Budget signed with no vetoes and other recent fiscal news
Gov. Pete Ricketts has signed the Appropriations Committee budget with no vetoes. The budget calls for 3.1 percent funding growth — the third-lowest in the past 30 years — as well as an additional $64 million per year for the state’s Property Tax Credit program.
As we noted in an Omaha World-Herald opinion piece, the Legislature crafted a solid budget proposal. However, one-time factors such as unusually low funding growth for K-12 education, downward adjustments in Medicaid and Public Assistance base funding and stopping the practice of letting agencies keep unused appropriations, were critical in keeping funding growth down. The Legislature won’t be able to rely on those factors in the next budget, which will make it difficult to maintain 3.1 percent funding growth without cuts to schools, roads and other vital services.
In other recent tax and budget news, lawmakers on Monday advanced LB 259 to the final round of debate. The measure would give businesses, farmers and other taxpayers an exemption on the first $10,000 of their personal property.
Also, senators on Tuesday gave second-round approval to LB 200, which would divert online sales tax revenue to Nebraska’s Property Tax Credit Program should Congress pass the Marketplace Fairness Act.