The choices weren't easy and the discussion wasn't pretty.

But in the end, the Legislature's Appropriations Committee found a way to reduce the state budget it will offer up for a vote next week by $94 million.

The senators did it with:

* Reductions to increases to providers of medical and human services to 1.5 percent in each of the next two years;

* A return to 1.5 increases for universities, state colleges and community colleges;

* $31 million in anticipated federal stimulus funding, resulting from the state's higher unemployment;

* Assumed changes to state aid to schools;

* Changes to retirement system contributions;

* Smaller increases to the cultural trust, set up in 2001 to support humanities and arts programs in the state.

* A transfer of $56 million more from the cash reserve.

The committee decided not to reduce agreed upon increases for the developmentally disabled waiting list.

"There were a lot of tough decisions," said Chairman Lavon Heidemann. "I can't say we're all happy. … There were a lot of compromises on both sides."

Heidemann's main discomfort was in taking $56 million from the cash reserve.

"You set yourself up for a little extra risk in (later) years," he said.

The committee set out over the lunch hour Monday to come up with $94 million in adjustments to the two-year, $6.9 billion budget. The shortfall came as a result of Thursday's pessimistic revenue forecast.

Heidemann had come to the committee Monday with a list of adjustments that could be made. But committee member and Lincoln Sen. Danielle Nantkes wanted the group to stay with what she called the "very conservative" budget agreed upon last week, which included a 1 percent average growth in state spending.

The decisions the committee had made on human services and higher education at that time were critical, she said.

Nantkes called the proposed changes "public policy at its worst."

Staying the course could have meant taking more from the cash reserve. The committee had already agreed to propose taking $190 million from the $566 million fund.

Heidemann had proposed the committee give only half the original $15 million to keep the waiting list for developmentally disabled services from growing. In the end, the committee made no changes to money set aside for the waiting list.

The committee agreed to include $18 million for bills, such as those proposed for safe haven issues, that would be debated in the next few weeks.

Sen. John Harms of Scottsbluff said it was imperative to fully fund the waiting list for services for developmentally disabled. People have come to him, crying, saying they didn't know what to do for their loved ones who needed the services.

"We can't put it off any longer," he said.

Sen. John Wightman of Lexington attempted to give human service providers a 1.75 percent increase in the first year, rather than 1.5 percent, but his motion failed. He said the committee was playing with fire by giving private providers less of an increase than state employees will get.

The committee voted to send eight bills to the full Legislature, including the main budget bill (LB315), deficit appropriations (LB311), and changes to the cash reserve.

Reach JoAnne Young at 473-7228 or jyoung@journalstar.com.