State senators were given a huge challenge, to cut $335 million from the budget. Governor Dave Heineman says they did it and without raising our taxes. But he is concerned about cuts in three areas.

For one, the legislature restored $1 million of the $2.4 million he proposed be cut from their own budget. At the same time, it spared the court system from deeper cuts. “My proposal reduced the court system, the governor’s office and most state agency offices by 2.5% in the current fiscal year and by 5% next year,” said Heineman.

“In contrast to my recommendation, the legislature gave the courts preferential treatment and only reduced their appropriation by 1.5% this year and 3% next year. The courts should not be treated differently than the rest of state government.”

The unicameral also cut an additional $2 million from the Jobs Training Assistance Program, which is administered funding by the Nebraska Department of Economic Development.

Heineman had already proposed a $3 million cut, bringing the total cut to $5 million through 2011. It’s a reduction Heineman said is too steep for a program that since its 2005 inception has been an “important tool in recruiting new businesses and jobs to the state.”

"I'm relieved that taxes aren't going up,” said Omahan Drew Thompson. “Because with all that's going on politically, I'm glad I get to keep what I have."

But, as a small business owner, he’s not supportive of cuts to the Job Training Assistance Fund. "We need to bring bigger businesses to the Omaha area and not across the river."

The governor pointed out, “With unemployment rising and many states raising taxes, we are well-positioned to aggressively recruit businesses to Nebraska. And this fund is an important part of our current effort to grow jobs in our state."

Regarding the restoration of $1 million to the legislative budget, Heineman said, "The legislature should not treat themselves better than the rest of state government."

However, senate appropriations committee member, Senator John Nelson of Omaha, told Channel 6 News, “We as members of the legislature want to do our part.”

He said the budget mostly pays for staff, research, transcribing and the clerk’s office. He said senators are allowed mileage once a week, and those who live too far away to drive back and forth are provided with lodging during the session.

Nelson said under the current cuts, there will be no pay increases, and there may also be work furloughs or unpaid time off.

That's good enough for Omahan Mike Cifuno. "Yeah, that's, it's a start, you know."

Despite his own objections, Heineman said he signed spending reduction bills to forward the budget process. He added, "Everybody thinks we've kind of bottomed out, but I don't hear anybody say we're going to go back up immediately. And that's why we're concerned about 2010."

The concern heightened by the fact that $250 million of the state cash reserve fund is being used to balance the shortfall, leaving $325 million at the end of 2011. Heineman said the projected deficit over the next two years is about $640 million, so state lawmakers have a big job ahead.