Nebraska revenue committee hears broad opposition to proposed LIFO cuts in LB650

Senator Brad Von Gillern, the bill’s introducer, told the Revenue Committee that LB650—amended by AM690—was intended to reduce discretionary spending and help close a projected $292 million biennial shortfall while preserving Nebraska’s financial reserves. "The positive financial impact of the bill as amended is estimated to be $88,000,000 in the upcoming biennium and $132,000,000 in the following biennium," Von Gillern said in his opening remarks.

The hearing drew a long line of proponents and opponents. Neil Sullivan, state budget administrator for the Department of Administrative Services, testified in support, saying the governor’s office favors rolling back recent exemptions and incentives added to the tax code so the state can pursue property-tax relief. "We are constitutionally required to approve a balanced budget by the end of the session," Sullivan said, adding that Nebraska is "not broke" though the state must take steps to sustain reserves.

Opponents argued LB650 would reimpose taxes or remove incentives that state and local officials, developers and private firms have been relying on. Kent Rogert, representing AT&T and…