In Sunday’s Omaha World-Herald, OpenSky Executive Director Dr. Rebecca Firestone wrote that while the $1.9 billion lawmakers have for new legislation this session presents an opportunity to make powerful investments, there are major caveats for policymakers to keep in mind.
The caveats include the fact that money is likely temporary. The surplus likely materialized in large part because of the $24 billion in federal relief dollars that have come into the state since the onset of the pandemic – a trend we see in other states as well. Also, Dr. Firestone noted that $1.9 billion is a projection and may not actually come to fruition. Additionally, lawmakers have the future fiscal impact of the large tax package they passed last session to keep in mind as they look to craft proposals in the upcoming session.
Given these conditions, she said it will be important to exercise prudence when using the funds and that includes ensuring any investments made are proven and preferably one-time as ongoing expenditures, such as tax cuts, could leave the state in financial pinch should state revenues lag in the future.