Judge OKs Temporary Halt to Transfers out of Environmental Trust

A judge says the state will need to halt the transfer of money out of the Nebraska Environmental Trust, a fund that sponsors conservation-related efforts across the state.

That news came during a hearing for Nelson v. Spellerberg, a lawsuit filed last month challenging certain transfers out of the fund as unlawful violations of the Nebraska Constitution and the Nebraska Environmental Trust Act.
The American Civil Liberties Union (ACLU) of Nebraska and Gutman Law Group are representing W. Don Nelson and Jon Oberg, both former government officials, in their case against State Treasurer Joey Spellerberg and other state officials.

Today, the judge hearing the case granted a temporary injunction pausing questioned state budget transfers while litigation continues and denied a motion from the Nebraska Attorney General’s Office seeking to dismiss the case.
A written order is expected within the week.

The decision from the bench marks a temporary victory as Nelson and Oberg seek a permanent court order stopping specific transfers and a declaration that they are unlawful appropriations of public funds. Their lawsuit argues that recent transfers violated voter-approved language in the Nebraska Constitution that guarantees a share of lottery proceeds for the Trust and requires that those funds must be spent in accordance with the Nebraska Environmental Trust Act, which defines the Trust's purpose to “complement” - not replace - governmental and private efforts to conserve, enhance and restore natural environments. Last month’s filing argues that state lawmakers have unlawfully treated the Trust as “a piggy bank to cover other state expenses,” violating what voters approved.

Alex Arkfeld, Gutman Law Group attorney, said:
“Our clients brought this case because they wanted to protect the Nebraska Environmental Trust and ensure that those dollars go only toward the conservation purposes that the law allows, not unrelated budget gaps. This is an encouraging first step in that direction. We look forward to continuing to demonstrate why these transfers violate the Nebraska Constitution."

Carter Matt, ACLU of Nebraska staff attorney, said:
“I am grateful that the court saw that it is necessary to immediately halt the raid on the Nebraska Environmental Trust. For now, these funds remain available for their intended purpose: conserving the natural environment of Nebraska. This is an important but temporary victory, and there is more work ahead of us to ensure that the Fund remains protected and that the will of Nebraska voters is respected.”