Cash reserve OK, but state shouldn't hoard

If revenue projections hold, the State of Nebraska will have a cash reserve of $542 million by the end of the fiscal year, probably more than it's ever had, according to state officials.

It's a problem more of us should have. Observers like to point out that Americans have a woeful saving rate, a little over one-half percent of disposable income in the third quarter of 2007, compared to the Japanese rate in the mid-20-percent range.

While there is a vast difference between government and personal finances, putting money away for a rainy day appeals to traditionally conservative Nebraskans.

Gov. Dave Heineman wants the money to stay in the bank in case we have an economic downturn, and most state senators, including our representative, Mark Christensen, agree.

But like a youngster with a $10 bill burning a hole in his pocket, some lawmakers have designs on that big bundle of cash. They would like to spend it on roads, which will need more local money in light of coming reductions of federal money.

Others see the reserve as a way to pay irrigators the $9 million they are owed for water sent down the Republican River to help meet Nebraska's obligation to Kansas.

If dire predictions turn out to be true, that $9 million could be only the tip of the iceberg of cash it may take to extract Nebraska from the Republican River Compact mess.

In light of those and other pending problems, we agree that keeping the cash in reserve is a good idea for now.

But state government shouldn't be in the habit of hoarding taxpayer dollars out of fear of any possible eventuality.

Yes, it is prudent to have an adequate cash reserve on hand. Beyond that, however, taxpayers should be allowed to keep as much of their own money possible.