Loren Lippincott
In the legislature there are two committees that deal with money. One is the Revenue Committee that determines how money is brought into the treasury (think taxes). The other is the Appropriations Committee, which determines where money will be spent. This is the committee I have sat on since I was elected. It consists of nine senators and we meet daily, so it is the only committee on which we serve. All the other senators are on at least two committees.
This year (an odd numbered year) the legislature meets for 90 working days. This session we are building a biennial (two year) budget. Next year (an even numbered year) our session will last for 60 days and we will make fine tuning adjustments to the existing biennial budget.
This year’s budget process actually began last July 15, six months before our legislative session began. Forms were sent out to the Department of Administrative Services (DAS) and their state agencies for making their individual budget requests, based on former budgets and seeking justifications for any increases.
Following is the timeline of the committee’s work: On Sept. 15 state agency budget requests are due in the DAS and are sent to the legislature’s Fiscal Office where they are assigned to analysts overseeing each agency. Sept.-Jan. - Staff analyzes study requests by agencies, boards and commissions’ budget documents which are often over 200 pages in length. The staff works with the governor’s staff to formulate the budget recommendation.
In odd numbered years, the governor is required to submit his budget proposal by Jan. 15. The budget recommendation comes as a bill or bills introduced by the Speaker of the Legislature. Appropriation bills are referred to the Appropriations Committee.
During the first ten days of the session, senators introduce bills, which are assigned to committees based on subject matter. Most have a fiscal impact, and will have an “A” (Appropriation) bill attached to them.
Jan.-Feb. – The Appropriations Committee meets with the Fiscal Office Staff to review and discuss staff analysis of each agency’s budget requirements. The objective is to submit recommendations to the legislature within 30 working days after the governor’s budget submission.
March – The Appropriations Committee holds public hearings on the budget, which are published in the Legislative Journal. Agencies, interest groups and the general public all have an opportunity to comment. On the floor of the Legislature the bill and its “A” bill will be heard and advanced.
April – The Appropriations Committee meets for two weeks to complete a recommendation to be offered to the full legislature. The committee has until the 70th day (April 29) to place budget bills on the General File (1st round). One large bill appropriates most state funds for operation and state aid. There will be another bill for capital construction projects, another for deficit appropriation and yet another for state employee salaries. The legislature is to pass appropriation bills by the 80th day (May 15). An emergency clause is nearly always attached to appropriation bills. This requires 33 votes, representing a twothirds supermajority.
May – The governor has five days to sign or not sign a bill, after which it becomes law, or he can veto an entire bill or line item veto parts of a bill. If it’s vetoed or line item vetoed the Appropriations Committee must report its recommendation within one day. To override a veto takes a vote of three-fifths of the senators or 30 votes.
The state budget is over 10 inches thick and we go over it line by line, as do numerous agencies. It is shocking to me to see how much money is spent by the state. For instance, 40 percent of our entire state budget is spent on education. The University of Nebraska has a budget of $3 billion while our entire state budget is just over $5 billion. Meanwhile, Medicaid is 18 percent of our state budget. The amount spent on social programs is especially concerning. As Thomas Sowell said, “The welfare state is the oldest con game in the world. First you take people’s money away quietly and then you give some of it back to them flamboyantly.”
Loren Lippincott represents Legislative District 34 in the Nebraska State Senate. Read his column in the Nance County Journal.