CHICAGO — Nebraska Gov. Dave Heineman said he will push lawmakers to pass up to $500 million in tax cuts over the next three years amid record-high cash reserves.
Heineman proposed property and income tax cuts that total between $370 million to $500 million over the next three years in his state of the state address on Jan. 15.
The state's cash reserve is currently at $722 million, a record high, the governor said. The state's overall surplus totals $1.2 billion.
"Today, I am showing you how Nebraska can afford up to $500 million in tax relief over the next three years because we have a growing economy, a strong cash reserve and we have worked hard to control spending," Heineman said during the address. "I am willing to work with the Legislature anytime, anywhere to develop a reasonable and meaningful tax relief plan."
Heineman said he will ask lawmakers during their upcoming 60-day session to transfer $220 million out of the cash reserve fund that's earmarked for tax relief, leaving $500 million in the fund. The state's annual budget totals roughly $4 billion. He will also ask lawmakers to keep spending growth at 4% or lower over the next three years to generate an additional $500 million.
Heineman, a Republican, also reiterated his opposition to the new federal health care law's Medicaid expansion program during the annual address. He said the expansion would mean less funding for state aid and that the federal government "is already trillions of dollars in debt, and unlikely to fulfill its promised commitment."
