A private, nonprofit agency that manages child welfare cases in the Omaha area is projecting a $2 million annual shortfall in its budget, based on what it currently receives in state aid.

Judy Rasmussen, treasurer of the Nebraska Families Collaborative, told lawmakers Wednesday that her organization expects to incur $57 million in expenses in the current fiscal year, but will only receive $55 million from the state.

The amount is based on a contract signed as part of last year’s child welfare overhaul.

Kerry Winterer, the CEO of the Department of Health and Human Services, says the payments are based on a detailed analysis of the caseloads in Douglas and Sarpy counties.

Winterer says state officials were already planning to renegotiate the contract, but they believe the rate is fair.