Policy brief — LB 1107 would be increasingly costly over time

The amended LB 1107, which could cost $150 million in FY 21 and potentially exceed $375 million in the upcoming biennium, only offers about $15 million annually in new revenue to defray its cost. This makes it unclear how the new spending bill would be funded. It has been suggested that the Legislature could cover its […]

Policy brief — Examining LB 720 as amended by AM 3049

The ImagiNE Nebraska tax incentive program — LB 720 as amended by proposed AM 3049 — will be debated by the Legislature this week. Though the new amendment addresses one issue we have previously raised, concerns about job quality, wages and fiscal sustainability remain and will be compounded by a fiscal landscape that has been […]

Policy brief – A closer look at May receipts shows cloudy fiscal picture

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 restraint as they prepare to resume the 2020 legislative session. June tax collections will need to outpace historical average to meet forecast Statute […]

Policy brief – Examining prior, new ImagiNE Nebraska concerns

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. Major concerns about job quality, wages and fiscal sustainability that come with the program remain and will be compounded by a fiscal landscape […]

OpenSky analysis shows choppy revenue waters likely ahead for Nebraska

LINCOLN — Nebraska likely faces a treacherous revenue situation due to the COVID-19 pandemic a new analysis by OpenSky Policy Institute shows, but just how choppy the state fiscal waters get will depend on the severity and the duration of the economic fallout from the virus. The analysis examines three hypothetical revenue scenarios that are […]

Policy Brief — Examining three hypothetical revenue scenarios for Nebraska

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.

Policy brief – CARES funds vital but likely to be exceeded by needs

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 …

A quick update on the fiscal impact of COVID-19 and the federal/state response

Over the past few weeks, OpenSky staff members have been analyzing the state and federal response to the COVID-19 pandemic as well as the potential fiscal and economic impact of the virus. Here we circle back to provide an update on some of the issues we have written about as part of this work.

Policy Brief – COVID-19 leave provisions vital but more can be done

Congress recently passed important changes regarding paid leave that will help many Nebraskans amid the COVID-19 pandemic. Federal and state leaders, however, can further mitigate the effects of the virus on Nebraskans by taking additional actions to extend paid leave benefits to more workers.

Policy brief — Past recessions provide important insight into COVID-19’s fiscal impact

A look back at how previous economic downturns affected Nebraska’s fiscal picture can prove instructive as coronavirus response moves forward.

Policy brief – Virus’ impact may warrant revised revenue forecast

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.