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flag Nebraska faces a $301 million budget gap in 2026-27, worsened by lower taxes and a plant closure, with $130 million drawn from reserves and a $126 million shortfall still pending.

flag Nebraska’s budget deficit is projected to reach $301 million, up from $155 million, after revised revenue forecasts cut $175 million for the 2026-27 fiscal year, primarily due to lower corporate tax collections. flag The closure of a Tyson Foods plant in Lexington has worsened economic strain, with Dawson County facing potential unemployment near 27%. flag Lawmakers approved withdrawing $130 million from the state’s cash reserve to help close the gap, leaving it at about 10.1% of spending. flag Despite efforts to cut spending and find savings, a $126 million shortfall remains, with further revenue options under review before a March 25 deadline.

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