LINCOLN – State Sen. Bob Hallstrom expects lawmakers to face a $471 million shortfall when the next session begins Jan. 7, but says sustainable property tax relief and workforce housing remain a priority.

Hallstrom will begin his second session with LB 575 already introduced to require local taxing entities to lower property taxes commensurate with valuation increases. He said he will also introduce legislation to provide a revenue source for workforce housing.

Here is the senator’s column:

DECEMBER 19, 2025

As the year draws to a close, we are busy with holiday preparations. Our
children are returning home for Christmas, and LuRae and I just celebrated our 40 th
wedding anniversary.


The 2026 session of the Legislature will commence on January 7, with the 60-
day session scheduled to adjourn in mid-April. Balancing the State’s budget will be a
major focus of the 2026 Legislative Session. The Economic Forecasting Advisory
Board has projected a $471 million budget shortfall. It is my belief that the vast majority
of this deficit will be addressed by cuts in state spending.

Finding ways to provide meaningful and sustainable property tax relief will be a
top priority in the upcoming session. I have introduced LB 575 which will, in part,
require local political subdivisions to reduce their tax levy commensurate with any
increase in property valuations and only increase the levy with a super majority vote of
the governing board.

The State continues to fall short in its supply of housing needed to attract workers to our State. I will be introducing legislation to provide a reliable and consistent source of funding for much-needed rural and middle-income workforce housing.

 I welcome your input on issues of interest and importance to you. I encourage you to follow along on my Facebook page designated as Senator Bob Hallstrom, for updates on legislation and District 1 activities. Please feel free to contact me directly at Senator Bob Hallstrom, District 1 State Capitol, PO Box 94604, Lincoln, NE 68509; Telephone (402) 471-2733; or email me at bhallstrom@leg.ne.gov.