Nebraska revenue package aimed at shrinking budget deficit advances

Nebraska lawmakers worked into the evening Wednesday for the first time this session, signaling a faster pace as they push toward the end of the legislative calendar with a significant budget shortfall still unresolved.Members of the Appropriations Committee said they have reduced the deficit but have not yet closed the gap.”We’re able to get it from $125 down to $40 million, and we’re going to stop there for now and see how the revenue comes in,” said Sen. Robert Clements, of Elmwood.A revised budget proposal from the committee is expected to reach the floor Thursday morning, incorporating additional spending cuts and transfers from cash funds in another attempt to balance the state’s finances.”We’ve asked agencies to tighten their belts a little bit more,” Clements said.One notable omission from the latest proposal is $3.5 million in state funding for private school scholarships, an issue likely to spark debate among lawmakers.Concerns about the state’s long-term fiscal outlook surfaced during hours of debate on Wednesday as some senators warned that Nebraska could face an even larger deficit in the coming years. “Looking at the future and kind of the volatility and uncertainty that we’re facing economically today,” Sen. Jana Hughes said.Hughes, who previously supported accelerating income tax reductions in 2023, advocated Wednesday for slowing the pace of those cuts, which are scheduled to go from 4.55% to 3.99% next year. An amendment she proposed would have stair-stepped it down until 2029.”That just buys the state some time if economically we are not doing as well in the next year or two or three,” she said.Her proposal didn’t build a filibuster-proof coalition.”Any change in the proposed step down of income tax today is a tax increase,” said Sen. Brad von Gillern, of Elkhorn, voicing his opposition.Hughes withdrew her amendment, so lawmakers advanced LB 901 to final reading without changes to the tax reduction schedule. LB 901 would increase the tax on games of skill from 5% to 10% and raise fees for collecting delinquent taxes. Together, the package would generate an estimated $25 million in additional revenue.The bill also allocates about $3 million for domestic violence services and shelters.”The need for these services is so much greater,” von Gillern said.Make sure you can always see the latest news, weather, sports and more from KETV NewsWatch 7 on Google search.NAVIGATE: Home | Weather | Local News | National | Sports | Newscasts on demand |