Nebraska
Consultant sees $531M in trims to NE state government • Nebraska Examiner
LINCOLN – A highly-paid consultant is projecting that Nebraska state government could cut $531 million in spending within a year if it more sharply focused on system-wide outcomes that better serve its customers, and tapped more federal and state reserve funds.
In a 57-page report after a year on the job, Utah-based Epiphany Associates said it has identified “an incredible capacity for change and improvement in Nebraska’s state government” that added up to more than a half-billion in savings.
It identified four areas in particular where changes would result “in the biggest return on investment.”
Those are the child welfare and Medicaid divisions within the Department of Health and Human Services, the Lincoln Regional Center, and the inmate rehabilitation and reentry program within the Department of Corrections.
Part of Pillen’s plan
About half of the projected savings — about $256 million — would come from removing financial “buffers” in state budgets, such as reducing fiscal reserves, eliminating unfilled staff positions and tapping additional federal funds to cover expenses now handled with state tax funds.
The rest of the projected savings would come from reduced indirect costs such as data analysis systems ($8.7 million), improved contracting with private suppliers ($73.5 million), better return on economic development grants ($22.4 million), improved return on information technology spending ($32.5 million) and better focus on system-wide performance ($138 million).
Gov. Jim Pillen, who made hiring Epiphany a key part of his plan to reduce local property taxes, has already begun urging state agencies to apply for more federal funds to displace state financing of services, and moved to eliminate hundreds of long-unfilled state jobs. The report said that Nebraska ranks very low, 40th in the country, in its “per-capita balance of payments” with the federal government.
Pillen spokeswoman Laura Strimple told the Nebraska Examiner on Friday that the governor is pleased with the work of Epiphany so far and looks forward to more of its work.
She said he supports the “systems approach” used by the consultant, and the idea that state government needs to improve its monitoring of state spending to produce “the best outcomes.”
“When state systems improve in quality, there’s the potential for saved resources to be repurposed in other ways, or to reduce overall expenses,” Strimple said in response to emailed questions.
She added that Pillen agreed with Epiphany that Nebraska has too much sitting in reserve funds — nearly $2 billion — “that could be put to better use.”
Reaction to the report from two key senators was more mixed.
State Sen. Rob Clements of Elmwood, who heads the budget-writing Appropriations Committee, said that one of his least favorite sayings is “we’ve always done it that way.” He said he encourages new employees at his bank to suggest ways to improve efficiency.
Clements said that while he had not yet read the report, he supported contracting with Epiphany with the assurance that its recommended budget cuts can occur “without a drop in services.” He added that he would have to review the suggestion that reserve funds should be cut.
In its report, Epiphany emphasized that cutting spending does not necessarily mean a reduction in services and that increasing funding does not always equate to better outcomes.
Lincoln Sen. Danielle Conrad, who served several years on the Appropriation Committee, struck a more cautious tone, and said the report leaves a lot of questions unanswered.
She said that while it’s appropriate to “take a fresh look at ideas to reduce state budgets, most of (Epiphany’s) aren’t that fresh.”
“The ones that are will need a lot more analysis,” Conrad said.
For instance, she said that it’s already accepted that luring more federal funds to the state is a good idea, and that it can save money if prison inmates are better prepared to return to society — another Epiphany recommendation.
Conrad said she was most skeptical about a suggestion that Nebraska significantly pare back its cash reserve fund — the so-called “rainy day fund” — that is used when state tax receipts plummet in an economic downtown.
Doing that, the senator said, risks ruining the state’s reputation as a fiscally sound state. In its last rankings of best states, U.S. News & World Report rated Nebraska No. 3 in the nation as the most fiscally responsible.
$10 million consultant contract
A Lincoln think tank that monitors state budgets has seen the report, and Open Sky Policy Institute expressed concerns about straying from current state budget practices in which the State Legislature — not the governor’s office — determines how state tax dollars are to be spent. Rebecca Firestone, the executive director of Open Sky, said it raises separation of powers concerns.
Epiphany was hired for $10 million over four years to cut state spending and improve services.
In its report, it faulted past state efforts at “continuous improvement” of state programs as missing the mark by focusing on individual parts of a system, rather than the system, and its outcomes, as a whole.
That appeared to be a jab at the 26-employee Center for Operational Excellence created under then-Gov. Pete Ricketts that was eliminated by the current governor. Pillen opted instead for Epiphany, which Utah officials credited with improving efficiency of executive branch agencies in that western state by 35%.
Pillen, when he signed the contract, told the Omaha World-Herald that he was seeking “breakthrough change” in state spending. The contract calls for cutting at least 3% of state general funds in the first year, and 6% in the second.
The cost-cutting effort is part of his goal of reducing local property taxes by 40% – a goal which has prompted Pillen to suggest a special session of the State Legislature later this month.
Recommendations, observations
Among other recommendations and observations in the report:
— Draw down existing Cash Reserve Fund and General Fund unobligated balances. The report recommended reserves of between 4% and 8% of the general fund based on the stability of Nebraska’s tax base.
The state’s cash reserve fund is expected to hold $800 million by fiscal year 2027, about 14% of the general fund, the report stated, and unobligated funds in the budget are expected to be $700 million by that time, or about 12% of the general fund budget. The report said that two recent fiscal downturns — the Dot-Com recession of 2001 and the pandemic — saw state tax receipts drop by 3.7% and 8.6%, respectively.
— Between 2021 and 2023, costs in the Nebraska child welfare program increased an inflation-adjusted 6% ($53.7 million), while the average number of children served per month decreased by over 4% and the average days it took to establish permanency for children increased by 108 days. That, the report said, is an example of how more spending does not improve services.
— Stop projects and resources that are dedicated to things that, although well intentioned, are not generating system-level results for the customers they serve.
True improvements must result in better outcomes for the primary customer — not the internal bureaucracy, the report stated. State staffers, it added, spent “significant time” on projects that do not have a defined result or outcome.
— The state could save $73.5 million in the next year by improving its contract procurement processes. The state awarded nearly $20 billion in contracts for goods and services during the 2022-23 fiscal year, but procurements often are not held accountable for their impact (or anticipated impact) to system performance or outcomes. (Sen. John Arch, the Speaker of the Legislature, is leading an effort to improve contract selection and performance under a bill passed this year.)
— Improve return on investment for grants awarded by the Department of Economic Development by better targeting specific industries and identifying and tracking specific outcomes. That could save $14.8 million.
“In some cases,” the report said, “(DED) grants were awarded to large corporations who would have likely done business in Nebraska regardless.”
Nebraska Phase 1 Report Final
Not even more sickness could stop the No. 12 Nebraska men’s basketball team.
With a nasty flu strain ripping through the Huskers and the UNL campus as a whole, Nebraska needed a little more time to take care of Maryland, but freshman star Braden Frager and his team-high 21 points and eight rebounds led a late NU surge for a 74-61 victory over the Terrapins. Forward Pryce Sandfort added to the effort with 16 points and eight rebounds while both Rienk Mast (13) and Sam Hoiberg (12) also reached double figures.
Now with just three games remaining in the regular season, the Huskers venture west for a two-game road trip to L.A., where they start off against a USC team in the middle of a long losing skid. Here’s all you need to know for Saturday’s mid-afternoon showdown between the Huskers and Trojans.
How to Follow Along
- Matchup: Nebraska (24-4, 13-4 B1G) at USC (18-10, 7-10 B1G)
- When: Saturday, February 28
- Where: Galen Center, Los Angeles, Calif.
- Time: 3 p.m. CST
- Watch: Big Ten Network
- Listen: Huskers Radio Network and Affiliates
USC Scout
Head Coach
- Eric Musselman | 2nd season at USC; 11th as HC
- 35-28 (.556) at USC; 256-121 (.679) College Career Record
- 6x NCAA Tournament Apps., 2x Elite Eight, 2x Sweet 16, 1x CBI Championship
- 3x MWC regular season, 1x MWC tournament
- 1x MWC Coach OTY (2018), 1x NBA D-League Coach OTY (2012)
- Previous head coach at Arkansas, Nevada, Sacramento Kings and Golden State Warriors
- Previous assistant at LSU, Arizona State, Memphis Grizzlies, Atlanta Hawks, Orlando Magic and Minnesota Timberwolves
2024-2025 Record & Awards
- Record: 17-18 (7-13 B1G, T-12th)
- Finish: L, 60-59 to Villanova in CBC Quarterfinals
- All-B1G: 1x Honorable Mention
All-Time Series
- USC leads 6-5
- Jan. 22, 2025, last matchup, 78-73 USC
Key Returners
- Terrance Williams II | F | Gr. | Was off to a great start with 10.6 points and 4.6 rebounds per game last year before getting knocked out for the season just seven games in; has not been the same with just 2.5 PPG in 27 contests this season.
Key Departures
- Desmond Claude | G | Transfer | Named All-Big Ten Honorable Mention last season for the Trojans after leading the team with 15.8 points per game, but transferred to Washington over the offseason.
- Wesley Yates III | G | Transfer | Another player that transferred to Washington, the Texas native was second on the team last season in scoring (14.1) and steals (40) as a redshirt freshman.
- Chibuzo Agbo | G | Graduated | Veteran guard that scored 11.8 points per contest while leading the team with 76 made three-pointers as part of his final college season.
- Saint Thomas | F | Graduated | The Omaha native and Millard North graduate scored 9.5 points and grabbed 5.9 rebounds per game in his final college season.
- Rashaun Agee | F | Graduated | A 6-foot-8 veteran forward who proved to be USC’s most dangerous threat off the bench by scoring over nine points per game.
- Josh Cohen | F | Graduated | A 6-foot-10 post that started in 25 of his 33 appearances while adding 5.9 points per game for the Trojans.
- Clark Slajchert | G | Graduated | Another key reserve for the Trojans who put up four points per game in 11 minutes across 27 games.
- Kevin Patton Jr. | F | Transfer | After scoring 9.8 PPG at San Diego, the California native saw limited action for USC off the bench to prompt his transfer to New Mexico over the offseason.
- Matt Knowling | F | Graduated | Played in 27 contests with an average of over 18 minutes, but added little production with three points and 2.6 rebounds.
Impact Transfers/Newcomers
- Rodney Rice | G | Jr. | The third leading scorer from a Sweet 16 Maryland squad last season, the transfer scored over 20 points per game for the Trojans before suffering a season-ending shoulder injury in December.
- Chad Baker-Mazara | G/F | Gr. | A veteran transfer that aided Auburn’s run to the Final Four last season, the Dominican Republic native leads all active Trojans with 18.6 points per game and 71 total assists.
- Ezra Ausar | F | Sr. | The 6-foot-9 forward transfer from Utah scores over 15 points per game and grabs over six rebounds per contest in an elevated role after the injury to Rice.
- Alijah Arenas | G | Fr. | The son of former NBA star Gilbert Arenas, the true freshman missed the first 18 games of the season, but he’s been highly productive with a 13.9 points per game average in his first 10 college games.
- Jacob Cofie | F | Soph. | A massive 6-foot-10 forward from Seattle, the Virginia transfer gives USC a weapon inside with 9.8 points and seven rebounds per game as a full-time starter.
- Kam Woods | G | Gr. | A mid-season transfer from Robert Morris, where he led the program to its 10th NCAA Tournament appearance, the Alabama native has added over eight points and four rebounds in 16 contests this year.
- Jordan Marsh | G | Jr. | The 2025 Big South Conference Newcomer of the Year last season at UNC-Ashville, Marsh acts as the sixth man for the Trojans with 6.7 PPG to lead all reserves.
- Jaden Brownell | F | Gr. | A 6-foot-10 bench forward, the USC big man was a 14-point scorer at Samford last season before making his way to L.A.
- Jerry Easter II | G | Fr. | An Ohio native who went to the heralded Link Academy in Missouri, Easter II has earned six starts in his 26 appearances by scoring 4.4 points per game.
- Gabe Dynes | C | Jr. | The 7-foot-5 center led the country in blocks (104) last season at Youngstown State before transferring to USC, where he’s putting up three points per game, but has collected 30 blocks while only averaging 12 minutes per appearance.
Outlook
A veteran head coach at both the college and NBA levels, Eric Musselman was at the center of one of college basketball’s wildest coaching carousel moves following the 2023–24 season, leaving Arkansas for USC and paving the way for the legendary John Calipari to take over the Razorbacks program.
While Calipari marched his team to a Sweet 16 appearance in his first season, Musselman’s debut season in L.A. ended with a quarterfinal loss in the CBC for an underwhelming year. What followed was an exodus from the program, with top-two scorers Desmond Claude (15.8) and Wesley Yates III (14.1) both transferring to Washington despite standout seasons. Six others graduated, including Omaha native Saint Thomas (9.5) as well as Chibuzo Agbo, a veteran guard who scored 11.8 points per game in his final college season.
That resulted in a whole new crop of transfers to join the team, including the crown jewel of the haul in Rodney Rice, who played a big part in helping Maryland reach the Sweet 16 last season. The junior started out hot for the Trojans, logging over 20 points per game, but a devastating shoulder injury ended his season just seven games in, which immediately lowered the ceiling for a USC team with decent talent. Chad Baker-Mazara has stepped up in the place of Rice with 18.6 points per game and a team-high 71 assists after transferring from Auburn, where he helped the Tigers reach the Final Four.
Utah transfer Ezra Ausar has produced at a high level with over 15 points and six rebounds per contest. Despite missing the first 18 games of the season, true freshman Alijah Arenas has averaged 13.9 points per game as a starter. Sophomore and Virginia transfer Jacob Cofie is the muscle in the post, scoring 9.8 points per game and grabbing a team-high seven rebounds per contest. Similar to Arenas, Robert Morris transfer Kam Woods has been a big mid-season addition with over eight points and 4.6 rebounds per game. Plus, Jordan Marsh (6.7), Jaden Brownell (5.3), and 7-foot-5 center Gabe Dynes give Musselman the opportunity to mix-and-match his lineup off the bench depending on the matchup.
The Rice injury is massive, and could end up being one of the primary reasons for the Trojans missing the NCAA Tournament, for which they are a bubble team in the latest projections. It’s crunch time for USC, which is in the midst of a four-game losing streak after dropping contests to Ohio State, No. 10 Illinois, Oregon, and UCLA. Three of those four were winnable for the Trojans and games that could really haunt them as they search for key wins down the stretch to lock up a spot in March Madness.
Against a Trojan team that doesn’t defend well, but ranks as one of the top rebounding teams in the conference, USC is an interesting matchup for Nebraska. Being on the road and dealing with more sickness isn’t helpful, but I’m riding the Huskers for this one to reach 25 wins on the year.
Nebraska
Nebraska State Patrol troopers find 242 pounds of cocaine during commercial truck inspection
LEXINGTON, Neb. (KOLN) – Troopers with the Nebraska State Patrol arrested one person after finding more than 240 pounds of cocaine during a commercial vehicle inspection.
On Tuesday afternoon, an NSP Carrier Enforcement trooper conducted a commercial vehicle inspection on a semi tractor/trailer driven by Arwinderjit Singh, 30, of California, near mile marker 254 on Interstate 80.
During the inspection, the trooper became suspicious of criminal activity. An NSP K-9 detected the odor of a controlled substance inside the cab of the semi, troopers said.
After searching the cab, troopers located 242 pounds of cocaine concealed underneath the sleeper bed, NSP said.
Singh was arrested on suspicion of possession of cocaine, possession with intent to deliver, possession of an open alcohol container, no drug tax stamp and displaying a fictitious license plate.
Singh was lodged in Dawson County Jail, and his bond was set at 10% of $2 million. A preliminary hearing is scheduled for March 12.
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OMAHA, Neb. (WOWT) – Creighton Prep senior Zaiyahn Ornelas won his fourth consecutive Nebraska state wrestling title on Saturday.
According to NSAA records, he joins 39 other wrestlers in state history to accomplish the feat.
“It’s a great feeling,” Ornelas said. “It’s a feeling everybody wants.”
Ornelas won three Class C state titles at Wilber-Clatonia at 106, 113 and 120 pounds before transferring to Creighton Prep for his senior season, where he competed in Class A at 126 pounds.
“Three state titles there and then just thought I could bump up my competition,” Ornelas said.
“Zaiyahn is one of the cleanest technicians I’ve ever seen. That’s a huge testament to his coaching staff at Wilber,” Fisher added.
Ornelas was one of four Creighton Prep wrestlers to win state titles this season, helping lead the Jr. Jays to the Class A team title. Teammates said his presence in the practice room raised their level of competition.
“I could never slack off just because my competition in the state was easy. I always had to come in this room and get better or else I was going to get beat,” said sophomore Cruzer Dominguez, a two-time Class A state champion at 106 and 120 pounds.
Sophomore Kameron Green, the Class A 144-pound state champion this year, also credited Ornelas for aiding in his development.
“Zaiyahn being a training partner has helped me in tremendous ways,” he said. “When he wrestles, he’s not the nicest or shyest kid, but he’s tenacious and tough.”
Junior JT Smith, a two-time state champion at 175 and 190 pounds, said the achievement carries weight for the entire team.
“It’s something really special to have a teammate that’s a four-time state champion,” he said. “That’s something everyone wants to be.”
Fisher said Ornelas’s attitude set the tone from the start.
“He has so many skills and then coming into our room, he’s extremely coachable. Every time he came in here he was humble, ready to work, wanting to get better and that’s why he is as good as he is,” Fisher said.
Ornelas signed to wrestle at the University of Nebraska in November. He said the move to Creighton Prep delivered what he was looking for.
“This is the reason why I came here. I went out to explore, to find the best, and this is the territory that I found. If it wasn’t for these guys — the push — I would have not been there,” Ornelas said.
“It’s hard to believe. That’s kind of what I wanted since the beginning, freshman year,” he said.
—
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