A core function of OpenSky Policy Institute is to provide reliable data, information, and solutions regarding revenue proposals and existing policies in an effort to put the state on a sustainable long-term growth path that balances the needs of its citizens with the capacity of the revenue structure.
The most expensive of the CARES Act tax changes -- accounting for roughly 75% of the three-year total revenue loss -- is excess business loss provisons, which only benefits the wealthy. Read more about the provision in this policy brief.
EDITOR’S NOTE: A description of each CARES Act tax change, as well as the estimate of total revenue reduction, can be found in this Department of Revenue report. The CARES Act tax [...]
Nebraska’s May tax receipts left some lawmakers with a relatively optimistic outlook for state revenues despite the nation having officially entered a recession.[1] However, there are multiple reasons for lawmakers to proceed with caution and fiscal [...]
The ImagiNE Nebraska tax incentive program, which is proposed by LB 720 as amended by AM 2207, is likely to remain a key point of discussion when the Legislature reconvenes in July. [...]
In recent briefs, we’ve looked at what the minimum Moody’s projection -- a 10% reduction amounting to about $500 million -- would look like, and here we consider additional scenarios to show how the state budget might look if revenues come in different than Moody’s minimum.
In recognition of the fiscal toll COVID-19 will have on states, the federal government put together a $2 trillion aid package, known as the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), of which the state of Nebraska is expected to receive about $1.4 billion. This equates to about 30% of Nebraska’s FY 21 general fund budget. While this will help ease the fiscal burden, it’s also likely to be insufficient to offset the damage -- the full magnitude of which we may not know for months or even years. Read more ...
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) is intended to help offset the fiscal harm caused by the COVID-19 pandemic. State fiscal relief in the CARES Act provides funding for COVID-19-related expenses -- costs that states could not foresee until the crisis unfolded. Read more details about what is in the CARES Act for Nebraska and other states.
A look back at how previous economic downturns affected Nebraska's fiscal picture can prove instructive as coronavirus response moves forward.
Nebraska’s forecasting board revised its revenue projections upward on Feb. 28, just as the Coronavirus pandemic was beginning to impact the U.S. economy. As the economic impact of the pandemic continues to materialize, Nebraska may want to consider joining other states in revisiting its revenue projections to get a clearer understanding of how the virus is impacting our economy and revenues.
Read about some of the priority bills that relate to OpenSky’s work and what position we have taken on them.