Gov. Jim Pillen, who campaigned as a fiscal conservative, is promising billions of new dollars to Nebraska schools and significant cuts in property taxes, all part of several plans unveiled by Pillen and several state lawmakers today.

Topping the list, $2.5 billion dollars in additional state aid to schools, starting with $1 billion this year and $250 million a year for each of the next six years.

According to Pillen, all this made possible by a huge state surplus, "We have extraordinary amounts of money...and we're going to use that money to invest in our kids and cut taxes for the people of Nebraska."

At the same time school district spending increases would be capped at 3 percent a year. "It really is critical to the success of what we're trying to do here," said State Sen. Tom Briese, a Republican farmer. "If we're trying to get dollars into the hands of our property tax payers, it's imperative that we put some sort of cap or mechanism in place to ensure that occurs."

That 3 percent cap on school districts would come with an out.

More spending would be allowed if a supermajority of the local school board agreed or by a vote of the people.

According to recent reports, projected state revenues are expected to top expenses by $1.9 billion for the two budget years ending June 30, 2025. 

In addition, Nebraska’s cash reserve fund is expected to reach $2.3 billion in the very near future.

According to Open Sky, the state's leading progressive think tank, Nebraska has the federal government to thank for all the excess cash. "Over the course of the pandemic, Nebraska received $24 billion in federal stimulus funds," according to the think tank's website. "Those dollars circulating throughout the state economy are likely the main driving force behind the budget surplus—more so than any change in state decisions."