It’s important for our leaders to be truthful and not speak half-truths to burnish their image, particularly when it comes to the financial stability of the state, which affects every Nebraskan.

Accountability is not just a virtue — it’s a necessity for effective governance. Without it, financial stability and public trust are at risk.

For instance, governors going back at least several administrations have focused on Nebraska’s general fund budget, which is derived from sales, income and excise taxes paid to the state, instead of the total state budget.

All-Fund Budgets Matter

Excluding federal and cash funds leaves out an important part of the economic health of our state government and can give politicians a way to hide unpleasant facts from the voting public.

When the focus is on just the general fund, the annual total state budget can increase to a record high of $17.3 billion dollars, up from $14.6 billion just two years ago, and hardly anyone notices or cares.

Federal funds aren’t “free money.” They’re our tax dollars at work, and ignoring them skews the perception of Nebraska’s financial health. Other states benchmark their budgets including the use of fees and federal funds because they understand the fuller picture matters.

But Nebraska’s broader $2.7 billion-dollar increase isn’t the only budget issue. About $1.5 billion of that two-year increase was general fund spending, which contributed to the $432 million shortfall that Speaker John Arch has correctly labeled the session’s biggest priority.

Moving Money Around

Rather than admit to this dramatic increase, $1.2 billion was buried under the label “General Fund Transfers – Out.” This budget trickery allowed Gov. Jim Pillen and the Legislature to avoid owning up to the fact they’ve increased spending by over 20% since Pillen took office.

This isn’t just about a budget increase. It’s a calculated attempt to mislead Nebraskans about the true state of state finances. While the governor says he champions fiscal restraint, the reality is far different.

The state has buried $1.2 billion under the label of cash transfers intended for one-time spending to provide, they say, property tax credits and more funding for schools.

At that level of funding, property tax bills should be falling significantly, but property taxes keep rising for many. This kind of budget manipulation isn’t just an abstract issue. It directly affects Nebraskans.

Pillen and other governors have campaigned on cutting government spending, promising Nebraskans fiscal conservatism. When the time came to act, he and too many others sell out those promises and sign extravagant spending into law.

Tell Hard Truths

Pillen’s defenders explain away the spending increases, but no amount of technicalities or gimmicks can obscure the simple truth: General fund expenditures of Nebraska have grown dramatically since Jim Pillen became governor.

Calling it transfers doesn’t change the numbers or erase the truth. Frankly, the people of Nebraska deserve an honest explanation from state leaders, not tricks to avoid accountability.

Republicans are supposed to stand for fiscal discipline. Our values demand we live within our means and protect the hard-earned money of Nebraskans. It’s not just about numbers — it’s about trust. Nebraskans’ trust.

Before the governor puts out his budget request, and before the Legislature takes up the budget, Nebraskans deserve an honest accounting of how their money is being spent.

If our leaders cannot be straightforward about spending increases or use accounting maneuvers to obscure the truth, they risk undermining the public’s confidence in their stewardship.

Nebraskans expect and deserve a government that prioritizes transparency and fiscal responsibility over political convenience. Anything less is a disservice.

This story was published by Nebraska Examiner, an editorially independent newsroom providing a hard-hitting, daily flow of news. Read the original article: https://nebraskaexaminer.com/2025/01/14/time-to-tell-hard-truths-about-nebraska-state-spending-and-finance/

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