Superintendent Press Release March 7, 2025
Dear Cedar Bluffs Families,
The Nebraska Economic Forecasting Advisory Board, a nine-member panel, provides revenue forecasts to guide the state budget process. In a positive development from last Friday’s meeting, the board revised Nebraska’s projected shortfall from $432 million to $289 million based on its consensus forecast of economic activity and General Fund revenue receipts.
Nebraska faces a challenge in securing an additional $90.3 million in Medicaid funding for the upcoming biennium, complicating efforts to balance the state budget amidst a $289 million shortfall. This funding gap stems from changes in Nebraska's Federal Medical Assistance Percentage (FMAP), which now requires the state to cover a larger share of Medicaid costs due to its strong economy. The Appropriations Committee must now consider increased revenues, program cuts, cash transfers, or a combination thereof to meet its constitutional duty of budget balance.
Additionally, the Trump administration reintroduced tariffs on imports from Canada, Mexico, and China, impacting Nebraska’s agricultural economy. Retaliatory tariffs previously cost the state's farmers $943 million in 2019, and federal aid options are now limited. Senator Ricketts has recently stated that he supports the tariffs and said, just like in 2019, Trump will need to offset the loss in farming with subsidies. Last term, Trump tapped a fund within USDA, Commodity Credit Corporation, for $28 billion in farm subsidies during the previous term trade wars, but that fund is now running low, according to reports by Politico. Without the tariffs, farmers might not need subsidies, but that seems to be the current situation.
Nebraska farmers may also be affected by the administration’s pause on the U.S. Agency for International Development (USAID), which supports global food security efforts and compensates farmers who contribute to its programs. A $19 million, five-year initiative at the University of Nebraska’s Daugherty Water for Food Global Institute is now on hold. Ricketts defended the review of USAID’s expenditures, stating that it is common for a new administration to reassess federal spending.
The Thrifty Food Plan (TFP) sets the basis for Supplemental Nutrition Assistance Program (SNAP) benefit allotments and has been a key target in the recently adopted House Republican budget resolution, which proposes $150 billion in SNAP cuts. TFP represents the minimum cost of a nutritionally adequate diet and guides SNAP benefit calculations. The USDA revised it in 2021, in response to the 2018 Farm Bill, to better reflect food prices, consumption patterns, and dietary guidance. Previously, adjustments were made only for inflation, according to the Center on Budget and Policy Priorities.
A USDA report found that the 2021 update increased benefits by an average of $1.20 per person per day, bringing the 2025 average to $6.20 per person daily. The revision lifted over 2 million SNAP participants above the poverty line, with the most significant impact on Black and Hispanic individuals.
Have a great weekend - Wildcat Pride!