LINCOLN- On Wednesday, a move by Sen. Rob Clements, chair of the Legislature's Appropriations Committee, came under fire after he proposed that the state's 'rainy day' fund be reduced to cover the deep cuts in taxes proposed this year. Under Sen. Clement's amendment, the fund would reduce from a forecasted $950 million to $780 million. Clements told his colleagues that such a reduction would be necessary for the state to cover the loss of tax revenue expected if the proposed tax cuts advance.

Under the amendment, the extra $170 million would be retained in the state's general fund, rather than being transferred into the cash reserve fund. The recent economic forecast for the state was reduced by around $80 million, prompting Clements to move to cover this decrease. Sen. Danielle Conrad, an opponent of the tax cuts, said she was already concerned about the affordability of the proposed tax cuts and was shocked to see budget adjustments made before they are even passed.

"We are raiding the rainy day fund in the middle of having all of this money," said Sen. John Cavanaugh, another opponent of the reductions, "It raises red flags." Sens. Lou Ann Linehan and Tom Briese, however, defended the cuts, and believe they can be altered if need be in the future. "Future bodies can hit the pause button, I submit to you it won't be necessary," said Briese.

For the full article click HERE