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Head of Nebraska budget and public employee agency to resign Sept. 27 • Nebraska Examiner

LINCOLN – Nebraska's human resources chief and head of the agency that oversees the state budget, civil servants and risk management will resign at the end of the month.

Jason Jackson, Director of the Nebraska Department of Administrative Services. (Courtesy of the Governor's Office)

Gov. Jim Pillen on Wednesday announced the resignation of Director Jason Jackson from the Nebraska Department of Administrative Services, effective Sept. 27. Jackson had served as department head since 2018 and as the state's chief of human resources since 2016. Pillen said Jackson is returning to the private sector to pursue a new opportunity.

“Serving the state of Nebraska has been the greatest honor of my career,” Jackson said in a statement.

Jackson cited three reasons why he was “particularly proud” of working with Pillen: reforming the state's procurement laws, restructuring the Nebraska State Historical Society into a “code agency” under the governor, and recognition for excellence in the state's financial reporting.

One Agency focus is to optimize processes, improve services and save taxpayers' money.

Government procurement laws

Reform of state laws in connection with government tenders and contracts progressed in February, when Bill 461by Speaker of the Legislature John Arch of La Vista, was passed and signed into law by a vote of 45 to 0.

Speaker John Arch of La Vista addresses state lawmakers during a legislative retreat at the Nebraska Innovation Campus in Lincoln on Dec. 7, 2023. (Zach Wendling/Nebraska Examiner)

The multi-year reform process began with a Special Committee in 2021 by a resolution from State Senator Machaela Cavanaugh of Omaha. It was a response to a failed child welfare contract with Saint Francis Ministries in the eastern service area of ​​the state.

Jackson's department worked closely with Arch, who chaired the select committee and passed separate legislation in 2022 to more thoroughly review the state's procurement laws.

Jackson had described LB 461 as a “one-off comprehensive procurement reform”.

Cuts in the state budget

The administration has also worked closely with Pillen and out-of-state consultant Epiphany Associations to cut the state’s budget for “efficiency measures.” These cuts, which amount to up to 280 million US dollarswere determined outside of the usual procedure by the Legislature's Budget Committee.

Cavanaugh and her office have made several requests to understand the extent of the cuts. At least two state agencies, the State Fire Marshal's Office and the Department of Veterans Affairs, did not have enough money to meet their payroll obligations, according to those filings.

The IRS's Lotteries and Charity Gaming Division also needed more funding to complete the 2023-24 fiscal year.

Pillen's goal was to cut state funding by at least 3% in the first year and 6% in the second by Epiphany. It's part of his overall, ongoing goal of finding state savings that could be used to reduce local property taxes.

“I greatly appreciate Governor Pillen's leadership and wish his administration continued success in its efforts to improve services and provide tax relief to Nebraskans,” Jackson said in his statement Wednesday.

Gov. Jim Pillen holds a news conference at the end of the special session of the legislature to talk about the property taxes that went into effect nearly a month earlier. Aug. 20, 2024. (Zach Wendling/Nebraska Examiner)

Pillen praised Jackson for leading his agency to improve responsiveness to other agencies and public entities while continuing to serve in the Nebraska National Guard.

“Jason exemplifies what it means to be a dedicated public servant,” Pillen said in a statement. “Jason can be very proud as he looks back on his many accomplishments for the state.”

State auditor: Jackson “will be missed”

At Jackson Confirmation hearing in February 2023When Pillen reappointed him to the position, Jackson explained that his agency had received a negative audit from State Auditor Charlie Janssen in 2020, which found Errors worth $21 billion for the fiscal year 2019–20, which had to be corrected in various government agencies.

Jackson noted that this period coincided with the onset of the COVID-19 pandemic and the provision of government aid.

In response, the agency consulted with Deloitte's global professional services network and hired eight accounting experts with more than 50 years of experience in public finance. The agency also “created a kind of war room,” Jackson testified, to get state employees to cooperate, leading to fewer errors.

“We are far from declaring victory,” Jackson said at the time. “We are not throwing the football into the ground.”

Michael Foley
State Auditor Mike Foley (courtesy of the Nebraska Audit Office)

At the end of 2023, State Auditor Mike Foley and his office reported Errors worth $961 million for the previous financial year with various government authorities.

Foley said Wednesday that in the eight years they worked together, he had always found Jackson to be a “man of impressive competence and integrity.” Foley served as the state's lieutenant governor for six years before being re-elected as auditor in 2022.

“When Jason tells you something, you can trust it,” Foley said in a statement. “His positive influence on the work of state government was immense. He will be missed.”

According to Pillen's office, a nationwide search for Jackson's successor will be launched immediately. Jackson was one of a handful of cabinet members who were reappointed when Pillen took office in 2023.

Other open cabinet posts

In addition to Jackson, Pillen is looking for three other agency directors, two of whom were reappointed from former Governor Pete Ricketts' administration:

  • Nebraska Department of Natural Resources: Director Tom Riley resigned in August after nearly four years in office. Jesse BradleyThe interim director will be Dr. med. med., who has been working at the institute since 2006.
  • Ministry of Environment and Energy: Director Jim Macy resigned in April after nine years in office. Thad Fineranwho served as chief of staff to Adjutant General Craig Strong for the Nebraska National Guard, has been serving as interim director since April 1. Fineran was promoted to brigadier general in the Nebraska National Guard in mid-August, meaning he must retire from government service. His last day of work is Sept. 30.
  • Nebraska State Historical Society, the state's newest “code agency”: As of July 19, History Nebraska is no longer an independent state agency whose director is selected internally, but is appointed by the governor. The interim director is Cindy Drake, who served as librarian for the agency for more than 40 years.

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