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LINCOLN — Weeks after Gov. Jim Pillen made a controversial proposal to pull more than $40 million out of the Nebraska Environmental Trust, state lawmakers agreed to pull about $11.1 million from the Trust instead.
The Nebraska Legislature’s Appropriations Committee has met every day for the past week to debate specific budget adjustments with the goal of filling a projected $471 million budget deficit. The committee aims to finalize its proposed adjustments for floor debate by the end of this week.
The Environmental Trust distributes about $20 million a year in grants on a competitive basis from its 44.5% cut of the proceeds of the Nebraska Lottery. Most go to conservation and wildlife organizations, including Ducks Unlimited and the Sandhills Task Force or to local recycling programs. Grantees must obtain matching funds, which advocates say multiplies the impact.
Critics of Pillen’s proposal have questioned whether the transfer would be allowable under the Nebraska Constitution, which outlines how Trust funds should be used.
Pillen proposed sweeping $40.7 million from the Trust to be divided between two different funds. The largest portion, $32.7 million, would go to the Water Recreation Enhancement Fund to support a marina project at Lewis & Clark Lake in northeast Nebraska. The remaining $8 million would go to the Water Resources Cash Fund for grant funding for water projects.
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The committee voted 5-3 Monday to transfer $6 million to the Water Resources Cash Fund. The remaining $2 million was left untouched, which would have supported administrative costs for the state Department of Water, Energy, and Environment, which operates the fund. Lawmakers weren’t certain whether this would be an allowable use of Trust funds.
On Wednesday, the committee voted 6-3 to transfer roughly $5.1 million from the Trust specifically to support environmental endeavors at Lewis & Clark Lake. Legislative Fiscal Analyst Keisha Patent said the dollars would be used for dredging, erosion control and fish habitats, among other uses.
State Sen. Rob Dover of Norfolk said he heard from a Game and Parks official that sits on the Trust board that this would be an acceptable use of the funds.
State Sen. Machaela Cavanaugh of Omaha wasn’t so sure the transfers were constitutional. She made two motions to transfer the full $32.7 million from the state’s property tax credit fund or the state’s prison construction fund in place of Trust funds. Both motions failed.
“I’m trying to save us from a lawsuit,” Cavanaugh said.
Senior Contributor Paul Hammel contributed to this report.
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