Jim Pillen ordered Nebraska Public Media state agencies to absorb at least 5% budget withholding and a hiring freeze, and some are already drafting cuts that reach staff, fees and offices. Records obtained on Friday show the first responses ranging from position eliminations to higher charges. The governor’s office called the plans “hypothetical fiscal restraint considerations,” but several agencies put concrete numbers on the table.
Jim Pillen memo
In July, Pillen told his State Budget Division to withhold at least 5% of state agencies’ monthly allotments and set a 5% reduction target for agency budgets. Nebraska was facing a $208 million budget deficit and an additional $840 million deficit for the next biennium when the responses were filed. For employees, that means the first pass is not a final layoff list; it is a set of agency plans that still has to survive further review before anything changes in day-to-day operations.
Department of Revenue plans
The Department of Revenue proposed narrowing homestead eligibility requirements and closing its offices in North Platte and Norfolk. Under that proposal, Nebraska property owners eligible for a homestead exemption would pay at least 10% of their property taxes before credits are applied. That would change how much relief some homeowners receive before the state’s tax credit calculations are even reached.
Several agencies also framed the budget squeeze around reserves and staffing. The Military Department said the Governor's Emergency Fund could not withstand more reductions, and the report said only $1 million would remain in the fund for fiscal year 2027-28 if no new disasters occurred. The Department of Correctional Services proposed cutting $10 million in general fund spending, offsetting $4 million with cash funds, and reviewing all positions to see whether duties could be absorbed elsewhere while not impacting services and programs within the facility.
State Fire Marshal positions
The State Fire Marshal planned to cut positions including a full-time deputy and an accountant. At the same time, the Department of Health and Human Services, the Nebraska State Patrol, the Department of Administrative Services and the Department of Motor Vehicles did not submit budget plans. Pillen’s office described the agency responses as “substantial analysis,” which leaves his final decisions as the part that still determines which cuts, fees and staffing changes actually move forward.
