Senators scramble for cash

McCOOK, Neb. — Nebraska legislators facing budgeted revenue shortfalls, and seemingly incapable in recent weeks of coming to a consensus on spending cuts, debated a primary budget bill until after 9 p.m. Wednesday evening and appeared no closer to a solution. They are now looking to reduce reserve accounts and raid cash funds instead of making spending cuts, at least according to one senator.

A week ago, District 44 State Sen. Dan Hughes was “cautiously optimistic” property tax relief would occur this session but sounded deflated during his weekly conference call Thursday morning and said he was no longer optimistic.

“There is a lot of finger pointing, blame and disappointment for not getting some sort of property tax relief this session,” said Sen. Hughes.

Advocates for property tax relief lost their vehicle to get it done when the appropriations bill at the center of late night debate, LB 327, ultimately failed, according to Hughes. He said the debate included a lot of talk about trimming the budget but unfortunately didn’t happen.

“There are a couple other bills but roadblocks exist for each of them. I’m not optimistic at this point,” he said. Sen. Hughes said there were still spending cuts that needed to be made and he was against efforts to reduce reserve accounts to meet the shortfall. He indicated legislators were now “sweeping every cash fund they can find.”

Legislators reached day 77 of the 90-day session Friday and could be setting themselves up to need a special session this summer to address the budget, unless the ag economy somehow turns around, according to Hughes.

He said Nebraska’s economy was primarily split into two sectors, urban and agriculture, and reports of a recent decline in new car sales could be the first sign the lagging ag economy is having an impact on what has been a boisterous urban economy.

Although, Sen. Hughes added lightheartedly, his crystal ball wasn’t all that accurate when it came to the economy.