Gov. Jim Pillen on Tuesday signed an executive order that aims to eliminate up to 1,000 state government jobs that have remained open for 90 days or more.
The funds budgeted for those positions will be reallocated to other priorities of the state or be used to lower property tax payments for Nebraskans, the governor said.
The executive order takes effect on June 1.
"I promised to run state government like a business and this order delivers on that promise," Pillen said in a news release. "These positions have been vacant for months or even years, and yet government has continued to function.
"We have proven we can work without them, so we will eliminate them and return the money to the taxpayers," he added.
But one state lawmaker cast doubt on Pillen's ability to reallocate appropriated funds to a different purpose — something the Nebraska Constitution gives only the Legislature the authority to do.
"Governors cannot appropriate no matter how much they wish to," Lincoln Sen. Danielle Conrad said. "There's no ability for the governor to take an appropriation and simply shift it over to a property tax relief fund. That's not legally permissible."
Conrad said an effort by Pillen earlier this year to recapture unused cash funds from various state agencies went through the Legislature's appropriations process and won three rounds of approval by state senators on the floor.
Any attempt to do so with funds appropriated to state agencies for specific purposes would have to go through a similar process, she added.
"There is no constitutional or legal avenue for the governor to re-appropriate funds on his own whims or desires," Conrad said, "and there's a very clear example that the governor understands that."Â
While the executive order targets positions that have been open for at least 90 days, Pillen identified several categories of government staff that would not be cut.
Those positions include law enforcement officers, correctional officers, firefighters, children and family service specialists, or other state employees directly involved in public safety.
Positions that provide direct operational support or facilities offering around-the-clock service are also protected from elimination, as are highway maintenance and construction workers.
The executive order also does not apply to executive branch staff working for the governor, lieutenant governor, secretary of state, state treasurer, attorney general and state auditor.
It also does not affect legislative and court staff, employees at the Public Service Commission, University of Nebraska, Nebraska State College System, Nebraska Department of Education, Coordinating Commission for Postsecondary Education and other offices.
The goal of closing 1,000 vacant positions could result in a savings of $39.4 million, including $15.2 million of direct savings to the state's general fund, Pillen's office said.
The governor said savings up to 25% more "may be possible," which could bump total taxpayer savings to $49 million.
The plan to achieve savings by closing open jobs comes less than two weeks after Pillen's proposal to reduce Nebraskans' property tax bills by 40% failed on the floor of the Legislature.
Pillen's plan called for eliminating sales tax exemptions and hiking the sales tax rate but was met with opposition from a wide array of businesses, anti-tax advocacy groups, think tanks and others.
Following Tuesday's announcement, the Nebraska Association of Public Employees, which represents more than 8,000 state workers, said the plan to close open positions to achieve savings would hurt all Nebraskans.
NAPE represents employees who work in 300 different frontline jobs in each of Nebraska's 93 counties.
Justin Hubly, the executive director of NAPE, said one in five state jobs are currently waiting for a qualified applicant to fill the position. Closing those vacancies would put added pressure on the remaining workforce, ensuring they work short-staffed permanently, he said.
"We should expect consequences, including longer lines and closures at (Department of Motor Vehicles) locations to continue, hold times to increase when applying for Medicaid, and a slowdown in the delivery of unemployment services, just to name a few," Hubly said.
"We want to do the best for our neighbors, but we simply can't deliver quality service with a permanent 20% reduction in the state workforce," he added.
Hubly said the executive order will force NAPE members to take on more work for essentially the same pay, and he said they plan to negotiate higher wages if Pillen goes through with his plan to cut positions.
"The governor has a noble goal of reducing property taxes and running the most efficient state government possible," Hubly said. "Funding for property tax relief, however, cannot come at the expense of providing quality frontline services to all Nebraskans."
Conrad believes Pillen's executive order will generate debate around the Capitol and beyond during the interim and perhaps outline his intent for the 2025 legislative session.
"To me, that's signaling they are looking at this in preparation for a budgetary plan they will present to the Legislature at some future time," she said.
Gov. Jim Pillen arrives to give his closing remarks the Capitol on April 18, which marked the last day of the Nebraska's 2024 legislative session. On Tuesday, Pillen signed an executive order that aims to eliminate up to 1,000 state government jobs that have remained open for 90 days or more.