OpenSky statement on the latest forecasting board projections

LINCOLN — The following is a statement from OpenSky Policy Institute Executive Director Renee Fry regarding the projections made Monday by the Nebraska Economic Forecasting Advisory Board:

“Revenue needs to be part of the discussion in regards to addressing our growing budget shortfall. We’re going to do a lot of damage to our state if we close the shortfall with budget cuts alone. One thing we can do is look at freezing or reversing many of the special tax loopholes we have carved out over the past decade, which are reducing revenue by hundreds of millions of dollars each year. There are bills that have been introduced that will give lawmakers a chance to discuss these loopholes.

“It is fiscally irresponsible to be talking about further reducing revenues by way of income tax cuts now or in the coming years. This is particularly true in the face of a recent U.S. Government Accountability Report that found states may be entering a long run of budget shortfalls that could last more than 40 years as health care and pension costs increase as our population ages.”

Contact Chuck Brown at 402-610-1522 or cbrown@openskypolicy.org for more information.