LINCOLN — Below are statements from OpenSky Policy Institute Executive Director Dr. Rebecca Firestone following the recent release of Fiscal Year Tax Receipts from the Nebraska Department of Revenue and the meeting of the Tax Rate Review Committee.
“Fiscal year net receipts came in very close to projections, meaning predictions were relatively accurate and the Legislature had a good line of sight into how much money was on the table. Nonetheless, it still found itself needing to raid various cash funds last session to meet its existing obligations – a budget move that historically only happens in emergencies. With those cash funds tapped and a projected $1.18 billion less to work with, we’re worried the Governor and Legislature may look to cut essential services such as child welfare or health care just to keep the budget balanced.”
On the impact of income tax cuts:
“In 2023, the Legislature chose to enact aggressive income tax cuts over other types of tax relief, including property taxes. These receipts raise questions as to whether the state economy will be able to grow enough for us to afford those tax cuts while also trying to lower property taxes by more than 40%. A $1.18 billion decrease in state revenues as projected for the current fiscal year should concern all Nebraskans, especially as we head into a special session focused on taxes.”
On the decrease of sales and use taxes and individual income taxes:
“A 1.6% decrease in sales and use tax receipts and an 11.5% decrease in individual income tax receipts paint a picture of an everyday Nebraskan who is making a conscious choice to spend money conservatively and potentially defer larger purchases until a later time. We believe Nebraskans expect their legislature to manage the state budget in kind, taking a look at large expenditures like corporate income tax reductions, the Perkins County canal and a new state prison, and determine if they are absolute necessities at this time.”
