A bill designed to cut an anticipated $335 million dollar shortfall has been signed into law by Governor Dave Heineman. As promised, it does not include a tax increase.

The bills passed by the Nebraska Legislature closely mirror the Governor’s budget proposal which was based on four components to help make up for lower revenue: agency savings, general fund transfers, specific reductions, and across-the-board reductions.

“We are addressing Nebraska’s revenue shortfall by reducing spending, not by increasing taxes.” said Governor Heineman. “I appreciate the work of state senators during the past two weeks. We preserved the property tax credit program and we maintained a strong cash reserve for future financial challenges.”

In signing the spending reduction package, the Governor outlined three areas he hopes senators will revisit in the upcoming regular legislative session.

First, senators cut an additional $2 million from the Jobs Training Assistance Fund to balance the budget. The funding is administered by the Nebraska Department of Economic Development and has been an important tool in recruiting new businesses and jobs to the state since it was created in 2005.

The Governor’s budget proposal called for an across-the-board reduction of 2.5 percent this year to most state agencies and a 5 percent reduction in FY 2010-11. Reductions included the Office of the Governor, the Nebraska Legislature and the Nebraska Supreme Court, but the bills passed by state senators require the courts to make reductions of only 1.5 and 3 percent respectively.

Finally, the Legislature restored $1 million in funding to its own budget.

“There was agreement from many agencies, school and university leaders that shared sacrifice was necessary to close this budget gap," said Heineman. "I appreciate the willingness and cooperative spirit of those who came to the table to help address this challenge. However, all three branches of government should be treated equally.”