Nebraska's Reserve Account Overflowing

While other states slash their budgets to offset weak tax revenues, Nebraska lawmakers may begin getting pressure to cut taxes. A committee made up of key state senators was told on Wednesday that revenue growth during the fiscal year that ended last month outpaced the historical average for the fifth consecutive year. Total, end-of-year revenues were $117 million more than projected. Now the state has a record reserve account of about $570 million. But state budget officials caution that robust revenue streams were mainly due to strong income tax revenue in 2007 and are not a sure sign the state economy is booming now. If senators do look at cutting taxes, Speaker Mike Flood of Norfolk says, the focus should be on... [read full story]