 million state

contribution for the project and initial $2.5 million operations were funded in the 2015 legislative session.

Although included as a cash fund appropriation in the Department of Health and Human Services,

program 514, the budget includes $250,000 from the Nebraska Health Care Cash Fund for FY2017-18

and $250,000 from the Nebraska Health Care Cash Fund for FY2018-19 for years 3 and 4 of the Medical

Cannabidiol Pilot Study at UNMC as required by 28-463 to 28-469.

Though no appropriation is required, for information purposes budget bills includes the approval of the

expenditure of revenue bond surplus funds pursuant to the provisions of section 85-408 for the following

projects: the demolition of Cather Hall, Pound Hall and Cather-Pound Dining Center at UNL

($7,300,000), roof repairs for University Village at UNO ($825,000), and remodeling the Nebraska

Student Union at UNK ($5,000,000).

Defined Benefit / Cash Balance Retirement Plans

The Public Employees Retirement Board (PERB) is the entity through which the state contributes funding

for the three defined benefit plans for K-12 school employees, judges, and State Patrol. Financing for the

benefits provided by these three defined benefit plans comes from employee and matching employer

contributions as set in statute, court fees (for the judges plan), the investment return on those

contributions, and state contributions as required by statute. There also are two cash balance plans

which are what could be termed “defined return” plans where the state in essence guarantees an annual

return on the investment not a guaranteed benefit amount. In both cases, when revenue from these

sources is not actuarially sufficient, state appropriations are required. For all these programs, the state

General Fund is responsible for financing any actuarial shortfalls in these programs at statutory employee

and employer contribution rates.

Each fall, actuaries provide an assessment as to the status of the defined benefit plans as of the

preceding July 1 For the school plan, there was no actuarial shortfall in the school plan. Additional state

funds are budgeted only to cover the required 2% of salary for both the state and Omaha plan.

The State Patrol plan actually had a small reduction in the additional state contribution amount in

FY2017-18 but a $2.2 million increase in FY2018-19.

The Judges retirement plan had an increase of $118,714 in FY2017-18 and $979,000 in FY2018-19.

Table 28 shows the projected actuarial shortfalls by plan, the additional funds included in the budget bill

and the net change between the two. Following is a summary

Table 28 State Costs - Defined Benefit / Cash Balance Plan

State Employee Salary Increases

Collective bargaining agreements have been negotiated with the various bargaining units and are

described in the following narrative. Table 29 shows the General Fund amount funded by the

Committee.

Table 30 shows the historical salary increases over the past 10 years based on the NAPE master

contract. Also shown is how these pay increases would be reflected as an annual percent change on a

fiscal year basis for an average state employee (base FY85 salary of $18,000). Note this table does not

reflect salary increases for higher education or other bargaining units such as SLEBEC. Also not

reflected is the impact of specific reclassifications or pay grade changes that may have occurred over the

years. Over the 10-year period FY07 to FY17, employee salary increases averaged 2.2% per year.

Nebraska Association of Public Employees (NAPE-AFSCME) Collective bargaining

agreements have been reached with NAPE-AFSCME on a labor contract for FY2017-18 and FY2018-19.

The contract calls for a 1.00% salary increase on July 1, 2017 (FY2017-18) and a 1.5% increase on

January 1, 2019 (FY2018-19).

Committee Budget Increases over FY18-19

Base Yr Following Biennium Following Biennium Change over Base Yr Following Biennium

Retirement Plans FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21 FY2017-18 FY2018-19

Components

School - 2% Salary State 36,919,600 38,039,347 38,300,000 38,700,000 39,300,000 1,119,747 1,380,400

School - 2% Salary Omaha 6,660,783 6,896,530 7,000,000 7,100,000 7,200,000 235,747 339,217

School - Omaha Service Annuity 997,118 992,451 1,000,000 1,000,000 1,000,000 (4,667) 2,882

School - Additional State Contribution 0 0 0 0 0 0 0

Judges - Additional State Contribution 0 118,714 979,000 1,175,000 1,504,000 118,714 979,000

Patrol - Additional State Contribution 2,725,738 2,541,558 4,900,000 5,136,000 5,771,000 (184,180) 2,174,262__________ __________ __________ __________ __________ __________ __________

Total 47,303,239 48,588,600 52,179,000 53,111,000 54,775,000 1,285,361 4,875,761

By Plan

School 44,577,501 45,928,328 46,300,000 46,800,000 47,500,000 1,350,827 1,722,499

Judges 0 118,714 979,000 1,175,000 1,504,000 118,714 979,000

Patrol 0 0 0 0 0 0 0__________ __________ __________ __________ __________ __________ __________

Total 44,577,501 46,047,042 47,279,000 47,975,000 49,004,000 1,469,541 2,701,499

State Law Enforcement Bargaining Council (SLEBEC) also reached settlement for the two

years of the biennial budget. In general the increase provided is 2.4% July 1 increase plus a 2.2% step

increase in FY2017.18. For FY2018-19 there is no July 1 increase but a 2.1% step increase.

Non-Bargaining Employees This category covers employees who are not eligible for bargaining.

This includes certain supervisory and management positions, and employees under constitutional

agencies such as the Legislative Council, Governor, Secretary of State, Attorney General, etc… For

budgeting purposes, the committee budget includes funding for the same increase as the

NAPE/AFSCME Master Contract as noted above, 1.00% salary increase on July 1, 2017 (FY2017-18)

and a 1.5% increase on January 1, 2019 (FY2018-19).

State Employee Health Insurance

State Employees Although final rates

have not yet been set, the Governors’ budget

was based on a 5.75% increase in FY17-18 and

an additional 5.75% in FY16-17. The committee

budget also includes these projected increases.

Table 32 shows the historical trends in health

insurance rates. The comparison uses United

Health Care (UHC) Regular Plan which

historically most closely matches the UHC and

Blue Cross/Blue Shield (BC/BS) Choice family coverage insurance plan most consistently offered over

the years. The Choice plan was not offered after FY13. The ten-year average annual increase is 4.6%

excluding projected rates for FY18 and FY19.

Table 30 Historical NAPE Master Contracts

FY basis Fiscal Year General Salary Policy % Chnge

FY2003-04 1.5% on July 1 2.75%

FY2004-05 2.0% on July 1 2.00%

FY2005-06 3.0% on July 1 3.00%

FY2006-07 3.25% on July 1 3.25%

FY2007-08 * 3.0% on July 1 3.00%

FY2008-09* 2.5% on July 1 2.50%

FY2009-10 2.9% on July 1 2.90%

FY2010-11 2.5% on July 1 2.50%

FY2011-12 No Salary Increase 0.00%

FY2012-13 2.0% on July 1 2.00%

FY2013-14 2.25% on July 1 2.00%

FY2014-15 2.25% on July 1 2.00%

FY2015-16 2.25% on July 1 2.25%

FY2016-17 2.40% on July 1 2.40%

FY2017-18 1.00% on July 1 1.00%

FY2018-19 1.5% on January 1 0.75%

Ten Year Average (FY09 to FY19) 1.80%

*additional amounts for specific units

Table 29 Funded Salary Increases

General Funds Only FY2017-18 FY2018-19

State Agencies 6,449,354 10,453,008

State Colleges na na

University of Nebraska na na

Subtotal: Contract 6,449,354 10,453,008

Other adjustments 0 0

Total General Fund Salaries 6,449,354 10,453,008

Table 31 Health Insurance Cost Increases

General Funds Only FY2017-18 FY2018-19

State Employees 4,984,351 10,255,144

State Colleges na na

University of Nebraska na na

Total General Fund costs 4,984,351 10,255,144

Table 32 Historical Health Insurance Rates – Choice / Regular Plan, Family Coverage

Dollar Cost Per Employee - FY Basis Percent of Total

(Family Coverage) Employee Employer Total % Change Employee Employer Trust

FY2000-01 (Choice Plan) 2,207.58 8,304.60 10,512.18 7.1% 21.0% 79.0% 100.0%

FY2001-02 (Choice Plan) 2,360.94 8,881.62 11,242.56 6.9% 21.0% 79.0% 100.0%

FY2002-03 (Choice Plan) 2,503.20 9,416.76 11,919.96 6.0% 21.0% 79.0% 100.0%

FY2003-04 (Choice Plan) 2,686.26 10,105.50 12,791.76 7.3% 21.0% 79.0% 100.0%

FY2004-05 (Choice Plan) 2,859.60 10,758.00 13,617.60 6.5% 21.0% 79.0% 100.0%

FY2005-06 (Choice Plan) 3,313.56 12,465.96 15,779.52 15.9% 21.0% 79.0% 100.0%

FY2006-07 (Choice Plan) 3,776.28 14,206.56 17,982.84 14.0% 21.0% 79.0% 100.0%

FY2007-08 (Choice Plan) 4,206.72 15,825.48 20,032.20 11.4% 21.0% 79.0% 100.0%

FY2008-09 (Choice Plan) 4,647.48 17,483.28 22,130.76 10.5% 21.0% 79.0% 100.0%

FY2009-10 (Choice Plan) 5,181.36 19,491.36 24,672.72 11.5% 21.0% 79.0% 100.0%

FY2010-11 (Choice Plan) 5,682.24 21,376.08 27,058.32 9.7% 21.0% 79.0% 100.0%

FY2011-12 (Choice Plan) 5,696.40 21,429.12 27,125.52 0.2% 21.0% 79.0% 100.0%

FY2012-13 (Choice Plan) 5,559.60 20,914.80 26,474.40 -2.4% 21.0% 79.0% 100.0%

FY2013-14 (Regular Plan) 5,837.76 21,960.48 27,798.24 5.0% 21.0% 79.0% 100.0%

FY2014-15 (Regular Plan) 4,950.72 18,624.96 23,575.68 -15.2% 21.0% 79.0% 100.0%

FY2015-16 (Regular Plan) 5,495.30 20,673.71 26,169.00 11.0% 21.0% 79.0% 100.0%

FY2016-17 (Regular Plan) 5,931.93 22,315.35 28,247.28 7.9% 21.0% 79.0% 100.0%

FY2017-18 (Regular Plan) est 6,273.01 23,598.48 29,871.50 5.75% 21.0% 79.0% 100.0%

FY2018-19 (Regular Plan) est 6,633.71 24,955.40 31,589.11 5.75% 21.0% 79.0% 100.0%

Average Annual Change

FY07 to FY17 (10 Yr) 4.6% 4.6% 4.6%

General Fund Appropriations By Agency FY18 / FY19 Biennial Budget as Proposed by the Appropriations Committee

Current Yr Committee Committee FY18 vs Prior Yr FY19 vs Prior Yr Type FY2016-17 FY2017-18 FY2018-19 $ Chnge % Chnge $ Chnge % Chnge

#03 Legislative Council Oper 20,930,311 20,923,169 21,120,007 (7,142) 0.0% 196,838 0.9%

#03 Legislative Council Total 20,930,311 20,923,169 21,120,007 (7,142) 0.0% 196,838 0.9%

#05 Supreme Court Aid 300,000 300,000 300,000 0 0.0% 0 0.0%

#05 Supreme Court Oper 179,806,832 185,235,781 190,520,542 5,428,949 3.0% 5,284,761 2.9%

#05 Supreme Court Total 180,106,832 185,535,781 190,820,542 5,428,949 3.0% 5,284,761 2.8%

#07 Governor Oper 2,280,286 2,172,629 2,198,299 (107,657) -4.7% 25,670 1.2%

#07 Governor Total 2,280,286 2,172,629 2,198,299 (107,657) -4.7% 25,670 1.2%

#08 Lt. Governor Oper 149,486 149,172 151,197 (314) -0.2% 2,025 1.4%

#08 Lt. Governor Total 149,486 149,172 151,197 (314) -0.2% 2,025 1.4%

#09 Secretary of State Oper 2,021,019 2,485,769 2,317,307 464,750 23.0% (168,462) -6.8%

#09 Secretary of State Total 2,021,019 2,485,769 2,317,307 464,750 23.0% (168,462) -6.8%

#10 State Auditor Oper 2,609,327 2,568,316 2,597,136 (41,011) -1.6% 28,820 1.1%

#10 State Auditor Total 2,609,327 2,568,316 2,597,136 (41,011) -1.6% 28,820 1.1%

#11 Attorney General Oper 7,266,457 6,516,903 6,584,768 (749,554) -10.3% 67,865 1.0%

#11 Attorney General Total 7,266,457 6,516,903 6,584,768 (749,554) -10.3% 67,865 1.0%

#12 State Treasurer Aid 0 0 0 0 na 0 na

#12 State Treasurer Oper 1,303,949 1,290,755 1,266,335 (13,194) -1.0% (24,420) -1.9%

#12 State Treasurer Total 1,303,949 1,290,755 1,266,335 (13,194) -1.0% (24,420) -1.9%

#13 Education Aid 1,203,433,823 1,222,479,189 1,251,482,592 19,045,366 1.6% 29,003,403 2.4%

#13 Education Oper 25,498,938 25,095,719 25,412,963 (403,219) -1.6% 317,244 1.3%

#13 Education Total 1,228,932,761 1,247,574,908 1,276,895,555 18,642,147 1.5% 29,320,647 2.4%

#14 Public Service Comm Oper 2,540,808 2,340,162 2,364,672 (200,646) -7.9% 24,510 1.0%

#14 Public Service Comm Total 2,540,808 2,340,162 2,364,672 (200,646) -7.9% 24,510 1.0%

#15 Parole Board Oper 7,098,862 7,250,653 7,713,251 151,791 2.1% 462,598 6.4%

#15 Parole Board Total 7,098,862 7,250,653 7,713,251 151,791 2.1% 462,598 6.4%

#16 Revenue Aid 92,115,000 93,400,000 97,200,000 1,285,000 1.4% 3,800,000 4.1%

#16 Revenue Oper 27,551,068 27,209,016 27,447,549 (342,052) -1.2% 238,533 0.9%

#16 Revenue Total 119,666,068 120,609,016 124,647,549 942,948 0.8% 4,038,533 3.3%

#18 Agriculture Aid 975,000 475,000 475,000 (500,000) -51.3% 0 0.0%

#18 Agriculture Oper 6,242,820 5,662,109 5,723,024 (580,711) -9.3% 60,915 1.1%

#18 Agriculture Total 7,217,820 6,137,109 6,198,024 (1,080,711) -15.0% 60,915 1.0%

#21 Fire Marshal Oper 4,356,727 4,162,571 4,274,543 (194,156) -4.5% 111,972 2.7%

#21 Fire Marshal Total 4,356,727 4,162,571 4,274,543 (194,156) -4.5% 111,972 2.7%

#23 Labor Oper 690,814 636,886 634,675 (53,928) -7.8% (2,211) -0.3%

#23 Labor Total 690,814 636,886 634,675 (53,928) -7.8% (2,211) -0.3%

#25 DHHS System Aid 1,373,437,632 1,373,258,578 1,376,325,704 (179,054) 0.0% 3,067,126 0.2%

#25 DHHS System Oper 262,140,415 261,981,780 266,646,606 (158,635) -0.1% 4,664,826 1.8%

#25 DHHS System Total 1,635,578,047 1,635,240,358 1,642,972,310 (337,689) 0.0% 7,731,952 0.5%

#28 Veterans Affairs Oper 1,428,314 1,155,381 1,349,119 (272,933) -19.1% 193,738 16.8%

#28 Veterans Affairs Total 1,428,314 1,155,381 1,349,119 (272,933) -19.1% 193,738 16.8%


#29 Natural Resources Aid 5,458,361 5,021,692 5,021,692 (436,669) -8.0% 0 0.0%

#29 Natural Resources Oper 11,286,789 10,275,032 10,377,285 (1,011,757) -9.0% 102,253 1.0%

#29 Natural Resources Total 16,745,150 15,296,724 15,398,977 (1,448,426) -8.6% 102,253 0.7%

#31 Military Dept Aid 858,775 608,775 608,775 (250,000) -29.1% 0 0.0%

#31 Military Dept Oper 4,485,933 4,363,028 4,386,894 (122,905) -2.7% 23,866 0.5%

#31 Military Dept Total 5,344,708 4,971,803 4,995,669 (372,905) -7.0% 23,866 0.5%

#32 Ed Lands & Funds Oper 335,359 382,516 347,738 47,157 14.1% (34,778) -9.1%

#32 Ed Lands & Funds Total 335,359 382,516 347,738 47,157 14.1% (34,778) -9.1%

#33 Game & Parks Aid 42,011 42,011 42,011 0 0.0% 0 0.0%

#33 Game & Parks Oper 12,031,872 11,808,156 11,903,049 (223,716) -1.9% 94,893 0.8%

#33 Game & Parks Total 12,073,883 11,850,167 11,945,060 (223,716) -1.9% 94,893 0.8%

#34 Library Commission Aid 1,295,085 1,295,085 1,295,085 0 0.0% 0 0.0%

#34 Library Commission Oper 2,790,888 2,563,369 2,619,011 (227,519) -8.2% 55,642 2.2%

#34 Library Commission Total 4,085,973 3,858,454 3,914,096 (227,519) -5.6% 55,642 1.4%

#35 Liquor Control Oper 1,298,648 1,291,763 1,306,427 (6,885) -0.5% 14,664 1.1%

#35 Liquor Control Total 1,298,648 1,291,763 1,306,427 (6,885) -0.5% 14,664 1.1%

#46 Correctional Services Aid 3,500,000 3,500,000 3,500,000 0 0.0% 0 0.0%

#46 Correctional Services Oper 204,158,501 207,907,950 212,422,262 3,749,449 1.8% 4,514,312 2.2%

#46 Correctional Services Total 207,658,501 211,407,950 215,922,262 3,749,449 1.8% 4,514,312 2.1%

#47 NETC Oper 10,329,068 10,144,075 10,219,668 (184,993) -1.8% 75,593 0.7%

#47 NETC Total 10,329,068 10,144,075 10,219,668 (184,993) -1.8% 75,593 0.7%

#48 Coordinating Comm Aid 7,853,156 7,853,156 7,853,156 0 0.0% 0 0.0%

#48 Coordinating Comm Oper 1,403,607 1,282,591 1,304,051 (121,016) -8.6% 21,460 1.7%

#48 Coordinating Comm Total 9,256,763 9,135,747 9,157,207 (121,016) -1.3% 21,460 0.2%

#50 State Colleges Oper 52,404,248 52,404,248 52,404,248 0 0.0% 0 0.0%

#50 State Colleges Total 52,404,248 52,404,248 52,404,248 0 0.0% 0 0.0%

#51 University of Nebraska Oper 583,068,732 573,468,732 583,468,732 (9,600,000) -1.6% 10,000,000 1.7%

#51 University of Nebraska Total 583,068,732 573,468,732 583,468,732 (9,600,000) -1.6% 10,000,000 1.7%

#54 Historical Society Oper 4,652,409 4,413,966 4,400,113 (238,443) -5.1% (13,853) -0.3%

#54 Historical Society Total 4,652,409 4,413,966 4,400,113 (238,443) -5.1% (13,853) -0.3%

#64 State Patrol Oper 60,113,441 61,353,850 61,849,342 1,240,409 2.1% 495,492 0.8%

#64 State Patrol Total 60,113,441 61,353,850 61,849,342 1,240,409 2.1% 495,492 0.8%

#65 Admin Services (DAS) Oper 8,880,092 8,657,614 8,728,397 (222,478) -2.5% 70,783 0.8%

#65 Admin Services (DAS) Total 8,880,092 8,657,614 8,728,397 (222,478) -2.5% 70,783 0.8%

#67 Equal Opportunity Oper 1,262,802 1,278,319 1,292,541 15,517 1.2% 14,222 1.1%

#67 Equal Opportunity Total 1,262,802 1,278,319 1,292,541 15,517 1.2% 14,222 1.1%

#68 Latino American Comm. Oper 207,834 208,717 212,083 883 0.4% 3,366 1.6%

#68 Latino American Comm. Total 207,834 208,717 212,083 883 0.4% 3,366 1.6%

#69 Arts Council Aid 943,069 943,069 943,069 0 0.0% 0 0.0%

#69 Arts Council Oper 618,415 595,401 590,041 (23,014) -3.7% (5,360) -0.9%

#69 Arts Council Total 1,561,484 1,538,470 1,533,110 (23,014) -1.5% (5,360) -0.3%

#70 Foster Care Review Oper 1,865,446 2,071,366 2,095,106 205,920 11.0% 23,740 1.1%

#70 Foster Care Review Total 1,865,446 2,071,366 2,095,106 205,920 11.0% 23,740 1.1%

#71 State Energy Office Oper 218,472 0 0 (218,472)-100.0% 0 na

#71 State Energy Office Total 218,472 0 0 (218,472)-100.0% 0 na


#72 Economic Development Aid 7,360,000 6,821,200 6,821,200 (538,800) -7.3% 0 0.0%

#72 Economic Development Oper 5,351,328 4,893,419 4,949,395 (457,909) -8.6% 55,976 1.1%

#72 Economic Development Total 12,711,328 11,714,619 11,770,595 (996,709) -7.8% 55,976 0.5%

#76 Indian Affairs Comm. Oper 245,701 225,825 230,128 (19,876) -8.1% 4,303 1.9%

#76 Indian Affairs Comm. Total 245,701 225,825 230,128 (19,876) -8.1% 4,303 1.9%

#77 Industrial Relations Oper 325,660 325,272 328,782 (388) -0.1% 3,510 1.1%

#77 Industrial Relations Total 325,660 325,272 328,782 (388) -0.1% 3,510 1.1%

#78 Crime Commission Aid 7,823,828 7,823,828 7,823,828 0 0.0% 0 0.0%

#78 Crime Commission Oper 4,857,995 4,658,445 4,687,211 (199,550) -4.1% 28,766 0.6%

#78 Crime Commission Total 12,681,823 12,482,273 12,511,039 (199,550) -1.6% 28,766 0.2%

#81 Blind & Visually Impaired Aid 176,890 216,890 216,890 40,000 22.6% 0 0.0%

#81 Blind & Visually Impaired Oper 971,637 994,623 1,005,083 22,986 2.4% 10,460 1.1%

#81 Blind & Visually Impaired Total 1,148,527 1,211,513 1,221,973 62,986 5.5% 10,460 0.9%

#82 Deaf & Hard of Hearing Oper 1,016,914 998,178 1,008,192 (18,736) -1.8% 10,014 1.0%

#82 Deaf & Hard of Hearing Total 1,016,914 998,178 1,008,192 (18,736) -1.8% 10,014 1.0%

#83 Community Colleges Aid 100,828,308 100,828,308 99,828,308 0 0.0% (1,000,000) -1.0%

#83 Community Colleges Total 100,828,308 100,828,308 99,828,308 0 0.0% (1,000,000) -1.0%

#84 Environmental Quality Aid 2,141,196 316,200 316,200 (1,824,996) -85.2% 0 0.0%

#84 Environmental Quality Oper 3,922,413 3,678,502 3,726,752 (243,911) -6.2% 48,250 1.3%

#84 Environmental Quality Total 6,063,609 3,994,702 4,042,952 (2,068,907) -34.1% 48,250 1.2%

#85 Retirement Board Oper 47,303,239 48,588,600 52,179,000 1,285,361 2.7% 3,590,400 7.4%

#85 Retirement Board Total 47,303,239 48,588,600 52,179,000 1,285,361 2.7% 3,590,400 7.4%

#87 Account/Disclosure Oper 498,468 479,160 486,044 (19,308) -3.9% 6,884 1.4%

#87 Account/Disclosure Total 498,468 479,160 486,044 (19,308) -3.9% 6,884 1.4%

#91 Tourism Commission Aid 250,000 0 0 (250,000)-100.0% 0 na

#91 Tourism Commission Oper 0 0 0 0 na 0 na

#91 Tourism Commission Total 250,000 0 0 (250,000)-100.0% 0 na

#93 Tax Equal/Review Comm Oper 837,359 865,231 877,497 27,872 3.3% 12,266 1.4%

#93 Tax Equal/Review Comm Total 837,359 865,231 877,497 27,872 3.3% 12,266 1.4%

Construction Total 22,239,000 21,834,000 32,801,790 (405,000) -1.8% 10,967,790 50.2%

OPERATIONS 1,580,659,703 1,577,014,719 1,607,727,065 (3,644,984) -0.2% 30,712,346 1.9%

STATE AID 2,808,792,134 2,825,182,981 2,860,053,510 16,390,847 0.6% 34,870,529 1.2%

CONSTRUCTION 22,239,000 21,834,000 32,801,790 (405,000) -1.8% 10,967,790 50.2%

TOTAL GENERAL FUNDS 4,411,690,837 4,424,031,700 4,500,582,365 12,340,863 0.3% 76,550,665 1.7%

General Fund State Aid by Aid Program FY18 / FY19 Biennial Budget as Proposed by the Appropriations Committee

Current Yr Committee Committee FY18 vs Prior Yr FY19 vs Prior Yr FY2016-17 FY2017-18 FY2018-19 $ Chnge % Chnge $ Chnge % Chnge

#05 Court Appointed Special Advocate 300,000 300,000 300,000 0 0.0% 0 0.0%

#13 TEEOSA State Aid to Education 952,153,581 970,011,577 996,731,953 17,857,996 1.9% 26,720,376 2.8%

#13 Special Education 222,063,117 224,283,748 226,526,585 2,220,631 1.0% 2,242,837 1.0%

#13 Aid to ESU's 14,051,761 13,630,208 13,630,208 (421,553) -3.0% 0 0.0%

#13 High ability learner programs 2,342,962 2,342,962 2,342,962 0 0.0% 0 0.0%

#13 Early Childhood grant program 3,770,164 3,619,357 3,619,357 (150,807) -4.0% 0 0.0%

#13 Early Childhood Endowment 5,000,000 5,000,000 5,000,000 0 0.0% 0 0.0%

#13 Nurturing Healthy Behaviors 400,000 400,000 400,000 0 0.0% 0 0.0%

#13 School Lunch 392,032 392,032 392,032 0 0.0% 0 0.0%

#13 Textbook loan program 465,500 465,500 465,500 0 0.0% 0 0.0%

#13 School Breakfast reimbursement 561,042 561,042 561,042 0 0.0% 0 0.0%

#13 Adult Education 214,664 214,664 214,664 0 0.0% 0 0.0%

#13 Learning Communities Aid 500,000 500,000 500,000 0 0.0% 0 0.0%

#13 Summer Food Service grants 130,000 130,000 130,000 0 0.0% 0 0.0%

#13 High School Equivalency Assistance 750,000 750,000 750,000 0 0.0% 0 0.0%

#13 Quality Child Care-Scholarship 100,000 100,000 100,000 0 0.0% 0 0.0%

#13 Quality Child Care-Bonuses 69,000 69,000 69,000 0 0.0% 0 0.0%

#13 Master Teacher Program 470,000 0 0 (470,000) -100.0% 0 na

#13 Vocational Rehabilitation 0 9,099 49,289 9,099 na 40,190 441%

#16 Homestead Exemption 72,515,000 78,200,000 81,000,000 5,685,000 7.8% 2,800,000 3.6%

#16 Personal Property Tax Relief Act 19,600,000 15,200,000 16,200,000 (4,400,000) -22.4% 1,000,000 6.6%

#18 Riparian Vegetation grants 975,000 475,000 475,000 (500,000) -51.3% 0 0.0%

#25 Behavioral Health Aid 73,844,769 73,429,873 73,429,873 (414,896) -0.6% 0 0.0%

#25 Medical student assistance/RHOP 787,086 709,086 709,086 (78,000) -9.9% 0 0.0%

#25 Children Health Insurance (SCHIP) 6,440,394 6,163,940 6,208,871 (276,454) -4.3% 44,931 0.7%

#25 Public Assistance 108,094,067 108,094,067 108,094,067 0 0.0% 0 0.0%

#25 Medicaid 850,259,344 844,875,774 849,034,547 (5,383,570) -0.6% 4,158,773 0.5%

#25 Child Welfare aid 160,193,618 165,108,214 165,108,214 4,914,596 3.1% 0 0.0%

#25 Developmental disabilities aid 150,667,981 152,452,372 151,315,794 1,784,391 1.2% (1,136,578) -0.7%

#25 Community health centers 5,783,060 5,783,060 5,783,060 0 0.0% 0 0.0%

#25 Health Aid 6,917,612 6,192,491 6,192,491 (725,121) -10.5% 0 0.0%

#25 Care Management 2,315,560 2,315,560 2,315,560 0 0.0% 0 0.0%

#25 Area agencies on aging 8,134,141 8,134,141 8,134,141 0 0.0% 0 0.0%

#29 Nebr Water Conservation Fund 2,318,036 1,881,367 1,881,367 (436,669) -18.8% 0 0.0%

#29 Resources Development Fund 3,140,325 3,140,325 3,140,325 0 0.0% 0 0.0%

#31 Governors Emergency Program 250,000 0 0 (250,000) -100.0% 0 na

#31 Guard tuition assistance 608,775 608,775 608,775 0 0.0% 0 0.0%

#33 Niobrara Council 42,011 42,011 42,011 0 0.0% 0 0.0%

#34 Local libraries 1,295,085 1,295,085 1,295,085 0 0.0% 0 0.0%

#46 Vocational and Life Skills Program 3,500,000 3,500,000 3,500,000 0 0.0% 0 0.0%

#48 Nebr Opportunity Grant Program 6,868,156 6,868,156 6,868,156 0 0.0% 0 0.0%

#48 Access College Early Scholarship 985,000 985,000 985,000 0 0.0% 0 0.0%

#69 Aid to arts programs 943,069 943,069 943,069 0 0.0% 0 0.0%

Current Yr Committee Committee FY18 vs Prior Yr FY19 vs Prior Yr FY2016-17 FY2017-18 FY2018-19 $ Chnge % Chnge $ Chnge % Chnge

#72 State aid to development districts 500,000 500,000 500,000 0 0.0% 0 0.0%

#72 Business Innovation Act 6,760,000 6,221,200 6,221,200 (538,800) -8.0% 0 0.0%

#72 Grow Nebraska 100,000 100,000 100,000 0 0.0% 0 0.0%

#78 Juvenile services grants 587,812 587,812 587,812 0 0.0% 0 0.0%

#78 Community Juvenile Services aid 6,300,000 6,300,000 6,300,000 0 0.0% 0 0.0%

#78 Crimestoppers program 13,457 13,457 13,457 0 0.0% 0 0.0%

#78 County Justice Reinvestment Grants 500,000 500,000 500,000 0 0.0% 0 0.0%

#78 Victim Witness assistance 52,559 52,559 52,559 0 0.0% 0 0.0%

#78 Crime Victims reparations 20,000 20,000 20,000 0 0.0% 0 0.0%

#78 Violence Prevention Grants 350,000 350,000 350,000 0 0.0% 0 0.0%

#81 Blind rehabilitation 176,890 216,890 216,890 40,000 22.6% 0 0.0%

#83 Aid to Community Colleges 100,828,308 100,828,308 99,828,308 0 0.0% (1,000,000) -1.0%

#84 Superfund cleanup 316,200 316,200 316,200 0 0.0% 0 0.0%

#84 Storm Water Management grants 1,824,996 0 0 (1,824,996) -100.0% 0 na

#91 Tourism grant program 250,000 0 0 (250,000) -100.0% 0 na

#94 Indigent defense reimbursement 0 0 0 0 na 0 na

Individuals/Other 1,398,520,670 1,397,165,246 1,400,272,562 (1,355,424) -0.1% 3,107,316 0.2%

Local Government 1,410,271,464 1,428,017,735 1,459,780,948 17,746,271 1.3% 31,763,213 2.2%

Total State Aid 2,808,792,134 2,825,182,981 2,860,053,510 16,390,847 0.6% 34,870,529 1.2%

APPROPRIATIONS ALL FUND SOURCES

Appropriations - All Fund Sources This section of the report reflects the committee budget recommendation for all funds sources, not just

General Funds. Table 33 contains the overall total appropriations by fund source broken down by

operations, state aid and capital construction. Following the table is a description of each type of fund

source and highlights of major increases inside of each fund category. For a more detailed explanation of

the changes in appropriations from other fund sources, please refer to the specific agency pages later on

in this report.

Table 33 Committee Proposed Budget - All Fund Sources

General Cash Federal Rev/Other Total

FY2016-17 (without deficits)

Agency Operations 1,580,659,703 1,712,040,037 897,625,296 893,124,946 5,083,449,982 State Aid 2,808,792,134 562,320,557 2,103,183,475 2,283,884 5,476,580,050 Capital Construction 22,239,000 44,893,930 0 19,363,212 86,496,142 ___________ ___________ ___________ ___________ ___________

FY2016-17 Total 4,411,690,837 2,319,254,524 3,000,808,771 914,772,042 10,646,526,174 FY2017-18

Agency Operations 1,577,014,719 1,728,458,804 925,898,615 901,525,673 5,132,897,811 State Aid 2,825,182,981 592,338,757 2,030,741,312 2,283,884 5,450,546,934 Capital Construction 21,834,000 46,264,430 595,000 37,260,712 105,954,142 ___________ ___________ ___________ ___________ ___________

FY2017-18 Total 4,424,031,700 2,367,061,991 2,957,234,927 941,070,269 10,689,398,887 Change over prior year Dollar 12,340,863 47,786,142 (43,573,844) 26,298,227 42,851,388 Percent 0.3% 2.1% -1.5% 2.9% 0.4% FY2018-19

Agency Operations 1,607,727,065 1,735,979,335 916,084,521 900,871,794 5,160,662,715 State Aid 2,860,053,510 586,405,025 2,079,686,260 2,283,884 5,528,428,679 Capital Construction 32,801,790 40,080,930 2,060,000 44,598,496 119,541,216 ___________ ___________ ___________ ___________ ___________

FY2018-19 Total 4,500,582,365 2,362,465,290 2,997,830,781 947,754,174 10,808,632,610 Change over prior year Dollar 76,550,665 (4,596,701) 40,595,854 6,683,905 119,233,723 Percent 1.7% -0.2% 1.4% 0.7% 1.1%

Cash Funds

These funds are used to account for the revenues and expenditures of dedicated fees and charges.

Unlike the single General Fund, there are more than 200 individual cash funds contained in 70 different

agencies. Only 7 agencies do not have some cash funds although many are very small amounts. In

many instances, an agency has multiple cash funds. For example, the Dept. of Agriculture has over 20

different cash funds. Monies held in these funds generally can only be used for the specific purpose for

which the fund was created. Cash funds are used to account for revenues such as University and State

College tuition and fees, hunting/fishing permits, highway revenues (gas tax and sales tax on motor

vehicles), and agricultural commodity check-off fees. In addition, most inspection, regulatory, and license

fees and charges, are dedicated to and accounted for through the use of cash funds.

An increasingly large portion of cash funds is now the Property Tax Credit Fund where the source of

monies for the cash fund are actually General Fund transfers. This now amounts to $200 million and

moves the Dept. of Revenue to the third highest in cash fund appropriations.

CASH FUNDS FY2014-15 FY2015-16 FY2016-17 % of Total

Roads 881,897,959 866,928,507 876,605,205 36.6%

University of Nebraska 437,717,057 437,717,057 437,717,057 18.5%

Revenue 233,586,700 252,842,788 252,751,076 10.7%

Health & Human Services (DHHS) 180,443,564 182,101,928 182,252,539 7.7%

Public Service Commission 88,813,714 88,948,523 88,996,705 3.8%

Game and Parks 77,070,161 80,060,131 81,371,043 3.4%

Construction 44,893,930 46,264,430 40,080,930 2.0%

State Colleges 38,025,445 38,025,445 38,025,445 1.6%

Motor Vehicles 26,042,077 39,570,419 34,951,669 1.7%

Environmental Quality 36,431,350 36,538,467 36,633,904 1.5%

All Other 274,332,567 298,064,296 293,079,717 12.6%

Total - Cash Funds 2,319,254,524 2,367,061,991 2,362,465,290 100.0%

$ Change 47,807,467 (4,596,701)

% Change 2.1% -0.2%

The Dept of Roads accounts for 37% of cash fund revenues and expenditures while the University of

Nebraska accounts for 18%. The Dept of Revenue accounts for 10.7% of the total as the $224 million

property tax credits are expended as cash funds.

The proposed budget for FY17-18 reflects a 2.1% growth in cash fund appropriations. About 42% of the

increase is from the $40 million increase in the Property Tax Credit. Excluding this item cash funds

increased about 1.2%. Other significant increases include $24.7 for a DMV vehicle title registration

system modernization project.

DEPARTMENT OF ROADS

The proposed budget uses revenue projections prepared by the Department of Roads to set the fuel tax

at a projected average of 28.1¢ in FY17-18 and 29.6¢ in FY18-19. These are the same tax rates that

were requested in the department’s budget and were included in the Governor’s budget recommendation.

The increase in the tax rate each year reflects the 1.5¢ incremental increase caused by LB610 (2015).

The fuel tax is controlled by the size of the Highway Cash Fund appropriation and the most recent

projections require an appropriation of $441,900,000 in FY17-18 and $448,600,000 in FY18-19 to

maintain an average tax rate of 28.1¢ and 29.6¢. This Highway Cash Fund appropriation is $12,900,000

higher than the department’s September budget request for FY17-18 and $12,600,000 higher than their

FY18-19 request due to changes in their revenue projections since their request was submitted.

The department will also receive additional sales tax revenue (LB84 Build Nebraska revenue) because of

the decision of Amazon to begin remitting sales tax to the state. The department’s share of this revenue

will be deposited into the State Highway Capital Improvement Fund and is estimated to total $1,142,000

in FY17-18 and $1,268,000 in FY18-19.

The recommendation includes several areas where cost savings or changes to the department’s request

have allowed money to be reallocated for additional highway construction. These include lower salary and

health insurance increases, lower leasing and user fee costs for radios on the statewide radio system,

and a decision to reduce the request for capital construction. The increase in highway construction

funding from these items total $5,439,600 in FY17-18 and $11,782,891 in FY18-19.

When the additional state revenue from the higher Highway Cash Fund appropriation and the Amazon

sales tax are combined with the cost savings/reallocation mentioned previously the amount of funding for

highway construction is increased by $45,132,491 for the biennium compared to the department’s original

budget request ($19,481,600 increase in FY17-18 and $25,650,891 increase in FY18-19).

This increased highway construction funding is partially offset by the decision to transfer $30,000,000

from the Roads Operations Cash Fund to the General Fund ($15 million each year), leaving a net

increase in highway construction funding from these actions of $15,132,491 for the biennium compared to

their September budget request. Because the $30,000,000 transfer is from the Roads Operations Cash

Fund it will not impact the fuel tax or the amount of LB610 money that is transferred into the

Transportation Infrastructure Bank Fund.

VEHICLE TITLE REGISTRATION SYSTEM MODERNIZATION PROJECT

The committee proposed budget includes $14,598,490 in FY17-18 and $10,134,987 in FY18-19 for

modernization of the motor vehicle title registration system. The Legislature began a process to replace

the Vehicle Title Registration System (VTR) with a cash fund appropriation provided during the 2014

Session. The VTR system is complex in nature and handled over 3.5 million vehicle registration and title

transactions in CY2015 and collected over $650 million in fees and taxes. DMV has hired a project

manager to oversee the project. A consultant was hired to assess the current system and provide

recommendations on a new system. Based on the recommendations, DMV issued a Request for

Proposal (RFP) to select a vendor for the project. Six vendors submitted information and only four

provided cost estimates. The estimates for one-time costs ranged from $15 - $26.5 million and annual

costs to operate the system from $1 - $4 million. Due to the significant range in estimates, DMV used a

mid-range for each vendor and then averaged the three to develop the budget request.

The following chart shows a breakdown of the estimates by broad category: Software License 2,416,667

Integration Services (design, testing, deployment) 15,083,333

Data Migration 1,145,000

Training 875,000

Hardware 1,250,000

Project Management 1,200,000

Total $ 21,970,000

The project is scheduled to begin in July 2017 with plans for the base system to be implemented and

operational in September 2019. The request includes about $13 million in FY18 and $8.8 million in FY19

for contracted project costs. In addition, DMV is requesting funds for 3.0 FTE technology positions to

support the new system on an on-going basis. Eleven temporary positions are requested to cover for

eleven current DMV employees who will be assigned to the project. These temporary positions will

continue until the new system is in place. The funding for the new system is provided by the VTR

Replacement and Maintenance Fund. The fund was established in 2014 with a transfer of $12.5 million

from the DMV Cash Fund. An additional $5,325,000 is authorized to be transferred from the DMV Cash

Fund on or before June 20, 2017. In addition, the Legislature passed LB 977 (2016) to place 1% of motor

vehicle tax proceeds in the VTR Replacement and Maintenance Fund beginning July 1, 2016. This

source of revenue will provide about $2.7 million to the fund in FY17.

PROPERTY TAX CREDIT FUND


Legislature. Based on the amount of funds available, monies are then allocated to counties by the ratio of

the real property valuation in the county to the real property valuation in the state. Counties then allocate

funds as credit to each tax payer again based on their proportionate value. Enacted in 2007, the amount

available for credits was $105 million in FY07-08, and $115 million in FY08-09 through FY13-14. During

the 2014 session, the FY14-15 amount was increased to $140 million. In the 2015 session, the credit

was increased by $64 million increase to a total of $204 million.








Table 34 shows the allocation amounts, credit valuations (valuation on which the credit allocation is

derived), amount of credit per $100,000 of credit valuation and the property tax credit amount as a

percent of property taxes levied.

Table 34 Property Tax Credit Allocations

In the estimates for 2017, the credit valuation amounts include the adjustment to 120% of value for

agricultural land. The credit per $100,000 of $82.89 is derived based on the credit allocation value. For

agricultural land, the credit per $100,000 of taxable valuation is $109.70.

The distribution of the property tax credits by sector ie… agriculture, residential, commercial and industrial

and public service and railroad companies is shown in Table 35. Since the property tax credit is

distributed solely based on valuation, the high growth in agricultural land values and flat valuation in

Credit Per Credit Per

Credit Valuations $100,000 $100,000 Credit as % of

Tax Year State Total (with PS/RR) Credit Value Ag Actual Value Taxes Levied

2007 $105,000,000 126,173,249,573 $83.22 $83.22 4.1%

2008 $115,000,000 133,526,060,086 $86.13 $86.13 4.2%

2009 $115,000,000 139,872,647,990 $82.22 $82.22 4.0%

2010 $115,000,000 145,728,785,008 $78.91 $78.91 3.8%

2011 $115,000,000 152,707,187,248 $75.31 $75.31 3.7%

2012 $115,000,000 160,846,501,888 $71.50 $71.50 3.6%

2013 $115,000,000 174,325,264,970 $65.97 $65.97 3.4%

2014 $140,000,000 195,702,533,235 $71.54 $71.54 3.9%

2015 $204,000,000 216,818,552,715 $94.09 $94.09 5.4%

2016 $204,000,000 227,744,774,746 $89.57 $89.57 5.2%

2017 est $224,000,000 270,244,544,710 $82.89 $109.70 5.7%

residential has resulted in a shift in the credit distribution from residential to agricultural. The 2017

estimated breakdown reflects the new provisions of adjusting ag land valuation for credit purposes in

LB958-2016.

Table 35 Property Tax Credit by Sector

Federal Funds

Federal funds account for monies received from the federal government either as grants, contracts, or

matching funds. Unlike other fund sources, federal fund appropriations are an estimate and agencies are

not limited to the amount shown in the appropriation bills though receipts must meet expenditures.

Similar to cash funds, there are numerous individual federal funds contained in the accounting system

and they are generally limited to specific uses as authorized by the federal program from which the funds

came from. Of the 77 state agencies, 34 receive some level of federal funds.

FEDERAL FUNDS FY2014-15 FY2015-16 FY2016-17 % of Total

Health & Human Services (DHHS) 1,880,317,348 1,832,230,371 1,868,421,087 62.0%

University of Nebraska 518,129,880 518,129,880 518,129,880 17.5%

Education 370,715,043 372,654,925 374,885,099 12.6%

Labor 50,007,176 47,266,254 47,502,185 1.6%

State Colleges 46,739,698 46,739,698 46,739,698 1.6%

Environmental Quality 32,054,944 32,154,225 32,242,681 1.1%

Military Dept 24,175,183 24,567,334 24,680,684 0.8%

Economic Development 26,309,615 21,226,679 21,239,453 0.7%

Crime Commission 10,518,371 19,810,150 19,825,031 0.7%

Game and Parks 7,856,053 7,893,262 7,915,699 0.3%

All Other 33,985,460 34,562,149 36,249,284 1.2%

Total - Federal Funds 3,000,808,771 2,957,234,927 2,997,830,781 100.0%

$ Change (43,573,844) 40,595,854

% Change -1.5% 1.4%

Almost all federal funds are in three agencies; Health and Human Services System (62%) where a large

portion is for programs such as Medicaid, AFDC and other public assistance program, University of

Nebraska (17.0%), and the Dept. of Education (13%) which is mostly flow through monies to local K-12

schools for programs such as Title 1, School Lunch, and Special Education.

% of Total Property Tax Credit

Tax Year Agricultural Residential Comm/Indust PS/RR

2007 24.1% 55.7% 18.7% 1.5%

2008 25.1% 54.5% 18.8% 1.6%

2009 26.8% 52.7% 18.7% 1.7%

2010 28.7% 51.2% 18.1% 1.9%

2011 30.6% 49.4% 17.8% 2.1%

2012 32.1% 46.9% 18.8% 2.1%

2013 36.2% 43.9% 17.8% 2.0%

2014 41.5% 40.3% 16.3% 1.9%

2015 44.5% 38.1% 15.5% 2.0%

2016 45.7% 37.2% 15.2% 1.9%

2017 est 51.8% 33.5% 13.0% 1.6%

Estimated federal funds decline by 1.5% in FY17-18. In DHHS, a $100 million reduction in federal funds

was simply to adjust their base appropriation to better reflect actual federal fund expenditure levels.

Adjusting for that, federal funds would have shown a 1.9% increase, much attributed to the higher

Medicaid FMAP rate.

Revolving / Other Funds

Revolving funds account for transactions where one agency provides goods or services to another

agency. For example, the Dept. of Education pays DAS-Building Division rent for the State Office

Building. The expenditure is charged against the Departments budget (be it General, Cash, or Federal).

DAS then receives these funds which are credited to a revolving fund from which DAS pays staff salaries,

utilities, cleaning costs, etc... This in essence double-counts expenditures; once when an agency pays

another agency for goods/services rendered, the second time when the receiving agency then pays for

costs incurred in providing the goods or services. Like cash and federal funds, there are numerous

individual revolving funds within the state system. Excluding the University and State Colleges, DAS

accounts for 89% of all revolving funds. The Dept. of Correctional Services (through Cornhusker State

Industries) accounts for another 7.7%.

About 68% of all revolving fund appropriations are contained within the University and State Colleges.

However, unlike the revolving fund definition noted above, revolving funds used by the University and

State Colleges account for revenues from dormitories, student unions, agricultural experiment stations,

other "enterprise" operations. This separates these revenues from those generated from student tuition

and fees that are accounted for as cash funds.

Appropriations from the Nebraska Capital Construction Fund (NCCF) are also accounted for in this

category as “Other Funds” but are noted separately in the table below. The source of funds for the NCCF

has recently been transfers from the Cash Reserve Fund or General Fund for major projects. In past

years this included projects such as Innovation Campus, UNMC cancer research towers, and the Central

Nebraska Veterans Home.

In FY17-18 there is $14.2 million and $26.2 million in FY18-19 related to the Dept of Correctional

Services Reception and Treatment Center construction project.

REVOLVING / OTHER FY2014-15 FY2015-16 FY2016-17 % of Total

University of Nebraska 637,350,578 637,350,578 637,350,578 1 67.7%

Admin Services 225,133,398 232,475,807 231,624,467 2 24.7%

Corrections 18,935,977 19,797,665 19,949,835 4 2.1%

State Colleges 9,535,829 9,535,829 9,535,829 5 1.0%

All Other 17,149,775 22,419,098 18,048,135 2.4%

Total - Revolving Funds 898,569,728 912,043,148 906,973,015 96.9%

Nebr Capital Const Fund (NCCF) 16,202,314 29,027,121 40,781,159 3.1%

Total - Revolving/Other Funds 914,772,042 941,070,269 947,754,174 100.0%

$ Change 26,298,227 6,683,905

% Change 2.9% 0.7%

Historical Appropriations-All Funds

Table 36 contains historical appropriations from all fund sources for the past 20 years. All years exclude

deficit appropriations. Also shown are average growth figures for the past 20 years as well as historical

growth in biennial budgets.

One significant item to note is the cash fund decline in FY98-99 which relates to the merger of Clarkson

Hospital and the University of Nebraska Medical Center Hospital into a non-profit private corporation,

Nebraska Health Systems. Because the new entity is "private", this took the University Hospital's patient

revenues (and cash fund expenditures) out of the state's accounting system amounting to over $200

million.

Table 36 Historical Appropriations-All Funds

General Funds Cash Funds Federal Funds Revolving/Other Total Funds

FY1995-96 Approp 1,810,178,260 1,016,908,962 1,187,791,863 346,310,774 4,361,189,859

FY1996-97 Approp 1,885,810,146 1,073,119,105 1,148,329,975 370,061,527 4,477,320,753

FY1997-98 Approp 1,979,767,634 1,121,968,313 1,179,866,825 393,815,064 4,675,417,836

FY1998-99 Approp 2,228,579,121 937,301,414 1,288,860,855 445,357,561 4,900,098,951

FY1999-00 Approp 2,323,943,947 1,100,726,077 1,390,725,054 470,160,784 5,285,555,862

FY2000-01 Approp 2,458,789,233 1,130,234,910 1,528,364,447 472,171,086 5,589,559,676

FY2001-02 Approp 2,606,951,336 1,210,661,243 1,602,142,264 492,780,254 5,912,535,097

FY2002-03 Approp 2,621,296,239 1,252,852,263 1,750,158,602 516,844,018 6,141,151,122

FY2003-04 Approp 2,655,289,608 1,285,728,367 1,814,045,740 509,307,018 6,264,370,733

FY2004-05 Approp 2,758,082,724 1,348,606,437 2,150,399,990 538,811,896 6,795,901,047

FY2005-06 Approp 2,972,439,069 1,599,561,441 2,183,758,870 546,381,840 7,302,141,220

FY2006-07 Approp 3,180,850,777 1,515,042,477 2,293,382,276 600,297,850 7,589,573,380

FY2007-08 Approp 3,305,700,963 1,637,701,761 2,215,900,086 643,850,466 7,803,153,276

FY2008-09 Approp 3,481,660,742 1,737,598,483 2,294,400,979 712,318,113 8,225,978,317

FY2009-10 Approp 3,380,864,343 1,762,003,199 2,554,199,664 716,159,796 8,413,227,002

FY2010-11 Approp 3,405,101,292 1,786,208,029 2,783,940,522 733,611,968 8,708,861,811

FY2011-12 Approp 3,470,531,929 1,848,428,337 2,636,058,658 740,656,170 8,695,675,094

FY2012-13 Approp 3,632,423,755 1,854,087,842 2,676,111,718 843,560,595 9,006,183,910

FY2013-14 Approp 3,838,168,907 2,054,629,664 2,875,826,694 816,730,442 9,585,355,707

FY2014-15 Approp 4,105,825,530 2,146,231,964 2,920,649,443 845,665,312 10,018,372,249

FY2015-16 Approp 4,271,803,869 2,293,125,964 2,974,745,612 871,770,089 10,411,445,534

FY2016-17 Approp 4,411,690,837 2,319,254,524 3,000,808,771 914,772,042 10,646,526,174

FY2017-18 Committee 4,424,031,700 2,367,061,991 2,957,234,927 941,070,269 10,689,398,887

FY2018-19 Committee 4,500,582,365 2,362,465,290 2,997,830,781 947,754,174 10,808,632,610

Average Annual Growth

FY04 / FY05 Biennium 2.6% 3.8% 10.8% 2.1% 5.2%

FY06 / FY07 Biennium 7.4% 6.0% 3.3% 5.6% 5.7%

FY08 / FY09 Biennium 4.6% 7.1% 0.0% 8.9% 4.1%

FY10 / FY11 Biennium -1.1% 1.4% 10.2% 1.5% 2.9%

FY12 / FY13 Biennium 3.3% 1.9% -2.0% 7.2% 1.7%

FY14 / FY15 Biennium 6.3% 7.6% 4.5% 0.1% 5.5%

FY16 / FY17 Biennium 3.7% 4.0% 1.4% 4.0% 3.1%

FY18 / FY19 Biennium 1.0% 0.9% 0.0% 1.8% 0.8%

Avg FY99 to FY09 (10 yr) 4.6% 6.4% 5.9% 4.8% 5.3%

Avg FY09 to FY19 (10 yr) 2.6% 3.1% 2.7% 2.9% 2.8%

Avg FY09 to FY19 (20 yr) 3.6% 4.7% 4.3% 3.8% 4.0%

Appropriations By Agency - All Funds FY18 / FY19 Biennial Budget as Proposed by the Appropriations Committee

w/o Deficits Committee Committee FY18 vs Prior Year FY19 vs Prior Year

Fund FY2016-17 FY2017-18 FY2018-19 $ Chnge % Chnge $ Chnge % Chnge

3 Legislative Gen 20,930,311 20,923,169 21,120,007 (7,142) 0.0% 196,838 0.9%

Council Cash 219,675 241,000 193,000 21,325 9.7% (48,000) -19.9%

Fed 39,270 39,270 39,270 0 0.0% 0 0.0%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 21,189,256 21,203,439 21,352,277 14,183 0.1% 148,838 0.7%

5 Supreme Gen 180,106,832 185,535,781 190,820,542 5,428,949 3.0% 5,284,761 2.8%

Court Cash 15,933,562 16,204,044 16,476,644 270,482 1.7% 272,600 1.7%

Fed 697,777 706,070 712,959 8,293 1.2% 6,889 1.0%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 196,738,171 202,445,895 208,010,145 5,707,724 2.9% 5,564,250 2.7%

7 Governor Gen 2,280,286 2,172,629 2,198,299 (107,657) -4.7% 25,670 1.2%

Cash 0 0 0 0 na 0 na

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 2,280,286 2,172,629 2,198,299 (107,657) -4.7% 25,670 1.2%

8 Lt. Governor Gen 149,486 149,172 151,197 (314) -0.2% 2,025 1.4%

Cash 0 0 0 0 na 0 na

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 149,486 149,172 151,197 (314) -0.2% 2,025 1.4%

9 Secretary Gen 2,021,019 2,485,769 2,317,307 464,750 23.0% (168,462) -6.8%

of State Cash 6,503,410 8,206,675 6,184,205 1,703,265 26.2% (2,022,470) -24.6%

Fed 98,300 0 0 (98,300) -100.0% 0 na

Rev 1,149,378 946,783 941,184 (202,595) -17.6% (5,599) -0.6%

___________ ___________ ___________ __________ ________ ________ ______

Total 9,772,107 11,639,227 9,442,696 1,867,120 19.1% (2,196,531) -18.9%

10 Auditor Gen 2,609,327 2,568,316 2,597,136 (41,011) -1.6% 28,820 1.1%

Cash 1,882,440 1,994,093 2,027,141 111,653 5.9% 33,048 1.7%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 4,491,767 4,562,409 4,624,277 70,642 1.6% 61,868 1.4%

11 Attorney Gen 7,266,457 6,516,903 6,584,768 (749,554) -10.3% 67,865 1.0%

General Cash 2,510,901 2,838,405 2,861,824 327,504 13.0% 23,419 0.8%

Fed 1,675,232 1,691,332 1,705,646 16,100 1.0% 14,314 0.8%

Rev 1,348,876 1,572,706 1,589,787 223,830 16.6% 17,081 1.1%

___________ ___________ ___________ __________ ________ ________ ______

Total 12,801,466 12,619,346 12,742,025 (182,120) -1.4% 122,679 1.0%



12 Treasurer Gen 1,303,949 1,290,755 1,266,335 (13,194) -1.0% (24,420) -1.9%

Cash 12,428,259 12,472,677 12,496,080 44,418 0.4% 23,403 0.2%

Fed 1,702,956 1,697,476 1,708,371 (5,480) -0.3% 10,895 0.6%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 15,435,164 15,460,908 15,470,786 25,744 0.2% 9,878 0.1%

13 Education Gen 1,228,932,761 1,247,574,908 1,276,895,555 18,642,147 1.5% 29,320,647 2.4%

Cash 10,544,463 12,330,108 11,465,362 1,785,645 16.9% (864,746) -7.0%

Fed 370,715,043 372,654,925 374,885,099 1,939,882 0.5% 2,230,174 0.6%

Rev 204,728 204,728 204,728 0 0.0% 0 0.0%

___________ ___________ ___________ __________ ________ ________ ______

Total 1,610,396,995 1,632,764,669 1,663,450,744 22,367,674 1.4% 30,686,075 1.9%

14 Public Gen 2,540,808 2,340,162 2,364,672 (200,646) -7.9% 24,510 1.0%

Service Cash 88,813,714 88,948,523 88,996,705 134,809 0.2% 48,182 0.1%

Commission Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 91,354,522 91,288,685 91,361,377 (65,837) -0.1% 72,692 0.1%

15 Parole Gen 7,098,862 7,250,653 7,713,251 151,791 2.1% 462,598 6.4%

Board Cash 455,873 455,873 455,873 0 0.0% 0 0.0%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 7,554,735 7,706,526 8,169,124 151,791 2.0% 462,598 6.0%

16 Revenue Gen 119,666,068 120,609,016 124,647,549 942,948 0.8% 4,038,533 3.3%

Cash 233,586,700 252,842,788 252,751,076 19,256,088 8.2% (91,712) 0.0%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 353,252,768 373,451,804 377,398,625 20,199,036 5.7% 3,946,821 1.1%

17 Aeronautics Gen 0 0 0 0 na 0 na

Cash 22,472,813 34,011,456 28,085,657 11,538,643 51.3% (5,925,799) -17.4%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 22,472,813 34,011,456 28,085,657 11,538,643 51.3% (5,925,799) -17.4%

18 Agriculture Gen 7,217,820 6,137,109 6,198,024 (1,080,711) -15.0% 60,915 1.0%

Cash 7,906,977 7,833,466 7,966,565 (73,511) -0.9% 133,099 1.7%

Fed 4,135,994 4,260,234 4,282,715 124,240 3.0% 22,481 0.5%

Rev 655,536 653,930 671,278 (1,606) -0.2% 17,348 2.7%

___________ ___________ ___________ __________ ________ ________ ______

Total 19,916,327 18,884,739 19,118,582 (1,031,588) -5.2% 233,843 1.2%

19 Banking Gen 0 0 0 0 na 0 na

Cash 7,667,396 7,491,237 7,382,369 (176,159) -2.3% (108,868) -1.5%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 7,667,396 7,491,237 7,382,369 (176,159) -2.3% (108,868) -1.5%



21 Fire Gen 4,356,727 4,162,571 4,274,543 (194,156) -4.5% 111,972 2.7%

Marshal Cash 1,898,956 1,977,828 2,005,421 78,872 4.2% 27,593 1.4%

Fed 434,371 440,790 445,344 6,419 1.5% 4,554 1.0%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 6,690,054 6,581,189 6,725,308 (108,865) -1.6% 144,119 2.2%

22 Insurance Gen 0 0 0 0 na 0 na

Cash 13,318,292 12,120,212 12,267,155 (1,198,080) -9.0% 146,943 1.2%

Fed 2,235,599 2,110,019 2,157,529 (125,580) -5.6% 47,510 2.3%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 15,553,891 14,230,231 14,424,684 (1,323,660) -8.5% 194,453 1.4%

23 Labor Gen 690,814 636,886 634,675 (53,928) -7.8% (2,211) -0.3%

Cash 4,564,457 4,795,422 4,752,902 230,965 5.1% (42,520) -0.9%

Fed 50,007,176 47,266,254 47,502,185 (2,740,922) -5.5% 235,931 0.5%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 55,262,447 52,698,562 52,889,762 (2,563,885) -4.6% 191,200 0.4%

24 Motor Gen 0 0 0 0 na 0 na

Vehicles Cash 26,042,077 39,570,419 34,951,669 13,528,342 51.9% (4,618,750) -11.7%

Fed 94,600 203,274 205,293 108,674 114.9% 2,019 1.0%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 26,136,677 39,773,693 35,156,962 13,637,016 52.2% (4,616,731) -11.6%

25 HHS Gen 1,635,578,047 1,635,240,358 1,642,972,310 (337,689) 0.0% 7,731,952 0.5%

System Cash 180,443,564 182,101,928 182,252,539 1,658,364 0.9% 150,611 0.1%

Fed 1,880,317,348 1,832,230,371 1,868,421,087 (48,086,977) -2.6% 36,190,716 2.0%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 3,696,338,959 3,649,572,657 3,693,645,936 (46,766,302) -1.3% 44,073,279 1.2%

27 Roads Gen 0 0 0 0 na 0 na

Cash 881,897,959 866,928,507 876,605,205 (14,969,452) -1.7% 9,676,698 1.1%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 881,897,959 866,928,507 876,605,205 (14,969,452) -1.7% 9,676,698 1.1%

28 Veterans Gen 1,428,314 1,155,381 1,349,119 (272,933) -19.1% 193,738 16.8%

Affairs Cash 45,557 295,557 125,557 250,000 548.8% (170,000) -57.5%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 1,473,871 1,450,938 1,474,676 (22,933) -1.6% 23,738 1.6%

29 Natural Gen 16,745,150 15,296,724 15,398,977 (1,448,426) -8.6% 102,253 0.7%

Resources Cash 20,141,763 20,012,546 20,016,735 (129,217) -0.6% 4,189 0.0%

Fed 766,697 781,454 794,606 14,757 1.9% 13,152 1.7%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 37,653,610 36,090,724 36,210,318 (1,562,886) -4.2% 119,594 0.3%



30 Electrical Gen 0 0 0 0 na 0 na

Board Cash 1,736,213 1,757,889 1,777,584 21,676 1.2% 19,695 1.1%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 1,736,213 1,757,889 1,777,584 21,676 1.2% 19,695 1.1%

31 Military Gen 5,344,708 4,971,803 4,995,669 (372,905) -7.0% 23,866 0.5%

Dept Cash 952,437 1,206,590 1,210,260 254,153 26.7% 3,670 0.3%

Fed 24,175,183 24,567,334 24,680,684 392,151 1.6% 113,350 0.5%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 30,472,328 30,745,727 30,886,613 273,399 0.9% 140,886 0.5%

32 Ed Lands Gen 335,359 382,516 347,738 47,157 14.1% (34,778) -9.1%

& Funds Cash 15,947,069 18,774,100 20,845,339 2,827,031 17.7% 2,071,239 11.0%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 16,282,428 19,156,616 21,193,077 2,874,188 17.7% 2,036,461 10.6%

33 Game and Gen 12,073,883 11,850,167 11,945,060 (223,716) -1.9% 94,893 0.8%

Parks Cash 77,070,161 80,060,131 81,371,043 2,989,970 3.9% 1,310,912 1.6%

Fed 7,856,053 7,893,262 7,915,699 37,209 0.5% 22,437 0.3%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 97,000,097 99,803,560 101,231,802 2,803,463 2.9% 1,428,242 1.4%

34 Library Gen 4,085,973 3,858,454 3,914,096 (227,519) -5.6% 55,642 1.4%

Commission Cash 94,085 94,085 94,085 0 0.0% 0 0.0%

Fed 1,512,225 1,512,225 1,512,225 0 0.0% 0 0.0%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 5,692,283 5,464,764 5,520,406 (227,519) -4.0% 55,642 1.0%

35 Liquor Gen 1,298,648 1,291,763 1,306,427 (6,885) -0.5% 14,664 1.1%

Commission Cash 70,719 70,719 70,719 0 0.0% 0 0.0%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 1,369,367 1,362,482 1,377,146 (6,885) -0.5% 14,664 1.1%

36 Racing Gen 0 0 0 0 na 0 na

Commission Cash 975,165 981,386 986,712 6,221 0.6% 5,326 0.5%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 975,165 981,386 986,712 6,221 0.6% 5,326 0.5%

37 Workers Gen 0 0 0 0 na 0 na

Compensation Cash 6,139,482 6,210,679 6,277,698 71,197 1.2% 67,019 1.1%

Court Fed 52,674 52,674 52,674 0 0.0% 0 0.0%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 6,192,156 6,263,353 6,330,372 71,197 1.1% 67,019 1.1%



39 Brand Gen 0 0 0 0 na 0 na

Committee Cash 4,703,997 4,987,110 5,048,502 283,113 6.0% 61,392 1.2%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 4,703,997 4,987,110 5,048,502 283,113 6.0% 61,392 1.2%

40 Motor Vehicle Gen 0 0 0 0 na 0 na

Dealers Cash 745,639 774,810 784,004 29,171 3.9% 9,194 1.2%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 745,639 774,810 784,004 29,171 3.9% 9,194 1.2%

41 Real Estate Gen 0 0 0 0 na 0 na

Commission Cash 1,232,247 1,300,247 1,311,093 68,000 5.5% 10,846 0.8%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 1,232,247 1,300,247 1,311,093 68,000 5.5% 10,846 0.8%

45 Barber Gen 0 0 0 0 na 0 na

Examiners Cash 168,121 165,377 167,454 (2,744) -1.6% 2,077 1.3%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 168,121 165,377 167,454 (2,744) -1.6% 2,077 1.3%

46 Correctional Gen 207,658,501 211,407,950 215,922,262 3,749,449 1.8% 4,514,312 2.1%

Services Cash 2,126,000 3,126,000 2,126,000 1,000,000 47.0% (1,000,000) -32.0%

Fed 1,762,858 1,762,858 1,762,858 0 0.0% 0 0.0%

Rev 18,935,977 19,797,665 19,949,835 861,688 4.6% 152,170 0.8%

___________ ___________ ___________ __________ ________ ________ ______

Total 230,483,336 236,094,473 239,760,955 5,611,137 2.4% 3,666,482 1.6%

47 Educational Gen 10,329,068 10,144,075 10,219,668 (184,993) -1.8% 75,593 0.7%

Telecomm. Cash 337,755 337,755 337,755 0 0.0% 0 0.0%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 10,666,823 10,481,830 10,557,423 (184,993) -1.7% 75,593 0.7%

48 Postsecondary Gen 9,256,763 9,135,747 9,157,207 (121,016) -1.3% 21,460 0.2%

Coord Comm Cash 11,595,768 12,079,973 12,581,436 484,205 4.2% 501,463 4.2%

Fed 407,556 407,556 407,556 0 0.0% 0 0.0%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 21,260,087 21,623,276 22,146,199 363,189 1.7% 522,923 2.4%

50 Nebraska Gen 52,404,248 52,404,248 52,404,248 0 0.0% 0 0.0%

State Cash 38,025,445 38,025,445 38,025,445 0 0.0% 0 0.0%

Colleges Fed 46,739,698 46,739,698 46,739,698 0 0.0% 0 0.0%

Rev 9,535,829 9,535,829 9,535,829 0 0.0% 0 0.0%

___________ ___________ ___________ __________ ________ ________ ______

Total 146,705,220 146,705,220 146,705,220 0 0.0% 0 0.0%



51 University Gen 583,068,732 573,468,732 583,468,732 (9,600,000) -1.6% 10,000,000 1.7%

of Nebraska Cash 437,717,057 437,717,057 437,717,057 0 0.0% 0 0.0%

Fed 518,129,880 518,129,880 518,129,880 0 0.0% 0 0.0%

Rev 637,350,578 637,350,578 637,350,578 0 0.0% 0 0.0%

___________ ___________ ___________ __________ ________ ________ ______

Total 2,176,266,247 2,166,666,247 2,176,666,247 (9,600,000) -0.4% 10,000,000 0.5%

52 Board of Gen 0 0 0 0 na 0 na

Agriculture Cash 4,250,000 4,250,000 4,250,000 0 0.0% 0 0.0%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 4,250,000 4,250,000 4,250,000 0 0.0% 0 0.0%

53 Real Property Gen 0 0 0 0 na 0 na

Appraiser Brd Cash 388,173 380,053 383,056 (8,120) -2.1% 3,003 0.8%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 388,173 380,053 383,056 (8,120) -2.1% 3,003 0.8%

54 Historical Gen 4,652,409 4,413,966 4,400,113 (238,443) -5.1% (13,853) -0.3%

Society Cash 2,645,542 2,676,426 2,612,778 30,884 1.2% (63,648) -2.4%

Fed 858,731 820,725 827,799 (38,006) -4.4% 7,074 0.9%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 8,156,682 7,911,117 7,840,690 (245,565) -3.0% (70,427) -0.9%

56 Nebraska Gen 0 0 0 0 na 0 na

Wheat Cash 2,192,322 1,542,227 1,614,103 (650,095) -29.7% 71,876 4.7%

Board Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 2,192,322 1,542,227 1,614,103 (650,095) -29.7% 71,876 4.7%

57 Oil & Gas Gen 0 0 0 0 na 0 na

Commission Cash 863,594 882,673 890,488 19,079 2.2% 7,815 0.9%

Fed 79,750 80,697 81,500 947 1.2% 803 1.0%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 943,344 963,370 971,988 20,026 2.1% 8,618 0.9%

58 Engineers Gen 0 0 0 0 na 0 na

Architects Cash 825,868 832,171 837,430 6,303 0.8% 5,259 0.6%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 825,868 832,171 837,430 6,303 0.8% 5,259 0.6%

59 Geologists Gen 0 0 0 0 na 0 na

Board Cash 29,529 32,783 31,843 3,254 11.0% (940) -2.9%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 29,529 32,783 31,843 3,254 11.0% (940) -2.9%



60 Ethanol Gen 0 0 0 0 na 0 na

Board Cash 694,715 718,376 735,507 23,661 3.4% 17,131 2.4%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 694,715 718,376 735,507 23,661 3.4% 17,131 2.4%

61 Dairy Gen 0 0 0 0 na 0 na

Board Cash 1,399,957 1,560,000 1,560,000 160,043 11.4% 0 0.0%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 1,399,957 1,560,000 1,560,000 160,043 11.4% 0 0.0%

62 Land Gen 0 0 0 0 na 0 na

Surveyors Cash 28,374 28,374 28,374 0 0.0% 0 0.0%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 28,374 28,374 28,374 0 0.0% 0 0.0%

63 Public Gen 0 0 0 0 na 0 na

Accountancy Cash 438,085 420,830 423,948 (17,255) -3.9% 3,118 0.7%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 438,085 420,830 423,948 (17,255) -3.9% 3,118 0.7%

64 State Gen 60,113,441 61,353,850 61,849,342 1,240,409 2.1% 495,492 0.8%

Patrol Cash 19,967,195 21,135,480 21,136,645 1,168,285 5.9% 1,165 0.0%

Fed 2,766,303 2,933,754 2,997,343 167,451 6.1% 63,589 2.2%

Rev 1,094,530 1,271,531 1,287,992 177,001 16.2% 16,461 1.3%

___________ ___________ ___________ __________ ________ ________ ______

Total 83,941,469 86,694,615 87,271,322 2,753,146 3.3% 576,707 0.7%

65 Admin Gen 8,880,092 8,657,614 8,728,397 (222,478) -2.5% 70,783 0.8%

Services Cash 2,015,555 8,161,480 9,739,902 6,145,925 304.9% 1,578,422 19.3%

(DAS) Fed 0 0 0 0 na 0 na

Rev 225,133,398 232,475,807 231,624,467 7,342,409 3.3% (851,340) -0.4%

___________ ___________ ___________ __________ ________ ________ ______

Total 236,029,045 249,294,901 250,092,766 13,265,856 5.6% 797,865 0.3%

66 Abstracter's Gen 0 0 0 0 na 0 na

Board Cash 58,182 50,487 50,681 (7,695) -13.2% 194 0.4%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 58,182 50,487 50,681 (7,695) -13.2% 194 0.4%

67 Equal Gen 1,262,802 1,278,319 1,292,541 15,517 1.2% 14,222 1.1%

Opportunity Cash 0 0 0 0 na 0 na

Commission Fed 810,622 824,381 836,991 13,759 1.7% 12,610 1.5%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 2,073,424 2,102,700 2,129,532 29,276 1.4% 26,832 1.3%



68 Latino Gen 207,834 208,717 212,083 883 0.4% 3,366 1.6%

American Cash 5,000 5,000 5,000 0 0.0% 0 0.0%


Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 212,834 213,717 217,083 883 0.4% 3,366 1.6%

69 Arts Council Gen 1,561,484 1,538,470 1,533,110 (23,014) -1.5% (5,360) -0.3%

Cash 1,485,000 1,485,000 1,485,000 0 0.0% 0 0.0%

Fed 739,047 739,047 739,047 0 0.0% 0 0.0%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 3,785,531 3,762,517 3,757,157 (23,014) -0.6% (5,360) -0.1%

70 Foster Care Gen 1,865,446 2,071,366 2,095,106 205,920 11.0% 23,740 1.1%

Review Board Cash 135,700 5,700 5,700 (130,000) -95.8% 0 0.0%

Fed 609,592 433,692 441,607 (175,900) -28.9% 7,915 1.8%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 2,610,738 2,510,758 2,542,413 (99,980) -3.8% 31,655 1.3%

71 Energy Gen 218,472 0 0 (218,472) -100.0% 0 na

Office Cash 1,435,438 1,005,103 1,009,645 (430,335) -30.0% 4,542 0.5%

Fed 7,849,234 7,822,663 7,792,334 (26,571) -0.3% (30,329) -0.4%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 9,503,144 8,827,766 8,801,979 (675,378) -7.1% (25,787) -0.3%

72 Economic Gen 12,711,328 11,714,619 11,770,595 (996,709) -7.8% 55,976 0.5%

Development Cash 28,904,199 24,813,306 24,821,610 (4,090,893) -14.2% 8,304 0.0%

Fed 26,309,615 21,226,679 21,239,453 (5,082,936) -19.3% 12,774 0.1%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 67,925,142 57,754,604 57,831,658 (10,170,538) -15.0% 77,054 0.1%

73 Landscape Gen 0 0 0 0 na 0 na

Architects Cash 25,170 27,332 29,057 2,162 8.6% 1,725 6.3%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 25,170 27,332 29,057 2,162 8.6% 1,725 6.3%

74 Power Gen 0 0 0 0 na 0 na

Review Cash 656,346 662,235 667,982 5,889 0.9% 5,747 0.9%


Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 656,346 662,235 667,982 5,889 0.9% 5,747 0.9%

75 Investment Gen 0 0 0 0 na 0 na

Council Cash 3,020,950 2,891,847 2,908,193 (129,103) -4.3% 16,346 0.6%

Fed 0 0 0 0 na 0 na

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 3,020,950 2,891,847 2,908,193 (129,103) -4.3% 16,346 0.6%



76 Indian Gen 245,701 225,825 230,128 (19,876) -8.1% 4,303 1.9%

Affairs Cash 20,000 20,000 20,000 0 0.0% 0 0.0%

Fed 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 265,701 245,825 250,128 (19,876) -7.5% 4,303 1.8%

77 Industrial Gen 325,660 325,272 328,782 (388) -0.1% 3,510 1.1%

Relations Cash 0 0 0 0 na 0 na

Fed 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 325,660 325,272 328,782 (388) -0.1% 3,510 1.1%

78 Crime Gen 12,681,823 12,482,273 12,511,039 (199,550) -1.6% 28,766 0.2%

Commission Cash 1,666,757 1,874,224 1,885,518 207,467 12.4% 11,294 0.6%

Fed 10,518,371 19,810,150 19,825,031 9,291,779 88.3% 14,881 0.1%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 24,866,951 34,166,647 34,221,588 9,299,696 37.4% 54,941 0.2%

81 Blind and Gen 1,148,527 1,211,513 1,221,973 62,986 5.5% 10,460 0.9%

Visually Cash 98,746 148,746 148,746 50,000 50.6% 0 0.0%

Impaired Fed 4,656,072 4,646,958 4,685,617 (9,114) -0.2% 38,659 0.8%

Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 5,903,345 6,007,217 6,056,336 103,872 1.8% 49,119 0.8%

82 Deaf and Gen 1,016,914 998,178 1,008,192 (18,736) -1.8% 10,014 1.0%

Hard of Cash 16,600 16,600 16,600 0 0.0% 0 0.0%

Hearing Fed 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 1,033,514 1,014,778 1,024,792 (18,736) -1.8% 10,014 1.0%

83 Community Gen 100,828,308 100,828,308 99,828,308 0 0.0% (1,000,000) -1.0%

Colleges Cash 0 0 0 0 na 0 na

Fed 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 100,828,308 100,828,308 99,828,308 0 0.0% (1,000,000) -1.0%

84 Environmental Gen 6,063,609 3,994,702 4,042,952 (2,068,907) -34.1% 48,250 1.2%

Quality Cash 36,431,350 36,538,467 36,633,904 107,117 0.3% 95,437 0.3%

(DEQ) Fed 32,054,944 32,154,225 32,242,681 99,281 0.3% 88,456 0.3%

___________ ___________ ___________ __________ ________ ________ ______

Total 74,549,903 72,687,394 72,919,537 (1,862,509) -2.5% 232,143 0.3%

85 Retirement Gen 47,303,239 48,588,600 52,179,000 1,285,361 2.7% 3,590,400 7.4%

Board Cash 5,569,442 5,586,954 5,649,177 17,512 0.3% 62,223 1.1%

Fed 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 52,872,681 54,175,554 57,828,177 1,302,873 2.5% 3,652,623 6.7%

86 Dry Bean Gen 0 0 0 0 na 0 na

Board Cash 467,741 476,532 498,224 8,791 1.9% 21,692 4.6%

Fed 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 467,741 476,532 498,224 8,791 1.9% 21,692 4.6%



87 Accountability Gen 498,468 479,160 486,044 (19,308) -3.9% 6,884 1.4%

& Disclosure Cash 238,871 241,904 245,102 3,033 1.3% 3,198 1.3%

Fed 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 737,339 721,064 731,146 (16,275) -2.2% 10,082 1.4%

88 Nebraska Gen 0 0 0 0 na 0 na

Corn Board Cash 8,200,000 9,106,918 9,112,885 906,918 11.1% 5,967 0.1%

Fed 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 8,200,000 9,106,918 9,112,885 906,918 11.1% 5,967 0.1%

91 Nebraska Gen 250,000 0 0 (250,000) -100.0% 0 na

Tourism Cash 5,762,007 6,530,577 6,532,765 768,570 13.3% 2,188 0.0%


___________ ___________ ___________ __________ ________ ________ ______

Total 6,012,007 6,530,577 6,532,765 518,570 8.6% 2,188 0.0%

92 Grain Gen 0 0 0 0 na 0 na

Sorghum Cash 296,890 297,476 297,921 586 0.2% 445 0.1%


___________ ___________ ___________ __________ ________ ________ ______

Total 296,890 297,476 297,921 586 0.2% 445 0.1%

93 Tax Gen 837,359 865,231 877,497 27,872 3.3% 12,266 1.4%

Equalization Cash 70,000 45,000 45,000 (25,000) -35.7% 0 0.0%

& Review Fed 0 0 0 0 na 0 na

(TERC) Rev 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 907,359 910,231 922,497 2,872 0.3% 12,266 1.3%

94 Public Gen 0 0 0 0 na 0 na

Advocacy Cash 5,141,128 5,005,163 5,019,706 (135,965) -2.6% 14,543 0.3%

Fed 0 0 0 0 na 0 na

___________ ___________ ___________ __________ ________ ________ ______

Total 5,141,128 5,005,163 5,019,706 (135,965) -2.6% 14,543 0.3%

99 Capital Gen 22,239,000 21,834,000 32,801,790 (405,000) -1.8% 10,967,790 50.2%

Construction Cash 44,893,930 46,264,430 40,080,930 1,370,500 3.1% (6,183,500) -13.4%

Fed 0 595,000 2,060,000 595,000 na 1,465,000 246.2%

Rev 19,363,212 37,260,712 44,598,496 17,897,500 92.4% 7,337,784 19.7%

___________ ___________ ___________ __________ ________ ________ ______

Total 86,496,142 105,954,142 119,541,216 19,458,000 22.5% 13,587,074 12.8%

STATE Gen 4,411,690,837 4,424,031,700 4,500,582,365 12,340,863 0.3% 76,550,665 1.7%

TOTALS Cash 2,319,254,524 2,367,061,991 2,362,465,290 47,807,467 2.1% (4,596,701) -0.2%

Fed 3,000,808,771 2,957,234,927 2,997,830,781 (43,573,844) -1.5% 40,595,854 1.4%

Rev* 914,772,042 941,070,269 947,754,174 26,298,227 2.9% 6,683,905 0.7% ___________ ___________ ___________ __________ ________ ________ ______

Total 10,646,526,174 10,689,398,887 10,808,632,610 42,872,713 0.4% 119,233,723 1.1%

*Also includes NCCF and other funds along with Revolving

CAPITAL CONSTRUCTION

Capital Construction Summary

New Construction refers to projects initiated in the 2017 Session while Reaffirmations refers to funding

needed to complete projects authorized and initial funding provided in prior legislative sessions.

The Nebraska Capital Construction Fund (NCCF) was originally created in the early 70’s to account for a

five cent cigarette tax earmark to build the Devaney Sports Center. Over time, the cigarette tax that had

originally flowed to the NCCF has been basically reallocated and earmarked for other items. Amounts

appropriated from the NCCF for the FY18/FY19 biennium are derived from excess from completed

projects, investment income generated on the invested NCCF balance, and a $75 million transfer from

the Cash Reserve Fund.

About 64% of the recommended General Funds and NCCF funds for capital construction are

reaffirmations of projects initiated in prior sessions. This includes $12.1 million in each year for the state's

share of deferred maintenance and repair projects at the University of Nebraska and State Colleges as

authorized under LB605 (2006) and LB 957 (2016), $15.6 million in FY2018-19 for the State Capitol

HVAC project, and $20.8 million for the last two years of the Lincoln Community Corrections Center

housing unit.

Reaffirmations New Projects Total

FY2017-18

General Funds 21,739,000 95,000 21,834,000

Cash Funds 32,300,930 13,963,500 46,264,430

Federal Funds 0 595,000 595,000

Revolving/Other Funds 4,333,591 3,900,000 8,233,591

Nebr Capital Const Fund (NCCF) 12,743,519 16,283,602 29,027,121 ___________ ___________ ____________

Total 71,117,040 34,837,102 105,954,142

FY2018-19

General Funds 32,801,790 0 32,801,790

Cash Funds 32,300,930 7,780,000 40,080,930

Federal Funds 0 2,060,000 2,060,000

Revolving/Other Funds 2,150,000 1,667,337 3,817,337


Total 79,894,341 39,646,875 119,541,216

FY2019-20

General Funds 31,672,698 0 31,672,698

Cash Funds 27,933,476 0 27,933,476

Federal Funds 0 0 0

Revolving/Other Funds 2,150,000 0 2,150,000


Total 64,225,522 34,882,173 99,107,695

FY2020-21

General Funds 30,035,838 0 30,035,838

Cash Funds 32,300,930 0 32,300,930

Federal Funds 0 0 0

Revolving/Other Funds 2,390,000 0 2,390,000

Nebr Capital Const Fund (NCCF) 2,794,586 0 2,794,586 ___________ ___________ ____________

Total 67,521,354 0 67,521,354

Table 37 contains a complete listing of General Fund and NCCF projects. A narrative description of the

major new construction items and a complete list of all reaffirmations and new construction projects,

including all fund sources, follow.

Table 37 General Fund and NCCF Listing-Capital Construction Projects

RECEPTION AND TREATMENT CENTER (CORRECTIONAL SERVICES)

The Governor and Appropriation Committee included funding for Phase 1 of the Reception and Treatment

Center (RTC) project under the Dept. of Correctional Services. This $75 million project, financed with a

Cash Reserve Fund transfer to the Nebraska Capital Construction Fund, will combine the Diagnostic and

Evaluation Center (DEC) and the Lincoln Correctional Center (LCC) into one facility currently known as

the Reception and Treatment Center (RTC).

Phase One will expand and/or renovate core support function portions of DEC and LCC to better meet

the operational requirements of an inmate population of 1,371. It will add 124,236 gross square feet for

the following areas: public lobby, administration, staff support, custody operations, visitation, intake and

release, outpatient medical/mental health (Health Clinic), medical and mental health housing, and food

service. The RTC also prepares the secure perimeter and infrastructure to be scaled up for future growth

needs.

In Phase One, 64 additional medical and behavior health housing beds will be built. The most critical

health care bed needs are for skilled nursing and acuity-related medical beds, including isolation, hospice

and skilled nursing for chronically, seriously ill inmates who cannot be treated at a lower level of care, and

Fund 2017-18 2018-19 2019-20 2020-21 Future Yrs

REAFFIRMATIONS

#46-Corrections Renovation and housing, Lincoln Community Corrections Center NCCF 12,743,519 8,103,520 0 0 0

#50-Colleges Deferred maintenance/repair (LB605-2006 and LB957-2016) General 1,125,000 1,125,000 1,125,000 1,125,000 10,125,000

#50-State Colleges WSC Conn Library & CSC Rangeland Center (bond payment) General 2,216,000 2,216,000 2,216,000 2,216,000 0

#51-University UNMC College of Nursing Lincoln Facility (bond payment) General 1,477,000 1,477,000 1,477,000 1,477,000 2,932,300

#51-University Deferred maintenance/repair (LB605-2006 and LB957-2016) General 11,000,000 11,000,000 11,000,000 11,000,000 99,000,000

#51-University NCTA Education Center General 820,000 820,000 820,000 820,000 3,826,135

#51-University IANR Veterinary Diagnostic Center (bond payment) General 5,101,000 5,101,000 5,101,000 2,703,300 0

#65-DAS State Capitol HVAC system replacement General 0 11,062,790 9,433,698 10,194,538 35,374,174

#65-DAS State Capitol HVAC system replacement NCCF 0 4,538,101 2,469,348 2,794,586 10,431,585

#65-DAS State Capitol improvements General 0 0 500,000 500,000 2,000,000

NEW CONSTRUCTION

#46-Corrections Reception and Treatment Center - DEC & LCC NCCF 14,171,102 26,162,038 34,882,173 0 0

#46-Corrections Security system upgrades - all facilities NCCF 552,500 552,500 0 0 0

#46-Corrections Infrastructure and maintenance projects NCCF 1,300,000 1,300,000 0 0 0

#47-NETC Replace transmitter - KHNE (Hastings) NCCF 260,000 0 0 0 0

#47-NETC Replace radio transmission equipment General 95,000 0 0 0 0

#47-NETC Tower lighting system - KHNE (Hastings) NCCF 0 125,000 0 0 0

Reaffirmation

General Fund 21,739,000 32,801,790 31,672,698 30,035,838 153,257,609

NCCF 12,743,519 12,641,621 2,469,348 2,794,586 10,431,585

Reaffirmation - GenF+NCCF 34,482,519 45,443,411 34,142,046 32,830,424 163,689,194

New Construction

General Fund 95,000 0 0 0 0

NCCF 16,283,602 28,139,538 34,882,173 0 0

New Construction - Gen+NCCF 16,378,602 28,139,538 34,882,173 0 0

Total

General Fund 21,834,000 32,801,790 31,672,698 30,035,838 153,257,609

NCCF 29,027,121 40,781,159 37,351,521 2,794,586 10,431,585

Total Construction - Gen+NCCF 50,861,121 73,582,949 69,024,219 32,830,424 163,689,194

secure behavior health. Phase One will include one 32-bed unit to meet acute and serious medical

needs. These beds will include the need for isolation to prevent spread of communicable diseases and

three hospice rooms to address the needs of inmates who are at the end of life with terminal medical

care. The hospice beds are flexible and can also be used to meet the nursing care needs of chronically

debilitated inmates who require 24/7 nursing care. The other beds are for short-term skilled nursing care.

Phase One will also include a 32-bed Secure Behavioral Health Unit to meet the needs of inmates with

acute mental health and behavioral health needs. This unit will allow maximum flexibility by using two

secure sub units, each with four single occupancy cells, to treat those inmates with the most acute

symptoms. There are also three secure sub units of eight single occupancy cells to treat those inmates

who no longer require the acute cells but still remain unstable enough to require secure housing. Each

sub unit will have its own small dayroom. Since these inmates’ symptoms are acute, there are two

additional safety cells to be used as temporary holding areas when there is a need to remove an inmate

from their cell for clean-up or for short-term (no more than four hours) de-escalation. The core support

space will be shared by both the medical and mental health housing pods. Current infirmary beds and

suicide watch rooms will be used to address the need for suicide observation.

The current LCC mental health units will also continue to be used to treat inmates who have serious

mental illnesses but whose symptoms are stable enough to be treated in the more open housing units

available in the LCC. Additional health care bed needs will be addressed as the needs arise.

FY2017-18 NCCF 14,171,102 FY2018-19 NCCF 26,162,038 FY2019-20 NCCF 34,882,173

Project Total 75,215,313

INFRASTRUCTURE AND MAINTENANCE PROJECTS (CORRECTIONAL SERVICES)

NDCS received a $1,500,000 appropriation from the Nebraska Capital Construction Fund (NCCF) in

FY14-15 for a separate capital construction budget for priority infrastructure and maintenance projects.

Funding was continued in 2015 at $1 million per year for FY16 and FY17 from the NCCF. In 2016, one-

time funding was added of $1,192,215 in FY16 and $2,022,503 in FY17 from the NCCF for repairs and

renovations to the Tecumseh State Correctional Institution as a result of damages incurred during the

May 10, 2015, disturbance.

NDCS requested continued funding for infrastructure and maintenance projects. These projects are a

compilation of the highest priority infrastructure projects which have remained unfunded. The projects

include, but are not limited to, major roof replacements, door/window/structural improvements, boiler and

chiller replacements, fire life safety improvements, door lock and flush valve replacements, and other

renovations.

FY2017-18 NCCF 1,300,000 FY2018-19 NCCF 1,300,000

SECURITY SYSTEM UPGRADES (CORRECTIONAL SERVICES)

This project includes camera upgrades at Work Ethic Camp, Community Corrections Center Lincoln,

Nebraska Secure Youth Facility, and Omaha Correctional Center. The project will also provide lighting

upgrades at Community Corrections Center Omaha, additional fencing at the Lincoln Correctional Center,

the Diagnostic and Evaluation Center, and the Nebraska State Penitentiary, and fence detection system

and vehicle sally-port (secure, controlled entryway) improvements at Nebraska Center for Women.

FY2017-18 NCCF 552,500 FY2018-19 NCCF 552,500

PROJECT LISTING - REAFFIRMATIONS

Reaffirmations Fiscal Yr Dollar Amt Fund

#46-Corrections Renovation and housing, Lincoln Community Corrections Center 2017-18 12,743,519 NCCF Renovation and housing, Lincoln Community Corrections Center 2018-19 8,103,520 NCCF #50-State Colleges State Colleges Facilities Program (LB 605 - 2006) 2017-18 1,125,000 Gen State Colleges Facilities Program (LB 605 - 2006) 2017-18 1,200,000 Rev State Colleges Facilities Program (LB 605 - 2006) 2018-19 1,125,000 Gen State Colleges Facilities Program (LB 605 - 2006) 2018-19 1,200,000 Rev State Colleges Facilities Program (LB 605 - 2006) 2019-20 1,125,000 Gen State Colleges Facilities Program (LB 605 - 2006) 2019-20 1,200,000 Rev #50-State Colleges State Colleges Facilities Program (LB 957 - 2016) 2020-21 1,125,000 Gen State Colleges Facilities Program (LB 957 - 2016) 2020-21 1,440,000 Rev State Colleges Facilities Program (LB 957 - 2016) Future 10,125,000 Gen State Colleges Facilities Program (LB 957 - 2016) Future 12,960,000 Rev #50-State Colleges Board facilities fee fund projects 2017-18 950,000 Rev Board facilities fee fund projects 2018-19 950,000 Rev Board facilities fee fund projects 2019-20 950,000 Rev Board facilities fee fund projects 2020-21 950,000 Rev Board facilities fee fund projects Future 8,550,000 Rev #50-State Colleges State Colleges Sport Facilities Cash Fund 2017-18 300,000 Cash State Colleges Sport Facilities Cash Fund 2018-19 300,000 Cash State Colleges Sport Facilities Cash Fund 2019-20 300,000 Cash State Colleges Sport Facilities Cash Fund 2020-21 300,000 Cash State Colleges Sport Facilities Cash Fund Future no limit Cash #50-State Colleges WSC Conn Library and CSC Rangeland Center (bond payment) 2017-18 2,216,000 Gen WSC Conn Library and CSC Rangeland Center (bond payment) 2018-19 2,216,000 Gen WSC Conn Library and CSC Rangeland Center (bond payment) 2019-20 2,216,000 Gen WSC Conn Library and CSC Rangeland Center (bond payment) 2020-21 2,216,000 Gen WSC Conn Library and CSC Rangeland Center (bond payment) Future 0 Gen #51-University UNMC College of Nursing Lincoln Facility (bond payment) 2017-18 1,477,000 Gen UNMC College of Nursing Lincoln Facility (bond payment) 2018-19 1,477,000 Gen UNMC College of Nursing Lincoln Facility (bond payment) 2019-20 1,477,000 Gen UNMC College of Nursing Lincoln Facility (bond payment) 2020-21 1,477,000 Gen UNMC College of Nursing Lincoln Facility (bond payment) Future 2,932,300 Gen #51-University University Facilities Program (LB 605 - 2006) 2017-18 11,000,000 Gen University Facilities Program (LB 605 - 2006) 2017-18 11,000,000 Cash University Facilities Program (LB 605 - 2006) 2018-19 11,000,000 Gen University Facilities Program (LB 605 - 2006) 2018-19 11,000,000 Cash University Facilities Program (LB 605 - 2006) 2019-20 11,000,000 Gen University Facilities Program (LB 605 - 2006) 2019-20 6,632,546 Cash #51-University University Facilities Program (LB 957 - 2016) 2020-21 11,000,000 Gen University Facilities Program (LB 957 - 2016) 2020-21 11,000,000 Cash University Facilities Program (LB 957 - 2016) Future 99,000,000 Gen University Facilities Program (LB 957 - 2016) Future 99,000,000 Cash #51-University NCTA Education Center 2017-18 820,000 Gen NCTA Education Center 2018-19 820,000 Gen NCTA Education Center 2019-20 820,000 Gen NCTA Education Center 2020-21 820,000 Gen NCTA Education Center Future 3,826,135 Gen #51-University IANR Veterinary Diagnostic Center (bond payment) 2017-18 5,101,000 Gen IANR Veterinary Diagnostic Center (bond payment) 2018-19 5,101,000 Gen IANR Veterinary Diagnostic Center (bond payment) 2019-20 5,101,000 Gen IANR Veterinary Diagnostic Center (bond payment) 2020-21 2,703,300 Gen IANR Veterinary Diagnostic Center (bond payment) Future 0 Gen

Reaffirmations (continued) Fiscal Yr Dollar Amt Fund

#65-DAS State Capitol HVAC system replacement 2017-18 0 Gen State Capitol HVAC system replacement 2018-19 11,062,790 Gen State Capitol HVAC system replacement 2018-19 4,538,101 NCCF State Capitol HVAC system replacement 2019-20 9,433,698 Gen State Capitol HVAC system replacement 2019-20 2,469,348 NCCF State Capitol HVAC system replacement 2020-21 10,194,538 Gen State Capitol HVAC system replacement 2020-21 2,794,586 NCCF State Capitol HVAC system replacement Future 35,374,174 Gen State Capitol HVAC system replacement Future 10,431,585 NCCF #65-DAS Taskforce for Building Renewal Projects 2017-18 21,000,930 Cash Taskforce for Building Renewal Projects 2018-19 21,000,930 Cash Taskforce for Building Renewal Projects 2019-20 21,000,930 Cash Taskforce for Building Renewal Projects 2020-21 21,000,930 Cash Taskforce for Building Renewal Projects Future no limit Cash #65-DAS State Capitol Improvements 2017-18 0 Gen State Capitol Improvements 2018-19 0 Gen State Capitol Improvements 2019-20 500,000 Gen State Capitol Improvements 2020-21 500,000 Gen State Capitol Improvements Future 2,000,000 Gen #65-DAS OCIO Data Center Risk Mitigation 2017-18 2,183,591 Rev OCIO Data Center Risk Mitigation 2018-19 0 Rev OCIO Data Center Risk Mitigation 2019-20 0 Rev OCIO Data Center Risk Mitigation 2020-21 0 Rev

PROJECT LISTING – NEW CONSTRUCTION PROJECTS

New Construction Fiscal Yr Dollar Amt Fund

#27-Roads Lump sum allocation for construction 2017-18 5,000,000 Cash #31-Military Dept Mass Notification System - Camp Ashland 2017-18 135,000 Fed #31-Military Dept Energy Efficient Site Lighting - Kearney Field Maintenance Shop 2017-18 140,000 Fed #31-Military Dept Energy Efficient Site Lighting - Lincoln Field Maintenance Shop 2017-18 180,000 Fed #31-Military Dept Replace facilities maintenance building - Camp Ashland 2017-18 140,000 Fed #31-Military Dept Replace facilities maintenance building - Camp Ashland 2018-19 850,000 Fed #31-Military Dept Pave parking lot - Camp Ashland Field Maintenance Shop 2018-19 410,000 Fed #31-Military Dept Main entrance improvements - Camp Ashland 2018-19 800,000 Fed #31-Military Dept Bellevue Readiness Ctr - Project Design 2017-18 143,000 Cash #33-Game & Parks State Parks Facilities - Deferred Maintenance 2017-18 2,260,500 Cash State Parks Facilities - Deferred Maintenance 2018-19 2,510,000 Cash #33-Game & Parks State Park System Facility Improvements 2017-18 1,210,000 Cash State Park System Facility Improvements 2018-19 1,170,000 Cash #33-Game & Parks Wildlife Land Acquisition and Improvements 2017-18 1,000,000 Cash #33-Game & Parks Aquatic habitat enhancement and restoration. 2017-18 2,500,000 Cash Aquatic habitat enhancement and restoration. 2018-19 2,500,000 Cash #33-Game & Parks State Parks Facilities - Emergency repairs 2017-18 200,000 Cash State Parks Facilities - Emergency repairs 2018-19 200,000 Cash #33-Game & Parks Implement master plan - Lake McConaughy / Lake Ogallala SRA 2017-18 1,000,000 Cash Implement master plan - Lake McConaughy / Lake Ogallala SRA 2018-19 1,000,000 Cash #33-Game & Parks Water system, vault toilets, shower/latrine – Swanson/Merritt SRA 2017-18 200,000 Cash Water system, vault toilets, shower/latrine – Swanson/Merritt SRA 2018-19 200,000 Cash #33-Game & Parks Enclosed shelter facility - Fort Kearny SRA 2017-18 150,000 Cash #33-Game & Parks New maintenance shop building – Mahoney SP 2017-18 100,000 Cash #33-Game & Parks Land Acquisition - State parks, recreation areas, historical parks 2017-18 100,000 Cash Land Acquisition - State parks, recreation areas, historical parks 2018-19 100,000 Cash #33-Game & Parks Cowboy Trail emergency repairs 2017-18 100,000 Cash Cowboy Trail emergency repairs 2018-19 100,000 Cash #46-Corrections Infrastructure and maintenance projects 2017-18 1,300,000 NCCF Infrastructure and maintenance projects 2018-19 1,300,000 NCCF #46-Corrections Reception and Treatment Center - DEC & LCC 2017-18 14,171,102 NCCF Reception and Treatment Center - DEC & LCC 2018-19 26,162,038 NCCF Reception and Treatment Center - DEC & LCC 2019-20 34,882,173 NCCF #46-Corrections Security system upgrades - all facilities 2017-18 552,500 NCCF Security system upgrades - all facilities 2018-19 552,500 NCCF #46-Corrections Industry building bay addition - TSCI (Tecumseh) 2017-18 2,300,000 Rev Industry building bay addition - TSCI (Tecumseh) 2018-19 1,360,000 Rev #47-NETC Replace transmitter - KHNE (Hastings) 2017-18 260,000 NCCF

#47-NETC Replace radio transmission equipment 2017-18 95,000 Gen

#47-NETC Tower lighting system - KHNE (Hastings) 2018-19 125,000 NCCF

#65-DAS Perimeter security fence and lighting - Norfolk Reg Ctr campus 2017-18 1,600,000 Rev Perimeter security fence and lighting - Norfolk Reg Ctr campus 2018-19 307,337 Rev

ADJUSTMENT OF CURRENT YEAR (FY2016-17) APPROPRIATIONS

Summary

At the beginning of the 2017 legislative session, the Legislature and Governor faced a potential $895

million shortfall for the FY2017-18 / FY2018-19 biennial budget. The first step in closing that potential

shortfall was to look at FY2016-17 budget adjustments. The Governor recommended and the Legislature

included a series of specific and across-the-board cuts in FY2016-17 new appropriations, and lapses of

FY2015-16 funds reappropriated to FY2016-17. Also included are adjustments which would be

considered as “normal” deficits. The Legislature with 91% of the Governors recommendation for FY2016-

17 General Fund budget adjustments.

The table shown here highlights

the major changes in General

Fund appropriations as

contained in LB22 enacted

earlier in the 2017 Session.

The table on the following page

shows a complete listing of

adjustments.

NOTE THAT THESE FY2016-

17 ADJUSTMENTS WERE

SPECIFIC ONLY TO FY2016-

17 AND DID NOT LOWER THE

BASE BUDGET GOING INTO

DEVELOPMENT OF THE

FY2017-18 AND FY2018-19

BUDGETS.

The Appropriations Committee

has five proposed changes to

the previously enacted changes

in LB22.

For lapsed FY16 appropriations,

the committee proposes to

restore $1,050,000 of the lapsed

reappropriation for the

Legislative Council and lapse an

additional reappropriation

$350,000 in DAS-Budget

Division

In terms of adjusting FY17 new

appropriations, the proposed

changes include a correction of

an error regarding aid to ESU’s (-264,219) and an increase to fully fund school breakfast claims

(+14,691). Also for the Supreme Court the committee had recommended reappropriation of the FY17

unexpended balance into the next biennium (FY18 and FY19) less $2.2 million. Rather than showing an

estimated “lapse” of FY17 funds, this amount is captured by reducing the FY17 new appropriation and

thus lowering the estimated FY17 unexpended balance.

General Fund Deficits (enacted in LB22) FY17 Amount

Regular Deficits

Education - TEEOSA - lower Insurance Premium Tax 316,161

PSC - Increase expenses relating to a new commissioner 9,758

Revenue - Homestead Exemption, adjust to actual tax loss 2,235,000

DHHS – Medicaid, Medicare Part B Premium Increase 3,264,087

DHHS – Medicaid, Medicare Prescription Drug Benefit Clawback 5,263,256

DHHS - Child Welfare, Nebraska Families Collaborative 7,803,559

DHHS - Develop Disability aid, HCBS residential providers 4,663,144__________

Subtotal - Regular Deficits 23,554,965

Specific Cuts

Auditor - reduce for waived health insurance coverage (22,000)

Treasurer - reduce for actual health insurance coverage (15,000)

Treasurer - State Disbursement Unit - One-time fund shift (50,000)

Treasurer - Long Term Care Savings Plan - align with spending (11,081)

Education - Delete funding, Master Teacher Program Aid (470,000)

Parole - Salary increase will not occur in FY 2017 for Board members (9,790)

Revenue - Personal Prop Tax Relief Act - updated NDR est (5,800,000)

Agriculture - Reduce the Riparian Vegetation Aid Program (300,000)

Agriculture - Reduce the Riparian Vegetation Aid Program (oper) (10,000)

DHHS - SCHIP - Reduce appropriation based on expenditure rate (1,400,000)

DHHS - Public Assistance - reduce to match est expenditures (10,000,000)

DHHS - Medicaid - prior year drug rebates (15,000,000)

DHHS - Medicaid - Reduce appropriation based on expenditure rate (7,525,000)

DHHS - Delay opening Lincoln Reg Cntr unit until FY 2017-18 (1,000,000)

DHHS - BSDC - one-time fund shift (5,000,000)

DHHS - BSDC - reduce appropriation to match estimated expenditures (3,500,000)

Military - Governors Emergency Fund - eliminate base appropriation (250,000)

DED - Community and Rural Develop, one-time fund shift (32,015)

Crime Comm - Community corrections - one-time fund shift (100,000)

DEQ - Storm Water Management Grants - reduce funding (300,000)

Across the Board Cut (various agencies) (37,647,830)__________

Subtotal - Reductions (88,442,716)

__________

Total General Fund FY17 Deficit Appropriations (64,887,751)

Lapse FY2016-17 Reappropiations (72,170,032)

Grand Total (137,057,783)

Detailed Listing FY16-17 Appropriations – General Funds

# Agency Name Prog # Issue Type General 3 Leg Council 122 ATB Cut - Operations - LEGISLATIVE SERVICES Oper (385,976) 3 Leg Council 122 Lapse FY16 reappropriations - LEGISLATIVE SERVICES Oper (1,596,783) 3 Leg Council 123 ATB Cut - Operations - CLERK OF LEGISLATURE Oper (160,405) 3 Leg Council 123 Lapse FY16 reappropriations - CLERK OF LEGISLATURE Oper (999,114) 3 Leg Council 126 ATB Cut - Operations - LEGISLATIVE RESEARCH Oper (28,236) 3 Leg Council 126 Lapse FY16 reappropriations - LEGISLATIVE RESEARCH Oper (225,806) 3 Leg Council 127 ATB Cut - Operations - REVISOR OF STATUTES Oper (61,723) 3 Leg Council 127 Lapse FY16 reappropriations - REVISOR OF STATUTES Oper (541,727) 3 Leg Council 129 ATB Cut - Operations - LEGISLATIVE AUDIT Oper (27,260) 3 Leg Council 129 Lapse FY16 reappropriations - LEGISLATIVE AUDIT Oper (49,692) 3 Leg Council 501 ATB Cut - Operations - INTERGOVERNMENTAL COOPERATION Oper (20,314) 3 Leg Council 501 Lapse FY16 reappropriations - COM ON INTERGOVTL Oper (55,918) 3 Leg Council 504 ATB Cut - Operations - OFFICE OF PUBLIC COUNSEL Oper (61,428) 3 Leg Council 504 Lapse FY16 reappropriations - OFF PUB COUNSEL Oper (189,503) 3 Leg Council 638 ATB Cut - Operations - FISCAL AND PROGRAM ANALYSIS Oper (66,551) 3 Leg Council 638 Lapse FY16 reappropriations - FISCAL AND PROGRAM Oper (169,731) 5 Supreme Court 5 Lapse FY16 reappropriations - RETIRED JUDGES SALARIES Oper (219,117) 5 Supreme Court 52 ATB Cut - Operations - OPERATIONS Oper (483,529) 5 Supreme Court 52 Lapse FY16 reappropriations - COURT OPERATIONS Oper (1,125,612) 5 Supreme Court 67 ATB Cut - Operations - PROBATION SERVICES Oper (331,038) 5 Supreme Court 67 Lapse FY16 reappropriations - PROBATION SERVICES Oper (456,297) 5 Supreme Court 420 ATB Cut - Operations - SPECIALIZED COURT OPERATIONS Oper (36,078) 5 Supreme Court 420 Lapse FY16 reappropriations - SPECIALIZED COURT OPERATIONS Oper (49,270) 5 Supreme Court 435 ATB Cut - Operations - COMMUNITY CORRECTIONS Oper (310,059) 5 Supreme Court 435 Lapse FY16 reappropriations - COMMUNITY CORRECTIONS Oper (183,836) 5 Supreme Court 437 ATB Cut - Operations - JUVENILE JUSTICE Oper (1,004,110) 7 Governor 18 Lapse FY16 reappropriations - POLICY RESEARCH OFFICE Oper (325,792) 7 Governor 21 ATB Cut - Operations - OFFICE OF GOVERNOR Oper (85,336) 7 Governor 21 Lapse FY16 reappropriations - OFFICE OF GOVERNOR Oper (162,488) 8 Lt. Governor 124 ATB Cut - Operations - OFFICE-LT GOVERNOR Oper (1,466) 8 Lt. Governor 124 Lapse FY16 reappropriations - OFFICE-LT GOVERNOR Oper (32,080) 9 Sec of State 22 ATB Cut - Operations - DEPARTMENT ADMINISTRATION Oper (11,294) 9 Sec of State 45 ATB Cut - Operations - ELECTION ADMINISTRATION Oper (58,687) 9 Sec of State 45 Lapse FY16 reappropriations - ELECTION ADMINISTRATION Oper (1,704) 9 Sec of State 86 ATB Cut - Operations - ENF OF STDS-RECORDS MGMT Oper (6,187) 9 Sec of State 86 Lapse FY16 reappropriations - ENF OF STDS-RECORDS MGMT Oper (3,744) 10 Auditor 10 State Auditor - reduce for waived health insurance coverage Oper (22,000) 10 Auditor 506 ATB Cut - Operations - STATE AGENCY & COUNTY POST AUDITS Oper (99,528) 10 Auditor 506 Lapse FY16 reappropriations - ST AG & COUNTY POST AUDITS Oper (12,650) 11 Attorney General 496 ATB Cut - Operations - INTERSTATE WATER LITIGATION Oper (36,860) 11 Attorney General 496 Lapse FY16 reappropriations - INTERSTATE WATER LITIGATION Oper (249,050) 11 Attorney General 507 ATB Cut - Operations - INTERP & APPL OF LAW Oper (248,451) 11 Attorney General 507 Lapse FY16 reappropriations - INTERP & APPL OF LAW Oper (432,920) 12 Treasurer 12 State Treasurer - actual health insurance coverage lower than budgeted Oper (15,000) 12 Treasurer 24 State Disbursement Unit - One-time fund shift to use excess balance Oper (50,000) 12 Treasurer 24 ATB Cut - Operations - STATE DISBURSEMENT UNIT Oper (45,422) 12 Treasurer 659 Long Term Care Savings- reduce appropriation to align with spending Oper (11,081) 12 Treasurer 659 Lapse FY16 reappropriations - LONG-TERM CARE SAVINGS PLAN Oper (20,299) 13 Education 25 ATB Cut - Operations - EDUCATION ADMINISTRATION Oper (656,778) 13 Education 25 Lapse FY16 reappropriations - EDUCATION ADMINISTRATION Oper (3,659,171) 13 Education 158 Delete funding, Master Teacher Program Aid Aid (470,000) 13 Education 158 ATB Cut - Early Childhood Programs Aid (350,807) 13 Education 158 ATB Cut - Early Childhood Provider Aid Aid (6,760) 13 Education 158 ATB Cut - ESU Core Services/Tech. Aid (275,228) 13 Education 158 ATB Cut - GED Program Aid Aid (30,000) 13 Education 158 ATB Cut - Nurturing Healthy Behaviors Aid Aid (16,000) 13 Education 158 ATB Cut - School Breakfast Aid (22,442) 13 Education 158 ATB Cut - School Lunch Aid (15,681)

# Agency Name Prog # Issue Type General 13 Education 158 ATB Cut - Summer Food Service Aid Aid (5,200) 13 Education 158 ATB Cut - Textbook Loans Aid (18,620) 13 Education 158 ATB Cut - Voc. & Adult Education Aid (8,587) 13 Education 158 TEEOSA - Increase to offset lower than projected Insurance Premium Tax Aid 316,161 13 Education 351 ATB Cut - Operations - VOCATIONAL REHABILITATION Oper (199,900) 13 Education 351 Lapse FY16 reappropriations - VOCATIONAL REHAB Oper (253,207) 13 Education 401 ATB Cut - Operations - SERVICES FOR THE DEAF Oper (82,137) 13 Education 402 ATB Cut - Operations - EDUCATION OF BLIND OR VISUALLY IMPAIRED Oper (81,142) 14 PSC 16 ATB Cut - Operations - COMMISSIONERS EXPENSES Oper (2,575) 14 PSC 16 Increase to Commissioners' Expenses relating to a new commissioner Oper 9,758 14 PSC 54 ATB Cut - Operations - ENF OF STDS-COMMON CARRIERS Oper (79,567) 14 PSC 54 Lapse FY16 reappropriations - ENF OF STDS-COMMON CARRIERS Oper (146,536) 15 Parole Board 320 Salary increase will not occur in FY 2017 for Board members Oper (9,790) 15 Parole Board 358 ATB Cut - Operations - BOARD OF PAROLE Oper (261,431) 15 Parole Board 358 Lapse FY16 reappropriations - BOARD OF PAROLE Oper (278,297) 16 Revenue 102 ATB Cut - Operations - REVENUE ADMINISTRATION Oper (1,021,756) 16 Revenue 108 Homestead Exemption - adjust based on 2016 actual tax loss Aid 2,235,000 16 Revenue 109 Personal Prop Tax Relief Act - rebase, updated NDR est Aid (5,800,000) 16 Revenue 112 ATB Cut - Operations - PROPERTY ASSESSMENT Oper (71,990) 16 Revenue 112 Lapse FY16 reappropriations - PROPERTY TAX ASSESSMENT Oper (131,670) 18 Agriculture 78 Reduce the Riparian Vegetation Aid Program Aid (300,000) 18 Agriculture 78 Reduce the Riparian Vegetation Aid Program Oper (10,000) 18 Agriculture 78 ATB Cut - Operations - DEPT OF AGRICULTURE Oper (249,713) 21 Fire Marshal 193 ATB Cut - Operations - PUBLIC PROTECTION Oper (129,564) 21 Fire Marshal 340 ATB Cut - Operations - TRAINING DIVISION Oper (35,918) 21 Fire Marshal 340 Lapse FY16 reappropriations - TRAINING DIVISION Oper (46,937) 21 Fire Marshal 845 ATB Cut - Operations - NE PUBLIC SAFETY COMM SYSTEM Oper (8,787) 21 Fire Marshal 845 Lapse FY16 reappropriations - PUBLIC SAFETY COMM. SYSTEM Oper (21,820) 23 Labor 194 ATB Cut - Operations - PUBLIC PROTECTION Oper (27,633) 23 Labor 194 Lapse FY16 reappropriations - PUBLIC PROTECTION Oper (125,090) 25 DHHS 32 ATB Cut - Operations - MEDICAID RX ACT ADMIN Oper (21,540) 25 DHHS 32 Lapse FY16 reappropriations - MEDICAID RX ACT ADMIN Oper (13,231) 25 DHHS 33 ATB Cut - Operations - HHS ADMINISTRATION Oper (4,005,922) 25 DHHS 38 Lapse FY16 reappropriations - BEHAVIORAL HEALTH AID Aid (2,321,229) 25 DHHS 175 ATB Cut - Medical Student Assistance Aid (31,483) 25 DHHS 178 ATB Cut - Operations - PROFESSIONAL LICENSURE Oper (4,196) 25 DHHS 178 Lapse FY16 reappropriations - PROFESSIONAL LICENSURE Oper (32,906) 25 DHHS 179 ATB Cut - Operations - PUBLIC HEALTH Oper (53,924) 25 DHHS 179 Lapse FY16 reappropriations - PUBLIC HEALTH Oper (109,239) 25 DHHS 250 Lapse FY16 reappropriations - JUVENILE SERVICES Oper (1,593,936) 25 DHHS 344 SCHIP - Reduce appropriation based on expenditure rate Aid (1,400,000) 25 DHHS 344 Lapse FY16 reappropriations - CHILDRENS HEALTH INSURANCE Aid (1,577,163) 25 DHHS 347 Public Assistance - reduce appropriation to match est expenditures Aid (10,000,000) 25 DHHS 347 Lapse FY16 reappropriations - PUBLIC ASSISTANCE Aid (8,500,070) 25 DHHS 348 Medicaid - prior year drug rebates Aid (15,000,000) 25 DHHS 348 Medicaid - Reduce appropriation based on expenditure rate Aid (7,525,000) 25 DHHS 348 Medicaid - Medicare Part B Premium Increase Aid 3,264,087 25 DHHS 348 Medicaid - Medicare Prescription Drug Benefit Clawback Aid 5,263,256 25 DHHS 348 Lapse FY16 reappropriations - MEDICAL ASSISTANCE Aid (12,929,145) 25 DHHS 354 Child Welfare - Nebraska Families Collaborative Aid 7,803,559 25 DHHS 359 Lapse FY16 reappropriations - YOUTH IN TRANSITION Oper (107,425) 25 DHHS 365 Delay opening Lincoln Reg Cntr unit until FY 2017-18 Oper (1,000,000) 25 DHHS 421 BSDC - one-time fund shift Oper (5,000,000) 25 DHHS 421 BSDC - reduce appropriation to match estimated expenditures Oper (3,500,000) 25 DHHS 421 Lapse FY16 reappropriations - BEATRICE STATE DEV CTR Oper (2,426,614) 25 DHHS 424 Develop Disability aid - HCBS residential providers weekends,holidays Aid 4,663,144 25 DHHS 514 ATB Cut - Health Aid Aid (276,704) 25 DHHS 514 Lapse FY16 reappropriations - HEALTH AID Aid (1,359,271) 25 DHHS 519 Lapse FY16 reappropriations - VETERANS HOME SYSTEM Oper (4,877,474) 25 DHHS 559 Lapse FY16 reappropriations - AGING CARE MANAGEMENT Oper (3,567) 25 DHHS 870 Lapse FY16 reappropriations - NORFOLK SEX OFFENDER TRTMNT Aid (603,152)

# Agency Name Prog # Issue Type General 28 Veterans Affairs 36 ATB Cut - Operations - DEPARTMENT ADMINISTRATION Oper (46,818) 28 Veterans Affairs 36 Lapse FY16 reappropriations - DEPARTMENT ADMINISTRATION Oper (145,781) 28 Veterans Affairs 37 ATB Cut - Operations - VETERANS' CEMETERY SYSTEM Oper (10,315) 28 Veterans Affairs 37 Lapse FY16 reappropriations - VETERAN CEMETERY SYSTEM Oper (111,697) 29 Natural Resources 304 ATB Cut - Water & Soil Conservation Aid (92,721) 29 Natural Resources 307 ATB Cut - Natural Resources Devl. Fund Aid (125,613) 29 Natural Resources 334 ATB Cut - Operations - SOIL AND WATER CONSERVATION Oper (451,472) 29 Natural Resources 334 Lapse FY16 reappropriations - SOIL AND WATER CONSERVATION Oper (1,300,000) 31 Military Dept 192 Governors Emergency Fund - eliminate base appropriation Aid (250,000) 31 Military Dept 192 Lapse FY16 reappropriations - GOV EMERGENCY PROGRAM Aid (5,581,226) 31 Military Dept 544 ATB Cut - Operations - NATIONAL & STATE GUARD Oper (147,674) 31 Military Dept 544 Lapse FY16 reappropriations - NATIONAL & STATE GUARD Oper (214,335) 31 Military Dept 545 ATB Cut - Operations - EMERGENCY MANAGEMENT Oper (56,115) 31 Military Dept 548 Lapse FY16 reappropriations - TUITION ASSISTANCE Oper (46,015) 32 Ed Lands & Funds 529 ATB Cut - Operations - LAND SURVEYS Oper (13,414) 32 Ed Lands & Funds 529 Lapse FY16 reappropriations - LAND SURVEYS Oper (86,770) 33 Game and Parks 336 Lapse FY16 reappropriations - WILDLIFE CONSERVATION Oper (14,485) 33 Game and Parks 337 Lapse FY16 reappropriations - ADMINISTRATION Oper (31,741) 33 Game and Parks 338 ATB Cut - Niobrara Council Aid (1,680) 33 Game and Parks 549 ATB Cut - Operations - PARKS - ADMINISTRATION AND OPERATION Oper (285,503) 33 Game and Parks 549 Lapse FY16 reappropriations - PARKS - ADMIN & OPER Oper (6,136) 33 Game and Parks 550 Lapse FY16 reappropriations - PLANNING & TRAILS COORDINATION Oper (43,049) 33 Game and Parks 617 ATB Cut - Operations - ENGINEERING & AREA MAINTENANCE Oper (194,278) 33 Game and Parks 617 Lapse FY16 reappropriations - ENGINEERING & AREA MAINTENANCE Oper (139,040) 33 Game and Parks 846 ATB Cut - Operations - NE PUBLIC SAFETY COMM SYSTEM Oper (1,495) 34 Library Comm 252 ATB Cut - Operations - LIBRARY AND INFORMATION SERVICES Oper (111,636) 34 Library Comm 252 Lapse FY16 reappropriations - LIBRARY OPERATIONS Oper (89,525) 34 Library Comm 302 ATB Cut - Library Development Aid (51,803) 34 Library Comm 302 Lapse FY16 reappropriations - LIBRARY DEVELOPMENT Aid (22,377) 35 Liquor Control 73 ATB Cut - Operations - LICENSING & REGULATION Oper (51,946) 35 Liquor Control 73 Lapse FY16 reappropriations - LICENSING & REGULATION Oper (130,570) 46 Corrections 214 Lapse FY16 reappropriations - VOCATIONAL AND LIFE SKILLS Aid (914,021) 47 NETC 533 ATB Cut - Operations - NETWORK OPERATIONS Oper (393,572) 47 NETC 533 Lapse FY16 reappropriations - NETWORK OPERATIONS Oper (297,900) 47 NETC 566 ATB Cut - Operations - PUBLIC RADIO Oper (19,590) 47 NETC 566 Lapse FY16 reappropriations - PUBLIC RADIO Oper (28,803) 48 Coord Comm. 640 ATB Cut - Operations - POSTSECONDARY EDUCATION Oper (56,144) 48 Coord Comm.. 640 Lapse FY16 reappropriations - POSTSECONDARY EDUCATION Oper (33,296) 48 Coord Comm. 691 ATB Cut - Access College Early Prog. Aid (39,400) 48 Coord Comm. 691 Lapse FY16 reappropriations - ACCESS COLLEGE EARLY SCH PRG Aid (18,412) 50 State Colleges 48 ATB Cut - Operations - STATE COLLEGE SYSTEM Oper (2,096,170) 50 State Colleges 48 Lapse FY16 reappropriations - STATE COLLEGE SYSTEM Oper (155,370) 51 University of Nebr 781 ATB Cut - Operations - UNIVERSITY SYSTEM Oper (13,322,749) 54 Historical Society 553 ATB Cut - Operations - SESQUICENTENNIAL COMMISSION Oper (3,760) 54 Historical Society 553 Lapse FY16 reappropriations - SESQUICENTENNIAL COMMISSION Oper (43,504) 54 Historical Society 648 ATB Cut - Operations - STATE HISTORICAL SOCIETY Oper (182,336) 54 Historical Society 648 Lapse FY16 reappropriations - STATE HISTORICAL SOCIETY Oper (1,178,150) 64 State Patrol 100 ATB Cut - Operations - PUBLIC PROTECTION Oper (2,339,764) 64 State Patrol 100 Lapse FY16 reappropriations - PUBLIC PROTECTION Oper (1,252,344) 64 State Patrol 630 ATB Cut - Operations - STATE CAPITOL SECURITY Oper (10,148) 64 State Patrol 630 Lapse FY16 reappropriations - STATE CAPITOL SECURITY Oper (316,645) 64 State Patrol 850 ATB Cut - Operations - PUBLIC SAFETY COMM. SYSTEM Oper (54,625) 65 Admin Services 101 ATB Cut - Operations - CHIEF INFORMATION OFFICER Oper (15,198) 65 Admin Services 101 Lapse FY16 reappropriations - CHIEF INFORMATION OFFICER Oper (7,953) 65 Admin Services 169 ATB Cut - Operations - FEDERAL LIAISON Oper (140) 65 Admin Services 169 Lapse FY16 reappropriations - FEDERAL LIAISON Oper (15,637)

# Agency Name Prog # Issue Type General 65 Admin Services 509 ATB Cut - Operations - BUDGET DIVISION Oper (50,835) 65 Admin Services 509 Lapse FY16 reappropriations - BUDGET DIVISION Oper (1,372,351) 65 Admin Services 560 ATB Cut - Operations - STATE BUILDING DIVISION Oper (9,653) 65 Admin Services 560 Lapse FY16 reappropriations - STATE BUILDING DIVISION Oper (2,212) 65 Admin Services 605 ATB Cut - Operations - PERSONNEL DIVISION Oper (64,408) 65 Admin Services 605 Lapse FY16 reappropriations - PERSONNEL DIVISION Oper (90,036) 65 Admin Services 608 ATB Cut - Operations - EMPLOYEE RELATIONS DIVISION Oper (16,269) 65 Admin Services 685 ATB Cut - Operations - CAPITOL COMMISSION Oper (170,651) 65 Admin Services 685 Lapse FY16 reappropriations - CAPITOL COMMISSION Oper (66,276) 67 Equal Opportunity 59 ATB Cut - Operations - ENFORCEMENT OF STANDARDS Oper (50,512) 67 Equal Opportunity 59 Lapse FY16 reappropriations - ENFORCEMENT OF STANDARDS Oper (53,289) 68 Latino-American 537 ATB Cut - Operations - LATINO-AMERICAN COMMISSION Oper (8,313) 69 Arts Council 326 ATB Cut - Operations - PROMOTION OF THE ARTS Oper (24,737) 69 Arts Council 326 Lapse FY16 reappropriations - PROMOTION OF THE ARTS Oper (45,079) 69 Arts Council 327 ATB Cut - Aid to the Arts Aid (37,723) 69 Arts Council 327 Lapse FY16 reappropriations - AID TO THE ARTS Aid (5,000) 70 Foster Care 116 ATB Cut - Operations - FOSTER CARE REVIEW Oper (74,618) 70 Foster Care 116 Lapse FY16 reappropriations - FOSTER CARE REVIEW OFFICE Oper (96,949) 70 Foster Care 353 Lapse FY16 reappropriations - CHILDREN'S COMMISSION Oper (16,728) 71 Energy Office 106 ATB Cut - Operations - ENERGY OFFICE ADMINISTRATION Oper (8,739) 71 Energy Office 106 Lapse FY16 reappropriations - ENERGY OFFICE ADMINISTRATION Oper (407,510) 72 DED 601 Community and Rural Develop, one-time fund shift Oper (32,015) 72 DED 603 ATB Cut - Business Innovation Act Aid (274,400) 72 DED 603 Lapse FY16 reappropriations - INDUSTRIAL RECRUITMENT Aid (6,794,254) 72 DED 603 ATB Cut - Operations - INDUSTRIAL RECRUITMENT Oper (202,058) 76 Indian Affairs 584 ATB Cut - Operations - INDIAN AFFAIRS Oper (9,828) 76 Indian Affairs 584 Lapse FY16 reappropriations - INDIAN AFFAIRS Oper (6,726) 77 Indust Relations 490 ATB Cut - Operations - COMMISSIONER EXPENSES Oper (2,786) 77 Indust Relations 490 Lapse FY16 reappropriations - COMMISSIONER EXPENSES Oper (29,727) 77 Indust Relations 531 ATB Cut - Operations - ADMINISTRATION Oper (10,241) 77 Indust Relations 531 Lapse FY16 reappropriations - ADMINISTRATION Oper (40,369) 78 Crime Commssion 150 ATB Cut - Juvenile Services Aid Aid (23,512) 78 Crime Commission 150 ATB Cut - Operations - JUVENILE SERVICES ACT Oper (4,902) 78 Crime Commission 150 Lapse FY16 reappropriations - JUVENILE SERVICES ACT Oper (304,580) 78 Crime Commission 155 ATB Cut - County Juvenile Services Aid Aid (252,000) 78 Crime Commission 155 Lapse FY16 reappropriations - COUNTY JUVENILE SERVICES AID Aid (442,732) 78 Crime Commission 155 ATB Cut - Operations - COUNTY JUVENILE SERVICES AID Oper (44,277) 78 Crime Commission 198 ATB Cut - County Justice Reinvestment Grants Aid (20,000) 78 Crime Commission 198 ATB Cut - Crime Stoppers Aid (538) 78 Crime Commission 198 ATB Cut - Operations - CENTRAL ADMINISTRATION Oper (24,854) 78 Crime Commission 198 Lapse FY16 reappropriations - CENTRAL ADMINISTRATION Oper (55,315) 78 Crime Commission 199 ATB Cut - Operations - LAW ENFORCEMENT TRAINING CTR Oper (82,889) 78 Crime Commission 199 Lapse FY16 reappropriations - LAW ENFORCEMENT TRAINING CTR Oper (113,009) 78 Crime Commission 201 ATB Cut - Victim/Witness Assistance Aid (2,102) 78 Crime Commission 201 Lapse FY16 reappropriations - VICTIM-WITNESS ASSISTANCE Aid (3,783) 78 Crime Commission 201 ATB Cut - Operations - VICTIM-WITNESS ASSISTANCE Oper (163) 78 Crime Commission 202 ATB Cut - Crime Victims' Reparations Aid (800) 78 Crime Commission 202 ATB Cut - Operations - CRIME VICTIMS' REPARATIONS Oper (313) 78 Crime Commission 203 ATB Cut - Operations - JAIL STANDARDS BOARD Oper (12,658) 78 Crime Commission 203 Lapse FY16 reappropriations - JAIL STANDARDS BOARD Oper (49,305) 78 Crime Commission 204 ATB Cut - Violence Prevention Grants Aid (14,000) 78 Crime Commission 204 Lapse FY16 reappropriations - OFFICE OF VIOLENCE PREVENTION Aid (310,690) 78 Crime Commission 204 ATB Cut - Operations - OFFICE OF VIOLENCE PREVENTION Oper (4,443) 78 Crime Commission 215 ATB Cut - Operations - CRIMINAL JUSTICE INFORMATION SYSTEM Oper (7,488) 78 Crime Commission 215 Lapse FY16 reappropriations - CRIMINAL JUSTICE INFO SYSTEM Oper (11,030) 78 Crime Commission 220 Community corrections - one-time fund shift Oper (100,000) 78 Crime Commission 220 ATB Cut - Operations - COMMUNITY CORRECTIONS DIVISION Oper (12,331) 78 Crime Commission 220 Lapse FY16 reappropriations - COMM CORRECTIONS COUNCIL Oper (113,713)

# Agency Name Prog # Issue Type General 82 Deaf/Hard of Hring 578 ATB Cut - Operations - HEARING IMPAIRED Oper (40,677) 82 Deaf/Hard of Hring 578 Lapse FY16 reappropriations - HEARING IMPAIRED Oper (77,754) 83 Comm Colleges 151 ATB Cut - Aid to Community Colleges Aid (4,033,132) 84 Environ Quality 513 Storm Water Management Grants - reduce funding Aid (300,000) 84 Environ Quality 513 ATB Cut - Superfund Aid (12,648) 84 Environ Quality 513 ATB Cut - Operations - ENVIRONMENTAL QUALITY Oper (156,897) 84 Environ Quality 513 Lapse FY16 reappropriations - ADMINISTRATION Oper (273,317) 87 Account/Disclosure 94 ATB Cut - Operations - POLITICAL ACCOUNTABILITY Oper (19,939) 87 Account/Disclosure 94 Lapse FY16 reappropriations - ADMINISTRATION Oper (119,377) 91 Tourism 618 ATB Cut - Tourism Marketing Assistance Aid (10,000) 91 Tourism 618 Lapse FY16 reappropriations - TOURISM PROMOTION Aid (17,452) 93 TERC 115 ATB Cut - Operations - OPERATIONS Oper (33,494) 93 TERC 115 Lapse FY16 reappropriations - OPERATIONS Oper (40,451) 99 Const-DAS 901 ATB Cut - Capital Construction Const (20,000) 99 Const DAS 901 Lapse FY16 reappropriations - STATE CAPITOL IMPROVEMENTS Const (80,000) 99 Const-Corrections 913 Lapse FY16 reappropriations - SECURITY SYSTEM UPGRADE Const (319,810) 99 Const-DAS 935 Lapse FY16 reappropriations - PUBLIC SAFETY COMM. TOWERS Const (301,245) 99 Const-DHHS 942 Lapse FY16 reappropriations - LRC KITCHEN REPLACEMENT Const (59,515) 99 Const-Hist Society 957 Lapse FY16 reappropriations - MUSEUM RENOVATION Const (5,383) Specific Cuts (50,794,886) Across the Board Cuts (37,647,830) ___________

Subtotal – Reductions Enacted in LB 22 (88,442,716)

Subtotal - “Regular” Deficit Items –Enacted in LB22 23,554,965 ___________

Total - Change in FY2016-17 New Appropriations (64,887,751) Total - Lapse FY2015-16 Reappropriation (72,170,032) Grand Total – Enacted in LB 22 (137,057,783)

Proposed Changes LB 149 3 Leg Council Partially restore FY16 lapsed appropriations Oper 1,050,000 65 DAS Additional lapse, FY16 reappropriation Oper (350,000)

Subtotal – Adjustment to Lapsed Appropriations 700.000

5 Supreme Court Reduce FY17 reapprop balance by reducing FY17 “new” Oper (2,200,000) 13 Education Correction of an error on ESU aid in LB22 Aid (264,219) 13 Education Correction of an error on ESU aid in LB22 Aid 14,691

Subtotal – Change in FY2016-17 New Appropriations (2,449,528)

NARRATIVE

DESCRIPTION

BY AGENCY

Agency 3 Legislative Council ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 20,930,311 20,570,323 20,833,766 20,923,169 21,120,007 Cash 219,675 220,187 220,706 241,000 193,000 Federal 39,270 39,270 39,270 39,270 39,270 Revolving 0 0 0 0 0 Subtotal-Oper 21,189,256 20,829,780 21,093,742 21,203,439 21,352,277

Agency Total General 20,930,311 20,570,323 20,833,766 20,923,169 21,120,007 Cash 219,675 220,187 220,706 241,000 193,000 Federal 39,270 39,270 39,270 39,270 39,270 Revolving 0 0 0 0 0 Agency Total 21,189,256 20,829,780 21,093,742 21,203,439 21,352,277

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 163,374 287,537 Cash 0 0 Fed 0 0 Rev 0 0

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 130,318 268,115 Cash 0 0 Fed 0 0 Rev 0 0

* Restore $1,050,000 lapsed reappropriation for projects and Gen 0 0 HVAC contingency (Prog 0 Agency-wide) This issue restores Cash 0 0 $1,050,000 of reappropriations lapsed in LB22 to cover the Fed 0 0 costs of three major one-time projects and $50,000 for Rev 0 0 unforseen costs related to the HVAC relocation. This would be $800,000 in Program 123 - Clerk and $250,000 in Program 122 Legislative Services The three major projects are replacing chamber and hearing room audio and video ($604,771), replace chamber display board system ($218,700), and replace telephone system ($203,853)

* Eliminate Contractual Services (Prog 122 Leg Services) This Gen -50,000 -50,000 reduction would eliminate the contractual budget amount Cash 0 0 retained as a contingency for Retirement Systems Committee Fed 0 0 actuarial studies, expert witnesses, data and research for Rev 0 0 Legislature’s Planning Committee, and other studies.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduce Printing expense (Prog 123 Clerk) This modification Gen -25,000 -25,000 would provide a reduction of various printing costs. This Cash 0 0 modification would result in various reductions of printing Fed 0 0 charges of various publications, often for information available Rev 0 0 through our website.

* Reduce Travel and Training (Prog 123 Clerk) This would Gen -25,000 -25,000 reduce all travel costs, including registration, fees, hotels, and Cash 0 0 air travel. This would eliminate expenditures for staff, Fed 0 0 especially those in management positions, to attend training Rev 0 0 sessions that are not required by law or policy.

* Reduce operating expenses (Prog 126 Legislative Research) Gen -17,000 -14,500 Cash 0 0 Fed 0 0 Rev 0 0

* Delay Printing a Reissue Volume of the Statutes (Prog 127 Gen -136,447 -136,447 Revisor of Statutes) This modification could delay printing a Cash 0 0 reissue volume of the Nebraska statutes. There is flexibility in Fed 0 0 the timing of reissuing the statute books. Not re-printing a Rev 0 0 reissue volume would require additional and extended use of the supplements and cumulative supplements.

* Annualize LB317 (2015) withdraw from Rail Compact (Prog Gen -15,000 -15,000 501 Intergovt Coop) Cash 0 0 Fed 0 0 Rev 0 0

* Increased organization dues (Prog 501 Intergovt Coop) Gen 7,613 14,991 Cash 0 0 Fed 0 0 Rev 0 0

* Reduce senator travel allocation from $2,500 to $1,500 in Gen -40,000 -115,000 FY18 and to $0 in FY19 (Prog 501 Intergovt Coop) Cash 0 0 Fed 0 0 Rev 0 0

Agency 5 Supreme Court ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 179,806,832 179,614,373 184,066,719 185,235,781 190,520,542 Cash 15,113,562 15,476,360 15,694,413 15,384,044 15,656,644 Federal 697,777 702,523 707,417 706,070 712,959 Revolving 0 0 0 0 0 Subtotal-Oper 195,618,171 195,793,256 200,468,549 201,325,895 206,890,145

State Aid General 300,000 300,000 300,000 300,000 300,000 Cash 820,000 820,000 820,000 820,000 820,000 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Aid 1,120,000 1,120,000 1,120,000 1,120,000 1,120,000

Agency Total General 180,106,832 179,914,373 184,366,719 185,535,781 190,820,542 Cash 15,933,562 16,296,360 16,514,413 16,204,044 16,476,644 Federal 697,777 702,523 707,417 706,070 712,959 Revolving 0 0 0 0 0 Agency Total 196,738,171 196,913,256 201,588,549 202,445,895 208,010,145

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Annualize LB605A, 2015, Justice Reinvestment Act (Prog 0 Gen 4,270,797 7,294,118 Agency-wide) The final annualization in FY20 would be an Cash 298,870 481,343 additional $1,168,373 General Funds and $59,436 cash funds. Fed 0 0 LB605 expands the use of probation in lieu of incarceration, Rev 0 0 ensures that more people receive supervision upon release from prison, and bolsters supervision practices to reduce recidivism. The law was the result of "justice reinvestment", a data-driven approach designed to reduce corrections spending by easing Nebraska's prison overcrowding and reinvesting a portion of savings in strategies that reduce recidivism and increase public safety. LB605 began a multi-year justice reinvestment initiative. Funding for the judicial branch has been anticipated to increase as the provisions of LB605 are implemented. Note: This issue does not include funding for additional judicial resources (judges and associated staff). Standard practice is for these positions to be requested in a separate legislative bill and not as part of the budget request process. The fiscal note to LB605 anticipated adding judges: one County Court Judge starting in FY18, and two County Court Judges in FY19 and FY20. At this time, no additional judicial resources are being requested.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________ This issue continues the commitment made earlier by all three branches of State government to address the issues of prison overcrowding, recidivism, and public safety. The Chief Justice has stated that full and continued funding of LB605 is imperative, if the goals of justice reinvestment are to be achieved. The staff, programs, and services that Probation has already put in place to effectively supervise clients will have to be reduced or eliminated if funding is not received. Probation has an integral role in the primary goal of justice reinvestment: reducing prison overcrowding. Not only does justice reinvestment aim to reduce the number of persons going to prison by the increased use of probation, but it is also meant to reduce the number of persons reentering prison through Probation's administration of post-release supervision. As a result, lack of funding will have an impact, not only on the judicial branch, but also on the Department of Correctional Services and the Parole Board. Probation, and the entire judicial branch, will continue to develop and implement the programs and services, as well as provide the staffing necessary to provide effective supervision to clients on probation and post-release supervision. The anticipated increase in clients has begun and is projected to continue for several years. * Annualize LB919A, 2016, Veteran’s Treatment Court Pilot Gen 58,750 58,750 Project (Prog 0 Agency-wide) Cash 0 50,000 Fed 0 0 Rev 0 0

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 743,580 1,308,702 Cash 21,760 38,297 Fed 4,410 7,761 Rev 0 0

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 894,961 1,841,279 Cash 22,310 45,900 Fed 3,347 6,885 Rev 0 0

* Continuation of authority to transfer General Fund Gen 0 0 appropriations and/or Personal Services Limitation (PSL) Cash 0 0 between budget programs (Prog 0 Agency-wide) For the next Fed 0 0 biennium, this includes the authority to transfer Rev 0 0 appropriations and/or PSL from constitutional officers' budget programs to the non-constitutional officers' budget programs

* Continuation of estimated Cash Fund authority (Prog 0 Gen 0 0 Agency-wide) Cash 0 0 Fed 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Continuation of reappropriation of General Fund balances at Gen 0 0 the end of the 2015-2017 biennium (Prog 0 Agency-wide) Cash 0 0 Fed 0 0 Rev 0 0

* Vacancy Savings Reduction (Prog 0 Agency-wide) Gen -750,000 0 Cash 0 0 Fed 0 0 Rev 0 0

* Reduce FY17 reappropriation by $2.2 million (Prog 0 Agency- Gen 0 0 wide) Cash 0 0 Fed 0 0 Rev 0 0

* Annualize LB934A, 2016, Office of the Public Guardian - One- Gen 0 0 time Cash Fund Appropriation (Prog 52 Court Operations) Cash -7,000 -7,000 Fed 0 0 Rev 0 0

* Annualize LB746A, 2016, Adopt the Nebraska Strengthening Gen 0 0 Families Act - One-time Cash Fund Appropriation (Prog 52 Cash -15,000 -15,000 Court Operations) Fed 0 0 Rev 0 0

* Annualize LB 505A, 2016, Criminal history record information Gen 0 0 changes - one-time cash fund appropriation (Prog 570 Court Cash -54,000 -54,000 Automation) Fed 0 0 Rev 0 0

Agency 7 Governor ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 2,280,286 2,173,602 2,198,820 2,172,629 2,198,299 Cash 0 0 0 0 0 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Oper 2,280,286 2,173,602 2,198,820 2,172,629 2,198,299

Agency Total General 2,280,286 2,173,602 2,198,820 2,172,629 2,198,299 Cash 0 0 0 0 0 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Agency Total 2,280,286 2,173,602 2,198,820 2,172,629 2,198,299

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Health Insurance (Prog 2 Salary-Governor) Reducing the Gen -1,400 -1,400 amount appropriated for health insurance will reflect the Cash 0 0 actual costs incurred Fed 0 0 Rev 0 0

* Reduce appropriation to Governor's requested amount (Prog Gen -2,165 -2,871 18 Policy Research) Cash 0 0 Fed 0 0 Rev 0 0

* Reduce General Funds per Request to match Gov. Gen -134,481 -135,432 Recommendation (Prog 21 Governor's Office) The agency Cash 0 0 request included this reduction to more accurately reflect the Fed 0 0 base funding requirements Rev 0 0

Agency 8 Lieutenant Governor ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 149,486 149,216 150,533 149,172 151,197 Cash 0 0 0 0 0 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Oper 149,486 149,216 150,533 149,172 151,197

Agency Total General 149,486 149,216 150,533 149,172 151,197 Cash 0 0 0 0 0 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Agency Total 149,486 149,216 150,533 149,172 151,197

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 109 192 Cash 0 0 Fed 0 0 Rev 0 0


* Health Insurance (Prog 8 Salary-Lt Governor) Reducing Health Gen -1,900 -1,900 Insurance appropriaiton will align it with the actual needed Cash 0 0 amount. Fed 0 0 Rev 0 0

* Reduce Appropriation to Governor's Requested Amount (Prog Gen -185 0 124 Lt Governor Office) Cash 0 0 Fed 0 0 Rev 0 0

Agency 9 Secretary of State ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 2,021,019 2,493,558 2,320,517 2,485,769 2,317,307 Cash 6,443,410 7,979,315 6,023,365 8,206,675 6,184,205 Federal 98,300 0 0 0 0 Revolving 1,149,378 926,180 921,137 946,783 941,184 Subtotal-Oper 9,712,107 11,399,053 9,265,019 11,639,227 9,442,696

State Aid General 0 0 0 0 0 Cash 60,000 0 0 0 0 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Aid 60,000 0 0 0 0

Agency Total General 2,021,019 2,493,558 2,320,517 2,485,769 2,317,307 Cash 6,503,410 7,979,315 6,023,365 8,206,675 6,184,205 Federal 98,300 0 0 0 0 Revolving 1,149,378 926,180 921,137 946,783 941,184 Agency Total 9,772,107 11,399,053 9,265,019 11,639,227 9,442,696

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 6,899 12,142 Cash 13,404 23,591 Fed 0 0 Rev 4,966 8,740

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 5,670 11,664 Cash 9,540 19,626 Fed 0 0 Rev 696 1,431

* Reduction for Rules and Regulations Project (Prg. 022) (Prog Gen 0 0 22 Dept administration) The Rules and Regulations Filing and Cash -65,800 -65,800 Approval Application Process was initiated in the 2013-15 Fed 0 0 biennium. The project is scheduled to be completed in the Rev 0 0 current fiscal year and funding is no longer necessary.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Annualize E-Notary Funding (Prg. 022) (Prog 22 Dept Gen -12,068 -17,132 administration) LB 465 (2015) enacted the E-Notary Public Cash 0 6,000 Act. One-time costs are being reduced from the original Fed 0 0 appropriation but PSL is increasing due to annualizing the Rev 0 0 staffing costs.

* Election Software and Hardware Maintenance (Prg. 045) (Prog Gen 273,439 78,804 45 Election Admin) Current election contracts expire in the Cash 0 0 current fiscal year. The request is to fund an anticipated Fed 0 0 increase of 5% to 7% in the contracts for the next two years. Rev 0 0 The first year’s figure is higher, due to the cyclical nature of elections. The contracts will cover maintenance, support, licensing and hosting fees for three areas: Voter Registration System, Voter Tabulation and AutoMark equipment located in counties, and Election Night Reporting System.

* Shift former HAVA Funding from Cash to General (Prg. 045) Gen 190,810 210,810 (Prog 45 Election Admin) The majority of funding for Elections Cash -190,810 -210,810 shifted from Cash to General Funds during the last biennium. Fed 0 0 This issue will shift the remainder. Providing this funding shift Rev 0 0 will allow the Elections Division to maintain its base budget as HAVA Funds are eliminated. $60,000 per year of the Cash Fund reduction is coming from Aid.

* Eliminate Federal Fund Appropriation (Prog 45 Election Admin) Gen 0 0 Federal Funding is no longer provided in this program. Cash 0 0 Fed -98,300 -98,300 Rev 0 0

* Business Services Filing System (Prg. 051) (Prog 51 Gen 0 0 Corporations) The agency intends to implement a new Cash 1,537,500 107,500 Business Services Filing System, which was previously Fed 0 0 approved by the NITC. This action is needed so the agency is Rev 0 0 able to make its planned vendor payments in the correct timeframe. The new system provides improved reliability and enhanced functionality. It is replacing a 1998 system that is no longer supported.

* Online application system (Prog 53 Collection agencies) The Gen 0 0 agency expected to have this project finished earlier and had Cash 60,000 0 planned to use carryover funds. Reappropriiations were Fed 0 0 removed and now, the agency needs Cash Fund authority to Rev 0 0 complete the project.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Records Board Cash Fund Authority (Prg. 086) (Prog 86 Gen 0 0 Records mgmt) Due to strong growth in the number of Cash 395,258 713,892 records and services available through the Nebraska.gov Fed 0 0 portal, the agency is anticipating a 10% increase in the Rev 0 0 amount due to the vendor. As more transactions are completed online the Secretary of State collects more money. As an agency, the SOS needs more appropriation authority to turn-around and pay agencies what has been collected on their behalf.

* Reduce Revolving Fund Appropriation (Prg. 086) (Prog 86 Gen 0 0 Records mgmt) Three positions are currently vacant. Due to Cash 0 0 technology changes, they are no longer needed. Fed 0 0 Rev -208,257 -218,365

* UCC Master Lien List (Prg. 089) (Prog 89 UCC filing) The Gen 0 0 Master Lien List is currently published on a monthly basis. The Cash -27,382 -54,759 agency plans to have conversion to online publishing starting Fed 0 0 January 1, 2018. This change will eliminate the need to Rev 0 0 distribute the list via paper, microfiche and CDs as well as the costs associated with sending them by certified mail.

* UCC County Connections to State System (Prg. 089) (Prog 89 Gen 0 0 UCC filing) Counties no longer need to access UCC Cash -125,945 -125,945 information via the state’s system. All information is now done Fed 0 0 with an internet connection. Therefore, the costs associated Rev 0 0 with connection via the state’s system is no longer needed.

* Business Services Filing System (Prg. 089) (Prog 89 UCC Gen 0 0 filing) The agency intends to implement a new Business Cash 97,500 -732,500 Services Filing System, which was previously approved by the Fed 0 0 NITC. This action is needed so the agency is able to make its Rev 0 0 planned vendor payments in the correct timeframe. The new system provides improved reliability and enhanced functionality. It is replacing a 1998 system that is no longer supported.

Agency 10 State Auditor ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 2,609,327 2,556,251 2,591,664 2,568,316 2,597,136 Cash 1,882,440 1,973,717 1,989,618 1,994,093 2,027,141 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Oper 4,491,767 4,529,968 4,581,282 4,562,409 4,624,277

Agency Total General 2,609,327 2,556,251 2,591,664 2,568,316 2,597,136 Cash 1,882,440 1,973,717 1,989,618 1,994,093 2,027,141 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Agency Total 4,491,767 4,529,968 4,581,282 4,562,409 4,624,277

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 20,274 35,682 Cash 17,020 29,955 Fed 0 0 Rev 0 0

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 12,685 26,097 Cash 8,378 17,236 Fed 0 0 Rev 0 0

* Shift Audiing Resources from General to Cash Funds (Prog 0 Gen -75,000 -75,000 Agency-wide) Cash 75,000 75,000 Fed 0 0

* Upgrade from Microsoft 2007 to current version (Prg. 506) Gen 16,030 16,030 (Prog 506 State audits) The APA’s current version of this Cash 0 0 software is nearly 10 years old. Updating to the current Fed 0 0 version will be beneficial to agency work. Rev 0 0

* Reduce one-time cost for peer review (Prog 506 State audits) Gen -15,000 -15,000 Cash 0 0 Fed 0 0

* Promotion and Professional Development (Prg. 525) (Prog 525 Gen 0 0 Fed coop/county/ESU audits) The APA encourages staff to Cash 11,255 22,510 work toward earning CPA certificates. By completing higher Fed 0 0 levels of certification it is anticipated that employees will be Rev 0 0 promoted. Having higher certification and potential promotion will help the APA retain qualified auditors.

Agency 11 Attorney General ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 7,266,457 6,213,211 6,290,897 6,516,903 6,584,768 Cash 2,510,901 2,731,973 2,754,249 2,838,405 2,861,824 Federal 1,675,232 1,690,013 1,705,400 1,691,332 1,705,646 Revolving 1,348,876 1,365,305 1,382,238 1,572,706 1,589,787 Subtotal-Oper 12,801,466 12,000,502 12,132,784 12,619,346 12,742,025

Agency Total General 7,266,457 6,213,211 6,290,897 6,516,903 6,584,768 Cash 2,510,901 2,731,973 2,754,249 2,838,405 2,861,824 Federal 1,675,232 1,690,013 1,705,400 1,691,332 1,705,646 Revolving 1,348,876 1,365,305 1,382,238 1,572,706 1,589,787 Agency Total 12,801,466 12,000,502 12,132,784 12,619,346 12,742,025

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 49,831 87,703 Cash 19,046 33,521 Fed 9,114 16,041 Rev 9,515 16,746

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 28,365 58,358 Cash 8,458 17,402 Fed 6,986 14,373 Rev 9,315 19,165

* Water Litigation Funding (Prg. 496) (Prog 496 Water Gen -921,500 -921,500 Litigation) The AGO is requesting this amount be reduced Cash 0 0 from their base budget. In order to meet any needs, they are Fed 0 0 bring provided reappropriation of funds existing on June 30, Rev 0 0 2017.

* Add 1.0 Attorney - Medicaid Fraud Control Unit (Prg. 507) Gen 0 0 (Prog 507 Interpret/application of law) The state of Nebraska Cash 100,000 100,000 is required by the Federal Government to provide a 25% Fed 0 0 match for the Medicaid Fraud Control Unit. The Cash Fund Rev 0 0 comes from the Medicaid Fraud Control Unit Cash Fund. If this funding is not provided, the Medicaid Fraud Control Unit will lose federal certification and grant funding.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Add 2.0 Attorneys - Legal Services Contracts (Prg. 507) (Prog Gen 0 0 507 Interpret/application of law) This funding will address a Cash 0 0 higher contract amount for services provided to HHS Social Fed 0 0 Services and DEQ. If funding is not provided, the AGO will not Rev 205,000 205,000 be able to provide adequate services to these agencies.

* Add Staff – Tobacco Enforcement Funds (Prg. 507) (Prog 507 Gen 0 0 Interpret/application of law) Funding will be used to increase Cash 200,000 200,000 staff training, review the current State tobacco laws, Fed 0 0 formulate and refine tobacco enforcement laws and generally Rev 0 0 further the goals of tobacco enforcement. This activity is being funded with a $200,000 per year transfer from the Health Care Cash Fund.

* Add 1.0 Staff – SANE Nurse (Prg. 507) (Prog 507 Gen 93,750 93,750 Interpret/application of law) Funding will provide the AG to Cash 0 0 hire a Sexual Assault Nurse Examiner. Fed 0 0 Rev 0 0

Agency 12 State Treasurer ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 1,303,949 1,269,790 1,265,677 1,290,755 1,266,335 Cash 2,128,259 2,152,556 2,176,713 2,172,677 2,196,080 Federal 1,702,956 1,697,414 1,710,225 1,697,476 1,708,371 Revolving 0 0 0 0 0 Subtotal-Oper 5,135,164 5,119,760 5,152,615 5,160,908 5,170,786

State Aid General 0 0 0 0 0 Cash 10,300,000 10,900,000 11,300,000 10,300,000 10,300,000 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Aid 10,300,000 10,900,000 11,300,000 10,300,000 10,300,000

Agency Total General 1,303,949 1,269,790 1,265,677 1,290,755 1,266,335 Cash 12,428,259 13,052,556 13,476,713 12,472,677 12,496,080 Federal 1,702,956 1,697,414 1,710,225 1,697,476 1,708,371 Revolving 0 0 0 0 0 Agency Total 15,435,164 16,019,760 16,452,615 15,460,908 15,470,786

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 5,955 10,266 Cash 12,053 21,213 Fed 8,750 15,400 Rev 0 0

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 6,844 14,054 Cash 12,052 24,795 Fed 7,987 16,432 Rev 0 0

* Reduce Staffing, Postage, and Printing (Prg. 024) (Prog 24 Gen -14,811 -17,611 Disbursement Unit) Due to technology improvements, the SDU Cash 0 0 requires fewer FTE. These reductions have already taken Fed -22,217 -26,417 place and this funding is no longer necessary. Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* ABLE Savings Plan Budget Adjustment (Prg. 475) (Prog 475 Gen 0 0 ABLE program) The Achieving a Better Life Experience (ABLE) Cash 20,313 21,813 Savings Program was launched June 20, 2016. ABLE is a Fed 0 0 529A Savings Program for persons with disabilities. As the Rev 0 0 program develops to meet participant’s needs, changes in expenditures occur. Legal and contractual expenses are decreasing, now that the program agreement and all disclosure documents have been written. As the program unfolds and grows, the Treasurer is beginning to allocate current staff time to the program, resulting in a need for salaries to be paid from this cash funded program.

* Annualize LB 756 (2016) (Prog 659 Long Term Care Savings) Gen -11,182 -44,349 LB 756 (2016) terminated the Long-Term Care Savings Act as Cash 0 0 of January 1, 2017. Fed 0 0 Rev 0 0

Agency 13 Dept of Education ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 25,498,938 24,745,054 24,927,921 25,095,719 25,412,963 Cash 2,394,630 2,680,815 2,692,376 2,408,221 2,420,757 Federal 47,786,129 48,632,409 49,518,291 48,782,352 49,996,346 Revolving 204,728 204,728 204,728 204,728 204,728 Subtotal-Oper 75,884,425 76,263,006 77,343,316 76,491,020 78,034,794

State Aid General 1,203,433,823 1,241,784,051 1,259,992,053 1,222,479,189 1,251,482,592 Cash 8,149,833 8,149,833 8,149,833 9,921,887 9,044,605 Federal 322,928,914 323,707,551 324,554,584 323,872,573 324,888,753 Revolving 0 0 0 0 0 Subtotal-Aid 1,534,512,570 1,573,641,435 1,592,696,470 1,556,273,649 1,585,415,950

Agency Total General 1,228,932,761 1,266,529,105 1,284,919,974 1,247,574,908 1,276,895,555 Cash 10,544,463 10,830,648 10,842,209 12,330,108 11,465,362 Federal 370,715,043 372,339,960 374,072,875 372,654,925 374,885,099 Revolving 204,728 204,728 204,728 204,728 204,728 Agency Total 1,610,396,995 1,649,904,441 1,670,039,786 1,632,764,669 1,663,450,744

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Eliminate early childhood education specialist per intent Gen -95,000 -95,000 language (Prog 25 Dept administration) Cash 0 0 Fed 0 0 Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Eliminate funding for the IT Academy (Prog 25 Dept Gen -500,000 -500,000 administration) The Appropriations Committee initiated a pilot Cash 0 0 project for an IT Academy in FY2014-15 with a $250,000 Fed 0 0 general fund appropriation. The initiative was continued in Rev 0 0 FY16 and FY17 with an earmarked appropriation of $500,000 in each year of the current biennium. In FY16, eighty high schools and twelve community college sites were granted licenses to implement the Academy. There were 211 teachers certified through the program and 2,764 students received certifications in various areas such as Word, PowerPoint, Excel and Access. The recommendation eliminates funding for the initiative.

* Eliminate administrative funds for the Master Teacher Gen -30,000 -30,000 Education Program (Prog 25 Dept administration) Cash 0 0 Fed 0 0 Rev 0 0

* Increase federal operating funds to provide direct services per Gen 0 0 the Career Pathways Advancement Grant (Prog 351 Voc Cash 0 0 Rehab) VR received a five year federal grant for the Career Fed 428,624 873,281 Pathways Advancement Project. The grant requires a 10% Rev 0 0 general fund match which VR will absorb in its current general fund appropriation, so no additional general funds are required. Nebraska is one of four states funded under this initiative and is currently in the second year of the project. The grant allows 300 VR eligible individuals over the course of the project to access career pathway partnerships with business and education institutions. A business model will be used to create opportunities for former eligible individuals to advance their careers and open up new opportunities for other persons eligible for VR services.

* Matching funds increase for vocational rehabilitation services Gen 32,824 180,443 (Prog 351 Voc Rehab) NDE is projecting a 2.5% increase in Cash 0 0 federal funding for vocational rehabilitation (VR) services. The Fed 72,959 388,476 operations and aid receommendations for matching funds Rev 0 0 reflect the additional general funds needed to match an estimated 2.5% annual increase in federal funds in FY18 and FY19. Match requirements for a majority of the vocational rehabilitation funds received in this program are 78.7% federal and 21.3% state. This means the state must provide $1 for every $3.69 of federal funds received. The operations increase will be used to provide direct services to clients by staff employed in the VR program.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Increase special education aid by 1.0% (Prog 158 Education Gen 2,220,631 4,463,468 Aid) Cash 0 0 Fed 0 0 Rev 0 0

* Increase TEEOSA aid to reflect LB 409 (as amended) (Prog Gen 17,857,996 44,578,372 158 Education Aid) Cash 0 0 Fed 0 0 Rev 0 0

* Eliminate aid for the Master Teacher Education Program (Prog Gen -470,000 -470,000 158 Education Aid) Cash 0 0 Fed 0 0 Rev 0 0

* Increase cash fund authority for the Early Childhood Education Gen 0 0 Endowment (Prog 158 Education Aid) Cash 500,000 500,000 Fed 0 0 Rev 0 0

* Correction of an error on ESU aid in LB22 will reduce aid by Gen 0 0 $264,219 in FY2016-17 (Prog 158 Education Aid) The Cash 0 0 department requests intent language be added for the Fed 0 0 allocation of aid to educational service units. The language Rev 0 0 would read as follows: "Any remaining payments to educational service units for FY2016-17 aid shall be reduced pro rata by the department to equal the total amount of aid provided in this section."

* Increase of $14,691 of general funds to pay the remainder of Gen 0 0 school breakfast claims for FY17 (Prog 158 Education Aid) Cash 0 0 Fed 0 0 Rev 0 0

* Reduce aid for Early Childhood Education Grant Program by Gen -150,807 -150,807 4% to LB 22 level (Prog 158 Education Aid) Cash 0 0 Fed 0 0 Rev 0 0

* Reduce aid to ESU's by 3% - Governor's Level (Prog 158 Gen -421,553 -421,553 Education Aid) Cash 0 0 Fed 0 0 Rev 0 0

* Eliminate authority to expend accumulated loan repayments Gen 0 0 for the Excellence in Teaching Program (Prog 161 Ed Cash -375,000 -375,000 Innovation Fund) Fed 0 0 Rev 0 0

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Increase cash fund aid to reflect estimated lottery revenue Gen 0 0 (Prog 161 Ed Innovation Fund) The recommendation reflects Cash 1,647,054 769,772 the estimated amount of cash fund authority needed to fully Fed 0 0 expend the projected lottery carryover balance and the 10% Rev 0 0 retained in the fund from the prior year, plus the estimated lottery funds that will be received in the next biennium. The estimated lottery revenue assumes a 3% increase in revenue in the current fiscal year plus a 1% increase in the next two years. It should be noted that funding for NDE to pay the costs of the College Entrance Exam in FY18 is to come from the lottery (per LB 1067) which will reduce the amount available for competitive innovative grants in that fiscal year.

* Increase federal funds to reflect additional social security Gen 0 0 funding to provide services (Prog 351 Voc Rehab) Vocational Cash 0 0 Rehabilitation is able to request reimbursement from the Fed 500,000 1,000,000 Social Security Administration for the cost of services for Rev 0 0 clients who achieve a successful outcome and achieve Substantial Gainful Activity for nine consecutive months. VR recently implemented an electronic tracking system to assist the agency in submitting more accurate claim submissions which has resulted in the receipt of increased social security revenue.

* Increase federal aid funds for the Career Pathways Gen 0 0 Advancement Grant (Prog 351 Voc Rehab) The increase in Cash 0 0 federal funds will be used in the grant project for case Fed 278,637 625,670 services for eligible individuals. Rev 0 0

* Matching funds increase for vocational rehabilitation services Gen 39,210 79,400 (Prog 351 Voc Rehab) NDE is projecting a 2.5% increase in Cash 0 0 federal funding for vocational rehabilitation (VR) services. The Fed 165,022 334,169 operations and aid recommendations for matching funds Rev 0 0 reflect the additional general funds needed to match an estimated 2.5% annual increase in federal funds in FY18 and FY19.

* Transfer State Independent Living Grant (Prog 351 Voc Gen -30,111 -30,111 Rehab) Vocational Rehabilitation has been the designated Cash 0 0 state unit for the State Independent Living Grant. The federal Fed 0 0 grant requires a 10% state match. The Nebraska State Rev 0 0 Independent Living Council has identified UNMC Munroe-Meyer Institute as the new designated state entity in their FY2017- 19 state plan. VR is supportive of this decision. The transfer of the program reduces the general fund appropriation for this program by $30,111. UNMC is requesting a like increase in its general fund appropriation, so the net fiscal impact of the change is zero.

Agency 14 Public Service Commission ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19




Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Increase Commissioner’s Expenses (Prg. 016) (Prog 16 Gen 19,516 14,516 Expenses-PSC) The anticipated cost to reimburse Cash 0 0 Commissioners' expenses is increasing due to new Fed 0 0 Commissioners being elected. This funding will also be used Rev 0 0 to pay up front costs related to TransCanada Pipeline hearings for Commissioners' travel. Once Cash Funds are received for that, the amount paid up front will be sent back to this program through a journal entry. Since the Trans Canada costs should only be in the first year of the biennium, the second year does not need to be appropriated at the full $19,516.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Correct Duplicate funding due to LB938 (2016) (Prg. 054) Gen -136,071 -136,071 (Prog 54 Common carriers) LB 938 (2016) created the 911 Cash 0 0 Service System Act. During the last Legislative Session, Fed 0 0 funding for these associated costs was included in Programs Rev 0 0 054 and 686. Passage of LB 938 occurred after the budget was passed and duplicative funding was included in Program 583 where, according to LB 938, it should be housed. This issue corrects the duplicate funding.

* Reallocate Salaries to NUSF - GIS mapping (Prg. 054, Priority Gen -94,417 -97,454 3 of 3) (Prog 54 Common carriers) This issue would shift Cash 0 0 40% of one FTE’s salary to the Cash Funded program (686) Fed 0 0 Nebraska Universal Service Fund. As the NUSF has changed Rev 0 0 over time, these positions, which share similar duties, can now be allocated to the NUSF Program.

* Reduction to offset increase in Commissioner's Expenses Gen -19,516 -14,516 (Prog 54 Common carriers) General Funds in this program Cash 0 0 are being reduced to offset increased General Funds in Fed 0 0 Commissioner's Expenses (Program 16). Rev 0 0

* Reallocate Salaries to NUSF from Program 054 (Prg. 686, Gen 0 0 Priority 2 of 3) (Prog 686 Universal Services) Cash 94,417 97,454 Fed 0 0 Rev 0 0

* Correct Duplicate funding due to LB938 (2016) (Prog 686 Gen 0 0 Universal Services) Cash -9,468 -9,468 Fed 0 0 Rev 0 0

Agency 15 Board of Pardons and Parole ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 7,098,862 7,060,507 7,377,208 7,250,653 7,713,251 Cash 455,873 455,873 553,373 455,873 455,873 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Oper 7,554,735 7,516,380 7,930,581 7,706,526 8,169,124

Agency Total General 7,098,862 7,060,507 7,377,208 7,250,653 7,713,251 Cash 455,873 455,873 553,373 455,873 455,873 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Agency Total 7,554,735 7,516,380 7,930,581 7,706,526 8,169,124

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Reappropriate General Fund balances at the end of the 2015- Gen 0 0 2017 biennium (Prog 0 Agency-wide) Cash 0 0 Fed 0 0 Rev 0 0

* Increase in Services Costs for additional people on parole Gen 0 390,000 (Prog 358 Board of Parole) The agency request is based on Cash 0 0 an additional 300 people on parole. It is estimated that on Fed 0 0 average a new parolee needs $1,300 for services upon Rev 0 0 reentry for such services as intensive outpatient treatment, parenting, domestic violence, anger management, life skills, and employment. Service dollars will be needed to assist in paying for these services.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* New Office Space Rent (Prog 358 Board of Parole) The Parole Gen 132,000 132,000 Office in Lincoln (Trabert Hall, 2202 South 11th St) is Cash 0 0 scheduled to be sold by April 2017 and staff will need to be Fed 0 0 relocated. Rent is currently $65,081 per year. The agency has Rev 0 0 been working with DAS and they estimate needing 13,000 square feet to move staff from Trabert Hall and move Parole staff located at the Department of Correctional Services Central Office into one location. A total of 36 staff will need to be relocated. The request would allow for $15.00 per square foot which the agency states is on the low end of the price per square foot in Lincoln.

* Reduction in Board of Parole staff and operations (Prog 358 Gen -215,000 -215,000 Board of Parole) The impact would be a reduction in the Cash 0 0 number of Board of Parole staff which would include Parole Fed 0 0 Officers, Support Staff, possibly other Administrative Rev 0 0 personnel, travel, and training.

* Salary Adjustments for Parole Officers per LB598, 2015 (Prog Gen 154,443 154,443 358 Board of Parole) Section 83-1,100(2) states that “Parole Cash 0 0 Officers shall be compensated with salaries substantially equal Fed 0 0 to other state employees who have similar responsibilities, Rev 0 0 including employees of the Office of Probation Administration. This subsection shall apply only to field parole service officers and support staff and shall not apply to the Parole Administrator, any deputy parole administrator, or any other similarly established management position". After negotiations with the employee bargaining group, a new pay line series was established for Parole Officers to include three new categories: Parole Officer Trainee, Parole Officer, and Parole Officer Specialized. The new rates are scheduled to go into effect July 1, 2017.

Agency 16 Dept of Revenue ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19


State Aid General 92,115,000 93,400,000 97,205,500 93,400,000 97,200,000 Cash 205,700,000 225,200,000 225,150,000 225,100,000 225,100,000 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Aid 297,815,000 318,600,000 322,355,500 318,500,000 322,300,000


Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Annualize LB 774 (2016), as it relates to Temporary Gen -115,967 -115,967 Assistance for Needy Families (TANF). (Prog. 102) (Prog 102 Cash 0 0 Revenue admin) The reduction is related to the appropriation Fed 0 0 for one-time programming cost incurred by the Department. Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Annualize LB 884 (2016), Affordable Housing Tax Credit Act. Gen 329,097 25,746 (Prog. 102) (Prog 102 Revenue admin) LB 884 incorporated Cash 0 0 the provisions of LB 951 that created the Affordable Housing Fed 0 0 Tax Credit Act, which created a nonrefundable tax credit Rev 0 0 available to both residents and nonresidents. The amount funded is based on the original fiscal note which estimated and included a one-time charge of $258,036 to the CIO for programming to add lines to the Form 1040n, 1120N, 1041N, and NebFile and to implement a tracking system for the assigned credits. This also included personnel and operations costs of $71,061.

* Annualize LB 886 (2016), Emergency Responders Incentive Gen -55,601 -55,601 Act. (Prog. 102) (Prog 102 Revenue admin) LB 886 created Cash 0 0 the Emergency Responders Incentive Act, which provides a Fed 0 0 refundable income tax credit equal to $250 beginning with the Rev 0 0 second taxable year in which the qualified active volunteer is included on the certified list. The bill uses a point system to track the level of involvement of volunteers to determine eligibility for the credit. The appropriate fire district certifies the list of eligible active emergency responders, rescue squad members, for firefighters for the immediately preceding calendar year with the Department by each February 15. The appropriation was for a one-time programming charge to change Form 1040N and NebFile.

* Annualize LB 889 (2016), School Readiness Tax Credit Act. Gen -96,309 -96,309 (Prog. 102) (Prog 102 Revenue admin) LB 889 (2016) created Cash 0 0 the School Readiness Tax Credit Act. The Act creates two Fed 0 0 separate income tax credits beginning with tax year 2017; a Rev 0 0 nonrefundable income tax credit to persons who own or operate an eligible child care and education program that serve children who participate in the child care subsidy program in Section 68-1202 and a refundable credit to staff members who are both employed with an eligible program for at least six months during the tax year and are classified in the Nebraska Early Childhood Professional Record System. The bill created a series of tiered tax credits. The reduction is related to the appropriation for one-time programming costs incurred by the Department.

* Eliminate funded authorized positions. Priority 1 of 3. (Prog. Gen -635,853 -635,853 102) (Prog 102 Revenue admin) This modification would Cash 0 0 eliminate authorized but currently vacant classified positions Fed 0 0 which are considered mission critical positions and for which Rev 0 0 the Department is currently in the process of recruiting or filling. This modification includes 27 positions in Program 102 and two positions in Program 112. The Department has determined this modification plan based on the goals of keeping core operations as stable as possible and minimizing impact on state revenue collections. Taking this modification will result in a broader reduction of compliance activities,

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________ which include audits, examinations, and delinquent tax collections. In addition, there will be a smaller Department compliance profile which could result in an increase in tax avoidance and the number of taxpayers who are not aware of their tax paying obligations.

* Cash Fund and PSL reduction. (Prog 102 Revenue admin) Gen 0 0 Reduce Cash Fund appropriation and reduce PSL in Program Cash -33,466 -33,466 102, Revenue Administration. Part of modification reduction of Fed 0 0 vacant budgeted positions. Rev 0 0

* OCIO IT positions consolidation. (Prog 102 Revenue admin) Gen -61,890 -61,890 Governor initiative to consolidate IT positions in Office of CIO Cash 0 0 Fed 0 0

* Base Reduction and Rebase PSL (Prog 111 Motor Fuels) This Gen 0 0 adjustment reduces the Motor Fuels Program base. Cash -100,000 -100,000 Fed 0 0

* Governor's initiative, PSL reduction. (Prog 111 Motor Fuels) Gen 0 0 Reduce Program 111, Motor Fuels PSL. Cash 0 0 Fed 0 0

* Appropriations Shift from Cash Fund to General Fund. (Prog. Gen 0 198,509 112) (Prog 112 Property Assessment) LB 657, Section 71, Cash 0 -198,509 shifted $250,000 of General Fund appropriation Cash Fund Fed 0 0 appropriation for both years of the 2015-2017 biennium. This Rev 0 0 was a change from the Appropriations Committee’s Preliminary Report recommendation. The Department has determined that the cash balance in the Property Assessment Cash Fund (21550) will not be sufficient to allow it to contribute the required amount necessary to meet the program’s obligations in the second year of the 2017-2019 biennium.

* Eliminate Funded and Authorized Position (Prog 112 Property Gen -71,980 -71,980 Assessment) Due to retirement of long-time employee, Cash -29,400 -29,400 addiitional reduction. Fed 0 0 Rev 0 0

* Increase in operations expenditure, Gamblers Assistance Gen 0 0 Program (Prog. 164) (Prog 164 Compulsive gamblers) Cash 100,000 100,000 Program requested reduction in aid expenditure requirement Fed 0 0 from $1.2 million to $1.1 million and transfer of that $100,000 Rev 0 0 to Operations budget to fund education outreach and prevention activities.

* Governor's initiative, Base and PSL reduction (Prog 165 Gen 0 0 Charitable Gaming) Rebase Program 165, Charitable Gaming. Cash -200,000 -200,000 Fed 0 0 Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Transfer to General Fund: Severance Tax Administration Cash Gen 0 0 Fund FY16-17 $-50,000 (Prog 102 Revenue admin) Cash 0 0 Fed 0 0

* Transfer to General Fund: State Athletic Commissioner's Cash Gen 0 0 Fund FY17-18 $200,000 FY18-19 0 (Prog 102 Revenue Cash 0 0 admin) Fed 0 0

* Transfer to General Fund: Tobacco Products Administation Gen 0 0 Cash Fund FY17-18 $1,000,000 FY18-19 0 (Prog 102 Revenue Cash 0 0 admin) Fed 0 0

* Transfer to General Fund: Tobacco Products Administration Gen 0 0 Cash Fund FY17-18 $10,000,000 FY18-19 $10,000,000 (Prog Cash 0 0 102 Revenue admin) Fed 0 0

* Transfer to General Fund: Energy Conservation Improvement Gen 0 0 Fund FY17-18 $12,730 FY18-19 0 (Prog 102 Revenue admin) Cash 0 0 Fed 0 0

* Transfer to General Fund: Charitable Gaming Operations Fund Gen 0 0 FY17-18 $2,800,000 FY18-19 $800,000 (Prog 102 Revenue Cash 0 0 admin) Fed 0 0

* Transfer to General Fund: Marijuana & Controlled Substances Gen 0 0 Tax Admin. Fund FY17-18 $25,000 FY18-19 0 (Prog 102 Cash 0 0 Revenue admin) Fed 0 0 Rev 0 0

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Annualize LB 683 (2016) Homestead Exemption. (Prog. 108) Gen 38,100 43,600 (Prog 108 Homestead exemption) LB 683 expanded the class Cash 0 0 of persons eligible to receive a homestead exemption to Fed 0 0 include a veteran’s surviving spouse who remarries after the Rev 0 0 age of 57. As amended, LB 683 harmonized Nebraska statute with the Dependency and Indemnity Compensation benefit from the Department of Veterans Affairs, which allows a person to be considered a “surviving spouse” even after remarrying (after the age of 57). Prior to passage of LB 683, only the unremarried widow or widower could receive this exemption. The requested appropriation is the estimated increase to General Fund expenditures for this expansion.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Increase Homestead Exemption. (Prog. 108) (Prog 108 Gen 5,646,900 8,441,400 Homestead exemption) Based on the 2016 certifications from Cash 0 0 the counties to the Department of Revenue, the Department is Fed 0 0 requesting an increase in the appropriation for FY2016-17 Rev 0 0 and a revised increase for FY 2017-18 and FY2018-19.The original appropriation for FY2016-17 is $72,515,000. However, the total certificates for the current fiscal year and amended requests for Homestead Exemption in 2015 are $74,848,125. Since counties may amend their request for reimbursement of tax loss until May 30, the certified amounts are estimates of amounts actually required for the program in the current year. The Department is, therefore, requesting an amended amount of $74,900,000 for the current fiscal year, FY2016-17, and increase of $2,385,000 from the current appropriation of $72,515,000. In addition, the Department is revising the request for the next biennium to $78,200,000 for FY2017-18 and $81,000,000 for FY2018-19.Operating off an increase in this year’s appropriation to $74,900,000, as requested by the Department, the amount of increase for the respective fiscal years will be $3,261,900 and $6,056,400, respectively. The revised numbers take into account the annualization of LB 683.

* Adjust Personal Property Tax Exemption. (Prog. 109) (Prog Gen -4,400,000 -3,400,000 109 Property Tax Relief Act) This program was created by LB Cash 0 0 259 (2015) to provide a personal property tax exemption on Fed 0 0 the first $10,000 of personal property submitted by a taxpayer Rev 0 0 on their personal property tax return. The program provides state funded reimbursement to counties for property taxes not collected due to the granting of the personal property tax exemption.The current appropriation for this program is $19,600,000.Based on the 2016 certifications from the counties that were due on November 30, the Department has determined that the current appropriation can be reduced. Total certificates for the locally assessed personal property tax loss and the Department’s most recent estimate for the centrally assessed personal property tax loss for the current fiscal year equals $13,660,000. Since counties may amend their requests for reimbursement until May 30, a contingency for potential amendments is included in this revised request. The Department is requesting $13,800,000 for the current fiscal year (FY2016-17), a decrease of $5,800,000 from the current appropriation.The Department’s request for the personal property tax exemption for FY2017-18 and FY2018- 19 are $15,200,000 and $16,200,000, respectively.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Eliminate base funding for unused program, home energy Gen 0 0 improvement program (Prog 110 Energy Conservation) The Cash -500,000 -500,000 program allowed a public power district to provide matching Fed 0 0 funds and designate an amount of sales and use tax receipts Rev 0 0 (not exceeding 5%) to provide grants to low-income Nebraska residents to make energy conservation improvements to their homes. On April 26, 2011, the program was suspended by LB 285 until July 1, 2014. At that point an eligible utility provided could remit up to $50,000, regardless of sales and use tax receipts to the Department of Revenue for deposit into its fund subaccount, that amount to be matched with an equal amount of General Funds transferred to the utility’s subaccount for the purpose of funding low-income energy improvement grants. The total amount of matching funds could not exceed $250,000. A requirement of LB 285 was any eligible entity wishing to participate in the program had to notify the Department by September 1 of each even- numbered year of the amount they planned to remit for each of the following fiscal years. No eligible entities have notified the Department for the upcoming biennium, therefore no appropriation is required. Since LB 285 went into effect, no eligible entities have ever notified the Department of their intent to participate.

* Annualize LB 958 (2016) Property Tax Relief Credit. (Prog. Gen 0 0 132) (Prog 132 Property Tax Credits) LB 958 amended Cash 20,000,000 20,000,000 Nebraska Revised Statutes Section 77-4212 to provide Fed 0 0 $20,000,000 in additional funding in tax year 2017 for the Real Rev 0 0 Property Tax Credit Act and changed the calculation of the credit so that the credit will be allocated as if agricultural land and horticultural land, and agricultural land and horticultural land receiving special valuation, were valued at 120% of their taxable value.

* Reduction in aid expenditure, Gamblers Assistance Program Gen 0 0 (Prog. 164) (Prog 164 Compulsive gamblers) Program Cash -100,000 -100,000 requested reduction in aid expenditure requirement from $1.2 Fed 0 0 million to $1.1 million and transfer of that $100,000 to Rev 0 0 Operations budget to fund education outreach and prevention activities.

Agency 17 Dept of Aeronautics ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 0 0 0 0 0 Cash 3,782,313 3,205,104 2,891,736 3,300,956 2,913,157 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Oper 3,782,313 3,205,104 2,891,736 3,300,956 2,913,157


Agency Total General 0 0 0 0 0 Cash 22,472,813 33,875,404 28,024,036 34,011,456 28,085,657 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Agency Total 22,472,813 33,875,404 28,024,036 34,011,456 28,085,657

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-Wide) Gen 0 0 Cash 16,407 28,876 Fed 0 0

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-Wide) Gen 0 0 Cash 16,158 33,242 Fed 0 0

* Replacement of computers and monitors. (Prog 0 Agency- Gen 0 0 Wide) The agency’s computers and monitors are five years Cash 16,050 0 old or older and they plan to replace 16 of them to prevent the Fed 0 0 failure of hard drives, which they estimate have an average Rev 0 0 life span of five years. The agency has engaged OCIO for advice and will purchase computers from the Hewlett Packard website using state of Nebraska preapproved packages.

* Eliminate three vacant positions. (Prog 0 Agency-Wide) The Gen 0 0 agency’s budget is based on funding 25 FTE but several Cash -194,393 -194,393 positions have been vacant for one or more years (7 positions Fed 0 0 are currently vacant). Through discussion with the agency Rev 0 0 they have agreed to eliminate three of these vacant positions. These are the Airport Manager at the Harvard state-owned airfield, the Staff Assistant in the Flight Operations Division, and one Pilot position.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Requested base reduction to reflect the one-time cost of Gen 0 0 purchasing ceilometers. The five ceilometers budgeted for Cash -52,289 -52,289 FY16-17 have been purchased. This was a one-time upgrade Fed 0 0 that will not be necessary in the next biennium. (Prog 26 Rev 0 0 Develop/enforcement)

* Vacation and sick leave retirement payout. An employee Gen 0 0 (Engineer IV) has given notice that they plan to retire just Cash 15,633 0 after the beginning of FY2017-18. Their payout is estimated to Fed 0 0 be $15,633 for vacation and sick leave. (Prog 26 Rev 0 0 Develop/enforcement)

* Requested base reduction to reflect the completion of the Gen 0 0 runway project at the Scribner state owned airfield. The Cash -368,923 -649,023 eventual completion of the one-time runway rehabilitation Fed 0 0 project at Scribner allows the agency to reduce their budget Rev 0 0 base. (Prog 26 Develop/enforcement)

* Provide matching funds (10% match) needed to update the Gen 0 0 State-wide Airport System Plan and the Airport Economic Cash 70,000 0 Impact Study. These plans were last updated in 2002 and Fed 0 0 2003. (Prog 26 Develop/enforcement) Rev 0 0

* Requested base reduction to reflect lower expenditures for Gen 0 0 gas & oil, and pilot training. (Prog 596 State owned aircraft) Cash 0 -35,569 Fed 0 0 Rev 0 0

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Eliminate funding for the Civil Air Patrol and reallocate these Gen 0 0 funds for additional airport improvement aid. (Prog 26 Cash -40,200 -40,200 Develop/enforcement) Fed 0 0 Rev 0 0

* Additional airport improvement aid from the elimination of Gen 0 0 funding for the Civil Air Patrol. (Prog 301 Public airports) Cash 40,200 40,200 Fed 0 0 Rev 0 0

* Airport improvement projects – federal funds. (Prog 301 Gen 0 0 Public airports) Federal and state airport development aid is Cash 12,020,000 6,482,000 channeled through this program to local airports. The Fed 0 0 projected increase in airport improvement expenditures is Rev 0 0 based upon requests submitted by Nebraska airports to the FAA and how those grants will cash flow in the next biennium.

Agency 18 Dept of Agriculture ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 6,242,820 6,136,338 6,218,333 5,662,109 5,723,024 Cash 7,906,977 7,737,477 7,807,535 7,833,466 7,966,565 Federal 3,715,994 3,826,076 3,856,001 3,840,234 3,862,715 Revolving 655,536 642,670 649,797 653,930 671,278 Subtotal-Oper 18,521,327 18,342,561 18,531,666 17,989,739 18,223,582

State Aid General 975,000 487,500 487,500 475,000 475,000 Cash 0 0 0 0 0 Federal 420,000 420,000 420,000 420,000 420,000 Revolving 0 0 0 0 0 Subtotal-Aid 1,395,000 907,500 907,500 895,000 895,000

Agency Total General 7,217,820 6,623,838 6,705,833 6,137,109 6,198,024 Cash 7,906,977 7,737,477 7,807,535 7,833,466 7,966,565 Federal 4,135,994 4,246,076 4,276,001 4,260,234 4,282,715 Revolving 655,536 642,670 649,797 653,930 671,278 Agency Total 19,916,327 19,250,061 19,439,166 18,884,739 19,118,582

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 42,488 74,779 Cash 34,934 61,483 Fed 11,330 19,941 Rev 5,665 9,970


* Increase federal funds and personal services limit for the Gen 0 0 Animal Feed Regulatory Program Standards (Prog 78 Dept of Cash 0 0 Agriculture) The agency requested increased federal fund Fed 84,678 86,710 spending authority and personal services limit authority Rev 0 0 related to a federal USDA grant relating to animal feed regulations. The grant was first received in FY15-16.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Decreased operations funding for the Department of Gen -685,905 -701,039 Agriculture. (Prog 78 Dept of Agriculture) The Appropriations Cash 0 0 Committee recommendation includes an overall General Fund Fed 0 0 reduction in the Department of Agriculture, but does not Rev 0 0 specify the functional areas that must be reduced. The recommendation gives the department the discretion to make reductions in areas that will best allow the agency to continue essential regulatory services.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduction of state aid for the Riparian Vegetation Gen -500,000 -500,000 Management program. (Prog 78 Dept of Agriculture) The Cash 0 0 Riparian Vegetation Management program was created in Fed 0 0 2016, with $975,000 designated for state aid. The Rev 0 0 Appropriations Committee recommendation reduces the program by $500,000.

Agency 19 Dept of Banking & Finance ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 0 0 Cash 52,829 92,979 Fed 0 0 Rev 0 0

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 0 0 Cash 35,455 72,944 Fed 0 0 Rev 0 0

* Reduce base appropriation level. (Prog 65 Financial Gen 0 0 institutions) Historical review of annual and biennial cash fund Cash -248,720 -392,778 expenditures versus appropriation authority reflects that the Fed 0 0 Department has consistently expended at levels below Rev 0 0 appropriation levels for Program 65 - Financial Institutions. The Department proposed reductions to the base appropriation level for this budget program to more closely align appropriation authority with historic expenditure patterns.

* Reduce base appropriation level. (Prog 66 Securities) Gen 0 0 Historical review of annual and biennial cash fund Cash -15,723 -58,172 expenditures versus appropriation authority reflects that the Fed 0 0 Department has consistently expended at levels below Rev 0 0 appropriation levels for Program 66 - Securities. The Department proposed reductions to the base appropriation level for this budget program to more closely align appropriation authority with historic expenditure patterns.

Agency 21 State Fire Marshal ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19


State Aid General 0 0 0 0 0 Cash 0 0 0 0 0 Federal 55,000 55,000 55,000 55,000 55,000 Revolving 0 0 0 0 0 Subtotal-Aid 55,000 55,000 55,000 55,000 55,000


Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Bunker Storage Space (Prg. 193) (Prog 193 Public Protection) Gen 2,934 3,774 The agency is relocating its evidence and equipment storage Cash 0 0 from a 1,500 sq. ft. facility to a 2,000 sq. ft. facility. This Fed 0 0 relocation is needed due to size, layout and moisture issues Rev 0 0 faced with the current location.

* Safe Cigarette Program (Prg. 193) (Prog 193 Public Gen 0 0 Protection) This funding is requested to fully meet the Cash 3,000 3,000 program’s costs from the cash fund. Fed 0 0 Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Software Maintenance Fees (Prg. 193) (Prog 193 Public Gen 0 0 Protection) The Plans Division reviews all submitted building Cash 15,000 15,000 plans for compliance with NFPA 101 Life Safety Codes. The Fed 0 0 division plans to acquire a web-based software program that Rev 0 0 will allow for streamlining the process via electronic submission of plans. The annual software license fee at the current release level is $15,000. The current software is Microsoft Access based that was developed “in-house”. It does not allow for electronic receipt of plans.

* Office Clerk III / Secretary I Consolidation (Prg. 193) (Prog Gen -19,081 -19,081 193 Public Protection) The agency is consolidating two Cash 0 0 positions (a 1.0 FTE and a 0.5 FTE) into a single 1.0 FTE Fed 0 0 position. No negative impact due to this consolidation is Rev 0 0 anticipated.

* Eliminate Staff Assistant Position – W. Nebraska (Prg. 193, Gen -41,514 -41,514 Priority 5 of 10) (Prog 193 Public Protection) The position is Cash 0 0 authorized, but currently vacant. The agency has been Fed 0 0 “making do” with only the two staff assistants mentioned Rev 0 0 above.

* Reduce Uniform Costs (Prg. 225, Priority 10 of 10) (Prog 193 Gen -11,000 -11,000 Public Protection) The annual uniform order would be limited Cash 0 0 to only essential items that need replacement due to Fed 0 0 shrinkage, stains, tears, or general wear. Rev 0 0

* Eliminate Chief Deputy Position (Prg. 193, Priority 2 of 10) Gen -95,864 -95,864 (Prog 193 Public Protection) This position is the Chief Deputy Cash 0 0 located in Western Nebraska. This is the district supervisor in Fed 0 0 the area who oversees 38 counties. Citizens in the area would Rev 0 0 no longer have access to this position’s expertise in life safety codes, statutes, and regulations. Citizens would face longer commutes to conduct business. Maintaining good working relationships with local fire departments would become more difficult.

* Reduce Travel Costs (Prg. 193, Priority 6 of 10) (Prog 193 Gen -5,000 -5,000 Public Protection) Out-of-state travel and conference Cash 0 0 attendance would be reduced. Fed 0 0 Rev 0 0

* Reduce Overtime (Prg. 225, Priority 9 of 10) (Prog 193 Public Gen -23,030 -23,030 Protection) The agency offers overtime when needed to Cash 0 0 address determinations of fire origins, investigations of Fed 0 0 fatalities, wild land fires, hazardous materials incidents and Rev 0 0 tornado damage assessments. Due to the uncertainty of such events, the agency can only budget for overtime based on historical experience. This reduction will reduce the amount of overtime the agency can pay.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Provide adequate funding for health insurance increase (Prog Gen 39,562 81,370 193 Public Protection) Based on LFO calculations, the Fire Cash 10,234 21,045 Marshal states that inadequate funding if provided for SLEBEC Fed 0 0 employees' health insurance increases. In addition to premium Rev 0 0 increases, the SLEBEC contract included a higher state share of total premiums The requested funding will allow the agency to cover the bargained increases.

* Provide adequate funding for salary increases (Prog 193 Public Gen 35,536 85,391 Protection) Based on LFO calculations, the Fire Marshal Cash 0 0 states that inadequate funding is provided for SLEBEC Fed 0 0 employees' bargained salary increases. The requested funding Rev 0 0 will allow the agency to cover the bargained increases.

* Eliminate Funding for SOS Temporary (Prg. 340, Priority 4 of Gen -4,000 -4,000 10) (Prog 340 Training Division) During peak times, the Cash 0 0 agency utilizes SOS temporaries to assist an administrative Fed 0 0 staff member who handles grading of all student tests and Rev 0 0 maintaining certification records. Eliminating this funding would result in a slight delay of grading student tests and issuance of training certifications.

* Reduce Part-Time Instructors (Prg. 340, Priority 8 of 10) (Prog Gen -26,877 -26,877 340 Training Division) This represents a 20% reduction in Cash 0 0 part-time instructors who either lead or assist full-time Fed 0 0 instructors at training classes provided to volunteer Rev 0 0 firefighters. This modification would result in reducing the number of classes held or an increase in the student to instructor ratio. Fewer firefighters would receive certification.

* Reduce Travel Costs (Prg. 340, Priority 6 of 10) (Prog 340 Gen -5,000 -5,000 Training Division) Out-of-state travel and conference Cash 0 0 attendance would be reduced. Fed 0 0 Rev 0 0

* Reduce Uniform Costs (Prg. 340, Priority 10 of 10) (Prog 340 Gen -6,500 -6,500 Training Division) The annual uniform order would be limited Cash 0 0 to only essential items that need replacement due to Fed 0 0 shrinkage, stains, tears, or general wear. Rev 0 0

* Eliminate Upgrades to Radio Program (Prg. 845, Priority 7 of Gen -83,000 -83,000 10) (Prog 845 Commuication System) Using carryover funds Cash 0 0 from FY16-17, the agency has been approved to replace Fed 0 0 current radios that are no longer serviced or repaired by the Rev 0 0 manufacturer. Newer radios would include upgrades such as tri-band radios for interoperability communication. Without this upgrade, most users will need to continue to carry and maintain an additional single band UHF radio to communicate with local emergency responders.

* Statewide Radio Device Fee (Prog 845 Commuication System) Gen 0 -23,471 The device fee charges are being reduced in fiscal year Cash 0 -8,247 2018-19. Fed 0 0 Rev 0 0

Agency 22 Dept of Insurance ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 0 0 0 0 0 Cash 13,318,292 12,074,718 12,204,034 12,120,212 12,267,155 Federal 2,235,599 1,460,009 1,489,844 1,462,139 1,492,807 Revolving 0 0 0 0 0 Subtotal-Oper 15,553,891 13,534,727 13,693,878 13,582,351 13,759,962

State Aid General 0 0 0 0 0 Cash 0 0 0 0 0 Federal 0 647,880 664,722 647,880 664,722 Revolving 0 0 0 0 0 Subtotal-Aid 0 647,880 664,722 647,880 664,722

Agency Total General 0 0 0 0 0 Cash 13,318,292 12,074,718 12,204,034 12,120,212 12,267,155 Federal 2,235,599 2,107,889 2,154,566 2,110,019 2,157,529 Revolving 0 0 0 0 0 Agency Total 15,553,891 14,182,607 14,358,600 14,230,231 14,424,684

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 0 0 Cash 84,226 148,238 Fed 5,525 9,724 Rev 0 0

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 0 0 Cash 77,769 160,001 Fed 6,170 12,694 Rev 0 0

* Reduction of budget base per request (Prog 68 Medical Gen 0 0 liability) The request reflects a decrease in the budget base Cash -83,680 -82,299 for the Medical Libability program. The department is still Fed 0 0 contracting for the administration of the Excess Liability Fund Rev 0 0 with an outside vendor. However, it has determined that defense costs attributable to any specific claim will now be paid by the Excess Liability Fund rather than the Department of Insurance Cash Fund. This is the same procedure used with private malpractice insurance, which includes the cost of defense in addition to liability coverage. The change reduces the base.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduce operations to reflect decreased federal funds (Prog 69 Gen 0 0 Enforce standards) Cash 0 0 Fed -83,046 -63,101

* Reduce operations to shift federal funds to aid per DAS Gen 0 0 accounting instructions (Prog 69 Enforce standards) Cash 0 0 Fed -702,109 -702,109

* Annualize LB 755 - Standard Valuation Act (Prog 69 Enforce Gen 0 0 standards) The department indicates it does not need two Cash 0 0 actuaries for the Standard Valuation Act at the present time. Fed 0 0 Insurance companies have been slow to adopt the new Rev 0 0 principle based reserving system, so there is limited need for oversight.

* Reduction in cash fund base per request (Prog 69 Enforce Gen 0 0 standards) The department has been operating under budget Cash -1,271,895 -1,272,577 for the past few years. The excess budget is primarily due to Fed 0 0 appropriating sufficient funds to carry out financial and market Rev 0 0 conduct examinations of insurance companies. The leadership of the agency is proposing a lower budget base to better reflect current operations. The lower base should leave enough funds to perform examination, enforcement and consumer support activities. The lower cash fund base reflects a 5% decrease from the FY 2017 base. The appropriation for FY2018-19 reflects the lower base plus a 3% inflationary increase.

* Transfer to General Fund: Department of Insurance Cash Gen 0 0 Fund FY17-18 $8,250,000 FY18-19 $9,250,000 (Prog 69 Cash 0 0 Enforce standards) Fed 0 0 Rev 0 0

* Reduce cash fund base per request (Prog 556 Liquidation) Gen 0 0 The Liquidation of Insurance Companies program provides Cash -4,500 -4,500 funding for activities associated with conservatorship or Fed 0 0 liquidation of trouble insurance companies. With the Rev 0 0 exception of a few expenditures, all costs associated with a conservatorship or liquidation of a company are paid for directly from the estate of the company. The department indicates the base can be reduced because the program is very rarely used.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Increase aid to shift federal funds from operations per DAS Gen 0 0 accounting instructions (Prog 69 Enforce standards) Cash 0 0 Fed 702,109 702,109 Rev 0 0

* Reduce aid to reflect decreased federal funds (Prog 69 Gen 0 0 Enforce standards) Cash 0 0 Fed -54,229 -37,387 Rev 0 0

Agency 23 Dept of Labor ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 690,814 675,597 681,370 636,886 634,675 Cash 2,964,457 3,030,369 2,980,858 3,195,422 3,152,902 Federal 38,502,433 39,289,023 39,552,657 39,361,511 39,597,442 Revolving 0 0 0 0 0 Subtotal-Oper 42,157,704 42,994,989 43,214,885 43,193,819 43,385,019

State Aid General 0 0 0 0 0 Cash 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 Federal 11,504,743 7,904,743 7,904,743 7,904,743 7,904,743 Revolving 0 0 0 0 0 Subtotal-Aid 13,104,743 9,504,743 9,504,743 9,504,743 9,504,743

Agency Total General 690,814 675,597 681,370 636,886 634,675 Cash 4,564,457 4,630,369 4,580,858 4,795,422 4,752,902 Federal 50,007,176 47,193,766 47,457,400 47,266,254 47,502,185 Revolving 0 0 0 0 0 Agency Total 55,262,447 52,499,732 52,719,628 52,698,562 52,889,762

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* ApprenticeshipUSA State Accelerator Grant. (Prog. 31) (Prog Gen 0 0 31 Employment) In June 2016, Nebraska was awarded a Cash 0 0 $200,000 ApprenticeshipUSA grant for a two-year period. The Fed 70,702 0 requested appropriation is to expend the remaining amount Rev 0 0 of the grant. This program brings together a broad range of stakeholders including employers, labor, the state, education, and workforce partners to expand and diversify registered apprenticeships across the state. The grant allows Nebraska to actively work with the partners to increase and establish “new” apprenticeship opportunities as a viable work-based learning model to prepare a skilled workforce for many occupations in Nebraska. This program offers employers a new way to create a skilled workforce trained specifically to meet their business needs

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Federal Funds Appropriation Base Reduction. (Prog. 31) (Prog Gen 0 0 31 Employment) This reduction better aligns the Department Cash 0 0 budget with current needs. Recent expenditures have been Fed -6,423,911 -6,448,805 less than the appropriation. This issue also reduces PSL and Rev 0 0 FTE by (627,673) for FY2017-18 and (642,449) for FY2018-19 with 17 FTE eliminated.

* Modernization of the Unemployment Insurance Tax and Gen 0 0 Benefit System. (Prog. 31) (Prog 31 Employment) The Cash 0 0 Department of Labor will complete a total replacement of the Fed 7,000,000 7,000,000 existing Unemployment Insurance (UI) business system Rev 0 0 including the Benefit Payment System (BPS), the Employer Portal (UI Connect), and the Tax Management System (TMS). This will require Legislature authority to utilize Reed Act funds for the expenditure for each year of the biennium. This project is to commence in July 2017 and be completed by June 30, 2020.The replacement system will provide a one-stop, single- sign on solution for employers, claimants, and job seekers to access workforce-related programs. The single system will improve the customer experience and reduce complexity, smoothing the user experience and facilitating their ability to complete required transactions easily and accurately. Staff will be better able to determine eligibility, reducing overpayments and improving performance, while providing better services to connect workers to employers sooner.Reed Act funds are the result of legislation enacted by Congress (The Reed Act) in 1954. The Act directs the distribution of surplus funds from the Federal Unemployment Trust Fund to state accounts on October 1 of each year when a surplus exists. Federal law governs the use of Reed Act funds and approved uses include the payment of expenses related to unemployment compensation (UC) and the administration of the state’s UC law and its public employment service offices. Reed Act funds may be used for the payment of unemployment benefits without a state appropriation but use for other allowed purposes does require a state appropriation. The proposed use of Reed Act funds for modernization of the UI Tax and Benefit System would be an approved use requiring an appropriation.

* LB 416 Appropriate funds for bilingual investigators (Vargas) Gen 0 0 (Prog 31 Employment) Cash 125,000 125,000 Fed 0 0 Rev 0 0

* OCIO IT Position consolidation and closure (Prog 31 Gen 0 0 Employment) This is part of the Governor's intiative to Cash -9,854 -9,854 consolidate IT positions in Office of the Chief Information Fed -154,383 -154,383 Officer. Rev 0 0

* General Funds Appropriation Base Reduction. (Prog. 194) Gen -70,814 -70,814 (Prog 194 Protect people/property) This reduction better Cash 0 0 aligns the Department budget with current needs. Recent Fed 0 0 expenditures have been less than the appropriation. Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Increase Appropriation for Mechanical Safety Inspection Gen 0 0 Program. (Prog. 194) (Prog 194 Protect people/property) The Cash 64,583 0 Department would add two permanent in-house inspectors to Fed 0 0 the program replacing two SOS Temporary employees and a Rev 0 0 technology upgrade that will allow NDOL customers to pay their invoices on-line and allow users to search for the invoices they want to pay and add them to a shopping cart in order to review and edit before completing the final payment process. Reductions in other operational expenditure lines and the current rate structure are more than adequate to accommodate the additional inspectors and technology upgrade and allow for this increase in spending authority. PSL would also increase to 127,910 for FY2017-18 and 130,980 for FY2018-19.

* Reduce Funds in Labor Standards, Cut Staff Assistant to 0.5 Gen 0 -17,430 FTE. Priority 1 of 1 (Prog 194 Protect people/property) Cash 0 0 Program 194 is the only Department of Labor program that Fed 0 0 receives General Funds. These funds are utilized to provide Rev 0 0 Labor Standards Programs and to match Federal Funds for the OSHA 21D Program. To accomplish this modification it would be necessary to reduce the staffing level by 0.5 FTE Staff Assistant I in the Labor Standards Program in FY2018- 19. Because of the proposed General Funds Base Reduction amount in FY2017-18 there is no further required modification necessary for that fiscal year.

* Additional increase in PSL for Mechanical Safety Program. Gen 0 0 (Prog 194 Protect people/property) Cash 0 0 Fed 0 0 Rev 0 0

* Increase General Fund appropriation to fund Labor Standards Gen 0 0 IT improvements. (Prog 194 Protect people/property) This Cash 35,000 42,430 would allow the Department to begin necessary improvements Fed 0 0 to the Labor Standards IT applications. The Committee Rev 0 0 decision was to appropriate funds to do this from a Cash Fund. The most appropriate fund would be the Contractor and Professional Employer Organization Registration Cash Fund.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Federal Funds Appropriation Base Reduction. (Prog. 31) (Prog Gen 0 0 31 Employment) This reduction better aligns the Department Cash 0 0 budget with current needs. Recent expenditures have been Fed -3,600,000 -3,600,000 less than the appropriation. This amount added to the Federal Rev 0 0 Funds base reduction in Operations makes a total of (10,023,911) and (10,048,805) for FY2017-18 and FY2018-19 respectively, in reductions.

Agency 24 Dept of Motor Vehicles ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 0 0 0 0 0 Cash 26,002,077 39,528,514 34,918,425 39,524,419 34,903,669 Federal 94,600 203,457 205,669 203,274 205,293 Revolving 0 0 0 0 0 Subtotal-Oper 26,096,677 39,731,971 35,124,094 39,727,693 35,108,962

State Aid General 0 0 0 0 0 Cash 40,000 46,000 48,000 46,000 48,000 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Aid 40,000 46,000 48,000 46,000 48,000

Agency Total General 0 0 0 0 0 Cash 26,042,077 39,574,514 34,966,425 39,570,419 34,951,669 Federal 94,600 203,457 205,669 203,274 205,293 Revolving 0 0 0 0 0 Agency Total 26,136,677 39,777,971 35,172,094 39,773,693 35,156,962

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Annualize LB 474 - Mountain Lion Plates (Prog 70 Motor Gen 0 0 vehicle admin) Cash -9,344 -9,344 Fed 0 0 Rev 0 0

* Annualize LB 977 - Breast Cancer Plates (Prog 70 Motor Gen 0 0 vehicle admin) Cash -10,379 -10,379 Fed 0 0 Rev 0 0

* Annualize LB 783 - Pulbic Power Vehicle Registrations (Prog Gen 0 0 70 Motor vehicle admin) Cash -4,513 -4,513 Fed 0 0 Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Electronic road system maintenance (Prog 70 Motor vehicle Gen 0 0 admin) DMV received a federal grant in FY14 from the Motor Cash 0 0 Carriers Safety Administration to purchase an electronic road Fed 108,674 110,693 testing system for the Commercial Driver Licensing (CDL) Rev 0 0 program. The system improves the effectiveness of the CDL program and reduces commercial motor vehicle fatalities by detecting and preventing fraudulent activities through better program control and oversight. The system is operational as of September 30, 2016. The grant provided funding for the system design, testing, installation and all system hardware. After the first year, an annual software and hardware maintenance fee is required. Subsequent to submission of the budget request, DMV was awarded a $1 million federal grant for the CDL program for FY17. The grant will be used to fund the annual maintenance fees in the next biennum.

* State to State Verification Program (Prog 70 Motor vehicle Gen 0 0 admin) The recommendation allows DMV to be a participating Cash 128,169 131,401 jurisdiction in the State to State Verification Service (S2S). Fed 0 0 When an applicant applies for a driver license or state ID card Rev 0 0 the S2S will be able to determine if a record exists in another state with the same personal information. In 2012, Nebraska committed to become a state to pilot the new system. As of August, 2016, six states have implemented the program and eight more, including Nebraska, are scheduled to join them before December 31, 2016. The appropriation allows DMV to continue participation in the program after the pilot concludes in the spring of 2017. The governance of the program will be provided under the American Association of Motor Vehicle Administrators. Nebraska will have a member on the governing board.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Vehicle Title Registration System Modernization Project (Prog Gen 0 0 70 Motor vehicle admin) The Legislature began a process to Cash 14,598,490 10,134,987 replace the Vehicle Title Registration System (VTR) with a Fed 0 0 cash fund appropriation provided during the 2014 Session. Rev 0 0 The VTR system is complex in nature and handled over 3.5 million vehicle registration and title transactions in CY2015 and collected over $650 million in fees and taxes. DMV has hired a project manager to oversee the project. A consultant was hired to assess the current system and provide recommendations on a new system. Based on the recommendations, DMV issued a Request for Proposal (RFP) to select a vendor for the project. The estimates for one-time costs ranged from $15 - $26.5 million and annual costs to operate the system from $1 - $4 million. Due to the significant range in estimates, DMV used a mid-range for each vendor and then averaged the three to develop the budget request. The project is scheduled to begin in July 2017 with plans for the base system to be implemented and operational in September 2019. The recommendation includes about $13 million in FY18 and $8.8 million in FY19 for contracted project costs. In addition, funds are included for 3.0 FTE technology positions to support the new system on an on-going basis. Eleven temporary positions will be funded to cover for eleven current DMV employees who will be assigned to the project. The temporary positions will continue until the new system is in place. Funding for the new system is provided by the VTR Replacement and Maintenance Fund.

* Statewide Radio Device Fee (Prog 70 Motor vehicle admin) Gen 0 0 Cash 0 -2,512 Fed 0 0 Rev 0 0

* Transfer to General Fund: Department of Motor Vehicles Cash Gen 0 0 Fund FY17-18 $1,000,000 (Prog 70 Motor vehicle admin) Cash 0 0 Fed 0 0 Rev 0 0

* Transfer to General Fund: DMV Ignition Interlock Fund FY17- Gen 0 0 18 $400,000 FY18-19 $150,000 (Prog 70 Motor vehicle admin) Cash 0 0 Fed 0 0 Rev 0 0

* Issuance of license plates (Prog 90 MV license plates) A new Gen 0 0 issuance of license plates began in January 2017. The plates Cash -2,074,574 -2,846,162 are valid for a six year period. A decrease in the budget for Fed 0 0 this program is provided because most of the license plates Rev 0 0 for the new issuance were produced in FY17. Funds to pay for license plates and stickers are transferred from the Highway Trust Fund to the License Plate Cash Fund. The Highway Trust Fund is reimbursed through the collection of a plate fee. A transfer of $3 million from the Highway Trust Fund is requested in FY18 and $4.2 million in FY97.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* New DMV Service Centers in Douglas and Sarpy Counties Gen 0 0 (Prog 70 Motor vehicle admin) Cash funds are provided to Cash 747,901 1,164,016 DMV to develop full service centers in Douglas and Sarpy Fed 0 0 counties. The funds were not requested in the budget request Rev 0 0 because the department was in the process of obtaining accurate data and exploring opportunities to work with other government agencies. The new service centers address customer service concerns with current wait times in the county driver license examining offices. Several factors have contributed to an increased workload in these areas. A larger percentage of applicants are being processed in metropolitan area offices and new protocols for CDL testing are increasing the time to administer tests. Fourteen FTE will be hired by DMV to assume aspects of the driver licensing process currently peformed by the counties. Customers will be able to complete applications electronically and an appointment system will be implemented to better manage work flow. DMV will have increased cash fund revenue from a share of the fee that would have gone to the counties. Increased revenue of $165,127 in FY18 and $440,338 in FY19 is anticipated.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Ignition Interlock Aid (Prog 70 Motor vehicle admin) The Gen 0 0 Ignition Interlock Fund is used to pay the cost of installing, Cash 6,000 8,000 removing or maintaining an ignition interlock device for an Fed 0 0 indigent person. The source of funding for the Ignition Rev 0 0 Interlock Fund is $40 of the $45 fee for an ignition interlock permit. Expenditures for aid payments have increased from $32,603 in FY13 to $39,596 in FY16. The increase in the amount of aid distributed is attributable to increased costs charged by the providers of interlock services and the length of time individuals are keeping the devices. The aid payments include installation and removal of the devices and monthly monitoring charges. The recommendation should provide the level of support needed to pay all of the indigent claims.

Agency 25 Dept of Health & Human Services ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19


State Aid General 1,373,437,632 1,339,826,529 1,356,379,737 1,373,258,578 1,376,325,704 Cash 122,172,130 122,170,130 122,170,130 122,421,630 122,421,630 Federal 1,533,309,805 1,438,619,972 1,470,838,513 1,459,511,919 1,507,470,131 Revolving 0 0 0 0 0 Subtotal-Aid 3,028,919,567 2,900,616,631 2,949,388,380 2,955,192,127 3,006,217,465

Agency Total General 1,635,578,047 1,604,083,299 1,625,769,198 1,635,240,358 1,642,972,310 Cash 180,443,564 182,054,063 182,193,108 182,101,928 182,252,539 Federal 1,880,317,348 1,811,934,895 1,832,656,965 1,832,230,371 1,868,421,087 Revolving 0 0 0 0 0 Agency Total 3,696,338,959 3,598,072,257 3,640,619,271 3,649,572,657 3,693,645,936

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 1,578,842 2,768,568 Cash 198,498 348,724 Fed 1,203,474 2,118,019 Rev 0 0

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 1,626,067 3,345,536 Cash 173,460 356,876 Fed 1,121,441 2,307,240 Rev 0 0

* Remove Medicaid Eligibilty from NFOCUS (Prog 33 Gen 1,916,448 1,916,448 Administration) Medicaid is implementing a new eligibility Cash 0 0 system and will no longer be part of NFOCUS. NFOCUS is the Fed 1,525,520 1,525,510 eligibility system that has been used by Medicaid and Rev 0 0 economic assistance programs. The Affordable Care Act changed the manner in which Medicaid eligibility is determined for non-elderly and non-disabled adults and children. Removing Medicaid from NFOCUS increases the general fund cost of NFOCUS. Medicaid contributed 48% of the operating and maintenance costs.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Asset Verification System (AVS) (Prog 33 Administration) Gen 175,844 37,125 Federal law requires states to implement an asset verification Cash 0 0 system (AVS) for determining Medicaid eligibility for the Fed 1,582,594 334,125 elderly, blind and disabled population. The system was to be Rev 0 0 in place in 2013, but Nebraska sought a delay. A new eligibility system is being implemented and will go live in 2017. The plan is to have the AVS implemented at the same time as the eligibility system minimize the impact on workers and clients changing to new systems.The federal requirement only applies to Medicaid but other programs such as Aid to Dependent Children, child care and Supplemental Nutrition Assistance Program (SNAP) will also benefit. There is an indication that the state will financially benefit from the new system by having the ability to more accurately determine eligibility and electronically locate and verify assets.

* Economic Assistance (EA) Eligibility System (Prog 33 Gen 3,900,000 5,900,000 Administration) A new eligibility system utilizing the same Cash 0 0 platform as the Medicaid eligibility system is funded. The Fed 22,100,000 10,100,000 MMIS system development receives 90/10 federal funding. Rev 0 0 Implementing a new economic assistance eligibility system will allow the state to receive the same federal match for some parts of the EA system; bringing the overall match to 85/15 if done before December 18, 2018. Otherwise the federal match rate would be 50/50; a difference of $14 million in general funds. The new economic assistance system will allow information to be shared by both economic assistance and Medicaid. Examples of the information used by both systems are household composition, residency, citizenship, income and expense. Eligibility will be determined on a real-time basis when rules allow for it. Less case manager involvement will also be needed.

* Financial Auditor (Prog 33 Administration) Centers for Gen 220,000 290,000 Medicare & Medicaid Services (CMS) is requiring states to Cash 0 0 audit the Managed Care Organizations' (MCOs) financials and Fed 220,000 290,000 encounters. The contractor would be responsible for audits to Rev 0 0 review financial health, financial operations, cash flow, changes in capital, administrative costs, sub-contract operations, coordination of benefits, third party resources, claims processes, and encounter validation. Medicaid aid funding was reduced to cover the General Fund cost. The net impact is zero.

* Increase in Federal Medical Assistance Percentage (FMAP) Gen -113,957 -146,719 (Prog 33 Administration) The Federal Medical Assistance Cash 0 0 Program (FMAP) is increasing to 52.55% in FFY 18, up from Fed 0 0 51.85% in FFY 17 in the Medicaid Program and 89.79% from Rev 0 0 89.3% in the Children’s Health Insurance Program (CHIP).

* Office supply reduction (Prog 33 Administration) Gen -18,600 -18,600 Cash 0 0 Fed 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Strategic staffing savings (Prog 33 Administration) With the Gen -23,428 -23,428 implementation of Heritage Health on January 1, 2017; the Cash 0 0 dental benefits manager on July 1, 2017 and the eventual Fed -988,287 -988,287 transition to a claims broker service model through the MMIS Rev 0 0 replacement initiative, there is a shift in roles and the need for fewer state staff. The reallocation of positions would support contract management, project management, data and analytics and financial oversight. Reductions would be in claims such as payment reviewers and eventually eligibility field staff as the Eligibility and Enrollment System is implemented. Fifty-one positions are eliminated with 24 positions added for a net reduction of 27 positions.

* Software license reductions (Prog 33 Administration) This Gen -279,120 -279,120 would eliminate unused licenses and duplicates. Cash 0 0 Fed -11,400 -11,400 Rev 0 0

* Shift lab testing to federal funds (Prog 33 Administration) Gen -38,890 -38,890 This would shift some lab testing to a current federal grant. Cash 0 0 Activities currently funded by the grant would be eliminated. Fed 38,890 38,890 Rev 0 0

* Shift environmental health administration to other funds (Prog Gen -17,985 -17,985 33 Administration) Shift Environmental Health administration Cash 17,985 17,985 costs from general funds to the Radiation Cash Fund and the Fed 0 0 Laboratory Cash Fund. Rev 0 0

* Shift Chronic Renal Disease administration to other fund Gen -3,154 -3,154 source (Prog 33 Administration) Cash 0 0 Fed 0 0 Rev 0 0

* Scanning converted on Onbase (Prog 33 Administration) Gen -37,220 -37,220 Cash 0 0 Fed -132,778 -132,778 Rev 0 0

* Restrict travel (Prog 33 Administration) Gen -3,237 -3,267 Cash 0 0 Fed -2,306 -2,306 Rev 0 0

* Reduce elemental formula administration (Prog 33 Gen -1,000 -1,000 Administration) This aligns the amount budgeted for Cash 0 0 administration with the cost of time/effort to administer the Fed 0 0 Elemental Formula Program. Rev 0 0

* Deferred building maintenance (Prog 33 Administration) Gen -9,306 -9,306 Preventive maintenance will be reduced. Cash 0 0 Fed -93,967 -93,967 Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduce ACCESSNebraska by 5.5 FTE (Prog 33 Administration) Gen -175,000 -175,000 ACCESSNebraska would look for operational efficiencies in Cash 0 0 the following areas: eligibility determination realignment, local Fed -141,460 -141,460 office in-person support, and service delivery management. Rev 0 0 Medicaid and economic assistance have opportunities to combine Non-MAGI Medicaid eligibility determinations with Aid to the Aged, Blind and Disabled; Title XX Social Services for Aged and Disabled; personal assistance and the Aged and Disabled waiver. The ability to combine service delivery will lead to a reduction in the amount of people required to perform the work both in the ACCESS call centers and local offices.

* Career Link contract reduction (Prog 33 Administration) This Gen -1,000 -1,000 is a reduction in the contract for Career Link. Career Link is a Cash 0 0 job posting website. Fed 0 0 Rev 0 0

* Reduce Costing Solutions contract (Prog 33 Administration) Gen -70,193 -70,193 The consulting firm was engaged to assist the department Cash 0 0 with coming into compliance with both content and back filings Fed -219,507 -219,507 of the Public Assistance Cost Allocation Plan (PACAP) and the Rev 0 0 Nebraska Cost Allocation Plan (NCAP) quarterly compilation. These reports are now current and the necessary knowledge and skills have been transferred from the consultants to state staff.

* Close Lincoln document imaging center (Prog 33 Gen -129,348 -344,929 Administration) The Lincoln ACCESSNebraska Document Cash 0 0 Imaging (ANDI) Center will close and operations will be Fed -257,691 -687,175 consolidated in Omaha. Process improvements such as email Rev 0 0 and text have decreased the amount of mail to process.

* Eliminate Community Support Specialists (Prog 33 Gen -80,563 -80,563 Administration) The specialists perform outreach functions Cash 0 0 (for example, educating the public about eligibility and Fed -80,563 -80,563 program changes). Central office staff will handle these Rev 0 0 functions.

* Eliminate local office landlines (Prog 33 Administration) For Gen -50,000 -50,000 those Children and Family Services (CFS) staff who have both Cash 0 0 a landline and a cell phone, the landline will be eliminated. Fed 0 0 The cost for each landline is approximately $20.45 per month, Rev 0 0 or $245.40 annually. There are approximately 194 staff whose landlines would be disconnected. Additional savings are realized by ending long distance phone calls from land lines at approximately $.06 per minute.

* Eliminate the Survey Monkey contract (Prog 33 Administration) Gen -400 -400 The use of the Survey Monkey would be eliminated. The Cash 0 0 Survey Monkey allows for an efficient way to schedule Fed 0 0 meeting with large numbers of people. Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Eliminate use of Specialized Office Services (Prog 33 Gen -200 -200 Administration) This modification would mean the department Cash 0 0 would limit flexibility around temporary staffing needs. Fed 0 0

* End New Worker Training Contract (Prog 33 Administration) Gen -300,000 -500,000 "The department would end our contract in the amount of Cash 0 0 $2,900,000 ($960,000 general fund) with the University of Fed -1,200,000 -1,476,827 Nebraska – Center for Children, Families, and the Law (CCFL) Rev 0 0 CCFL provides new worker training to child welfare workers. The department would assume this responsibility internally with additional staff. Net full year savings in FY 20108-19 are $500,000. The first year is a partial year savings. The department will add one program coordinator, two program accuracy specialists and 14 training specialists.

* Nebraska DD Council (Prog 33 Administration) The unused Gen -2,402 -2,402 General Fund allocation for the Nebraska Developmental Cash 0 0 Disabilities Planning Council functions is reduced. The amount Fed 0 0 of General Funds used has been lower than the amount Rev 0 0 budgeted, therefore the reduction will have no impact on operations.

* Change State Board of Health funding to the Professional and Gen -104,054 -104,054 Occupational Credentialing Cash Fund (Prog 33 Cash 104,054 104,054 Administration) The State Board of Health reviews and Fed 0 0 approves regulations for professions and occupations under Rev 0 0 the Nebraska Regulation of Health Professions Act. A portion of the work done by the State Board is shifted to this fund source.

* Transfer 29 FTE from BSDC to Program 33 to reflect the Gen 1,356,851 1,371,539 scope of their work to support all persons with developmental Cash 0 0 disabilities (Prog 33 Administration) Fed 1,356,851 1,371,539 Rev 0 0

* Adopt the Governor's recommendation to reduce contracts for Gen 740,560 740,560 50% of relative and kinship foster care and shift to Cash 0 0 responsibility to state caseworkers. (Prog 33 Administration) Fed 0 0 This will decrease by 50% referrals to child placing agencies Rev 0 0 to provide support to new relative and kinship foster homes. State staff will assume the responsibilities for supporting the children placed in these homes. Developing and maintaining a close relationship with relative and kinship foster homes through ongoing support improves placement stability for foster children. Sixteen resource development staff are added. Program 354 is decreased by $4,516,875 GF each year for a net savings of $3,776,315 each year.

* Transfer funds from BSDC to Program 33 to rebase rates for Gen 750,000 750,000 developmental disability providers and redesign the Objective Cash 0 0 Assessment Process (Prog 33 Administration) Fed 0 0 Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* OCIO IT Consolidation (Prog 33 Administration) Gen -588,200 -588,200 Cash 0 0 Fed 0 0

* Statewide Radio Device Fee (Prog 33 Administration) Gen 0 0 Cash 0 -1,256 Fed 0 0

* Reduce funding for the Behavioral Health Division and Gen -174,946 -175,212 marketing of the Children's Hotline (Prog 33 Administration) A Cash 0 0 .38 FTE is eliminated in the Division of Behavioral Health for a Fed 0 0 savings of $13,946. An additional $161,000 is reduced which Rev 0 0 is used for contracts for marketing the Children's Hotline. The Hotline, provided by a contract with Father Flanagan's Home for Boys, is a single point of access of children's behavioral health and provides screenings, assessments and referrals to existing services. The marketing budget to promote awareness of the Hotline is reduced by 28%.

* Transfer 12.0 FTE from BSDC to Program 33 due to closure of Gen 308,905 308,905 the Bridges Program (Prog 33 Administration) Cash 0 0 Fed 350,400 350,400 Rev 0 0

* Increase funding for colon cancer administration from reduced Gen 20,000 20,000 aid funding. (Prog 33 Administration) Additional Cash 0 0 administrative funding is provided to increase the return rate Fed 0 0 of the sceening kits. The same amount was reduced from aid. Rev 0 0 The net impact is zero.

* DAS Assessments (Prog 178 Examining Boards) Gen 0 0 Cash 8,267 8,409 Fed 0 0 Rev 0 0

* Additional Youth Rehabilitation and Treatment Centers (YRTC) Gen 1,412,624 1,446,528 staffing (Prog 250 Juvenile Services) The Prison Rape Cash 0 0 Elimination Act (PREA) requires minimum staffing levels for Fed 0 0 juvenile facilities by October 1, 2017. The staffing ratios are Rev 0 0 1:8 during waking hours and 1:16 during sleeping hours. The Youth Rehabilitation and Treatment Centers at Kearney and Geneva require additional staff to be compliant. The Office of Juvenile Services (OJS) has conducted a thorough review of the YRTCs operations. These reviews highlighted areas in need of improvement to assure the safety of the youth and staff. Geneva needs four staff and Kearney 27 to be compliant.

* Inflationary increases for postage, food, drugs, medical and Gen 3,860 3,860 clinical services and medical supplies for the institutional Cash 0 0 facilities (Prog 250 Juvenile Services) Operating costs unique Fed 0 0 to institutions are funded. Rev 0 0

* Intent language for funds to follow clients from insitutions to Gen 0 0 community-based programs (Prog 348 Medicaid) Cash 0 0 Fed 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Automated medication dispensing cart – Lincoln Regional Gen 0 0 Center (Prog 365 Regional Centers) An automated medication Cash 100,000 100,000 dispensing cabinet (ADC) system is funded at the LRC to Fed 0 0 support decentralized medication management with various Rev 0 0 features for safety and efficiency. The leased system allows for no-cost upgrades and lower per-year costs, while allowing LRC to avoid expensive support software in the future for outdated technology. ADC’s support medication management standards and the new state law requiring pharmacist review of all new orders prior to administration. Without ADC’s, the LRC will need to increase the number of pharmacists to comply with the new state law. Savings will also occur because medication errors will be prevented.

* Exterior cameras – Lincoln Regional Center (Prog 365 Gen 0 0 Regional Centers) The number of cameras on the LRC Cash 200,000 6,000 campus are replaced and expanded in FY18. The funds cover Fed 0 0 twelve exterior cameras, including poles, conduits, electrical Rev 0 0 wiring, servers, workstation upgrades, licenses and necessary connections to the existing closed-circuit surveillance system. The FY19 recommendation is for on-going funds for maintenance and service fees. The LRC campus is open to the public and safety and security risks are present and can impact patients, visitors and staff. In the past year, there have been a number of incidents reported to law enforcement such as car break-ins, thefts, and unknown persons on campus with weapons, etc. The cameras will be of assistance when investigations are conducted and will help ensure the security and safety of individuals on campus. The LRC is required by its accrediting entity to manage safety and security risks.

* Inflationary increases for postage, food, drugs, medical and Gen 59,252 119,818 clinical services and medical supplies for the institutional Cash 0 0 facilities (Prog 365 Regional Centers) Requests for all of Fed 0 0 these items have been considered to be unique operating Rev 0 0 costs for institutional facilities in the past.

* Reduce 2.0 FTE at the Lincoln Regional Center (Prog 365 Gen -111,473 -111,473 Regional Centers) A training specialist and facility Cash 0 0 maintenance position are eliminated at the LRC. Both positions Fed 0 0 are ancillary and do not work directly with patients. A Rev 0 0 contract for community-based sex offender treatment for individuals who have not been treated through the regional center programs would also be reduced by $40,000. This would mean that six sex offenders would no longer be served by the contract.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduce FTE at the Hastings Regional Center (Prog 365 Gen -118,406 -118,406 Regional Centers) Eight positions are eliminated at the HRC Cash 0 0 Adolescent Substance Abuse Program. Two position Fed 0 0 reductions will be achieved by combining the duties of four Rev 0 0 positions into two. The remaining positions, which are for the most part ancillary, would be eliminated completely. This will increase the time to respond to facility repairs and maintenance requests and mean longer timeframes to complete required paperwork for third party billings.

* Merge Norfolk Sex Offender Treatment Program 870 into Gen 15,756,655 16,270,464 Mental Health Operations Program 365 (Prog 365 Regional Cash 172,914 172,914 Centers) Fed 0 0 Rev 0 0

* Decreases for postage, food, drugs, medical and clinical Gen -1,987 -3,977 services and medical supplies for the institutional facilities Cash 0 0 (Prog 421 Beatrice Develop Cntr (BSDC)) Requests for all of Fed -2,162 -4,327 these items have been considered to be unique operating Rev 0 0 costs for institutional facilities in the past.

* Increase in Federal Medical Assistance Percentage (FMAP) Gen -306,772 -383,465 (Prog 421 Beatrice Develop Cntr (BSDC)) The Federal Medical Cash 0 0 Assistance Program (FMAP) is increasing to 52.55% in FFY Fed 0 0 18, up from 51.85% in FFY 17 in the Medicaid Program and Rev 0 0 89.79% from 89.3% in the Children’s Health Insurance Program (CHIP).

* Discontinue contract for day services at BSDC (Prog 421 Gen -175,000 -175,000 Beatrice Develop Cntr (BSDC)) The agency has a contract to Cash 0 0 provide day services to some of the patients who live at BSDC. Fed -175,000 -175,000 The contract is with Integrated Life Choices to provide Rev 0 0 vocational services off-site. The facility also has staff on-site who provide vocational day services to clients. The recommendation will mean existing staff at BSDC will have their workload expanded to provide day services to approximately 35 individuals who currently receive support through the contract.

* Discontinue contracts for support at BSDC (Prog 421 Beatrice Gen -568,196 -568,196 Develop Cntr (BSDC)) HHS indicates that several contracts for Cash 0 0 program support for medical services, education and Fed -539,857 -539,857 consulting and other activities that expire in FY16 or FY17 will Rev 0 0 not be renewed in the next biennium. The agency believes that BSDC has the capacity to provide the services with existing staff, by realigning programs, or via contracts with different entities without impacting services for patients.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Decrease appropriation base for BSDC (Prog 421 Beatrice Gen -2,927,063 -2,927,063 Develop Cntr (BSDC)) HHS indicates the general fund base for Cash 0 0 BSDC can be reduced by this amount. The agency states that Fed 0 0 services for clients will not be impacted by the budget base Rev 0 0 reduction. Since oversight by the Department of Justice has ended, a lower funding level is adequate for the facility.

* Transfer 12.0 FTE from BSDC to Program 33 due to closure of Gen -308,905 -308,905 the Bridges Program (Prog 421 Beatrice Develop Cntr (BSDC)) Cash 0 0 Staff will be repurposed to support quality management Fed -350,400 -350,400 initiatives for community-based developmental disability Rev 0 0 programs.

* Transfer 29 FTE from BSDC to Program 33 (Prog 421 Beatrice Gen -1,356,851 -1,371,539 Develop Cntr (BSDC)) The recommendation reflects the Cash 0 0 transfer of positions from BSDC to the administration program Fed -1,356,851 -1,371,539 33 to better reflect the scope of their work to support all Rev 0 0 individuals with developmental disabilities. The positions provide expertise across the Division of DD, both at BSDC and in community-based programs. Included are 29 FTE and one contracted position consisting of a behavior support team, quality and data analytics team, licensure compliance, a training team and information systems support. The transfers will allow full compliance with the Medicaid Home and Community-Based Services DD Waiver application.

* Transfer funds from BSDC to Program 33 to rebase rates for Gen -750,000 -750,000 developmental disability providers and redesign the Objective Cash 0 0 Assessment Process (Prog 421 Beatrice Develop Cntr (BSDC)) Fed 0 0

* Transfer funds to developmental disability aid to serve six Gen -2,037,139 -2,037,139 Bridges residents and clients on the waiting list (Prog 421 Cash 0 0 Beatrice Develop Cntr (BSDC)) (See explanation in aid section) Fed 0 0

* Reduce base for BSDC to reflect rightsizing of the facility (Prog Gen -1,600,000 -1,600,000 421 Beatrice Develop Cntr (BSDC)) HHS recently did an Cash 0 0 evaluation of each area at BSDC to understand systems, Fed 0 0 needs and requirements, including a review of federal and Rev 0 0 state requirements, licensing requirements and policies and procedures. It was determined there were similar positions doing similar tasks. In February of 2017, HHS announced a decision to rightsize the facility based upon the evaluation. Unnecessary vacant positions were eliminated and 37 filled positions are being reduced. The positions are in multiple areas and levels but do not include front-line employees. The reduction in funds reflects the savings pursuant to rightsizing the facility.

* Inflationary increases for postage, food, drugs, medical and Gen 18,500 36,948 clinical services and medical supplies for the institutional Cash 11,596 23,278 facilities (Prog 519 Veterans Homes) Requests for all of these Fed 16,650 33,378 items have been considered to be unique operating costs for Rev 0 0 institutional facilities in the past.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduce base to reflect savings from medication dispensing Gen -601,258 -601,258 machines (Prog 519 Veterans Homes) The Legislature Cash 0 0 earmarked $1.4 million as a reappropriation in the current Fed 0 0 biennium for the veterans’ homes to purchase automated Rev 0 0 medication dispensing carts. HHS is currently in the process of purchasing the machines. Upon purchase, the agency will terminate contracts with a private pharmacy that repackages medications at the Norfolk and Eastern Nebraska Veterans' Homes and will terminate contracts for pharmacy services that are provided at the Grand Island and Western Nebraska Veterans' Homes.

* Shift funding for costs related to the new veterans home in Gen -494,800 -494,800 Kearney from general to cash funds (Prog 519 Veterans Cash 494,800 494,800 Homes) The recommendation shifts funding for Fed 0 0 transportation, staff recruiting and Certified Nursing Assistant Rev 0 0 classes from general funds to cash funds. The agency indicates there are funds included in the proposal from the City of Kearney that can be used for these types of services in the next two years. The authority to spend cash funds needs to be increased to access the available funds.

* Shift funding for contractual support staff from general to Gen -1,601,139 -1,601,139 federal funds (Prog 519 Veterans Homes) The Cash 0 0 recommendation shifts funding for temporary contract staff Fed 1,601,139 1,601,139 from general to federal funds at the Grand Island Veterans Rev 0 0 Home. The facility is currently having some difficulty recruiting and retaining staff due to the movement of the facility from Grand Island to Kearney. The new facility is projected to be completed in late 2018 or early 2019.

* Intent language to require the maintainance the veterans Gen 0 0 portion of the Network of Care (Prog 519 Veterans Homes) Cash 0 0 Intent language is included to provide general funds in the Fed 0 0 amount of $85,500 each fiscal year to maintain the Network of Rev 0 0 Care for veterans.

* Automated medication dispensing cart – Norfolk Sex Offender Gen 0 0 Treatment Program (Prog 870 Norfolk Sex Offender) An Cash 100,000 100,000 automated medication dispensing cabinet (ADC) system is Fed 0 0 funded at the NSO that supports decentralized medication Rev 0 0 management with various features for safety and efficiency. The leased system allows for no-cost upgrades and lower per-year costs, while allowing NSO to avoid expensive support software in the future for outdated technology. ADC’s support medication management standards and the new state law requiring pharmacist review of all new orders prior to administration. With the ADC’s, the NSO can assign pharmacy technicians to roles where they have more impact on patient care. Savings will also occur because medication errors will be prevented.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Open 5th Unit at Norfolk Sex Offender Treatment Program Gen 683,638 1,022,261 (NSOP) (Prog 870 Norfolk Sex Offender) Funds are provided Cash 0 0 to open a fifth unit for patient care at the NSOP. The Fed 0 0 Legislature authorized the use of a reappropriation of up to Rev 0 0 $800,000 of general funds in the current biennium to increase medical staff at the facility to provide additional patient care. HHS indicates beds were not opened with the reappropriated funds because there was no indication of continued funding. None of the funds were expended for this purpose. The only committed funding at this time is for some dressers. DAS has agreed to pay for facility upgrades (window screens, sinks, etc.) that are needed.The program is currently staffed to serve 95 patients. Census ranges from 85 to 90 on any given day. A process is currently being undertaken to help address capacity problems at the Lincoln Regional Center (LRC) through the transfer of 10 individuals back to Norfolk to a new Transitions Program which is designed to meet their specialized needs. This change will likely mean the NSOP will be at full capacity. Individuals are committed to the NSOP from the correctional system for Phase I sex offender treatment. Phases II and III are provided at the LRC. It is anticipated that a fifth unit will be needed in FY18 to achieve the capacity required for the number of individuals that will be committed. The recommendation will fund 11.0 FTE and related operating expenses.

* Inflationary increases for postage, food, drugs, medical and Gen 8,676 15,992 clinical services and medical supplies for the institutional Cash 0 0 facilities (Prog 870 Norfolk Sex Offender) Requests for all of Fed 0 0 these items have been considered to be unique operating Rev 0 0 costs for institutional facilities in the past.

* Merge the Norfolk Sex Offender Treatment Program into the Gen -15,756,655 -16,270,464 regional center program 365 (Prog 870 Norfolk Sex Offender) Cash -172,914 -172,914 Fed 0 0 Rev 0 0

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduce funding for Mental Health First educational activities Gen -10,000 -10,000 (Prog 38 Behavioral Health) Funding for Mental Health First Cash 0 0 educational activities is reduced by 10%. The Legislature Fed 0 0 established the program in 2014 to provide courses to help Rev 0 0 the public identify, understand and respond to signs of mental health or substance abuse disorders before appropriate professional assistance or other supports as secured. The availability of the courses is required by current law. Courses are provided for agencies and organizations, including schools, universities, law enforcement, local health departments and other entities. The contracts to the six behavioral health regions to provide the services will be reduced which will impact the availability of courses statewide.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduce Office of Consumer Affairs (Prog 38 Behavioral Health) Gen -30,905 -30,905 Contracts for recovery based activities by the Office of Cash 0 0 Consumer Affairs are reduced. This decreases access to peer- Fed 0 0 led wellness and recovery supports. The impact may include Rev 0 0 things such as increases in illnesses or hospitalizations for individuals who do not get access to these tools, trainings, and events. The activities are created or run by peer oriented groups such as the National Alliance on Mental Illness or League of Human Dignity.

* Reduce Family Navigator contracts (Prog 38 Behavioral Health) Gen -93,582 -93,582 The recommendation reduces contracts with providers of Cash 0 0 family navigation services by about 10%. The Family Navigator Fed 0 0 Program was created in 2010 to respond to children’s Rev 0 0 behavioral health needs. The program provides peer support connections to existing behavioral health services to families, including the identification of community-based services. A reduction in funding means families may be unable to access navigation services or have an increased wait before assistance may be given. Approximately 33 families may be affected by this reduction.

* Reduce vouchers for behavioral health services through the Gen -52,408 -52,408 rural hotline (Prog 38 Behavioral Health) Vouchers provided Cash 0 0 to individuals seeking behavioral health services through the Fed 0 0 rural hotline coordinated by Interchurch Ministries of Nebraska Rev 0 0 will be reduced. Individuals experiencing crises in rural settings use the hotline to access, resources, information and referrals. If the initial screening indicates the caller may benefit from services and is unable to afford services, then a voucher is provided to access evaluative services. The person is connected with alternative services to assist with on-going treatment, if necessary. Funding is decreased by about 25% for this program. It is estimated that about 175 – 200 persons may be impacted by the reduction.

* Reduce training contracts for behavioral health services (Prog Gen -77,200 -77,200 38 Behavioral Health) The reduction represents a 25% Cash 0 0 decrease in training funds used by the Division of Behavioral Fed 0 0 Health to achieve strategic initiatives of increasing Rev 0 0 accessibility, improving quality, increasing effectiveness, and increasing cost efficiency of consumer services in the state.

* Reduce contracts with tribal providers of behavioral health Gen -150,801 -150,801 services (Prog 38 Behavioral Health) Funding for contracts for Cash 0 0 outpatient services with providers who serve the four Fed 0 0 federally recognized tribal nations in the state are reduced by Rev 0 0 about 12%. Approximately 80 to 100 individuals will not have access to outpatient treatment. This will impact the availability of mental health and substance abuse evaluations as well as on-going treatment to mitigate health risks to the individual and others.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduce awards to loan recipient applicants (Priority 11 of 55, Gen -78,000 -78,000 Prog. 175) (Prog 175 Med student assist) This reduces the Cash 0 0 amount of assistance for the Loan Repayment Program by Fed 0 0 10%. Physicians, nurse practitioners, physician assistants, Rev 0 0 dentists, psychologists, mental health practitioners, occupational therapists and pharmacists who practice in a medical shortage area are eligible for assistance in repayment of their medical student loans for every year up to three years that they practice in a shortage area.

* Utilization/Price increase (Prog 344) (Prog 344 Children's Gen 168,342 339,098 Health Insurance) The projected utilization increase is 1.5% Cash 0 0 based on historical utilization patterns. Drug prices are Fed 1,450,208 2,963,091 estimated to increase 4%. Rev 0 0

* Increase in Federal Medical Assistance Percentage (FMAP) Gen -444,796 -570,621 (Prog 344 Children's Health Insurance) The Federal Medical Cash 0 0 Assistance Program (FMAP) is increasing to 52.55% in FFY 18, Fed 444,796 570,621 up from 51.85% in FFY 17 in the Medicaid Program and Rev 0 0 89.79% from 89.3% in the Children’s Health Insurance Program (CHIP).

* Utilization increase (Prog. 348) (Prog 348 Medicaid) The Gen 17,029,722 34,427,687 following are the projected increases in utilization by eligibility Cash 0 0 category based on historical utilization patterns: Aged 1.5% Fed 23,776,211 48,418,527 Disabled 3.0% Adults 1% Children 1.5% Rev 0 0

* Adjust base to better reflect federal fund expenditure levels. Gen 0 0 (Prog 348 Medicaid) Cash 0 0 Fed -100,000,000 -100,000,000 Rev 0 0

* DD Custody Act (Prog 348 Medicaid) Federal matching funds Gen 0 0 are available for clients served through the Developmental Cash 0 0 Disability Custody Act. Fed 332,500 332,500 Rev 0 0

* Funds to serve individuals on the developmental disability Gen 0 0 waiting list (Prog 348 Medicaid) Federal matching funds are Cash 0 0 available for Medicaid eligilble clients. Fed 1,868,384 3,825,147 Rev 0 0

* Increase in Federal Medical Assistance Percentage (FMAP) Gen -12,716,384 -16,276,590 (Prog 348 Medicaid) The Federal Medical Assistance Program Cash 0 0 (FMAP) is increasing to 52.55% in FFY 18, up from 51.85% in Fed 15,389,137 19,706,254 FFY 17 in the Medicaid Program and 89.79% from 89.3% in Rev 0 0 the Children’s Health Insurance Program (CHIP).

* Higher preliminary FMAP for FY 2018-19 (Prog 348 Medicaid) Gen 0 -13,216,355 FFY19 FMAP calculations done by Federal Funds Information Cash 0 0 for States (FFIS) based on preliminary state personal income Fed 0 15,598,420 data shows the FMAP to increase 53.50% from 52.55% in Rev 0 0 FFY18.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Fiscal agent for home care (Prog 348 Medicaid) A fiscal Gen -819,185 -819,185 intermediary will be paid on a per-member, per-month basis Cash 0 0 for home and community based services. The fiscal agent will Fed -901,793 -901,793 use enhanced technology for submission of claims and Rev 0 0 timesheets and provide training on the provision of services. For clients who self-direct their services, the fiscal agent will pay the providers, manage withholding and handle the filing and payment of taxes. For those not self-directing their care, the intermediary will manage the providers including hiring and firing personnel, scheduling and supervision of the providers’ activities. Savings are based on studies.

* Reduce provider rates for certain services (Prog 348 Medicaid) Gen -12,404,494 -12,404,499 Provider rates for inpatient and outpatient hospital services, Cash 0 0 physicians and other providers such as case mangement are Fed -14,917,288 -14,918,288 reduced by 3%. All other provider rates are held flat. Rate Rev 0 0 reductions require Centers for Medicare and Medicaid Services (CMS) approval. CMS does not require states to pay specific rates, but rates must must ensure that its Medicaid payments are consistent with efficiency, economy and quality of care and sufficient to ensure access.

* Terminate the Telligen Contract (Prog 348 Medicaid) Telligen Gen -119,648 -119,648 provides prior authorization for certain services, utilization Cash 0 0 review of inpatient hospital stays, and other utilization review Fed -358,944 -358,944 activities for fee-for-service (FFS) clients. With Rev 0 0 implementation of Heritage Health on January 1, 2017, the number of fee-for-service clients dropped to 2,500. The medical director and nurses will handle the work for the remaining fee-for-service clients.

* Reduce aid to cover cost of financial auditor contract (Prog Gen -220,000 -290,000 348 Medicaid) Cash 0 0 Fed -220,000 -290,000 Rev 0 0

* Managed Care Savings on Avoidable Episodes of Care (Prog Gen -6,114,252 -6,114,252 348 Medicaid) The Medicaid Program is planning an array of Cash 0 0 strategies intended to reduce unnecessary costs through Fed -6,730,815 -6,730,815 efficiencies in the managed care program, Heritage Health. Rev 0 0 General Fund amounts shown are estimated savings from targeted efforts to reduce potentially preventable episodes of care, hospitalizations, and re-hospitalizations.

* Medicare Part B Premium Increase (Prog 348 Medicaid) The Gen 5,761,146 5,539,296 state Medicaid program is required by federal law to Cash 0 0 contribute to Medicare Part B premiums for certain enrollees. Fed 6,237,718 6,010,810 Medicare Part B premiums increased significantly in 2017. The Rev 0 0 increases are the annualize costs of the 2017 Medicare Part B premium increase.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Federal Clawback Increase (Prog 348 Medicaid) The amount Gen 4,399,059 8,228,279 the state is required to reimburse the federal government for Cash 0 0 Medicaid/Medicare Dual eligible prescription drug costs paid Fed 0 0 through Medicare Part D increased by 10.1 percent effective Rev 0 0 January 1, 2017. The increase was initially annualized. A notice from the Federal Funds Information Service (FFIS) showed a .4% decrease in Calendar Year 2018. The amount was adjusted based on the lower projected cost of these payments to the federal government commonly referred to as clawback payments.

* Increased Medicaid Drug Rebates (Prog 348 Medicaid) Gen -2,300,000 -2,300,000 System enhancements allow for General Fund and federal Cash 0 0 fund reductions by capturing additional drug rebates for Fed -2,500,000 -2,500,000 prescription drugs administered directly by physicians. This Rev 0 0 savings represents anticipated recurring annual increases in rebate collections, allowing for offset to General Fund appropriation requirements.

* Cap the maximum payment for adult dental servcies at $750. Gen -403,374 -403,374 (Prog 348 Medicaid) The currrent cap is $1,000. Medicaid Cash 0 0 program staff plan to develop a process to allow for Fed -444,051 -444,051 exceptions in certain limited circumstances such as a need for Rev 0 0 dentures.

* Reduce funding for rural health clinics (Prog 348 Medicaid) Gen -76,160 -76,160 This has been done to come into compliance with federal Cash 0 0 regulations. Fed -83,840 -83,840 Rev 0 0

* Restore half of hosptial base reduction (Prog 348 Medicaid) Gen 2,600,000 2,600,000 The Department of Health and Human Services implemented a Cash 0 0 new payment mechanism called the All-Patient Refined Fed 0 0 Diagnosis-Related Group in 2014. The change was intended to Rev 0 0 be cost neutral. After implementation it was discovered that overall rates were approximately 6% less. Twenty-seven hospitals paid under a Prospective Payment System (PPS) were impacted. Funding is provided to rebase the payments to the affected hospitals by 3%; half of the unintended reduction.

* Shift the Right Turn contract.to federal funds (Prog 354 Child Gen -2,068,529 -2,068,529 Welfare aid) General Fund support for the Right Turn post- Cash 0 0 adoption, post-guardianship program is shifted to Temporary Fed 1,600,000 1,600,000 Assistance for Needy Families (TANF) federal funding. Rev 0 0

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Adopt the Governor's recommendation to reduce contracts for Gen -4,516,875 -4,516,875 50% of relative and kinship foster care and shift to HHS. (Prog Cash 0 0 354 Child Welfare aid) This will decrease by 50% referrals to Fed 0 0 child placing agencies to provide support to new relative and Rev 0 0 kinship foster homes. State staff will assume the responsibilities for supporting the children placed in these homes. Developing and maintaining a close relationship with relative and kinship foster homes through ongoing support improves placement stability for foster children. Sixteen resource specialists will be added at a cost of $740,560 GF each year. The net savings is $3,776,315 each year.

* Nebraska Families Collaborative (NFC) Contract Increase Gen 11,500,000 11,500,000 (Prog 354 Child Welfare aid) The Eastern Service Area Cash 0 0 contract bid was awarded to NFC. The bid is $11.5 million Fed 0 0 higher than the amount in the base for the contract. Rev 0 0

* Provide funds to serve persons on the developmental disability Gen 1,697,234 3,474,752 waiting list (Prog 424 Develop Disability aid) The original Cash 0 0 recommendation for this amount of general funds was to Fed 0 0 serve students transitioning from high school special education Rev 0 0 programs to developmental disability services per an entitlement in state law. The state can no longer receive federal Medicaid funds for this clientele if they are prioritized over other individuals. LB 495 repeals the entitlement to services for transitioning students. The recommended funding was repurposed to serve individuals on the waiting list for developmental disability services.

* Provide funding for clients served through the DD Custody Act Gen 302,042 302,042 (Prog 424 Develop Disability aid) The Developmental Cash 0 0 Disabilities Court Order Custody Act was passed in 2005 and Fed 0 0 first used in 2009. The act provides procedures for district Rev 0 0 court-ordered custody and treatment for a person with developmental disabilities when the individual poses a threat of harm to others. HHS is required to evaluate an individual when a petition is filed by the Attorney General or county attorney and make recommendations for programming. If an individual is found to need court-ordered treatment, then HHS pays for the treatment costs. The initial treatment plan cannot be for greater than one year. The number of persons treated pursuant to the act is increasing each year. Ten persons were served in FY13; 11 in FY14; 13 in FY15; and, 16 in FY16. In December, 2016, there were 7 people waiting for evaluations. The number of individuals served through the act is growing to the extent that normal attrition from DD programs is not sufficient to handle the new population. The estimated total cost of services for persons served via the act in the current year is $3,249,848 ($1,570,327 GF). The general fund appropriation will be matched with $332,500 of federal Medicaid waiver funds each fiscal year.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Increase in Federal Medical Assistance Percentage (FMAP) Gen -2,252,024 -2,899,480 (Prog 424 Develop Disability aid) The Federal Medical Cash 0 0 Assistance Program (FMAP) is increasing to 52.55% in FFY 18, Fed 0 0 up from 51.85% in FFY 17 in the Medicaid Program and Rev 0 0 89.79% from 89.3% in the Children’s Health Insurance Program (CHIP).

* Transfer funds to developmental disability aid to serve six Gen 2,037,139 2,037,139 Bridges residents and clients on the waiting list (Prog 424 Cash 0 0 Develop Disability aid) Bridges, located in Hastings, is licensed Fed 0 0 as a community-based service which is operated by the state Rev 0 0 to serve about twelve persons with developmental disabilities in three four-bedroom homes located adjacent to the Hasting Regional Center. It has been determined that the program still functions similarly to an institution, so it will no longer be in compliance with the Home and Community-based Services Final Rule. HHS is closing the program at the end of the current fiscal year and transferring six residents to other developmental disability community-based providers. Approximately $1,637,139 of general funds will be expended to serve six current Bridges clients transferred from the state- operated program to community-based services. An additional $400,000 is estimated to be available for 12 to 52 clients on the waiting list. Federal Medicaid matching funds will also be available for services.

* Higher preliminary FFY19 FMAP (Prog 424 Develop Disability Gen 0 -2,226,640 aid) FFY19 FMAP calculations done by Federal Funds Cash 0 0 Information for States (FFIS) based on preliminary state Fed 0 0 personal income data shows the FMAP to increase 53.50% Rev 0 0 from 52.55% in FFY18.

* Base Reduction (Prog 514 Health aid) Most of the reductions Gen -705,121 -705,121 align the budget to expenditure history. Cash 0 0 Fed 0 0 Rev 0 0

* Reduce colon cancer screening by $20,000 and transfer to Gen -20,000 -20,000 administration of the program. (Prog 514 Health aid) Cash 0 0 Fed 0 0 Rev 0 0

Agency 27 Dept of Roads ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19




Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 0 0 Cash 1,173,755 2,065,808 Fed 0 0

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 0 0 Cash 1,337,910 2,752,605 Fed 0 0

* Increased communication and data processing payments to Gen 0 0 the OCIO. (Prog 0 Agency-wide) Cash 236,488 214,083 Fed 0 0

* Eliminate intent language requiring Roads to poll cities and Gen 0 0 counties to see if they want their distribution from the Cash 0 0 Highway Allocation Fund. (Prog 0 Agency-wide) Fed 0 0 Rev 0 0

* Base adjustment to reflect the current best estimate of Gen 0 0 expenditures in the current fiscal year (FY16-17). (Prog 569 Cash -18,500,000 -18,500,000 Construction) This requested base adjustment reflects lower Fed 0 0 than expected construction expenditures in the current fiscal Rev 0 0 year for Transportation Infrastructure Bank projects and updates expenditure estimates that are two years old.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Requested salary reduction to reflect current staffing levels. Gen 0 0 Due to increased retirements, turnover and continued vacant Cash -1,796,376 -1,796,376 positions, the department requests that the salary base be Fed 0 0 reduced by $1,796,376 to reflect current staffing levels. (Prog Rev 0 0 569 Construction)

* Adjustment to reflect anticipated expenditures from the Gen 0 0 Transportation Infrastructure Bank Fund. (Prog 569 Cash 11,000,000 26,000,000 Construction) Transportation Innovation Act (TIA) projects Fed 0 0 are financed from a $50,000,000 Cash Reserve Fund transfer Rev 0 0 and the additional fuel taxes flowing to the department from the incremental 1.5¢ increase each January 1st (LB610, 2015). The updated cash flow for TIA projects shows expenditures of $6,000,000 in FY16-17, $17,000,000 in FY17-18, and $32,000,000 in FY18-19.

* Adjustment to reflect anticipated expenditures from the State Gen 0 0 Highway Capital Improvement Fund. (Prog 569 Construction) Cash 4,585,000 4,585,000 These Build Nebraska Act (BNA) projects are financed by one- Fed 0 0 quarter of one percent of the general sales tax, from which Rev 0 0 the department receives 85% with the other 15% flowing to cities and counties. The updated cash flow for BNA projects shows expenditures of $75,415,000 in FY16-17, and $80,000,000 in FY17-18 and FY18-19.

* Adjustment to reflect anticipated expenditures for grade Gen 0 0 crossing, recreation road, and state aid bridge projects. The Cash 5,221,000 4,057,000 bulk of this increase is for projects that are financed by the Fed 0 0 Recreation Road Fund. (Prog 569 Construction) Rev 0 0

* Adjustment to reflect anticipated expenditures from the Roads Gen 0 0 Operations Cash Fund. (Prog 569 Construction) This Cash -26,685,363 -40,521,363 adjustment reduces the appropriation in this program to the Fed 0 0 department's best estimate of how expenditures will cash flow Rev 0 0 in the next biennium and reflects the fact that the additional fuel taxes from LB610 increases will be transferred to and spent from the Transportation Infrastructure Bank Fund instead of the Roads Operations Cash Fund.

* Reallocate to highway construction - unfunded capital Gen 0 0 construction. (Prog 569 Construction) The department's Cash 2,998,000 6,695,000 request for capital construction of $7,998,000 in FY18 and Fed 0 0 $6,695,000 in FY19 was funded at $5,000,000 in FY18. The Rev 0 0 remaining $9,693,000 was reallocated for additional highway construction.

* Reallocate to highway construction - statewide radio system Gen 0 0 cost savings. (Prog 569 Construction) Actual radio lease Cash 318,765 331,556 purchase and user fee costs are lower than the amount Fed 0 0 included in the department's budget request. The savings of Rev 0 0 $650,321 are reallocated for additional highway construction.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reallocate to highway construction - lower salary and health Gen 0 0 insurance costs. (Prog 569 Construction) Actual salary and Cash 2,168,109 4,756,335 health insurance increases are lower than the amount Fed 0 0 included in the department's budget request. The savings of Rev 0 0 $6,924,444 are reallocated for additional highway construction.

* Increased highway construction funding due to the increase in Gen 0 0 the Highway Cash Fund (HCF) appropriation. (Prog 569 Cash 12,900,000 12,600,000 Construction) The department's request and the Governor's Fed 0 0 budget recommendation was based on an estimated average Rev 0 0 fuel tax of 28.1 cents in FY18 and 29.6 cents in FY19 using revenue projections available at that time, and reflects the incremental 1.5 cent increase due to LB610 (2015). More recent revenue projections require the HCF appropriation to be increased in order to maintain the requested 28.1 and 29.6 cent average fuel tax, which in turn increases the the amount of funding available for highway construction.

* Reduce the highway construction appropriation to reflect Gen 0 0 transfers from the Roads Operations Cash Fund to the General Cash -15,000,000 -15,000,000 Fund. The recommendation includes the transfer of Fed 0 0 $15,000,000 each year from the Roads Operations Cash Fund Rev 0 0 to the General Fund. (Prog 569 Construction)

* Transfer of one position to the OCIO. (Prog 572 Gen 0 0 Services/support) The OCIO has identified employees in three Cash -87,682 -90,461 agencies (DHHS, Corrections and Roads) that predominately Fed 0 0 provide Network support in order to transition those Rev 0 0 employees to the OCIO. The goal is to centralize specific functions to improve talent utilization and reduce costs.

* Add 1,200 radios to the Statewide Radio System. This Gen 0 0 includes the lease purchase cost as well as the user fee paid Cash 1,449,428 1,757,998 to OCIO. (Prog 574 Highway maintenance) Fed 0 0 Rev 0 0

* Reduced statewide radio user fee per OCIO. (Prog 574 Gen 0 0 Highway maintenance) Cash 0 -331,556 Fed 0 0 Rev 0 0

* Increased equipment, building, and highway maintenance Gen 0 0 expenditures plus fuel cost increases. (Prog 574 Highway Cash 3,358,717 4,778,820 maintenance) Fed 0 0 Rev 0 0

Agency 28 Dept of Veterans Affairs ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Annualize two positions authorized by LB 754 (2016). (Prog 36 Gen 44,612 46,506 Dept administration) LB 754 created the Commission on Cash 0 0 Military and Veteran Affairs and the accompanying A-bill Fed 0 0 provided partial year funding (.75) in FY16-17 for two new Rev 0 0 staff. This request would annualize the funding for these new positions.

* Elimination of the Staff Assistant for the Commission on Gen -47,476 -47,476 Military and Veterans Affairs. (Prog 36 Dept administration) Cash 0 0 The adoption of this modification eliminates the Staff Assistant Fed 0 0 position that was included in LB754-A to support the Rev 0 0 Commission on Military and Veterans Affairs. The duties of this position will be absorbed by existing agency staff and the Commission’s Military Affairs Liaison position.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduce the health insurance base. (Prog 36 Dept Gen -30,000 -30,000 administration) The agency is over budgeted in health Cash 0 0 insurance because of replacement staff choosing less Fed 0 0 expensive coverage than previous employees and newly Rev 0 0 created positions having less expensive coverage than estimated. This adjustment reduces the base appropriation by $30,000.

* Reduce the base for one-time costs per the agency’s LB 754 Gen -13,500 -13,500 fiscal note. (Prog 36 Dept administration) The agency’s fiscal Cash 0 0 note prepared for LB 754 indicated that operating, travel, and Fed 0 0 capital outlay costs would decrease from a total of $28,000 in Rev 0 0 FY16-17 to $14,500 in FY17-18. The agency’s request neglected to reduce from their base budget the one-time costs associated with the Commission’s initial start-up that will not carry forward to the next biennium.

* Use of cash funds in-lieu of General Funds for cemetery Gen -250,000 -80,000 operations. (Prog 37 Vets Cemetery) The Nebraska Veteran Cash 250,000 80,000 Cemetery Operation Fund is used in this program to reduce Fed 0 0 the reliance on General Fund support of the veteran cemetery Rev 0 0 system. The dominate source of revenue is from the issuance of Military Honor plates and the fund also receives a burial allowance from the U.S. Department of Veterans Affairs.

* Transfer to the General Fund from the Veteran Cemetery Gen 0 0 Construction Fund: FY17-18 - $97,000 estimated. (Prog 37 Cash 0 0 Vets Cemetery) Fed 0 0 Rev 0 0

Agency 29 Dept of Natural Resources ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19


State Aid General 5,458,361 5,294,610 5,294,610 5,021,692 5,021,692 Cash 19,182,993 18,277,503 18,277,503 19,049,077 19,049,077 Federal 5,000 5,000 5,000 5,000 5,000 Revolving 0 0 0 0 0 Subtotal-Aid 24,646,354 23,577,113 23,577,113 24,075,769 24,075,769


Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Consolidation of operating costs under Program 334.. Gen 0 0 (Prog 313 Water Sustainability Fund) Prior to the Cash 0 0 establishment of the Water Sustainability Fund, all Fed 0 0 administrative costs for staffing and operations of state aid Rev 0 0 programs were consolidated under Program 334. The a-bill that established the Water Sustainability Fund placed operating costs in Program 313. The agency requested that the expenses be removed from Program 313 and reallocated to Program 334. This $134,967 cash fund reallocation was approved by the Appropriations Committee. There is no net impact to the agency.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduction of research and data collection functions. (Prog 334 Gen -926,480 -926,480 Soil/water conservation) The Appropriations Committee Cash 0 0 recommendation reduces the agency’s funding to procure Fed 0 0 contractual services and temporary staff to conduct research Rev 0 0 in support of initiatives planned and/or underway for the Integrated Water Management and Interstate Water Agreements functions. These services have been employed to supplement agency data collection and to obtain external review and confirmation in-house studies and conclusions related to interstate water compacts, decrees, and agreements.

* Defer planned equipment replacements and upgrades. (Prog Gen -200,000 -200,000 334 Soil/water conservation) The Appropriations Committee Cash 0 0 recommendation would result in postponement of planned Fed 0 0 streamgaging, information technology and other equipment Rev 0 0 replacements and upgrades.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduction of Soil and Water Conservation Fund state aid Gen -436,669 -436,669 (Priority 1 of 1, state aid, Prog. 304) (Prog 304 Water Cash 0 0 Conservation Fund) Funds appropriated to the Soil and Water Fed 0 0 Conservation Program are allocated to the natural resources Rev 0 0 districts (NRDs) annually to provide cost-share reimbursements to landowners to help offset costs incurred to implement soil and water conservation measures. The appropriations committee recommendation would reduce the program by 18.4% on an annual basis.

* Base Reduction (Prog 313 Water Sustainability Fund) A base Gen 0 0 reduction was made to the cash funding for the Water Cash -133,916 -133,916 Sustainability Fund. Fed 0 0 Rev 0 0

* Reauthorization of Environmental Trust Fund grant contained Gen 0 0 in LB 331 (Prog 334 Soil/water conservation) The Cash 0 0 Appropriations Committee approved Governor's Fed 0 0 recommendation contained in LB 331, regarding the Rev 0 0 reauthorization of a $3,300,000 grant from the Nebraska Environmental Trust. The Water Resources Cash Fund would provide the match to the NET grant, and no funding adjustment is needed.

Agency 30 State Electrical Board ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



Agency 31 Military Department ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 4,485,933 4,422,216 4,445,780 4,363,028 4,386,894 Cash 952,437 982,029 984,856 956,590 960,260 Federal 18,104,579 18,497,006 18,617,746 18,496,730 18,610,080 Revolving 0 0 0 0 0 Subtotal-Oper 23,542,949 23,901,251 24,048,382 23,816,348 23,957,234

State Aid General 858,775 608,775 608,775 608,775 608,775 Cash 0 250,000 250,000 250,000 250,000 Federal 6,070,604 6,070,604 6,070,604 6,070,604 6,070,604 Revolving 0 0 0 0 0 Subtotal-Aid 6,929,379 6,929,379 6,929,379 6,929,379 6,929,379

Agency Total General 5,344,708 5,030,991 5,054,555 4,971,803 4,995,669 Cash 952,437 1,232,029 1,234,856 1,206,590 1,210,260 Federal 24,175,183 24,567,610 24,688,350 24,567,334 24,680,684 Revolving 0 0 0 0 0 Agency Total 30,472,328 30,830,630 30,977,761 30,745,727 30,886,613

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Reduced radio device fee paid to OCIO to access the Gen 0 -11,933 statewide radio system. (Prog 0 Agency-wide) Cash 0 0 Fed 0 0 Rev 0 0

* New Air NG Environmental Analyst II. (Prog 544 Natl & State Gen 0 0 guard) This position would accommodate federal staffing Cash 0 0 requirements within the ANG Environmental Protection Fed 46,103 47,362 Cooperative Agreement. Failure to complete the NEPA reviews Rev 0 0 in a timely manner can delay projects and training, and lead to an increase in costs. This position will be funded 25% General Fund and 75% federal. The state share of $15,367 in FY17-18 and $15,706 in FY18-19 will be absorbed by the agency.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* New Army NG Environmental Analyst II. (Prog 544 Natl & State Gen 0 0 guard) This position would accommodate federal staffing Cash 0 0 requirements within the ARNG Environmental Protection Fed 61,470 63,149 Cooperative Agreement. Failure to complete the NEPA reviews Rev 0 0 in a timely manner can delay projects and training, and lead to an increase in costs. Funding is 100% federal.

* Three (3) new IT Support Technicians. (Prog 544 Natl & State Gen 0 0 guard) The Army Guard Distributed Learning Program (DLP) Cash 0 0 provides computer and network access in select locations to Fed 164,343 169,407 enable soldiers to complete computer-based training Rev 0 0 requirements. These three positions will carry out routine operations and maintenance of the fixed and mobile classrooms. Funding is 100% federal.

* Reduced state support of maintenance and repair of Army Gen -133,395 -133,395 National Guard facilities. (Prog 544 Natl & State guard) Cash 0 0 Fed 0 0 Rev 0 0

* Staff re-organization allows a position currently paid for with a Gen -26,851 -26,851 combination of General and federal funds to be shifted to Cash 0 0 100% non-General Fund sources. (Prog 545 Emergency Fed 0 0 Mgmt) Rev 0 0

* Eliminate duplicative intent language regarding a report on Gen 0 0 federal homeland security funding. The report will continue to Cash 0 0 be received pursuant to section 81-830. (Prog 545 Emergency Fed 0 0 Mgmt) Rev 0 0

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Governor's Emergency Program cash appropriation to offset Gen -250,000 -250,000 General Fund. Cash funds are available which can be utilized Cash 250,000 250,000 to replace General Funds in the next biennium. (Prog 192 Gov Fed 0 0 Emergency Fund) Rev 0 0

Agency 32 Educational Lands and Funds ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 335,359 300,026 343,833 382,516 347,738 Cash 15,947,069 18,766,216 20,916,181 18,774,100 20,845,339 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Oper 16,282,428 19,066,242 21,260,014 19,156,616 21,193,077

Agency Total General 335,359 300,026 343,833 382,516 347,738 Cash 15,947,069 18,766,216 20,916,181 18,774,100 20,845,339 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Agency Total 16,282,428 19,066,242 21,260,014 19,156,616 21,193,077

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Health insurance correction (Prog 529 Land surveyors) Gen 2,885 2,885 Cash 0 0 Fed 0 0 Rev 0 0

* Retirement of the State Surveyor (Prog 529 Land surveyors) Gen 39,286 0 Cash 0 0 Fed 0 0 Rev 0 0

* Pay property taxes on school trust lands (Prog 582 School land Gen 0 0 trust) Beginning in the 2001 tax year, BELF has been paying Cash 2,719,990 4,763,666 property taxes on school trust lands to be sure the land does Fed 0 0 not go into default. Taxes have increased an average of 10% Rev 0 0 annually in the last three years on the school trust lands. The recommendation reflects the estimated increases in FY18 and FY19.

* Retirement payout for a BELF employee (Prog 582 School land Gen 0 0 trust) Cash 39,030 0 Fed 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Increase for Noxious Weed Program (Prog 582 School land Gen 0 0 trust) The Noxious Weed Program controls the infestation of Cash 32,765 67,165 weeds on school lands as required by law for all landowners Fed 0 0 in the state. Weed control is necessary to control the spread Rev 0 0 of weeds, maintain available forage on pasture land and allow for the highest fair market rent to be charged. There are approximately 1.275 million acres of school trust land and expenditures for treatment vary year to year based upon external factors such as chemical costs and weather. Generally, there is an increase each year in application and chemical costs. The recommendation reflects a 4% increase in FY18 and FY19.

Agency 33 Game and Parks Commission ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19


State Aid General 42,011 40,751 40,751 42,011 42,011 Cash 21,186,000 23,161,000 23,161,000 21,661,000 21,661,000 Federal 125,000 125,000 125,000 125,000 125,000 Revolving 0 0 0 0 0 Subtotal-Aid 21,353,011 23,326,751 23,326,751 21,828,011 21,828,011


Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Transfer to General Fund: Game and Parks Commission Gen 0 0 Capital Maintenance Fund, FY17-18 $4,500,000 and FY18-19 Cash 0 0 $4,500,000. Extend the current sunset date for credit of boat Fed 0 0 and atv sales tax revenue to the maintenance fund by 3 Rev 0 0 years. (Prog 0 Agency-wide)

* Ferguson House maintenance. (Prog 162 Environmental Trust Gen 0 0 Fund) Planned improvement projects include the renovation Cash 10,000 10,000 of the back porch, painting, and window replacement. This Fed 0 0 request will cover those costs that are not covered by LB309 Rev 0 0 funding, and will be paid for using rental revenue generated from special events and tenants.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Increase the public relations budget. (Prog 162 Environmental Gen 0 0 Trust Fund) The Board plans to increase promotional efforts Cash 12,000 12,000 to help insure that citizens are aware of what the Fed 0 0 Environmental Trust has to offer, how projects benefit the Rev 0 0 state, how they are funded, and reinforce the idea that the Trust is an essential organization for the protection of our natural resources.

* Update the database and electronic application process. (Prog Gen 0 0 162 Environmental Trust Fund) The Board has begun a two to Cash 45,000 37,000 three year project of updating their database and on-line Fed 0 0 application process that was first developed in 1992. Initial Rev 0 0 estimates put the cost of this upgrade at more than $250,000, but by using students from the Raikes School of Science and Technology these planned upgrades to the database and application process will cost much less.

* Vehicle replacement. The estimated mileage at the time of Gen 0 0 replacement will be over 120,000. (Prog 162 Environmental Cash 0 38,000 Trust Fund) Fed 0 0 Rev 0 0

* Reduce the base budget to more closely align it with recent Gen 0 0 actual expenditures. (Prog 162 Environmental Trust Fund) Cash -41,000 -41,000 Actual expenditures for operations, travel, and capital outlay Fed 0 0 the last three fiscal years suggest that the base appropriation Rev 0 0 can be reduced without affecting the Board’s usual activities.

* Intensive habitat work on cool water streams and grasslands Gen 0 0 to provide for upland game/pheasant targeted land Cash 464,170 472,146 management in support of the Berggren Plan. (Prog 330 Fed 0 0 Habitat development) Rev 0 0

* Transfer the operating budget for the Wildcat Hills shooting Gen 0 0 complex from Program 336 to Program 549. This is a simple Cash -190,993 -190,993 transfer of authority from one program to another with no net Fed 0 0 change in authority. (Prog 336 Wildlife conservation) Rev 0 0

* New Conservation Officer at Lake McConaughy by funding Gen 0 0 training, equipment and operating costs. The current budget Cash 114,500 34,275 will fund salary and benefit costs. (Prog 336 Wildlife Fed 0 0 conservation) Rev 0 0

* Seasonal park worker wage increase. (Prog 549 Parks) With Gen 0 0 the new minimum wage at $9.00 per hour in the private Cash 406,695 406,695 sector, the Park Worker I and II starting wages of $7.591 and Fed 0 0 $9.011 are not competitive enough to attract employees, Rev 0 0 especially when considering the travel distance to most park areas. This funding would increase Park Worker I wages to the $9.00 per hour level, and Park Worker II wages to $9.66 per hour.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Transfer the operating budget for the Wildcat Hills shooting Gen 0 0 complex from Program 336 to Program 549. This is a simple Cash 190,993 190,993 transfer of authority from one program to another with no net Fed 0 0 change in authority. (Prog 549 Parks) Rev 0 0

* Use of cash funds in-lieu of General Funds to operate and Gen -168,521 -168,521 maintain the state park system. (Prog 549 Parks) Cash 168,521 168,521 Fed 0 0 Rev 0 0

* Initial staffing for the outdoor venture parks. (Prog 549 Parks) Gen 0 0 With the planned completion of the first phase of the project Cash 121,670 940,036 the agency is requesting the initial staffing. It is estimated that Fed 0 0 an additional 59 part-time and 4 full-time staff positions will Rev 0 0 be necessary to support the new features expected to be phased in and operational in the next biennium (toboggan run, zorbing, rock climbing, splash pad, playgrounds, campgrounds, etc.).

* Operational costs associated with recent and planned park Gen 0 0 improvements. (Prog 549 Parks) As the agency makes capital Cash 128,364 159,917 improvements to state park areas such as adding electrical Fed 0 0 hookups, shower/latrine facilities, and new water systems Rev 0 0 their related expenses for items such as electricity and temporary help increase.

* Transfer to the General Fund from the Nebraska Snowmobile Gen 0 0 Trail Cash Fund: FY17-18 - $79,121 (estimated). (Prog 550 Cash 0 0 Planning/trails) Fed 0 0 Rev 0 0

* Use of cash funds in-lieu of General Funds for construction Gen -192,435 -192,435 and maintenance activities on agency-owned infrastructure. Cash 192,435 192,435 (Prog 617 Engineering/ maintenance) Fed 0 0 Rev 0 0

* Reduced radio device fee paid to OCIO to access the Gen 0 -21,355 statewide radio system. (Prog 846 Commuication System) Cash 0 0 Fed 0 0 Rev 0 0

* Law enforcement radio replacement. (Prog 846 Commuication Gen 0 0 System) The current radios used by Conservation Officers Cash 210,000 210,000 have reached their useful lifespan and the manufacturer will Fed 0 0 no longer be making parts for or fixing these radios. The Rev 0 0 current radios do not allow officers to communicate with their portable hand held radio when away from their vehicle unless other users are on the same channel as the truck’s radio. The new radios would cure this problem and improve communication with other state and local law enforcement and emergency responders.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Open Fields and Waters-access payments to assist with Gen 0 0 Berggren Plan implementation. (Prog 330 Habitat Cash 150,000 150,000 development) Fed 0 0 Rev 0 0

* Natural Legacy Project focus on upland game species partially Gen 0 0 targeted to Berggren Plan implementation. (Prog 330 Habitat Cash 100,000 100,000 development) Fed 0 0 Rev 0 0

* Intensive habitat work on cool water streams and grasslands Gen 0 0 to provide for upland game/pheasant targeted land Cash 225,000 225,000 management in support of the Berggren Plan. (Prog 330 Fed 0 0 Habitat development) Rev 0 0

* Reappropriation of the unexpended June 30, 2017 cash fund Gen 0 0 appropriation to allow the Niobrara Council to spend the Cash 0 0 balance of money in their cash fund. (Prog 338 Niobrara Fed 0 0 Council) Rev 0 0

Agency 34 Nebraska Library Commission ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19


State Aid General 1,295,085 1,255,085 1,255,085 1,295,085 1,295,085 Cash 0 0 0 0 0 Federal 611,395 611,395 611,395 611,395 611,395 Revolving 0 0 0 0 0 Subtotal-Aid 1,906,480 1,866,480 1,866,480 1,906,480 1,906,480

Agency Total General 4,085,973 3,961,165 3,990,058 3,858,454 3,914,096 Cash 94,085 94,049 94,049 94,085 94,085 Federal 1,512,225 1,524,629 1,537,581 1,512,225 1,512,225 Revolving 0 0 0 0 0 Agency Total 5,692,283 5,579,843 5,621,688 5,464,764 5,520,406

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Office space lease expense. (Priorit 1 of 7) (Prog 252 Library Gen 22,990 46,893 services) The Library Commission occupies leased space in Cash 0 0 the Atrium Building at 13th and ‘N’ Streets in Lincoln. Fed 0 0 Committee recommendation includes funding adjustment for Rev 0 0 amounts requested to meet increases in lease expenses for each year of the biennium.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Eliminate 1 FTE Library Services Technician. (Priority 2 of 7) Gen -48,153 -49,632 (Prog 252 Library services) This Nebraska Library Cash 0 0 Commission (NLC) staff member assists with or completes Fed 0 0 research projects initiated by NLC patrons or other agency Rev 0 0 personnel, maintains statistics regarding use of NLC materials and recommends improvement of material availability, answers questions and offers assistance for NLC patrons, refers patrons to NLC staff librarians as necessary, and assists reference librarians in conducting computer and microfilm information searches. NLC indicates that elimination of this position would result in reduced services to public libraries and other NLC patrons.

* Eliminate 1 FTE Information Technology Infrastructure Gen -70,493 -72,574 Support Technician. (Priority 3 of 7) (Prog 252 Library Cash 0 0 services) This NLC staff member supports state public Fed 0 0 libraries by performing desktop computer support, cabling, Rev 0 0 hardware setup, software installation, configuration and updates as well as related research, procurement and training. NLC indicates that elimination of this position would create a gap in information technology support for public libraries in the state.

* Eliminate 1 FTE Information Services Librarian. (Priority 4 of Gen -60,747 -62,767 7) (Prog 252 Library services) The agency indicates that this Cash 0 0 position represents a full performance level professional Fed 0 0 librarian that requires technical skill and knowledge in the field Rev 0 0 of library and information science who coordinates planning, delivery and evaluation of services of a functional area of the agency and represents NLC with libraries, related agencies, organizations and boards. The agency indicates elimination of the position would significantly reduce services to public libraries and patrons.

* Eliminate 0.5 FTE Federal Aid Administrator. (Priority 5 of 7) Gen -33,625 -34,510 (Prog 252 Library services) This staff position is jointly funded Cash 0 0 with General and Federal Funds. The amount of the reduction Fed 0 0 noted represents that portion of the position supported with Rev 0 0 General Funds. The agency indicates the staff member coordinates allocations of federal funds available to local units of government, insures compliance with federal laws in use of those funds, and supervises records maintenance with respect to federal grant funds. NLC indicates that elimination of funds for the position would make it more difficult for the agency to complete federal grant applications and perform related maintenance of records.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Eliminate 1 FTE Research Analyst I. (Priority 6 of 7) (Prog 252 Gen -43,860 -45,070 Library services) This staff member compiles resource Cash 0 0 information and gathers, analyzes, evaluates, prepares Fed 0 0 summaries of, and interprets data relating to library services, Rev 0 0 programs and trends. Agency indicates that elimination of the position would negatively impact its ability to implement programs, report related outcomes, and utilize grant opportunities.

* Eliminate 1 FTE Administrative Secretary position. (Priority 7 Gen -38,502 -39,585 of 7) (Prog 252 Library services) This staff member provides Cash 0 0 secretarial and administrative support to agency personnel. Fed 0 0 Elimination of the position would require that related work Rev 0 0 responsibilities be assumed by other NLC staff.

Agency 35 Liquor Control Commission ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Reduce Conference Registration Expenditure (Priority 3 of 9, Gen -3,000 -3,000 Prog. 73) (Prog 73 Enforce/regulation) The Commissioners Cash 0 0 and the Executive Director attend national and regional Fed 0 0 conferences twice or more each year to stay informed on Rev 0 0 world-wide industry issues and developments. This budget item has some discretion as to how many conferences to attend each year, although non-attendance will decrease working knowledge of possible and real industry concerns. This modification would be a 50% cut to this expenditure line.

* Reduce Other Operating Costs Expenditure (Priority 6 of 9, Gen -8,773 -8,773 Prog. 73) (Prog 73 Enforce/regulation) This expenditure line Cash 0 0 carries funds needed for the general operations of the agency. Fed 0 0 The Commission would choose to cut here versus deeper Rev 0 0 cuts to FTE. This would be a 17% reduction in this expenditure line.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduction in Commercial Air Expenditure (Priority 8 of 9, Prog. Gen -11,330 -11,330 73) (Prog 73 Enforce/regulation) This expenditure line Cash 0 0 carries funds to cover air flight expenses for travel out of state Fed 0 0 to conduct audit examinations of companies which hold a Rev 0 0 shippers license with the Commission. This account also covers travel to out of state conferences. The Commission would choose to cut here versus deeper cuts to FTE, although this could result in reduced compliance and tax collection from those industry members holding a shippers license. This would represent a 71% reduction in this expenditure.

* Reduction in Lodging Expenditure (Priority 7 of 9, Prog. 73) Gen -10,000 -10,000 (Prog 73 Enforce/regulation) This expenditure line carries Cash 0 0 funds for lodging costs used by field audit personnel and also Fed 0 0 for the attendance at conferences. The Commission would Rev 0 0 choose to cut here versus deeper cuts to FTE, although this could cause less state excise tax compliance due to a reduction in field audits. This represents a 39% cut in this expenditure line.

* Reduction in State Owned Transportation Expenditure (Priority Gen -11,013 -11,013 9 of 9, Prog. 73). (Prog 73 Enforce/regulation) This Cash 0 0 expenditure line carries funds dedicated to travel as it involves Fed 0 0 agency meetings, audit travel, and in-state conferences. The Rev 0 0 Commission would choose to cut here versus deeper cuts to FTE. This could affect tax and regulatory compliance. This represents a 92% cut to this expenditure.

* Restore funding, Reduction in Lodging Expenditure (Prog. 73) Gen 10,000 10,000 (Prog 73 Enforce/regulation) Cash 0 0 Fed 0 0 Rev 0 0

* Restore funding, Reduction in State Owned Transportation Gen 11,013 11,013 Expenditure (Prog. 73). (Prog 73 Enforce/regulation) Cash 0 0 Fed 0 0 Rev 0 0

Agency 36 State Racing Commission ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 0 0 0 0 0 Cash 835,165 588,412 592,831 841,386 846,712 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Oper 835,165 588,412 592,831 841,386 846,712

State Aid General 0 0 0 0 0 Cash 140,000 140,000 140,000 140,000 140,000 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Aid 140,000 140,000 140,000 140,000 140,000

Agency Total General 0 0 0 0 0 Cash 975,165 728,412 732,831 981,386 986,712 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Agency Total 975,165 728,412 732,831 981,386 986,712

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Transfer to General Fund: Racing Commission's Cash Fund Gen 0 0 FY17-18 $150,000 FY18-19 0 (Prog 74 Enf stds-horse racing) Cash 0 0 Fed 0 0 Rev 0 0

Agency 37 Workers Compensation Court ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 0 0 0 0 0 Cash 6,139,482 6,041,101 6,094,703 6,210,679 6,277,698 Federal 52,674 53,272 53,887 52,674 52,674 Revolving 0 0 0 0 0 Subtotal-Oper 6,192,156 6,094,373 6,148,590 6,263,353 6,330,372

Agency Total General 0 0 0 0 0 Cash 6,139,482 6,041,101 6,094,703 6,210,679 6,277,698 Federal 52,674 53,272 53,887 52,674 52,674 Revolving 0 0 0 0 0 Agency Total 6,192,156 6,094,373 6,148,590 6,263,353 6,330,372

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Transfer of $1.5 million to the General Fund from the Gen 0 0 Compensation Court Cash Fund in FY18 (Prog 0 Agency-wide) Cash 0 0 Fed 0 0 Rev 0 0

* DAS Building Rent charges (Prog 530 Adjudication/admin) Gen 0 0 This issue reflects annual rent increases for office space for Cash 11,578 23,593 both Lincoln offices located at 1221 N Street and 1010 Lincoln Fed 0 0 Mall. These increases also include the 2% AS-Building Division Rev 0 0 overhead cost assessments.

Agency 39 Nebraska Brand Committee ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Data collection and storage project (Prog 75 Enforce Gen 0 0 standards) An increase of $216,600 in each fiscal year was Cash 216,000 216,000 approved to continue the project to modernize and digitize Fed 0 0 agency data collection and storage.. Rev 0 0

* Transfer to General Fund: Brand Committee cash fund, FY17- Gen 0 0 18 $100,000 (Prog 75 Enforce standards) The Appropriations Cash 0 0 Committee recommends transferring $100,000 from the Fed 0 0 Nebraska Brand Inspection and Theft Prevention Fund to the Rev 0 0 General Fund. The transfer would occur in FY17-18 only.

Agency 40 Motor Vehicle Industry Licensing Board

___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* State-owned travel increase for investigators (prog. 76). (Prog Gen 0 0 76 Enforce standards) The board leases five vehicles from Cash 9,888 9,888 TSB for the five investigators who work throughout the state. Fed 0 0 If a vehicle exceeds 2,000 miles in a month, the lease Rev 0 0 payment goes up. In order to save funds, the board has limited two vehicles (Lincoln & Taylor) to stay under 2,000 miles per month. The recommendation provides funding so two investigators can do their jobs without concern about exceeding the mileage restriction.

* Transfer to General Fund: Motor Vehicle Industry Licensing Gen 0 0 Fund, FY17-18 $500,000 (Prog 76 Enforce standards) Cash 0 0 Fed 0 0 Rev 0 0

Agency 41 Real Estate Commission ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Database maintenance and support. (Prog 77 Enforce Gen 0 0 standards) In FY2015-16 the agency was appropriated Cash 42,000 42,000 funding for a comprehensive database redesign. They have Fed 0 0 entered into a contract and the project is expected to go live Rev 0 0 in the Spring of 2017. The cost of support to cover start-up issues and on-going maintenance is estimated to be $72,000 annually and includes; 24/7 help desk support, installation of software patches and releases, user training, and a defined number of corrections and enhancements per user of the software. After two years it is expected that the appropriate level of support will decline lowering the cost. These costs will be offset by a $30,000 reduction in payments to Nebraska Interactive for online processing of renewals and other filings which will be transferred to the new system.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Real estate exam costs paid to a third-party vendor. (Prog 77 Gen 0 0 Enforce standards) The Real Estate Commission collects the Cash 30,000 30,000 exam fee from the applicant and then pays the vendor, Fed 0 0 Applied Measurement Professionals (AMP), on a per test Rev 0 0 basis. Expenditures are directly linked to activity levels and are funded by the applicant. The exam does produce revenue ($150 per examination) for the agency that more than offsets the exam cost ($72 per salesperson exam, $82 per broker exam). In the last few years the volume of applicants seeking licensure has increased exam costs beyond the $72,000 included in the base appropriation, forcing the agency to reallocate money from other areas of their budget. This appropriation increases exam funding to $102,000.

* Reduce the salary base. (Prog 77 Enforce standards) A Gen 0 0 comparison of the amount budgeted for salaries in FY2016-17, Cash -16,000 -16,000 to what is actually needed to fully fund all positions, indicates Fed 0 0 that salaries are over budgeted by $26,836. This is due to the Rev 0 0 replacement of some long-time employees with new employees at the lower end of the pay scale. The agency does not have any specific plans for the use of this savings but would like to retain a portion of it to give them the flexibility to adjust the pay of some positions. As a compromise, only $16,000 of the excess is reduced from the base.

* Transfer to General Fund from the State Real Estate Gen 0 0 Commission's Fund: FY17-18 $200,000, FY18-19 $200,000. Cash 0 0 (Prog 77 Enforce standards) Fed 0 0 Rev 0 0

* Reappropriate $265,600 of the June 30, 2017 unexpended Gen 0 0 cash fund balance to insure that payment for the database Cash 0 0 project can occur should completion and final payment extend Fed 0 0 into the next fiscal year. (Prog 77 Enforce standards) Rev 0 0

Agency 45 Board of Barber Examiners ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Base Reduction (Prog 80 Enforce standards) Gen 0 0 Cash -5,000 -5,000 Fed 0 0 Rev 0 0

Agency 46 Dept of Correctional Services ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19


State Aid General 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 Cash 0 0 0 0 0 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Aid 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000


Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 1,232,794 2,160,871 Cash 0 0 Fed 0 0 Rev 48,280 84,622

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 1,114,264 2,292,477 Cash 0 0 Fed 0 0 Rev 52,406 107,819

* Reappropriate General Fund balances for all programs Gen 0 0 (operations only) (Prog 0 Agency-wide) Cash 0 0 Fed 0 0 Rev 0 0

* Remove County Jail Funding: This was intended to be a Gen -4,607,147 -4,607,147 temporary program to assist with the overcrowded conditions Cash 0 0 (Prog 200 Adult Services) Fed 0 0 Rev 0 0

* Annualize LB867A, 2016: Requires the Department of Gen 43,621 43,621 Correctional Services to adopt regulations (Prog 200 Adult Cash 0 0 Services) Fed 0 0 Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Add Revolving Fund Staffing for Cornhusker State Industries Gen 0 0 (Prog 200 Adult Services) This issue would add an Operations Cash 0 0 Manager at the Lincoln Correctional Center in FY2018 and Fed 0 0 FY2019, and a Shop Operator at the Tecumseh Correctional Rev 61,002 121,417 Center in FY2019.

* Add Staff to Provide Support In Under-Resourced Areas (Prog Gen 959,775 970,712 200 Adult Services) Positions are needed to meet internal and Cash 0 0 external workload demands, including: Food Service Fed 0 0 Specialists, Facility Maintenance Specialists, a Training Rev 0 0 Specialist, an Intelligence Administrator, and a Grievance Coordinator. The agency would also establish a Transportation Unit to coordinate all transfers between NDCS facilities, pick up out state parole violators, absconders, medical transport orders, court transports, and reentry paroles and discharges. The staff that would make up this unit currently are transporting inmates to county jails under the County Jail Program which is scheduled to end June 30, 2017. Additionally, $100,000 is being requested to provide enhanced training for staff. With an increase in inmate population of over 30 percent since 2005, NDCS staff have experienced increased work responsibilities. It has become increasingly difficult to keep pace with the workload in support and service areas throughout the agency. More preventative maintenance and repairs are required, more meals have to be prepared and more duties are assigned to positions already at a maximum operating capacity.

* Corrections Information and Tracking (CIT): NDCS would Gen 0 0 contract with the OCIO to move its CIT mainframe system to a Cash 0 0 web-based system (Prog 200 Adult Services) NCDS currently Fed 0 0 maintains data relating to inmates’ trust fund accounts, Rev 700,000 700,000 referred to as Corrections Information and Tracking (CIT), on a mainframe system, which was implemented in 1997. The nearly twenty-year-old system is outdated and will continue to become more difficult to support and more susceptible to a system failure. In the case of a system failure, significant overtime costs would occur to continue operations until a new system was implemented. NDCS would contract with the OCIO to move CIT to a web- based system, NICaMS (Nebraska Inmate Case Management System). A study by NDCS and OCIO will be completed by the end of the current fiscal year to update the preliminary estimate of the cost of the move. The contractors for the CIT project would provide a recommended implementation plan for any future budget request.

* One-time cash fund appropriation increase to use excess cash Gen -1,000,000 0 and reduce General Funds (Prog 200 Adult Services) Cash 1,000,000 0 Fed 0 0 Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Information Technology and Radios: Increase in costs for data Gen 774,152 773,522 processing expenses, software charges, radio costs. (Prog Cash 0 0 200 Adult Services) Fed 0 0 Rev 0 0

* Information Technology and Radios: NDCS staff transferring to Gen -32,572 -32,572 OCIO (Prog 200 Adult Services) This issue reflects the Cash 0 0 transfer of 3.0 FTE from NDCS to OCIO ($232,572 savings per Fed 0 0 year) offset by $200,000 annually for Contractual Services Rev 0 0 provided by OCIO.

* Evidence‐Based Practice: Add staff for educational services, Gen 574,223 691,667 reentry programming, and transition services (Prog 200 Adult Cash 0 0 Services) This issue would add 1.5 teachers for educational Fed 0 0 services at the Omaha Correctional Center and Tecumseh Rev 0 0 Correctional Center, and 7 staff for reentry programming and transition services at Tecumseh Correctional Center

* Add Health Services Staff, an Electronic Medication Gen 701,034 508,941 Administration Record System, and develop a planning Cash 0 0 engagement document for an Electronic Health Records Fed 0 0 software system (Prog 200 Adult Services) Eight clinical staff Rev 0 0 are being requested as follows: A licensed practical nurse (LPN) is being requested for the Nebraska Correctional Center for Women. Four Registered Nurses (RN) are being requested: two at the Diagnostic and Evaluation Center, and one each at the Lincoln Correctional Center and the Nebraska State Penitentiary. A Nurse Supervisor is needed at the Lincoln Correctional Center. Two medical technologists are needed for the Nebraska State Penitentiary. Included in this request are reduced expenditures of $5,487 in both FY18 and FY19 for the reduction of temporary staff who currently are providing some of these services. NDCS is requesting funds for an Electronic Medication Administration Record (eMAR) System, which is a barcode scanning and tracking system for drugs administered at a NDCS facility. The cost is $54,000 annually, plus a one-time capital equipment cost of $52,416. NDCS is requesting funds for a one-time consultant fee of $150,000 to develop a planning engagement document for an Electronic Health Records (EHR) software system. The agency states that 95% of health care systems have this baseline infrastructure that all future applications of technology will be layered upon, including expanding TeleHealth. EHR systems also allow local customization of workflow and capabilities.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Protective Services Staffing (Prog 200 Adult Services) The Gen 1,500,000 3,000,000 budget recommendation provides funds for 26 Custody or Cash 0 0 Protective Services staff (Corrections Officers, Corporals, Fed 0 0 Sergeants, Caseworkers) in FY18 and 50 in FY19. Rev 0 0

* Special pay adjustments for key NDCS employee Gen 3,189,305 3,189,305 classifications (Prog 200 Adult Services) Negotiations Cash 0 0 between the state and the employee bargaining unit produced Fed 0 0 special pay adjustments for key inmate-contact employee Rev 0 0 classifications, beginning in December 2016. The classifications include Corrections Unit Caseworkers, Corrections Officers, Corporals, Sergeants, Mental Health Practitioners I and II, Registered Nurses, and Food Service Specialists. The average increase was 4.4% but specific increases varied by classification pay lines.

* State Radio System Device Fees: Additional users allowed Gen 0 -27,636 OCIO to reduce fees for current users (Prog 200 Adult Cash 0 0 Services) Fed 0 0 Rev 0 0

* Language to allow expenditure of York Community Foundation Gen 0 0 Cash Gift of $585,000 for construction of a building to expand Cash 0 0 parenting programming at the Nebraska Correctional Center Fed 0 0 for Women in York (Prog 200 Adult Services) No matching Rev 0 0 state funds are required as a condition of acceptance of this donation and there are no plans to add staff at York as a result of the gift.

* Phased-in Funding of Additional Staffing (Prog 200 Adult Gen -700,000 -700,000 Services) The budget recommendation adds a net of 55 Cash 0 0 positions in FY18 and 80 in FY19. Positions added include Fed 0 0 Custody or Protective Services staff (Corrections Officers, Rev 0 0 Corporals, Sergeants, Caseworkers), teachers, programming staff, clinical staff (LPN, RN, medical technologists), and staff such as Food Service Specialists, Facility Maintenance Specialists, a Training Specialist, an Intelligence Administrator, and a Grievance Coordinator. The agency would also establish a Transportation Unit (7 FTE) to coordinate all transfers between NDCS facilities. An adjustment was made to reflect the reality that not all these positions will be hired immediately.

* LB514 Increase the salary limit by $100,000 for a Justice Gen 0 0 Reinvestment Initiative Coordinator (Prog 200 Adult Services) Cash 0 0 Fed 0 0 Rev 0 0

Agency 47 Nebr Educational Telecommunications Commission ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* TV Network Fiber Costs (Prog 533 Educational TV) Funds are Gen 30,000 30,000 provided to cover increased annual data circuit cost. Funds Cash 0 0 will allow NET to complete the terrestrial fiber circuit to KMNE Fed 0 0 (Bassett). The current 6-miles of the KMNE circuit is a Rev 0 0 microwave transmitter/receiver system which is subject to weather related outages. Funds will also allow NET to install a diverse terrestrial circuit for KTNE (Alliance). The current terrestrial fiber circuit is single path with no backup system.

* Media Services Help Desk position. (Prog 533 Educational TV) Gen -59,700 -59,700 Eliminate funding for 1 full-time Media Services Help Desk Cash 0 0 supervisor. This would reduce NET’s ability to support overall Fed 0 0 media streaming services, educational institutions, Network Rev 0 0 Nebraska, the Nebraska Video Conferencing Network.

* UNTV Contracted Services. (Prog 533 Educational TV) Gen -70,500 -70,500 Eliminate funding for 1 full-time UNTV producer. This would Cash 0 0 reduce the producers’ availability to support remote and local Fed 0 0 productions. Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* TV Operating Expenses. (Prog 533 Educational TV) Reduce Gen -40,936 -40,936 TV’s general operating expenses,. Cash 0 0 Fed 0 0 Rev 0 0

* Research & Communications position. (Prog 533 Educational Gen -82,600 -82,600 TV) Eliminate funding for 1 full-time Research & Cash 0 0 Communications position. This would eliminate NET’s only Fed 0 0 research position. Rev 0 0

* Radio Operating Expenses. (Prog 566 Public radio) Reduce Gen -31,916 -31,916 public radio’s general funded operating expenses.. Cash 0 0 Fed 0 0 Rev 0 0

* Radio Program Acquisitions (Prog 566 Public radio) Reduce Gen -14,000 -14,000 public radio’s acquisition budget.. Cash 0 0 Fed 0 0 Rev 0 0

Agency 48 Coordinating Commission for Postsecondary Education ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19


State Aid General 7,853,156 7,553,156 7,553,156 7,853,156 7,853,156 Cash 11,431,193 11,731,193 11,731,193 11,931,193 12,431,193 Federal 380,000 380,000 380,000 380,000 380,000 Revolving 0 0 0 0 0 Subtotal-Aid 19,664,349 19,664,349 19,664,349 20,164,349 20,664,349


Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 10,299 18,126 Cash 843 1,483 Fed 0 0 Rev 0 0


* Eliminate 1 FTE Administrative Secretary position. (Priority 2 Gen -47,421 -48,439 of 8) (Prog 640 Administration) The Commission employs an Cash 0 0 administrative secretary to provide support services to all staff Fed 0 0 members and the 11 Commissioners. This position also has Rev 0 0 responsibility for the office switchboard as well as logistics for meetings of the Commission and its committees. Funds for the position are eliminated.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduce funds for Data Analyst position. (Priority 1 of 8) (Prog Gen -27,651 -28,927 640 Administration) The Commission employs a Data Analyst Cash 0 0 for the purpose of managing state and federal surveys and Fed 0 0 databases. The staff member acts as an interface between Rev 0 0 Nebraska institutions and the U.S. Department of Education with respect to data collection. The Data Analyst works with other Commission staff concerning data inquiries and reports and assists in compiling data for all inquiries to the Commission including executive and legislative branch requests for information. The Data Analyst works with other agency staff in annual production of Commission reports including A Factual Look at Higher Education in Nebraska, The Nebraska Higher Education Progress Report, and the Tuition, Fees, and Financial Aid Report. The Appropriations Committee preliminary recommendation eliminated funds for the position ($70,480 for 2017-18 and $71,756 for 2018-19). Following agency budget hearings, the Committee restored approximately 60% of funding for the position ($42,829 for each year of the biennium).

* Eliminate funds budgeted for health insurance reserve. Gen -24,561 -17,762 (Priority 3 of 8). (Prog 640 Administration) The Commission Cash 0 0 budgets for a health insurance reserve as a contingency to Fed 0 0 meet related costs in instances where an employee who has Rev 0 0 elected not to participate in state health insurance benefits subsequently elects to participate or instances where an employee elects coverage different from, and more costly than coverage under which the employee previously participated. Funds for this purpose are eliminated.

* Eliminate tuition reimbursement for Commission employees. Gen -6,000 -6,000 (Priority 4 of 8) (Prog 640 Administration) Historically, the Cash 0 0 Commission has offered tuition reimbursement for agency Fed 0 0 employees pursuing education toward degree attainment and Rev 0 0 to enhance job skills. Funds for this purpose are eliminated.

* Discontinue State Higher Education Executive Officers (SHEEO) Gen -19,705 -19,705 Association membership and Voluntary Framework of Cash 0 0 Accountability (VFA) subscription. (Priority 5 of 8) (Prog 640 Fed 0 0 Administration) The 50 states, District of Columbia, and two Rev 0 0 U.S. territories maintain membership in SHEEO. This national association is comprised of state higher education leaders who serve statewide coordinating and governing boards and other state policy agencies for higher education. The organization advocates for state policy leadership, acts as a liaison between states and the federal government, and serves as a source of information and analysis on educational and public policy issues. Additionally, the Commission subscribes to Voluntary Framework of Accountability (VFA), described by the agency as the principal accountability framework for community colleges. Funds for SHEEO membership ($16,205) and the VFA subscription ($3,500) are eliminated.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Discontinue SHEEO Policy Conference attendance. (Priority 6 Gen -6,000 -6,000 of 8) (Prog 640 Administration) Funds are eliminated that Cash 0 0 currently support costs for three Coordinating Commission Fed 0 0 professional staff members to attend the annual State Higher Rev 0 0 Education Executive Officers (SHEEO) Policy Conference.

* Reduce budgeted travel expenses. (Priority 7 of 8) (Prog 640 Gen -5,785 -5,785 Administration) Cash 0 0 Fed 0 0 Rev 0 0

* Reduce budgeted non-personnel operating expenses. (Priority Gen -5,714 -5,714 8 of 8) (Prog 640 Administration) Cash 0 0 Fed 0 0 Rev 0 0

* Eliminate appropriations from Oral Health Training and Gen 0 0 Services Fund for grant monitoring and administration. (Prog Cash -17,668 -17,933 693 Oral health training and services) Fed 0 0 Rev 0 0

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Increase funding for Nebraska Opportunity Grant Program. Gen 0 0 (Priority 3 of 3) (Prog 690 Nebr Opportunity Grant) Cash Fund Cash 500,000 1,000,000 appropriations for the Nebraska Opportunity Grant student Fed 0 0 financial aid program are increased 500,000 for 2017-18 and Rev 0 0 $1,000,000 cumulatively for 2018-19. Statutorily dedicated lottery receipts accrue to the Nebraska Opportuinty Grant (Cash) Fund to support this aid program administerred by the Coordinating Commission.

Agency 50 Nebraska State Colleges ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19


State Aid General 0 0 0 0 0 Cash 365,814 365,814 365,814 365,814 365,814 Federal 44,983,419 44,983,419 44,983,419 44,983,419 44,983,419 Revolving 0 0 0 0 0 Subtotal-Aid 45,349,233 45,349,233 45,349,233 45,349,233 45,349,233


Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Maintain Nebraska State College System General Fund Gen 0 0 appropriations. (Prog 48 System office) Appropriations for the Cash 0 0 Nebraska State College System for 2017-18 and 2018-19 are Fed 0 0 maintained at the level appropriated for 2016-17. Rev 0 0

Agency 51 University of Nebraska ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 583,068,732 570,900,008 577,665,817 573,468,732 583,468,732 Cash 430,926,342 430,926,342 430,926,342 430,926,342 430,926,342 Federal 390,492,364 390,492,364 390,492,364 390,492,364 390,492,364 Revolving 635,066,694 635,066,694 635,066,694 635,066,694 635,066,694 Subtotal-Oper 2,039,554,132 2,027,385,408 2,034,151,217 2,029,954,132 2,039,954,132

State Aid General 0 0 0 0 0 Cash 6,790,715 6,790,715 6,790,715 6,790,715 6,790,715 Federal 127,637,516 127,637,516 127,637,516 127,637,516 127,637,516 Revolving 2,283,884 2,283,884 2,283,884 2,283,884 2,283,884 Subtotal-Aid 136,712,115 136,712,115 136,712,115 136,712,115 136,712,115

Agency Total General 583,068,732 570,900,008 577,665,817 573,468,732 583,468,732 Cash 437,717,057 437,717,057 437,717,057 437,717,057 437,717,057 Federal 518,129,880 518,129,880 518,129,880 518,129,880 518,129,880 Revolving 637,350,578 637,350,578 637,350,578 637,350,578 637,350,578 Agency Total 2,176,266,247 2,164,097,523 2,170,863,332 2,166,666,247 2,176,666,247

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* General Fund Base Reduction (Prog 515 NU lump sum) Gen -10,000,000 -3,000,000 Cash 0 0 Fed 0 0 Rev 0 0

* Global Center for Advanced Interprofessional Learning (Prog Gen 0 3,000,000 515 NU lump sum) Additional funding is provided for the Cash 0 0 Global Center for Advanced Interprofessional Learning for Fed 0 0 FY2018-19. The additional funding brings the total to Rev 0 0 $5,000,000 General Funds for the Global Center.

* Behavioral Health Professionals (LB242) (Prog 515 NU lump Gen 400,000 400,000 sum) Funds are provided for the University to partner with Cash 0 0 the Department of Correctional Services and/or the Regional Fed 0 0 Centers to develop and offer programs for students studying Rev 0 0 to become behavioral health professionals.

Agency 52 State Fair Board ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* State Fair funding (Prog 694 Support and Improvement Fund) Gen 0 0 Appropriations for the Nebraska State Fair for 2017-18 and Cash 0 0 2018-19 are maintained at the level appropriated for 2016-17. Fed 0 0 Rev 0 0

Agency 53 Real Property Appraisers Board ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Finish the previously approved database update project. Gen 0 0 Approved through reappropriation of $74,409. (Prog 79 Cash 0 0 Appraiser licensing) In FY14, the Board hired OCIO to build a Fed 0 0 database that would consolidate all of the information on Rev 0 0 applicants, credential holders and appraisal management companies into one database instead of having this information spread between various applications (Microsoft Access, Excel, WORD). The last piece to complete the database are the enforcement, education, and instructor interfaces. Since FY15 the OCIO has made little progress in completing this project and little work is expected to be completed yet this fiscal year. This lack of progress necessitates the agency to request that funding be available in the next biennium to complete the database project.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reclassification of the Staff Assistant II to an Administrative Gen 0 0 Assistant II. (Prog 79 Appraiser licensing) At the request of Cash 2,652 2,716 the agency the Nebraska Department of Personnel conducted Fed 0 0 a review of the Staff Assistant II position and concluded that Rev 0 0 the appropriate classification based on the duties carried out by the position was an Administrative Assistant II. This reclassification took place August 24, 2016. The Board is using PSL funding meant for per diems during the current fiscal year in order to pay for the higher salary. The appropriation will fund the difference in salary and benefits in the next biennium.

* Requested reduction to the budget base. (Prog 79 Appraiser Gen 0 0 licensing) There are three components to the agency’s Cash -14,024 -14,024 request to reduce their budget base:1. LB139 (2015) made Fed 0 0 numerous changes to the Real Property Appraiser Act and Rev 0 0 LB139A appropriated $18,290 C to implement these changes. Actual expenditures have not met the original projections so the Board is requesting that $9,024 be removed from their budget. 2. In compliance with the Governor’s request that agencies reduce unnecessary travel the Board is requesting a $4,500 reduction in travel and conference costs. 3. The budget for publications and printing is reduced $500 to align it with actual expenditures.

Agency 54 State Historical Society ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19


State Aid General 0 0 0 0 0 Cash 20,450 20,450 0 20,450 0 Federal 100,000 100,000 100,000 100,000 100,000 Revolving 0 0 0 0 0 Subtotal-Aid 120,450 120,450 100,000 120,450 100,000


Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 27,287 47,115 Cash 15,100 26,918 Fed 4,381 7,710

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 27,980 55,767 Cash 15,784 33,065 Fed 4,514 9,287

* Reduce and Terminate Sesquicentennial Commission (Prg. Gen -36,964 -94,000 553) (Prog 553 Sesquicentennial Commission) A General Cash 0 0 Fund reduction is being made in fiscal year 2017-18. The Fed 0 0 Commission terminates June 30, 2018, therefore no General Rev 0 0 Funds will be needed. Cash Funds are still present in FY19 to “wrap up” loose ends as the Commission winds down.

* Eliminate One-Time Funding - Mainstreet Project (Prog 648 Gen -100,000 -100,000 Historical Society) Funding for this program is considered Cash 0 0 one-time funding. In order to continue funding, the Fed 0 0 Legislature must decide to do so. Rev 0 0

* Neligh Mill State Historic Site (Prg. 648, Priority 3 of 11) (Prog Gen -32,022 -32,624 648 Historical Society) Hours of operation at the Neligh Mill Cash 0 0 Historic Site would be reduced with the reduction of this 0.5 Fed 0 0 FTE Tourism Facility Operator. Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Publication Staff (Prg. 648, Priority 8 of 11) (Prog 648 Gen -107,805 -109,960 Historical Society) This would eliminate the Senior Research Cash 0 0 Historian position. Elimination of the position would affect Fed 0 0 public service and eliminate or slow response to research Rev 0 0 projects requested by government entities, private businesses, news media, and the general public.

* Historic Preservation Staff (Prg. 648, Priority 6 of 11) (Prog Gen -31,268 -31,952 648 Historical Society) This is a reduction of 0.8 FTE. The Cash 0 0 reduced number of FTE will affect the number of historic Fed -46,901 -47,929 buildings, structures, and cultural resources documented. Rev 0 0 Subsequent workload increases for other staff would slow response times for public entities requesting reviews of federally-funded projects, projects qualifying for historic preservation tax credits and private homeowner incentives.

* Cather and Neihardt Contracts (Prg. 648, Priority 11 of 11) Gen -10,169 -10,169 (Prog 648 Historical Society) Operations at the Cather and Cash 0 0 Neihardt Sites are conducted under contract with the Fed 0 0 respective foundations. Reducing the amount paid for these Rev 0 0 services will result in reduced hours of operation at these sites. Decreased hours of operation will impact Nebraska students, the general public, and scholars visiting the sites to further their research.

* Reference Hours and Service (Prg. 648, Priority 4 of 11) (Prog Gen -65,482 -66,473 648 Historical Society) 1.0 FTE would be eliminated in the Cash 0 0 Library Archives Division. This Staff Assistant II will reduce Fed 0 0 public access to reference services and curatorial and Rev 0 0 preservation efforts. This position collects, organizes, and makes available to the public manuscripts and published materials, government records, historic images and audio/visual historic resources.

* Digital Storage and Preservation (Prg. 648) (Prog 648 Gen 90,000 90,000 Historical Society) The agency is required to preserve Cash 0 0 digitized historical resources. Consultation with the OCIO Fed 0 0 regarding aging servers and potential catastrophic loss of data Rev 0 0 requires a move to cloud-based storage. This funding will provide for over 12 TB of cloud-based storage.

Agency 56 Nebraska Wheat Board ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________


* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 0 0 Cash 661 1,360 Fed 0 0 Rev 0 0

* Decrease in spending authority and addition of staff position Gen 0 0 (Prog 381 Wheat Board) The Appropriations Committee Cash -652,788 -583,155 approved the agency request, which included a reduction in Fed 0 0 funds for FY17-18 in FY18-19. The reduction in funding is Rev 0 0 based upon projected cash fund revenue. The primary reductions would be made in contracts with national organizations, like the National Wheat Growers Association and the Wheat Foods Council. The agency further requested a personal services increase of $57,895 to allow for the hiring of an Ag Promotions Coordinator to focus upon expanding the purchase of Nebraska-grown wheat by milling companies in Mexico and Latin America.

Agency 57 Oil and Gas Conservation Commission ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 0 0 0 0 0 Cash 863,594 821,282 829,648 882,673 890,488 Federal 79,750 79,991 80,333 80,697 81,500 Revolving 0 0 0 0 0 Subtotal-Oper 943,344 901,273 909,981 963,370 971,988

Agency Total General 0 0 0 0 0 Cash 863,594 821,282 829,648 882,673 890,488 Federal 79,750 79,991 80,333 80,697 81,500 Revolving 0 0 0 0 0 Agency Total 943,344 901,273 909,981 963,370 971,988

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 0 0 Cash 6,003 10,565 Fed 665 1,170 Rev 0 0


* FracFocus site maintenance fee (Prg. 335) (Prog 335 Gen 0 0 Administration) The Ground Water Protection Council (GWPC) Cash 5,000 5,000 will begin to assess a fee of $5,000 per year for each state Fed 0 0 requiring industry reporting to FracFocus for the composition Rev 0 0 of hydraulic stimulation fluids. The Commission’s rules and regulations require such reporting.

* RBDMS (Computer System) (Prg. 335) (Prog 335 Gen 0 0 Administration) The Oil and Gas Commission uses the Ground Cash 5,000 5,000 Water Protection Council’s Risk Based Data Management Fed 0 0 System (RBDMS) as its integrated information management Rev 0 0 system. This funding will pay for the new licensing fee from the GWPC. Prior to this time, there has been no fee for the system software. The software allows the Commission to manage the baseline data needed to make informed regulatory and policy decision, and supports the agency’s mission to promote the conservation and efficient recovery of Nebraska’s oil and gas resources while protecting health, safety and the environment.

Agency 58 Board of Engineers and Architects ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Increase in Employee Health Insurance. (Prog. 82) (Prog 82 Gen 0 0 Enforce standards) Currently, two agency employees are not Cash 15,529 16,771 carrying the state provided health insurance. Both employees Fed 0 0 have indicated that a possible status change would cause Rev 0 0 them to enroll in the state’s health insurance plan during the current fiscal year ending on June 30, 2017. The additional expense for the difference in premiums from a partial year of coverage to a full year of PPO coverage for a family and an employee with dependent children is being requested. The request includes the projected 8% annual increase in the health insurance premium for the biennium.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduction in Per Diem for Board Members. (Prog. 82) (Prog Gen 0 0 82 Enforce standards) Per diem expenditures are expected to Cash -4,900 -4,900 decrease for the upcoming biennium due to decreased travel Fed 0 0 and meeting expenses. Previously, a Nebraska Board member Rev 0 0 served as President of the National Council for Examiners for Engineering and Surveying (NCEES). Although travel expenses to attend meetings of this organization were covered by NCEES, national meeting attendance is eligible for per diems as per Nebraska Statute Sec. 81-3429. This Board member will no longer be in office and will not be attending these meetings as part of the leadership of NCEES. This will result in a lower expenditure for per diems and a reduction in the budget request for this line item.

* Reduction in the Base Appropriation. (Prog. 82) (Prog 82 Gen 0 0 Enforce standards) The Board did not conduct a planned 2016 Cash -11,975 -14,975 continuing education event. The event was cancelled after Fed 0 0 some engineering and architectural organizations requested Rev 0 0 that the Board reconsider because the planned event was in conflict with those organizations own continuing education events. In addition, printing and postage expenditures for the new edition of the Engineers and Architects Regulation Act handbook were decreased because the booklet was offered online or by request. Previously, the handbooks were mailed to all licensees There was also some reduction in rent expense because of the completion of tenant improvements under the current lease which ended in November 2016. The office renovation was a one-time expense and will be completed before the next biennium.

Agency 59 Board of Geologists ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Increase in administrative services contract with NBEA. (Prog. Gen 0 0 159) (Prog 159 Enforce standards) The Board of Geologists Cash 1,193 1,693 has no employees of its own and operates through a contract Fed 0 0 with the Nebraska Board of Engineers and Architects (NBEA). Rev 0 0 NBEA provides administrative services, licensing and renewals, compliance and monitoring, budgeting, office space, software and database management, office supplies, and equipment. The cost of the contract is projected to increase because of additional NBEA staff time necessary to provide database conversion and management, salary increases for NBEA staff, a proposed redesign of the Board’s website, and the cost of an administrative assistant to attend the National Association of State Boards of Geology (NASBOG) annual meeting.

* Increase in expenditures for redesign of Board’s website. Gen 0 0 (Prog. 159) (Prog 159 Enforce standards) The Board is Cash 1,800 360 requesting an increase in appropriations in order to purchase Fed 0 0 a website template built in the Drupal Content Management Rev 0 0 System from the state’s current vendor, Nebraska Interactive. The website has not been updated in over a decade and is not user or device friendly. The cost for the first fiscal year is the purchase and implementation price and the cost for the second fiscal year is for maintenance.With an updated website, the Board will be able to offer improved service to licensees, examinees, firms and the public. A fully functional website would be able to transition seamlessly from cell phones, to tablets, to desktop or laptop computer. In addition, the new website will meet standards for an official Nebraska Government website as is required by state policy. The goal is to have the new site up and fully functional before the end of 2017.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Increase in National Association of State Boards of Geology Gen 0 0 annual meeting travel expenses. (Prog. 159) (Prog 159 Cash 261 261 Enforce standards) NASBOG serves as the connective link Fed 0 0 among state geologic registration and licensing boards for Rev 0 0 planning and preparation of uniform standards, procedures, and protective measures for the general public. Funding two Board member’s and an administrative assistant’s (NBEA) attendance at the annual meetings is a priority of the Board. Nebraska’s membership and attendance is necessary to carry out its mission in the licensure and regulation of geologists. Without attendance, the Nebraska Board would not have a voice or a vote in matters that could affect licensure or the practice of geology in the state and nationwide. It is the intent of the Board to fund the attendance of two Board members and an administrative assistant for the fall annual meeting and two Board members for the spring Council of Examiners meeting each fiscal year.

Agency 60 Nebraska Ethanol Board ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Increased cash fund expenditure authority (Prog 516 Ethanol) Gen 0 0 The Nebraska Ethanol Board receives its revenue from a Cash 18,050 30,305 $1.25 checkoff on hon-highway use fuel tax refunds, a Fed 0 0 checkoff paid in large part by ethanol production facilities. The Rev 0 0 agency projects that there will be an increase in revenue due to ethanol plants producing at a higher capacity, based upon trends seen at several plants in the state. The Appropriations Committee approved the agency request.

Agency 61 Dairy Industry Development Board ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Dairy Industry Board, increased cash fund spending authority Gen 0 0 (Prog 114 Dairy Industry) The Appropriations Committee Cash 160,043 160,043 approved a $160,043 annual increase in the cash fund Fed 0 0 spending limit for the Dairy Industry Development Board. Rev 0 0

Agency 63 State Board of Public Accountancy ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Cost savings from the switch to a National Peer Review Gen 0 0 Program. (Prog 84 Enforce standards) LB 159 (2016) gave Cash -11,000 -11,000 the Board the authority to require firms engaged in the Fed 0 0 practice of public accountancy to enroll in and comply with all Rev 0 0 requirements of a Board approved peer review program. With the Board’s transition from their own Quality Enhancement Program to a national peer review program a cost savings of $11,000 per year is projected and removed from the base budget request.

* Elimination of bank fees associated with online transactions. Gen 0 0 (Prog 84 Enforce standards) The Board utilizes Nebraska Cash -5,000 -5,000 Interactive for online services including license renewals and Fed 0 0 the submission of continuing education information. Nebraska Rev 0 0 Interactive recently eliminated their bank fees associated with online transactions saving the agency approximately $5,000 per year. Their request removes this amount from the base budget.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduced publication costs of the Board’s annual letter. (Prog Gen 0 0 84 Enforce standards) The Board previously used the DAS Cash -729 -729 Print Shop to publish their annual letter at a cost of $1.42 per Fed 0 0 letter. They have switched to having the letter published by Rev 0 0 the Communications Department of the National Association of State Boards of Accountancy (NASBA) at a cost of $1.15 per letter, saving $729 per year. Their request removes this amount from the base budget.

* Reduce the base for per diems to align it with previous actual Gen 0 0 expenditures. (Prog 84 Enforce standards) Based on historical Cash -4,000 -4,000 per diem expenditures the base for per diems can be reduced Fed 0 0 without impacting the number of meetings actually held each Rev 0 0 year. This issue would reduce the amount appropriated for per diems down to $16,000.

Agency 64 Nebraska State Patrol ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 1,741,564 2,196,473 Cash 274,851 339,094 Fed 138,448 171,370 Rev 8,468 14,903


* Increased Costs from LB467, 2016, which changed provisions Gen 15,409 24,517 relating to contributions to the Nebraska State Patrol Cash 5,136 8,172 Retirement Act (Prog 0 Agency-wide) Fed 0 0 Rev 0 0

* Annualize LB698A, 2016 The Home Care Consumer Bill of Gen 0 0 Rights Act - criminal records check (Prog 100 Public Cash -122,396 -122,396 protection) Fed 0 0 Rev 0 0

* Change in costs in the Deferred Retirement Option Plan Gen 3,222 -70,318 (DROP), which is specifically geared to sworn officers of the Cash 0 0 State Patrol (Prog 100 Public protection) Fed 0 0 Rev 0 0

* Create the Combined Law Enforcement Network Cash Fund Gen 0 0 (Prog 100 Public protection) Local law enforcement pays a Cash 725,000 725,000 fee for use of the network and these revenues pay the costs Fed 0 0 of maintaining the network, which is an access point into the Rev 0 0 FBI databases

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Facility rental cost savings in Scottsbluff (Prog 100 Public Gen -100,000 -100,000 protection) Cash 0 0 Fed 0 0 Rev 0 0

* Reduction in two Information Technology positions which will Gen -167,180 -167,180 be transferred to the OCIO (Prog 100 Public protection) Cash 0 0 Fed 0 0 Rev 0 0

* Eliminate 511 Weather Line and have the Department of Gen -107,500 -107,500 Roads pick up the Patrol’s share (Prog 100 Public protection) Cash 0 0 Fed 0 0 Rev 0 0

* Reduce Dues and Subscriptions for personnel to belong to Gen -3,127 -3,127 professional associations (Prog 100 Public protection) Cash 0 0 Fed 0 0 Rev 0 0

* Reduce funds budgeted for information technology (Prog 100 Gen -163,653 -163,653 Public protection) Cash 0 0 Fed 0 0 Rev 0 0

* Reduce Promotional Materials by 50% for such functions as Gen -5,000 -5,000 the State Fair, job fairs, and other conferences to educate the Cash 0 0 public and promote the Patrol to potential employees (Prog Fed 0 0 100 Public protection) Rev 0 0

* Reduce Supplies and Equipment by approximately 8% (Prog Gen -32,290 -32,290 100 Public protection) Cash 0 0 Fed 0 0 Rev 0 0

* Reduce the amount of cash paid out in the form of overtime Gen -253,587 -238,003 worked (Prog 100 Public protection) Cash 0 0 Fed 0 0 Rev 0 0

* Reduce Travel and Lodging by approximately 10% for Gen -19,938 -19,938 personnel to participate in conferences and training sessions Cash 0 0 (Prog 100 Public protection) Fed 0 0 Rev 0 0

* Increase Cash Fund Appropriation to Meet Match Gen 0 0 Requirements of a Federal Grant Award (Prog 205 Carrier Cash 74,517 74,517 enforce) Fed 0 0 Rev 0 0

* Reclassification of Positions in Carrier Enforcement (Prog 205 Gen 0 0 Carrier enforce) Cash 14,625 14,625 Fed 0 0 Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* New Cash Fund for Funds Received by Federal Treasury Gen 0 0 Agencies (Prog 325 Oper improvements) Cash 150,000 150,000 Fed 0 0 Rev 0 0

* Add a Captain Position in the Capitol Security Division (Prog Gen 0 0 630 Capitol Security) Cash 0 0 Fed 0 0 Rev 140,786 140,786

* Capitol Security Increased Equipment Costs (Prog 630 Capitol Gen 0 0 Security) Cash 0 0 Fed 0 0 Rev 18,265 18,265

* State Radio System Device Fees: Additional users allowed Gen 0 -262,138 OCIO to reduce fees for current users (Prog 850 Cash 0 -115,338 Commuication System) Fed 0 0 Rev 0 0

Agency 65 Dept of Administrative Services ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 8,880,092 14,002,078 15,827,738 8,657,614 8,728,397 Cash 2,015,555 3,010,175 2,836,933 8,161,480 9,739,902 Federal 0 0 0 0 0 Revolving 225,133,398 230,891,245 231,352,331 232,475,807 231,624,467 Subtotal-Oper 236,029,045 247,903,498 250,017,002 249,294,901 250,092,766

State Aid General 0 0 0 0 0 Cash 0 0 0 0 0 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Aid 0 0 0 0 0

Agency Total General 8,880,092 14,002,078 15,827,738 8,657,614 8,728,397 Cash 2,015,555 3,010,175 2,836,933 8,161,480 9,739,902 Federal 0 0 0 0 0 Revolving 225,133,398 230,891,245 231,352,331 232,475,807 231,624,467 Agency Total 236,029,045 247,903,498 250,017,002 249,294,901 250,092,766

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 42,525 74,844 Cash 6,285 11,062 Fed 0 0 Rev 389,537 685,584

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 40,940 84,230 Cash 6,037 12,422 Fed 0 0 Rev 308,858 635,436

* Funding for Continuity of Operations Planning (COOP) (Prog 49 Gen 0 0 Dept administration) COOP is a program whereby DAS works Cash 0 0 with agencies to identify key staff, succession plans, and Fed 0 0 critical services in order to ensure continuity of state Rev 268,864 277,000 operations in case of emergencies.

* Funding for Process Improvement (PI) (Prog 49 Dept Gen 0 0 administration) PI is a program whereby DAS works with Cash 0 0 state agencies to train, and develop staff and management Fed 0 0 around the framework of continuous process improvement Rev 329,239 339,214 skills and management techniques.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Annualize LB867 (Prog 49 Dept administration) Gen 0 0 Cash 0 0 Fed 0 0 Rev -99,400 -99,400

* Center for Operational Excellence (Prog 49 Dept Gen 0 0 administration) Cash 0 0 Fed 0 0 Rev 518,149 506,659

* Operational Savings (Prog 49 Dept administration) Gen 0 0 Cash 0 0 Fed 0 0 Rev -13,486 -13,486

* HR Center of Excellence (Prog 49 Dept administration) Gen 0 0 Cash 0 0 Fed 0 0 Rev 404,650 392,150

* NITC Administrative Manager (Prog 101 Chief Info Officer) Gen -39,695 -41,104 This reduction is a shift of staffing to Information Management Cash 0 0 Servcies (program 172). Fed 0 0 Rev 0 0

* Eliminate Federal Liaison Funding (Prog 169 Federal Liason) Gen -3,500 -3,500 Cash 0 0 Fed 0 0 Rev 0 0

* Data Center Consolidation (Prog 170 Intergovt Data Services) Gen 0 0 The CIO has consolidated services to servers in the CIO Cash 0 0 datacenter and retired equipment currently housed in counties. Fed 0 0 Rev -500,000 -500,000

* Annualize LB851 (Prog 171 Materiel Division) Gen 0 0 Cash 0 0 Fed 0 0 Rev -59,072 -59,072

* Barcode Scanner System (Prog 171 Materiel Division) This Gen 0 0 funding will support the purchase and upgrade of the existing Cash 0 0 fixed asset inventory barcode scanner system which was put Fed 0 0 in place in 2006. Rev 450,000 55,000

* Operational Savings (Prog 171 Materiel Division) Gen 0 0 Cash 0 0 Fed 0 0 Rev -537,335 -537,335

* Change Contract Staff to Permanent FTE (Prog 172 Info Mgt Gen 0 0 Services (IMS)) Reliance on certain contract staffing is being Cash 0 0 shifted to permanent state employees. Fed 0 0 Rev -1,314,688 -2,474,088

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Transfer Authority from IMS to Public Service Communication Gen 0 0 System (Prog 172 Info Mgt Services (IMS)) Cash 0 0 Fed 0 0 Rev -1,522,000 -1,522,000

* Annualize LB956 (Prog 172 Info Mgt Services (IMS)) LB 956 Gen 0 0 provided IMS with one-time authority to establish an Cash 0 0 enterprise security event information management system. Fed 0 0 Rev -500,000 -500,000

* Closed Positions (Prog 172 Info Mgt Services (IMS)) These Gen 0 0 positions are vacant and funding is no longer needed. Cash 0 0 Fed 0 0 Rev -288,469 -288,469

* Microsoft Contract Annual Payment (Prog 173 Gen 0 0 Communications) Cash 0 0 Fed 0 0 Rev 1,189,780 1,189,780

* Network Services Spending Authority (Prog 173 Gen 0 0 Communications) This funding will address multiple agencies' Cash 0 0 upcoming projects that require OCIO services. Fed 0 0 Rev 2,900,000 2,900,000

* IT Consolidation Staff Transfer (Prog 173 Communications) Gen 0 0 11 FTE have been transferred from agencies to the OCIO. Cash 0 0 Fed 0 0 Rev 949,713 979,877

* Annualize LB605 (Prog 180 Transportation Services) LB 605 Gen 0 0 provided additional staffing for the Supreme Court. These Cash 0 0 staff positions required dedicated vehicles. Funding for more Fed 0 0 vehicles is not needed, since this was a one-time expense. Rev -416,837 -416,837

* Operational Savings (Prog 180 Transportation Services) Gen 0 0 Cash 0 0 Fed 0 0 Rev -262,756 -262,756

* Equipment Purchases for Outside Agencies (Prog 245 Public Gen 0 0 Safety comm.) This is funding for equipment purchases for Cash 0 0 agencies that will utilize the Statewide Communications Fed 0 0 System. Rev 1,900,000 1,900,000

* Equipment Upgrade (Prog 245 Public Safety comm.) Gen 0 0 Cash 0 0 Fed 0 0 Rev 1,000,000 1,000,000

* Transfer Authority from IMS to Public Service Communication Gen 0 0 System (Prog 245 Public Safety comm.) Cash 0 0 Fed 0 0 Rev 1,522,000 1,522,000

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduce AS Assessment (Prog 509 Budget Div.) Gen -1,455 -1,109 Cash 0 0 Fed 0 0 Rev 0 0

* Health Insurance (Prog 509 Budget Div.) A reduced level of Gen -71,735 -71,735 funding for health insurance is needed for this program. Cash 0 0 Fed 0 0 Rev 0 0

* Additional Lapse of $350,000 from Reappropriation (Prog 509 Gen 0 0 Budget Div.) After lapsing this additional amount of money, Cash 0 0 the Budget Office will still retain $139,582 of its Fed 0 0 reappropriation. Rev 0 0

* Eliminate 1 FTE State Building Division staff position. (Prog Gen 0 0 560 Building Division) Cash 0 0 Fed 0 0 Rev -88,698 -88,698

* Reduce repair and maintenance expenditures relating to Gen -19,306 -19,306 Governor's residence. (Prog 560 Building Division) Cash 0 0 Fed 0 0 Rev 0 0

* Increase appropriation authority --- Vacant Building and Gen 0 0 Excess Land Cash Fund. (Prog 560 Building Division) Increase Cash 700,000 700,000 appropriation authority for Vacant Building and Excess Land Fed 0 0 Cash Fund to accommodate demolition of multiple vacant Rev 0 0 state buildings.

* Governor's recommendation - operational savings (Prog 560 Gen 0 0 Building Division) Cash 0 0 Fed 0 0 Rev -881,862 -881,862

* Transfer Staff from Accounting to Director’s Office (Prog 567 Gen 0 0 Accounting) Cash 0 0 Fed 0 0 Rev -63,993 -63,993

* Cloud-based migration (Prog 567 Accounting) The Accounting Gen 0 0 Division will migrate the state's existing enterprise resourcing Cash 5,149,000 6,900,000 planning (ERP) platform, the human resource management Fed 0 0 platform, an eProcurement platform, and other financial Rev 0 0 recordkeeping platforms to an off-premise software driven platform (the Cloud). Funding for this is coming from transfers made from the Building Renewal Assessment Fund and the Building Renewal Allocation Fund.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Operational Savings (Prog 567 Accounting) Gen 0 0 Cash 0 0 Fed 0 0 Rev -2,344 -2,344

* Process Improvements (Prog 567 Accounting) Gen 0 0 Cash 0 0 Fed 0 0 Rev -254,502 -198,352

* Increase the base appropriation for the State Insurance Gen 0 0 Program. (Prog 594 Insurance) Cash 0 0 Fed 0 0 Rev 2,000,000 2,000,000

* Restructuring of Personnel Staff . (Prog 605 Personnel) Gen -170,252 -174,015 Eliminate a personnel Program Administrator and a .5FTE Cash 0 0 Researach Analyst position and operating expenses. This Fed 0 0 reduction would require a reorganization with some services Rev 0 0 terminating.

* Operational Savings (Prog 605 Personnel) Gen 0 0 Cash 0 0 Fed 0 0 Rev -46,932 -46,932

* State Employees Health Insurance Plan Consulting Fees. (Prog Gen 0 0 606 Benefits Admin) Cash 190,000 0 Fed 0 0 Rev 0 0

* Operational Savings (Prog 606 Benefits Admin) Gen 0 0 Cash -3,814 -3,814 Fed 0 0 Rev 0 0

* Transfer funding for Capitol HVAC Project Manager from Gen 0 0 Program 922 to Program 685. (Prog 685 Capitol Commission) Cash 98,417 104,677 Fed 0 0 Rev 0 0

Agency 66 Abstracter's Board of Examiners ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 0 0 Cash 255 449 Fed 0 0

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 0 0 Cash 0 0 Fed 0 0

* Increase in Personal Vehicle Mileage. (Prog. 58) (Prog 58 Gen 0 0 Enforce standards) The Board is requesting an increase in the Cash 500 500 appropriation for personal vehicle mileage reimbursement. Fed 0 0 Two new Board members have to travel approximately 200 Rev 0 0 miles to attend Board meetings. They replaced two members who travelled approximately 50 to 60 miles to attend Board members. All Board meetings are held in Lincoln.

* Reduction in the Other Contractual Service Expenditure line. Gen 0 0 (Prog. 58) (Prog 58 Enforce standards) In the past when Cash -250 -250 additional office help was needed this line item expenditure Fed 0 0 was used. However, this has proved unnecessary for quite Rev 0 0 some time which allows for a reduction in this expense for the biennium.

* Reduce IT Consulting Expenditure. (Prog. 58) (Prog 58 Enforce Gen 0 0 standards) The same rationale as noted above regarding the Cash -1,000 -1,000 travel budget applies to this expenditure line. The Board’s Fed 0 0 director spent funds for software and hardware upgrades in Rev 0 0 the previous two fiscal years and continued expenditures at this level appear to be unnecessary

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduce Travel Budget. (Prog. 58) (Prog 58 Enforce standards) Gen 0 0 An analysis of the Board’s revenue and expenditures shows Cash -8,200 -8,200 that at the current and proposed expenditure levels, the Board Fed 0 0 will run out of money in approximately three fiscal years Rev 0 0 (sometime in FY2019-20). This is due, primarily, to a decline in certification by individuals and businesses. In order to maintain the fiscal integrity of the agency, two things are necessary: 1) a reduction in expenditures; and 2) an increase in fees. The proposed reductions in expenditures include an elimination of travel to the annual national conference. This would involve complete elimination of the expenditure for conference registration and commercial transportation and a substantial reduction in the expenditure for board & lodging. The travel budget, including conference registration, accounts for 20% of the agency’s total budget and is one the few areas that can be cut without overly impacting the agency’s operational effectiveness, role and mission.

* Reinstate Reduction in IT Consulting Expenditure (Prog 58 Gen 0 0 Enforce standards) The agency requests that the reduction in Cash 1,000 1,000 IT consulting expenditure in the preliminary reduction be Fed 0 0 restored. Rev 0 0

Agency 67 Equal Opportunity Commission ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 1,262,802 1,232,512 1,254,241 1,278,319 1,292,541 Cash 0 0 0 0 0 Federal 810,622 816,437 822,942 824,381 836,991 Revolving 0 0 0 0 0 Subtotal-Oper 2,073,424 2,048,949 2,077,183 2,102,700 2,129,532

Agency Total General 1,262,802 1,232,512 1,254,241 1,278,319 1,292,541 Cash 0 0 0 0 0 Federal 810,622 816,437 822,942 824,381 836,991 Revolving 0 0 0 0 0 Agency Total 2,073,424 2,048,949 2,077,183 2,102,700 2,129,532

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 7,352 12,940 Cash 0 0 Fed 6,520 11,475 Rev 0 0

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 8,165 16,799 Cash 0 0 Fed 7,239 14,894 Rev 0 0

Agency 68 Commission on Latino Americans ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 207,834 204,607 208,479 208,717 212,083 Cash 5,000 4,850 4,850 5,000 5,000 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Oper 212,834 209,457 213,329 213,717 217,083

Agency Total General 207,834 204,607 208,479 208,717 212,083 Cash 5,000 4,850 4,850 5,000 5,000 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Agency Total 212,834 209,457 213,329 213,717 217,083

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Funding for Commissioners travel to meetings (Prog 537 Gen 3,500 3,500 Latino American) The agency requested additional funding for Cash 0 0 travel reimbursement for commission meetings. By statute Fed 0 0 the commission is required to meet four times a year and Rev 0 0 other meetings may be called.

* Base Reduction (Prog 537 Latino American) Gen -6,235 -6,235 Cash 0 0 Fed 0 0 Rev 0 0

Agency 69 Nebraska Arts Council ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 618,415 607,473 614,128 595,401 590,041 Cash 90,000 90,266 90,543 90,000 90,000 Federal 193,247 196,571 199,129 193,247 193,247 Revolving 0 0 0 0 0 Subtotal-Oper 901,662 894,310 903,800 878,648 873,288

State Aid General 943,069 898,319 898,319 943,069 943,069 Cash 1,395,000 1,395,000 1,395,000 1,395,000 1,395,000 Federal 545,800 545,800 545,800 545,800 545,800 Revolving 0 0 0 0 0 Subtotal-Aid 2,883,869 2,839,119 2,839,119 2,883,869 2,883,869


Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 5,826 10,254 Cash 0 0 Fed 0 0

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 2,973 6,116 Cash 0 0 Fed 0 0

* Accumulated benefit payments for one retiring employee. Gen 14,460 0 (Prog 326 Promote/develop arts) Funding is included in the Cash 0 0 FY17-18 budget to pay out accumulated benefits upon the Fed 0 0 retirement of a long-time agency employee. Rev 0 0

* Eliminate contractual services for database support. (Prog 326 Gen -7,897 -7,897 Promote/develop arts) Contractual services for agency’s Cash 0 0 database and grant management support system was Fed 0 0 eliminated. Rev 0 0

* Eliminate scheduled computer replacement. (Prog 326 Gen -7,500 -7,500 Promote/develop arts) The Appropriations Committee Cash 0 0 recommendation reduces funding for the schedule Fed 0 0 replacement of laptop computers used by agency staff. Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduce funding for staff development. (Prog 326 Gen -8,100 -8,100 Promote/develop arts) Agency staff are currently provided Cash 0 0 with one professional development opportunity and are Fed 0 0 required to participate in training sessions offered by the Rev 0 0 Department of Administrative Services. Funding for this purpose was reduced on an annual basis.

* Eliminate travel reimbursement for members of the Arts Gen -5,000 -5,000 Council and grant review panels. (Prog 326 Promote/develop Cash 0 0 arts) Funding was reduced for travel reimbursement Fed 0 0 expenses currently budgeted for members of the Arts Council Rev 0 0 and members of grant review panels. Under law, the Council members must be reimbursed for mileage costs, and because grant review panels are subject to the Open Meetings Act, panel participants are also eligible for mileage reimbursement.

* Eliminate funding dedicated for database update. (Prog 326 Gen -5,000 -5,000 Promote/develop arts) Funding for a planned update to the Cash 0 0 grant application database was eliminated. Fed 0 0 Rev 0 0

* Eliminate consulting services for strategic planning. (Prog 326 Gen -5,000 -5,000 Promote/develop arts) Consulting services for the agency Cash 0 0 strategic planning process would be reduced in the FY17-19 Fed 0 0 biennium. Rev 0 0

* Eliminate funding for Statewide Arts Conference. (Prog 326 Gen -6,000 -6,000 Promote/develop arts) Every other year, the agency holds a Cash 0 0 statewide conference to convene the arts industry for the Fed 0 0 purposes of professional development and networking. Rev 0 0 Funding for the conference has been eliminated.

* Funding for point-to-point internet connection costs. (Prog 326 Gen 7,200 7,200 Promote/develop arts) The Appropriations Committee Cash 0 0 approved funding to allow for a point-to-point internet Fed 0 0 connection to be established between the agency Rev 0 0 headquarters in Omaha and State network, located in Lincoln. It is anticipated that great system reliability, security, speed and maintenance will result from the connection.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Defer $500,000 annual General Fund transfer to Cultural Gen 0 0 Preservation Endowment Fund in FY17-18 and FY18-19. Cash 0 0 Include language in LB 331 to extend the end date of the Fed 0 0 transfers by two years. (Prog 329 Cultural Trust) Current law Rev 0 0 provides that in beginning FY17-18, $500,000 would be transferred from the General Fund to the Cultural Preservation Endowment Fund for ten years, contingent upon evidence of private matching funds. The Appropriations Committee recommends deferring the start of transfers until FY19-20, but also extends the end date of the transfers by two years.

Agency 70 Foster Care Review Office ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19


Agency Total General 1,865,446 1,841,906 1,872,766 2,071,366 2,095,106 Cash 135,700 138,136 140,657 5,700 5,700 Federal 609,592 407,203 407,203 433,692 441,607 Revolving 0 0 0 0 0 Agency Total 2,610,738 2,387,245 2,420,626 2,510,758 2,542,413

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Adjust the federal fund base. (Prog 116) (Prog 116 Foster Gen 0 0 care review) The federal fund base is too high. Although the Cash 0 0 federal formula has not changed. Factors influencing the Fed -184,542 -184,542 reduction in federal funds are twofold: The income limits by Rev 0 0 federal law are based on ADC eligibility in 1996, therefore fewer children are eligible as incomes have increased. More children are in relative placements; many of whom are not licensed. For Title IV-E eligibility, the placement must be licensed.

* Annualize LB746, continue base funding for Childrens Gen 190,000 190,000 Commission (Prog 353 Childrens Commission) Cash -130,000 -130,000 Fed 0 0 Rev 0 0

* Reduce operating costs (Prog 353 Childrens Commission) Gen -12,571 -14,951 Cash 0 0 Fed 0 0 Rev 0 0

Agency 71 Nebraska Energy Office ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 218,472 0 0 0 0 Cash 435,438 435,236 435,236 440,541 445,083 Federal 1,499,578 1,493,049 1,493,049 1,512,124 1,528,081 Revolving 0 0 0 0 0 Subtotal-Oper 2,153,488 1,928,285 1,928,285 1,952,665 1,973,164

State Aid General 0 0 0 0 0 Cash 1,000,000 564,562 564,562 564,562 564,562 Federal 6,349,656 6,349,656 6,349,656 6,310,539 6,264,253 Revolving 0 0 0 0 0 Subtotal-Aid 7,349,656 6,914,218 6,914,218 6,875,101 6,828,815

Agency Total General 218,472 0 0 0 0 Cash 1,435,438 999,798 999,798 1,005,103 1,009,645 Federal 7,849,234 7,842,705 7,842,705 7,822,663 7,792,334 Revolving 0 0 0 0 0 Agency Total 9,503,144 8,842,503 8,842,503 8,827,766 8,801,979

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 0 0 Cash 2,872 5,055 Fed 9,893 17,411

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 0 0 Cash 2,231 4,590 Fed 7,981 16,420

* One-time item, LB 469 (2015) state energy plan (Prog 106) Gen -218,472 -218,472 (Prog 106 Energy Office) LB 469 (2015) provided funding for Cash 0 0 the NEO to develop a state energy plan. The agency has Fed 0 0 completed the plan and is not requesting any additional Rev 0 0 funding.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Adjust base appropriation amount, Cash Aid (Prg. 106) (Prog Gen 0 0 106 Energy Office) The reduced level of Cash Aid will more Cash -435,438 -435,438 accurately reflect historic expenditure levels. Fed 0 0

* Adjustments Offsetting Salary and Health Insurance (Prg. 106) Gen 0 0 (Prog 106 Energy Office) This is simply a way for the agency Cash 0 0 to offset the salary and health increases in order to maintain a Fed -44,445 -90,731 flat budget. Rev 0 0

Agency 72 Dept of Economic Development ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19


State Aid General 7,360,000 7,260,000 7,260,000 6,821,200 6,821,200 Cash 27,712,194 23,612,194 23,612,194 23,612,194 23,612,194 Federal 24,187,291 19,187,291 19,187,291 19,090,384 19,090,384 Revolving 0 0 0 0 0 Subtotal-Aid 59,259,485 50,059,485 50,059,485 49,523,778 49,523,778


Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Reduction of operating costs. (Prog 601 Community/Rural Gen -42,000 -42,000 Develop) General funds are used to support a portion of the Cash 0 0 Housing and Community Development Division operating costs. Fed 0 0 The Appropriations Committee recommendation would Rev 0 0 reduce $42,000 of operating costs.

* Eliminate Economic Development Consultant position assigned Gen -75,119 -75,119 to the research function. (Prog 603 Industry Recruit) Cash 0 0 A staff position that is assigned to the research division of the Fed 0 0 agency is eliminated in the Appropriations Committee Rev 0 0 recommendation.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduce management consultant services. (Prog 603 Industry Gen -270,000 -270,000 Recruit) Management consultant services would be reduced Cash 0 0 by $270,000. The Department utilizes management consultant Fed 0 0 services to assist with a variety of services such as external Rev 0 0 research, international business consulting, site and building analysis, and niche business recruitment opportunities.

* Reduce vehicle mileage allotment. (Prog 603 Industry Recruit) Gen -25,000 -25,000 Funding currently available to reimburse employees using Cash 0 0 their personal vehicles to travel to work related trips would be Fed 0 0 eliminated. Rev 0 0

* Reduce .36 FTE Economic Development Manager position. Gen -29,273 -29,273 (Prog 603 Industry Recruit) An Economic Development Cash 0 0 Manager position assigned to the small business credit Fed 0 0 initiative would be eliminated. The agency notes that some of Rev 0 0 the responsibilities carried out by this position are anticipated to end in 2017.

* Eliminate 1 FTE Economic Development Business Consultant Gen -78,745 -78,745 position. (Prog 603 Industry Recruit) A budget reduction Cash 0 0 eliminates 1 FTE Economic Development Business Consultant Fed 0 0 position, including salary, benefits and related operating and Rev 0 0 travel costs.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Transfer to General Fund: Affordable Housing Trust Fund, Gen 0 0 FY17-18 $2,250,000, FY18-19 $2,250,000 (Prog 601 Cash 0 0 Community/Rural Develop) The Appropriations Committee Fed 0 0 recommends a transfer of $2,250,000 from the Affordable Rev 0 0 Housing Trust Fund to the General Fund in both FY17-18 and FY18-19.

* Reduce cash fund state aid expenditure authority. (Prog 603 Gen 0 0 Industry Recruit) The recommendation includes a reduction in Cash -4,500,000 -4,500,000 the expenditure authority of the Job Training Cash Fund, to Fed 0 0 bring the appropriation in line with past year expenditures. Rev 0 0

* Reduced funding for GROW Nebraska. (Prog 603 Industry Gen -50,000 -50,000 Recruit) Funding for GROW Nebraska, a non-profit Cash 0 0 organization providing marketing assistances to small Fed 0 0 businesses, particularly in rural areas, is reduced by 50%. Rev 0 0

* Reduce Business Innovation Act commercialization grants. Gen -488,800 -488,800 (Prog 603 Industry Recruit) The Appropriations Committeer Cash 0 0 recommendation would reduce the commercialization grant Fed 0 0 funding available under the Business Innovation Act by Rev 0 0 $488,800 on an annual basis.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Civic & Community Center Finance Fund, increase in cash fund Gen 0 0 state aid spending authority (Prog 655 Civic/Convention Aid) Cash 400,000 400,000 Increased cash fund spending was approved for the Civic and Fed 0 0 Community Center Finance Fund. The fund is used for grants Rev 0 0 to communities for the construction of new civic and recreation centers or the renovation or expansion of existing civic, community, and recreation centers, which may include the conversion, rehabilitation, or reuse of historic buildings. The fund may also be used for preliminary planning related to the development or rehabilitation of eligible projects.

* Transfer to General Fund: Civic and Community Center Gen 0 0 Financing Fund, FY17-18 $500,000, FY18-19 $500,000 (Prog Cash 0 0 655 Civic/Convention Aid) The Appropriations Committee Fed 0 0 recommends a transfer of $500,000 from the Civic and Rev 0 0 Community Center Financing Fund to the General Fund in both FY17-18 and FY18-19.

Agency 73 State Board of Landscape Architects ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Increase in e-commerce expenditures associated with Gen 0 0 implementation of online license renewal system. (Prog. 597) Cash 0 1,100 (Prog 597 Landscape Architects) In response to requests Fed 0 0 from current licensees, the Board plans to offer online license Rev 0 0 renewal beginning in FY2018-19 if legislation that will be proposed during the 2017 legislative session is adopted. Legislation is required because current statute requires all licensees to submit documentation of 15 hours of professional development as a condition of renewal. This provision would be removed and only a percentage of those renewing would be selected for a continuing education audit which would then allow online license renewal for the majority of landscape architects because they would not have to submit the continuing education documentation with their renewal form and fee. In addition, online renewals would allow licensees to pay by credit card and streamline the entire renewal process.

* Increase in educational outreach expenditures. (Prog. 597) Gen 0 0 (Prog 597 Landscape Architects) The Board has discovered Cash 250 250 that the profession of landscape architecture is poorly Fed 0 0 understood. The general public and even other professions Rev 0 0 are often unaware of the laws that govern landscape architecture and somewhat confused between the services provided by a professional landscape architect and a landscape designer. The Board also believes it is important for landscape architectural students to understand education, examination, and experience requirements for licensure. In order to accomplish this objective, the Board proposes to distribute educational and promotional material at statewide conference, giving presentations, or meeting with other related professional boards or governmental entities.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Increase in administrative services contract with NBEA. (Prog. Gen 0 0 597) (Prog 597 Landscape Architects) The Board has no Cash 491 991 employees of its own and operates under an administrative Fed 0 0 services contract with the Board of Engineers and Architects Rev 0 0 (NBEA). NBEA staff manages the Board’s finances, licensing and renewal procedures, compliance and enforcement activities, provides office space and supplies, and acts as the Board’s liaison with the public and other state agencies. The increase in the contract cost is attributed to an increase in the amount of staff time, primarily an administrative assistant, spent on the Board’s business; an increase in NBEA staff wages; and the need for additional NBEA staff time for implementing the incorporation of the Board’s processes and information into a new database platform managed by NBEA. This represents a 3% and 7% increase in the contract amount for the respective fiscal years and is in line with past contract increases.

* Increase in CLARB membership dues. (Prog. 597) (Prog 597 Gen 0 0 Landscape Architects) CLARB has had a three-year Cash 120 245 membership dues freeze in place for three years. That freeze Fed 0 0 will expire on September 30, 2017. Dues are to be paid in Rev 0 0 October 2017 and are expected to increase by 3% with an additional 3% increase in successive years.

* Increase in travel expenditures associated with attendance at Gen 0 0 Council of Landscape Architectural Registration Boards Cash 1,301 1,301 (CLARB) national annual meeting. (Prog. 597) (Prog 597 Fed 0 0 Landscape Architects) The Board believes it is important that Rev 0 0 at least two board members and the administrative assistant that handles the Board’s business attend the annual CLARB meeting. CLARB members include all landscape architect registration boards in the United States, Puerto Rico, and the Canadian provinces of Alberta, British Columbia, and Ontario. Attending the meeting allows the Nebraska Board members to stay current on emerging trends and issues in order to regulate and license professional landscape architects.The requested appropriation would cover increased costs for the meeting registration, board and lodging. Typically, the annual meeting is held in a large metropolitan hotel at a quality hotel. The Board indicates that not attending the CLARB annual meeting means that Nebraska Board will not have a voice or be able to vote on issues that affect licensure or the practice of landscape architects in Nebraska. Previously one board member’s attendance at the annual meeting was paid for by CLARB because that member served as a CLARB officer. However, that position has ended and the expenses will no longer be covered by CLARB.

Agency 74 Power Review Board ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Decrease in Operating Expenses (Prg. 072) (Prog 72 Enforce Gen 0 0 standards) The PRB is requesting a small reduction in their Cash -302 -302 appropriation due to lower operating costs. Fed 0 0 Rev 0 0

Agency 75 Nebraska Investment Council ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Eliminate one-time funding for LB477 (2016) OSERS transition Gen 0 0 costs. (Prog 610 Investment admin) Cash -150,000 -150,000 Fed 0 0 Rev 0 0

Agency 76 Nebraska Commission on Indian Affairs




Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Reduced travel and overtime (Prog 584 Indian Affairs) The Gen -7,989 -7,989 agency will prioritzed travel for commission meetings and Cash 0 0 meetings with government officials. The agency has three Fed 0 0 staff, so overtime is used to complete work. With this Rev 0 0 reduction, they will not be able to pay overtime.

* Health Insurance Adjustment (Prog 584 Indian Affairs) Staff Gen -16,424 -16,424 changes resulted in less costs for health insurance. Cash 0 0 Fed 0 0 Rev 0 0

Agency 77 Commission of Industrial Relations ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 325,660 319,685 339,094 325,272 328,782 Cash 0 0 0 0 0 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Oper 325,660 319,685 339,094 325,272 328,782

Agency Total General 325,660 319,685 339,094 325,272 328,782 Cash 0 0 0 0 0 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Agency Total 325,660 319,685 339,094 325,272 328,782

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Operational savings (Prog 490 Commissioner Expenses) Gen -4,000 -4,000 Cash 0 0 Fed 0 0 Rev 0 0

* Additional Health Insurance. (Prog 531 Industrial Relations) Gen 8,648 8,648 Due to a qualifying event it is necessary for an employee to Cash 0 0 add spouse as a dependent for health insurance coverage. Fed 0 0 Rev 0 0

* Eliminate printing the CIR Reporter. (Prog 531 Industrial Gen -3,000 -3,000 Relations) The CIR Reporter is the official publication of the Cash 0 0 decisions of the Commission. The decisions will still be Fed 0 0 available to interested parties through the CIR website. Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduce Court Reporter Costs. (Prog 531 Industrial Relations) Gen -1,000 -1,000 The impact would be to preclude the Commission from Cash 0 0 holding a trial if there was insufficient funds to pay a court Fed 0 0 reporter. Rev 0 0

* Reduce Legal Counsel Costs. (Prog 531 Industrial Relations) Gen -1,850 -1,850 Eliminate Legal Counsel travel expenditures to all conferences Cash 0 0 except the Nebraska Bar Association’s annual conference. Fed 0 0 Rev 0 0

* Reduce Operating Costs. (Prog 531 Industrial Relations) Gen -2,957 -2,957 Cash 0 0 Fed 0 0 Rev 0 0

Agency 78 Nebr Commission on Law Enforcement and Criminal Justice ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19


State Aid General 7,823,828 7,643,828 7,643,828 7,823,828 7,823,828 Cash 303,474 303,474 303,474 278,474 278,474 Federal 7,274,739 7,274,739 7,274,739 15,814,947 15,814,947 Revolving 0 0 0 0 0 Subtotal-Aid 15,402,041 15,222,041 15,222,041 23,917,249 23,917,249


Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Criminal Justice Information System Fund Shift (Prog 0 Gen 0 0 Agency-wide) Utilize $220,000 from the Community Cash 220,000 220,000 Corrections Uniform Data Analysis Cash Fund each year in Prog Fed -220,000 -220,000 220 and reduce federal funds by similar amount in Prog 215. Rev 0 0

* Modification: Reduction In Staffing (Prog 0 Agency-wide) Gen -231,000 -231,000 Cash 0 0 Fed 0 0

* Allow agency to transfer PSL among various programs (Prog 0 Gen 0 0 Agency-wide) Cash 0 0 Fed 0 0 Rev 0 0

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduction in administrative costs, County Justice Reinvestment Gen -79,109 -79,109 Grant Program created by Laws 2015, LB605 (Prog 198 Cash 0 0 Central Admin) Fed 0 0 Rev 0 0

* Annualize LB 843, 2016 - Sexual Assault Payment Program Gen 108,600 108,600 (Prog 201 Victim witness) Cash 0 0 Fed 434,400 434,400 Rev 0 0

* Increased Funds - Victims of Crime Act (Prog 201 Victim Gen 0 0 witness) The large increase of funds is due to Congress Cash 0 0 raising the cap for funding based on a large amount of high Fed 8,996,140 8,996,140 dollar fines and penalties being paid from federal cases. Rev 0 0 Federal VOCA funds are not tax dollars but come from fines and penalties from defendants of federal cases. The increase is split between operations of $455,932 and aid of $8,540,208.

* Annualize LB 505A, 2016, Criminal history record information Gen -30,000 -30,000 changes: One-time cost for programming change (Prog 215 Cash 0 0 CJIS) Fed 0 0 Rev 0 0

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Remove One-Time Transfer from Aid Base (Prog 202 Victims Gen 0 0 reparations) Cash -50,000 -50,000 Fed 0 0 Rev 0 0

* LB 580 Appropriate funds, Office of Violence Prevention (Prog Gen 0 0 204 Violence Prevention) Transfer $25,000 from the Cash 25,000 25,000 Department of Motor Vehicles Ignition Interlock Fund to the Fed 0 0 Violence Prevention Cash Fund in both FY18 and FY19, and Rev 0 0 increase the Cash Fund appropriation by $25,000 in both FY18 and FY19.

Agency 81 Commission for the Blind and Visually Impaired ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 971,637 941,878 950,229 994,623 1,005,083 Cash 88,746 89,279 89,840 138,746 138,746 Federal 3,666,479 3,696,183 3,739,767 3,697,365 3,736,024 Revolving 0 0 0 0 0 Subtotal-Oper 4,726,862 4,727,340 4,779,836 4,830,734 4,879,853

State Aid General 176,890 176,890 176,890 216,890 216,890 Cash 10,000 10,000 10,000 10,000 10,000 Federal 989,593 989,593 989,593 949,593 949,593 Revolving 0 0 0 0 0 Subtotal-Aid 1,176,483 1,176,483 1,176,483 1,176,483 1,176,483

Agency Total General 1,148,527 1,118,768 1,127,119 1,211,513 1,221,973 Cash 98,746 99,279 99,840 148,746 148,746 Federal 4,656,072 4,685,776 4,729,360 4,646,958 4,685,617 Revolving 0 0 0 0 0 Agency Total 5,903,345 5,903,823 5,956,319 6,007,217 6,056,336

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Shift federal portion of rent surcharge to general funds (Prog Gen 11,513 11,513 357 Blind/Visually Impaired) The recommendation provides Cash 0 0 for the federal portion of the state building division’s Fed -11,513 -11,513 surcharge for rent in state owned buildings to be paid with Rev 0 0 general funds. It has been determined by DAS Accounting that these charges are not allowable federal expenses as they have been determined to be duplicative. The total charge for this expense is $14,629. The agency has been paying 21.3% of the expense with general funds and 78.7% with federal funds. The recommendation shifts the federal portion to general funds.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Increase cash fund authority to provide flexibility to spend Gen 0 0 additional program income (Prog 357 Blind/Visually Impaired) Cash 50,000 50,000 Fed 0 0 Rev 0 0

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Replace federal funds with general funds to continue to serve Gen 40,000 40,000 clients without a vocational goal (Prog 357 Blind/Visually Cash 0 0 Impaired) The recommendation allows the agency to Fed -40,000 -40,000 continue to provide independent living services for certain Rev 0 0 individuals. Prior to the passage of the federal Workforce Innovation and Opportunities Act, the agency was charged with using Part B of the Rehabilitation Act funds for independent living services. The services were provided to persons without a vocational goal which included children under the age of 14 and adults up to age 55. Now, the designated entity for the independent living grant funds is the Monroe Meyer Institute in Omaha. The Commission and the Monroe Meyer Institute indicate that services to the blind, specifically, but not limited to Braille instruction, Mobility Training, and Computer Access programs will not be addressed by the Institute. The recommendation maintains an appropriation at NCBVI to serve this population. The services help blind persons stay out of institutions or nursing homes and are important for families of young children.

Agency 82 Commission for the Deaf and Hard of Hearing ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ Operations General 1,016,914 998,241 1,010,338 998,178 1,008,192 Cash 16,600 16,659 16,659 16,600 16,600 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Oper 1,033,514 1,014,900 1,026,997 1,014,778 1,024,792

Agency Total General 1,016,914 998,241 1,010,338 998,178 1,008,192 Cash 16,600 16,659 16,659 16,600 16,600 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Agency Total 1,033,514 1,014,900 1,026,997 1,014,778 1,024,792

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Reduce operating costs (Prog 578 Hearing impaired) Travel Gen -30,000 -30,000 and operating funds.are reduced. Cash 0 0 Fed 0 0 Rev 0 0

* Reappropriation of $100,000 GF in FY 2017-18 for one-time Gen 0 0 costs. (Prog 578 Hearing impaired) Cash 0 0 Fed 0 0 Rev 0 0

Agency 83 Community Colleges ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19

___________________________________________________________________ State Aid General 100,828,308 97,803,459 97,803,459 100,828,308 99,828,308 Cash 0 0 0 0 0 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Aid 100,828,308 97,803,459 97,803,459 100,828,308 99,828,308

Agency Total General 100,828,308 97,803,459 97,803,459 100,828,308 99,828,308 Cash 0 0 0 0 0 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Agency Total 100,828,308 97,803,459 97,803,459 100,828,308 99,828,308

Blank

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduce community college state aid. (Prog 151 Comm College Gen 0 -1,000,000 aid) State aid to community college areas for 2017-18 is Cash 0 0 maintained at the 2016-17 appropriation level. For 2018-19, Fed 0 0 the state aid appropriation level is reduced $1,000,000. Rev 0 0

Agency 84 Dept of Environmental Quality ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19


State Aid General 2,141,196 316,200 316,200 316,200 316,200 Cash 19,077,601 18,505,273 18,505,273 19,077,601 19,077,601 Federal 15,705,000 15,705,000 15,705,000 15,705,000 15,705,000 Revolving 0 0 0 0 0 Subtotal-Aid 36,923,797 34,526,473 34,526,473 35,098,801 35,098,801


Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* General reductions in Air and Water Quality programs. (Prog Gen -146,244 -146,244 513 Administration) The Appropriations Committee Cash 0 0 recommendation includes general operating reductions to the Fed 0 0 Air Quality and Water Quality programs. Rev 0 0

* Reduction in water quality testing. (Prog 513 Administration) Gen -39,263 -39,263 The Nebraska Department of Environmental Quality is charged Cash 0 0 with the task of monitoring, assessing, and to the extent Fed 0 0 possible, managing the quality of the state’s surface water Rev 0 0 resources. A reduction in funds allocated for water quality testing is recommended.

* Reduction in the groundwater management protection area Gen -33,263 -33,263 program. (Prog 513 Administration) The groundwater Cash 0 0 management protection area program focuses on assessing Fed 0 0 areas where groundwater problems from nonpoint source Rev 0 0 contaminants exist or are likely to exist, and is carried out in conjunction with Natural Resources Districts. Funding provided for DEQ program assistance would be reduced.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduction of Community Right-to-Know program. (Prog 513 Gen -80,000 -80,000 Administration) The Community Right to Know program is a Cash 0 0 state-mandated program that requires DEQ to retain Fed 0 0 information and files on hazardous substances that various Rev 0 0 facilities have on site, provide information to the public on request, to receive notices of toxic pollutant releases and to provide information to local emergency management officials. The reduction in this program would limit the amount of

agency outreach to local officials and the public.

* Transfer to General Fund: Nebraska Litter Reduction and Gen 0 0 Recycling Cash Fund FY17-18 $700,000 FY18-19 $200,000 Cash 0 0 (Prog 513 Administration) The Appropriations Committee Fed 0 0 recommendation includes a transfer of $700,000 from the Rev 0 0 Litter Reduction and Recycling Cash Fund to the General Fund in FY17-18, and $200,000 to the General Fund in FY18-19.

* Transfer to General Fund: Petroleum Release Remedial Action Gen 0 0 Cash Fund FY17-18 $1,200,000 FY18-19 $500,000 (Prog 513 Cash 0 0 Administration) The Appropriations Committee Fed 0 0 recommendation includes a transfer of $1,200,000 from the Rev 0 0 Petroleum Release Remedial Action Cash Fund to the General Fund in FY17-18, and $500,000 to the General Fund in FY18-19.

* Transfer to General Fund: Waste Reduction and Recycling Gen 0 0 Incentive Fund FY17-18 $900,000 FY18-19 $400,000 (Prog Cash 0 0 513 Administration) The Appropriations Committee Fed 0 0 recommendation includes a transfer of $900,000 from the Rev 0 0 Waste Reduction and Recycling Cash Fund to the General Fund in FY17-18, and $400,000 to the General Fund in FY18-19 State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Elimination of stormwater grant program. (Prog 513 Gen -1,824,996 -1,824,996 Administration) The stormwater grant program provides Cash 0 0 funding for communities in the state to implement local Fed 0 0 stormwater management programs. The Appropriations Rev 0 0 Committee eliminated all program funding.

* Revision of Petroleum Release Remedial Action Cash Fund use Gen 0 0 to include funding for Superfund cost share costs. (Prog 513 Cash 0 0 Administration) The Appropriation Committee approved a Fed 0 0 revision to the use of the Petroleum Release Remedial Action Rev 0 0 Cash Fund. The use of the fund will be expanded to allow up to $1,500,000 to be used for Superfund cost share and site maintenance costs.

Agency 85 Public Employees Retirement Board ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* DAS assessment changes (Prog 41 Admin of retirement) Gen 0 0 Cash 39,908 51,444 Fed 0 0 Rev 0 0

* Eliminate one-time cost - LB467 (Prog 41 Admin of retirement) Gen 0 0 Cash -77,164 -77,164 Fed 0 0 Rev 0 0

* Reappropriate the unexpended balance. (Prog 41 Admin of Gen 0 0 retirement) Reappropriate the unexpended balance up to Cash 0 0 $500,000 existing on June 30, 2017 for a document scanning Fed 0 0 project originally appropriated for FY2015-16. Rev 0 0

* State Patrol Defined Benefit Plan (Prog 515 Retirement Gen -184,180 2,174,262 contributions) The November 22, 2016 Actuarial Valuation Cash 0 0 Report indicates the State Patrol Plan is slightly over funded Fed 0 0 for FY2018 and that additional funding is needed for FY2019 Rev 0 0 for the actuarially required contribution.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* School Employee Defined Benefit Plan (Prog 515 Retirement Gen 1,119,747 1,380,400 contributions) The November 22, 2016 Actuarial Valuation Cash 0 0 Report indicates additional funding is required for the state’s Fed 0 0 2% of salary contribution. Rev 0 0

* Judges’ Defined Benefit Plan. (Prog 515 Retirement Gen 118,714 979,000 contributions) The November 22, 2016 Actuarial Valuation Cash 0 0 Report indicates additional funding is needed for the Fed 0 0 actuarially required contribution. Rev 0 0

* Omaha School Employee Defined Benefit Plan. (Prog 515 Gen 231,080 342,099 Retirement contributions) The November 22, 2016 Actuarial Cash 0 0 Valuation Report indicate additional funding is required for the Fed 0 0 state’s 2% of salary contribution and the state service annuity Rev 0 0 contribution for FY2019.

Agency 86 Dry Bean Commission ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 0 0 Cash 492 866 Fed 0 0 Rev 0 0

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 0 0 Cash 299 615 Fed 0 0 Rev 0 0

* Increased cash fund spending authority (Prog 137 Dry Bean Gen 0 0 Comm) The Dry Bean Commission receives revenue from a Cash 8,000 29,002 15 cent per hundredweight checkoff on the sale of dry beans Fed 0 0 produced in Nebraska. The Appropriations Committee Rev 0 0 recommendation will allow the agency to allocate additional resources to staffing and marketing.

Agency 87 Nebr Accountability and Disclosure Commission ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 3,707 6,524 Cash 1,641 2,888 Fed 0 0

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 3,847 7,914 Cash 1,846 3,797 Fed 0 0

* Decrease in Publication and Printing/Worker’s Comp. Expenses Gen -2,157 -2,157 (Prog 94 Account/disclosure) The NADC is requesting a Cash -454 -454 small reduction in their appropriation due to lower operating Fed 0 0 costs. This issue also includes a $14 increase for accounting Rev 0 0 expenses and a $90 increase in purchasing.

* Reduce base General Funds by 8% (Prog 94 Gen -39,705 -39,705 Account/disclosure) Cash 0 0 Fed 0 0

* Restore funding for staff (Prog 94 Account/disclosure) In the Gen 15,000 15,000 hearing, the NADC requested restoration of $15,000 to Cash 0 0 address staffing needs. By taking the full 8% of modification Fed 0 0 dollars, the agency is faced with a disproportionate staffing Rev 0 0 reduction. This is an agency with 8 FTE. A reduction of 1 FTE is the equivelant of a 12.5% staffing reduction to accommodate an 8% funding reduction. Restoration of $15,000 per year was provided.

Agency 88 Nebraska Corn Board ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Corn Board, increased cash fund spending authority. (Prog Gen 0 0 384 Corn Board) The Corn Board receives its revenue from a Cash 900,000 900,000 5/10 of 1 cent per bushel checkoff assessed upon corn Fed 0 0 marketed in the state. The agency request includes an Rev 0 0 additional $900,000 in spending authority that would be used for ongoing agency research, promotion and marketing efforts. No additional staff would be hired. The request is based upon the large amount of corn in storage and the dwindling amount of available storage space. The agency believes that some of the corn currently in storage will be marketed, resulting in increased checkoff revenue.

Agency 91 Nebraska Tourism Commission ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19


State Aid General 250,000 0 0 0 0 Cash 602,600 852,600 852,600 852,600 852,600 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Subtotal-Aid 852,600 852,600 852,600 852,600 852,600

Agency Total General 250,000 0 0 0 0 Cash 5,762,007 5,862,491 5,873,884 6,530,577 6,532,765 Federal 0 0 0 0 0 Revolving 0 0 0 0 0 Agency Total 6,012,007 5,862,491 5,873,884 6,530,577 6,532,765

Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Appropriation levels for Visitors Promotion Cash Fund (Prog Gen 0 0 618 Tourism Promotion) An increased cash fund Cash 500,000 500,000 appropriation is recommended for the agency, based upon Fed 0 0 growth in lodging tax revenue, which has increased by Rev 0 0 approximately $500,000 per year in recent years.

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* Reduction of General Funds allocated for state aid, replaced Gen -250,000 -250,000 with cash funds. (Prog 618 Tourism Promotion) The Cash 250,000 250,000 Appropriations Committee eliminated the $250,000 General Fed 0 0 Funds budgeted for state aid, but approved a corresponding Rev 0 0 Cash Fund increase for state aid.

Agency 92 Nebraska Grain Sorghum Board ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19



Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 0 0 Cash 586 1,031 Fed 0 0 Rev 0 0

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 0 0 Cash 0 0 Fed 0 0 Rev 0 0

Agency 93 Tax Equalization and Review Commission




Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________



* Operations funding shift from Cash Fund to General Fund. Gen 20,000 20,000 (Prog. 115) (Prog 115 TERC operations) Beginning with Cash -25,000 -25,000 FY2011-12, the Commission was required by the Fed 0 0 Appropriations Committee to spend down what was Rev 0 0 considered to be an excessive balance in the Commission’s Cash Fund and reduce the Cash Fund to a more appropriate balance. At that time the Cash Fund appropriation was set at $115,000 per fiscal year. For the 2015-2017 biennium, the Commission’s Cash Fund appropriation was reduced by $45,000 and increased the General Fund appropriation by $45,000. This current issue would further reduce the Commission’s reliance on their Cash Fund and restore spending to the General Fund appropriation.

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* Hold Fewer Hearing Outside of the Lincoln Office. (Priority 1 of Gen -5,974 -5,974 2, Prog 115) (Prog 115 TERC operations) The Commission Cash 0 0 would hold fewer appeals hearings outside of the Lincoln Fed 0 0 office. There are a number of appeals filings from areas Rev 0 0 outside of Douglas and Lancaster Counties and these taxpayers would be forced to come to Lincoln for their hearings. This would create more expense for those taxpayers and their respective county officials.

Agency 94 Commission on Public Advocacy ___________________________________________________________________ Committee Committee Current Year Governor Governor Proposed Proposed FY2016-17 FY2017-18 FY2018-19 FY2017-18 FY2018-19




Blank

Operations FY2017-18 FY2018-19 ___________________________________________________________________________________

* FY18 / FY19 Salary Increases (Prog 0 Agency-wide) Gen 0 0 Cash 8,665 15,250 Fed 0 0

* FY18 / FY19 Health Insurance Increases (Prog 0 Agency-wide) Gen 0 0 Cash 3,508 7,216 Fed 0 0

* DAS Building Rent charges (Prog 425 Public Advocacy) Gen 0 0 Cash 3,437 7,687 Fed 0 0

* No funding beyond FY17 so remove funds from base (Prog Gen 0 0 430 Rural Practice Loan Repayment) Cash -1,500 -1,500 Fed 0 0

* Transfer from the Legal Education for Public Service and Rural Gen 0 0 Practice Loan Repayment Assistance Fund to the General Cash 0 0 Fund (Prog 430 Rural Practice Loan Repayment) The Fed 0 0 estimated amount of the one-time transfer is $95,000 in FY18. Rev 0 0

State Aid FY2017-18 FY2018-19 ___________________________________________________________________________________

* No funding beyond FY17 so remove funds from base (Prog Gen 0 0 430 Rural Practice Loan Repayment) Cash -150,000 -150,000 Fed 0 0

state of nebraska€¦ · state of nebraska fy2017-18 / fy2018-19 biennial budget as proposed by...

Documents