The Nebraska Department of Education is navigating a challenging fiscal landscape as it assesses open positions and explores cost-saving measures. This comes in response to a recent directive from Governor Jim Pillen to reduce state agency budgets.
In July, Governor Pillen issued a memo mandating a 5% budget reduction across state agencies and imposing a hiring freeze. This freeze requires agencies to seek approval from the State Budget Division before filling any positions.
Brian Maher, Commissioner of the Nebraska Department of Education (NDE), addressed the State Board of Education about the memo’s implications. He emphasized the need for immediate cost-cutting measures such as reducing travel and delaying equipment upgrades, while also considering the department’s future financial strategy.
“I think the thing for me that was signaled by this memo more than anything else was what is our state going to do from a long-term perspective, and the signal of what this next legislative session might look like for all of us,” Maher stated.
There is ambiguity regarding whether the memo applies to the NDE, as it operates as a constitutional agency rather than a code agency within the governor’s cabinet. Nonetheless, Maher views the memo as an indication for necessary long-term adjustments.
“This was a memo sent out by the governor,” remarked Maher. “It’s not an executive order, and it’s not statute, doesn’t have the force of law, but the governor, I think, really is signaling, ‘Hey, we’ve got some budgetary woes in the state, and we need to begin to address those.’”
The department is scrutinizing various areas for potential savings, including travel, equipment purchases, and technology investments. Additionally, Maher mentioned the evaluation of open positions to determine their necessity.
“I think if we can cut now at a time where maybe we have an opening versus a person that we have to get rid of, maybe we should look at that now,” Maher explained. “When I say we’re taking a measured approach to the hiring process, that’s what I mean.”
NDE finance officer Bryce Wilson highlighted the complexities of implementing the budget cut. The department receives nearly $2.2 billion from the state, most of which—approximately $2.05 billion—flows directly to schools as state aid.
“It’s not anything that we have control over here,” Wilson noted. “It’s mostly driven by statute and distributed accordingly.”
Wilson further clarified that the memo does not impact this funding. However, only about $49 million of the department’s operational budget, including $46.5 million from the general fund, is subject to reduction, translating into a potential $2.3 million cut.
“The thing that makes us more difficult is that there’s a large chunk of that $46 million that’s fixed costs, things like rent, salaries, benefits, [Office of the Chief Information Officer], [Department of Administrative Services] fees, things we have no control over, right?” Wilson explained. “But even in the portion that we consider variable costs are things that are earmarked in our budget.”
Variable costs comprise $7.1 million allocated for assessment and $5 million for student loan forgiveness, alongside funds required to meet grant maintenance and matching requirements.
“Once we start throwing all those things together, it is not an easy task to come up with a 5% reduction for the department,” Wilson admitted.
Assistant Commissioner Grant Norgaard emphasized the department’s commitment to aligning with the governor’s memo while prioritizing the impact on students, educators, and schools.
“We want to be faithful to it, but everything has to be measured against the impact that we have when it comes to our students, our educators, and our schools…” Norgaard commented. “It’s absolutely critical that what we do and the decisions we make are balanced between those two, and we don’t lose sight of what’s actually our core mission, what’s most important to us, and the work that we do.”
By way of full disclosure, Brian Maher is a commissioner on Nebraska Public Media’s governing board, the Nebraska Educational Telecommunications Commission.
