State senators have passed a budget that outlines $10.7 billion in General Fund expenditures over the next two years. In the few days that remain – Tuesday marked Day 83 of the 90-day session – the Legislature will consider spending priorities that will impact the state’s bottom line for years to come.
The agenda will include tax cut bills that would likely benefit the wealthy and out-of-state corporations.
Later this week, the Legislature is expected to vote on LB 754, a package of personal and corporate income tax cuts that would cost the state $3.32 billion in revenue over the next six years, including $379 million in the next biennium. Senators are expected to consider LB 243, which calls for property tax breaks with a $1.76 billion price tag over the next eight years, including $180 million in the next biennium.
Add in the projected costs of LB 753, a bill providing state tax credits for donations toward private school scholarships, and LB 727, an omnibus bill diverting state sales tax revenue to back expansion of Nebraska Crossing among other proposals, and senators are considering a commitment of $667 million over the next two years to fund four bills. That’s money coming from the nearly $900 million that the Appropriations Committee set aside for spending priorities by the full Legislature.
The four bills alone, in the following biennium, have a cost of $1.7 billion, which represents nearly one-third of Nebraska’s annual spending from the General Fund. That’s significant revenue that won’t be available for a future Legislature to maintain long-term commitments to education funding, to repair roads and bridges and pay for other programs that all Nebraskans rely on.
Wednesday is Give to Lincoln Day
Tomorrow, on Give to Lincoln Day, you can support the work of OpenSky Policy Institute to provide engaging and understandable analysis of tax and budget policy in Nebraska. All donations will grow through a match fund and help OpenSky to reach its goal of $50,000.