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Influx of Federal Money Eases Nebraska State Budget Woes

LINCOLN, Neb. (AP) – Nebraska lawmakers getting to work on a new budget won’t face as much pressure to cut as they previously thought, thanks to an influx of federal money, but some still worry the state’s financial challenges aren’t over.

Documents released last week in Gov. Pete Ricketts’ proposed budget show Nebraska is on pace to get an extra $92.1 million from the Federal Medical Assistance Program over the next two fiscal years.

The federal funding boost frees up state money that would otherwise go to recipients of Medicaid and other government assistance programs.

Nebraska is getting more federal money because of a sharp decline in farm incomes. Sen. John Stinner, chairman of the Appropriations Committee, says lawmakers still must take a cautious approach to the budget.


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