Balancing state budget on the national debt

If President Obama's stimulus bill pays off as predicted, McCook should regain about 100 jobs.

That's because Nebraska is predicted to get about one new job for every 78 people under the plan.

That's also fewer than other states, like California, but thanks to conservative leadership, Nebraska is in better fiscal shape than California and most other states. And, thanks to a diversified economy, our December unemployment was a low 4 percent -- although it has doubtless climbed significantly since then.

Still, Nebraska's budget is expected to be one of the most difficult ones the Legislature has dealt with in recent years.

Sen. Lavon Heidemann of Elm Creek, chairman of the appropriations committee, said he wouldn't be surprised if revenue drops by more than $300 million over the next few years. That will make it harder than ever for the state to meet its projected $7 billion budget.

Sen. Ben Nelson, one of the key negotiators in the successful effort to reduce spending in the stimulus package enough to ensure its passage, said Nebraska schools will receive $236 million to help avoid teacher layoffs, $52 million will go to rebuild infrastructure and $310 million to preserve Medicaid assistance.

That will certainly be welcome in Lincoln.

Unlike the federal budget, however, Nebraska's budget is constitutionally required to be balanced.

How disappointing it would be to the state's founders, to learn that the state budget was able to be balanced only through an infusion of money borrowed from a federal deficit.