The Legislature ended its special session Friday with a bill that balanced the state budget and filled a $334 million revenue gap.

Gov. Dave Heineman signed the bills Friday, but outlined three problem areas he would like to see senators address at their regular session in January. Among them were concerns senators went $2 million too far by taking $5 million from the state's Job Training Assistance Fund.

He also was dismayed the Legislature gave the Supreme Court preferential treatment by granting it lower across-the-board cuts -- even after Chief Justice Mike Heavican told the Appropriations Committee the governor's proposed cuts could lead to the closing of some 23 courthouses.

Heineman proposed agencies reduce spending 2.5 percent this year and 5 percent next year.

The Legislature gave the Supreme Court a 1.5 percent cut this year and 3 percent next year.

"I think this is about shared sacrifice and equal treatment," Heineman said. "We all need to be in this together."

He felt the same way about the Legislature reducing its own cuts by $1 million, saying senators should not treat themselves better than the rest of the state.

At an Executive Board meeting Friday afternoon, Sen. Russ Karpisek of Wilber said he was "very upset" about being the target of the governor's criticism.

Senators are taking their fair share of cuts, he said, as the board voted to hold off on staff salary increases beginning July 1, and to keep the same per diem rates for themselves as this year.

Senators make $12,000 a year plus per diem payments for some living and travel expenses.

Speaker Mike Flood pointed out the Supreme Court and Legislature are entire branches of government, not agencies. No agency, he said, is responsible, as the Legislature is, for a more than $3 billion annual budget.

Omaha Sen. Tom White said the executive branch itself spends a substantial amount of money, just in "lobbying" the Legislature.

That's a program that could be cut, he said.

Sen. John Wightman of Lexington, chairman of the Legislature's Executive Board, said senators would be looking in January at long-term changes that could lower spending, including examining staffing and creating efficiencies.

Those would require policy changes that could not be done in a 12-day special session, he said. But they could be done in the regular session for the second year of the budget.

Earlier Friday, senators voted 47-0 to pass three budget bills (LB1, LB2, LB3), with Sens. Heath Mello and Brenda Council excused because they are traveling.

The bills closely mirror the governor's budget proposal, which was based on agency savings, general fund transfers, specific reductions and across-the-board reductions that could lead to furloughs or layoffs.

Senators weren't as united on the school aid bill (LB5), voting 40-7 to slow spending by school districts.

Omaha Sen. Tanya Cook voted no to show support of public education and the needs within Omaha Public Schools. More belt tightening in schools could result in smaller pay raises for teachers and administrators, she said, and fewer younger teachers choosing to stay in K-12 education.

Lincoln Sen. Amanda McGill, who also voted no, said the changes likely would lead to property tax increases.

She introduced and then withdrew an amendment to the bill last week that would have mandated schools to reduce spending first in ways that did not affect the classroom. That would have included spending on administration, equipment, construction and renovation, and legal and professional contracts.

Slowing spending will affect schools next year and for years after, said Sen. Greg Adams, chair of the Legislature's Education Committee. It's unknown how districts will be affected, he said, but there were no big winners or losers with the changes to the school aid formula.

"What we have to do now is hope we don't have to go back into (the school aid formula) during the regular session," he said.

That will depend how the economy does in the coming months, he said.

In regard to whether slowing spending in schools will raise property taxes in some districts, Heineman said state government has found a way to lower spending, and local governments should do the same.

"There's a way to do it, if there's a will," he said.

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