Legislators have a big job ahead of them

As the days dwindle down to a precious few, Nebraska's lawmakers are scrambling to find a way to prevent a $226 million budget deficit.

The state senators have to get the job done ... there's no way out of it. Nebraska has a law that forbids deficit spending for state government.

The budget crunch is no surprise. Gov. Mike Johanns and the 49 members of the Nebraska Legislature have known for months that, because of the slowdown in the economy, there would not be enough money to cover the state's spending needs.

So what can be done? There are only two alternatives. The state is either going to have to reduce spending or increase revenues ... and, invariably, when government is involved ... that means raising taxes.

Plans for fixing the problems are flying in the legislative halls in Lincoln.

At the heart of the discussion is LB 1085, which proposes to raise revenues by increasing income taxes by approximately 2.25 percent, expanding sales tax to include several services that are now exempt and letting K-12 schools exceed the $1 maximum property tax. In addition, there is a proposal before the legislature to increase taxes on cigarettes by as much as 30 cents per pack.

At the same time, lawmakers are looking at ways to cut spending, including the Appropriations Committee's recommendation that spending by state agencies be cut by 3 percent across the board.

To achieve the $226 million cutback, it will be necessary for the legislature to use a combination of the two methods: reduced spending and increased taxation.

While state agencies don't want to cut back services and Nebraska citizens don't want to pay more taxes, the law requires that the state operate with a balanced budget.

Look at the problems which developed on the federal level in years past when the nation's lawmakers continued to spend despite massive debt.

Nebraska's system is much better. Yes, it's tough to cut back spending, especially when needed programs are scrapped in the process. And, it's equally difficult to pay more taxes, expecially in tough economic times.

But, in order to keep the state operating on a sound financial basis -- now and in the future -- we are well-served by the Nebraska law which forbids deficit spending.

It's tough for lawmakers, state employees and taxpayers to face the music ... but it's assuring to know that we're paying our own way and not sticking future generations with the effects of our overspending.