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    • Director of agency that oversees Nebraska state budget and state employees to resign Sept. 27 • Nebraska Examiner
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    Director of agency that oversees Nebraska state budget and state employees to resign Sept. 27 • Nebraska Examiner

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    LINCOLN — Nebraska’s human resources chief, head of the agency that oversees the state budget, state employees and risk management, will step down 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 announced Wednesday the resignation of Director Jason Jackson from the Nebraska Department of Administrative Services, effective Sept. 27. Jackson had served as director of the department since 2018 and had been the state’s chief human resources officer since 2016. Pillen said Jackson is returning to the private sector to pursue a new opportunity.

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

    Jackson cited three reasons why he is “especially proud” to have worked with Pillen: reforming the state’s procurement laws, restructuring the Nebraska State Historical Society into a “code agency” under the governor, and receiving recognition for excellence in financial reporting from the state.

    A agency focus is to streamline processes, improve services and save taxpayers money.

    Government procurement laws

    Reform of the state laws regarding government procurement and contracts continued in February when Bill 461by Legislature Speaker John Arch of La Vista, passed and signed into law by a vote of 45-0.

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

    The multi-year reform process started with a selection committee in 2021 through a resolution by Senator Machaela Cavanaugh of Omaha. It was in response to a failed child welfare contract with Saint Francis Ministries in the state’s eastern service area.

    Jackson’s office worked closely with Arch, who chaired the committee and in 2022 passed a separate bill to more rigorously review the state’s procurement laws.

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

    Cuts in the state budget

    The administrative agency has also worked closely with Pillen and outside consultant Epiphany Associations to trim the state budget for “efficiencies.” Those cuts, to $280 millionwere determined outside the usual process with the Legislature’s Budget Committee.

    Cavanaugh and her office have filed multiple requests for documents seeking insight into the extent of the cuts. According to those documents, at least two state agencies, the State Fire Marshal’s Office and the Department of Veterans Affairs, were left short of their payroll obligations.

    The U.S. Treasury Department’s Division of Lotteries and Charitable Gaming also needed more money to close out fiscal year 2023-2024.

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

    “I greatly appreciate Governor Pillen’s leadership and wish his administration continued success in improving services and providing tax relief to the people of Nebraska,” Jackson said in his statement Wednesday.

    Gov. Jim Pillen holds a news conference at the end of the Legislature’s special session to discuss property taxes that will take effect nearly a month early. Aug. 20, 2024. (Zach Wendling/Nebraska Examiner)

    Pillen praised Jackson for leading his agency in improving responsiveness with other agencies and government entities while also serving in the Nebraska National Guard.

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

    State Auditor: Jackson ‘Will Be Missed’

    At Jackson’s Confirmation hearing February 2023When Pillen reappointed him to the position, Jackson explained how his agency had received a negative audit from State Auditor Charlie Janssen in 2020, which found $21 billion in errors for the 2019-20 budget year that needed to be corrected at various state agencies.

    Jackson noted that the time frame coincided with the onset of the COVID-19 pandemic and an influx of federal aid.

    In response, the agency consulted with Deloitte’s global professional services network and added eight accountants to its staff with more than 50 years of experience in public finance. The agency also created “a war-room-like environment,” Jackson testified, to get state employees to work together, which led to fewer errors.

    “We’re a long way from declaring victory,” Jackson said at the time. “We’re not hitting the ball.”

    Mike Foley
    State Auditor Mike Foley (courtesy of Nebraska State Auditor’s Office)

    In late 2023, State Auditor Mike Foley and his office reported $961 million in errors for the previous budget year at various state agencies.

    Foley said Wednesday that he has found Jackson to be a “man of impressive competence and integrity” during his eight-year partnership. Foley served as the state’s lieutenant governor for six of those years before being elected back to the auditor’s office in 2022.

    “If Jason tells you something, you can take it to the bank,” Foley said in a statement. “His positive impact on the operations of state government has been tremendous. He will be missed.”

    A national search will begin immediately to find Jackson’s successor, Pillen’s office said. Jackson was one of the handful of cabinet appointments who were reappointed when Pillen took office in 2023.

    Other cabinet vacancies that need to be filled

    In addition to Jackson, Pillen is seeking three other directors for the agency, two of whom were reappointed by the administration of former Gov. Pete Ricketts:

    • Nebraska Department of Natural Resources: Director Tom Riley resigned in August after nearly four years of service. Jesse Bradleywho has worked for the department since 2006, is interim director.
    • Ministry of Environment and Energy: Director Jim Macy resigned in April after nine years of service. Thad Fineranwho had been serving as chief of staff to Adj. Gen. Craig Strong for the Nebraska National Guard, has been interim director since April 1. Fineran was promoted to the rank of brigadier general in the Nebraska National Guard in mid-August, which requires him to retire from state service. His last day is Sept. 30.
    • Nebraska State Historical Society, the state’s newest “code agency”: Effective July 19, History Nebraska transitioned from an independent state agency with an internally selected director to a governor-appointed director. Cindy Drake, who served as the agency’s librarian for more than 40 years, is the interim director.

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