LINCOLN- A new report from the Center on Budget and Policy Priorities, cited by the Lincoln-based OpenSky Policy Center, says the recent tax cuts enacted by Nebraska lawmakers will reduce state revenues by $3.1 billion over the next five years, a 7.6% decline in general fund revenue.

That forecasted decline in state revenue is the sixth steepest in the nation, according to the report, titled "States' Recent Tax-Cut Spree Creates Big Risks for Families and Communities," and was possible, in large part, due to an influx in federal COVID-19 aid. Rebecca Firestone, OpenSky's executive director, said the cuts in Nebraska threaten the state's ability to tackle "real challenges" and endanger current investments in schools, health care, and public safety.

However, some disagree with the report's findings. "Prior to these income tax cuts, Nebraska was woefully uncompetitive in the region," said Jim Vokal of the Platte Institute, "The recent moves on taxes were desperately needed to stay in the game." Thus far, according to OpenSky, the tax cuts enacted over the past three years in Nebraska have reduced state revenue by $77 million, with the potential to grow to a projected $1 billion in 2028.

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