Platte Institute Proposes $162 Million Spending Freeze to Help Close Nebraska Budget Gap 

OMAHA, NE — At a virtual press conference held Monday afternoon, the Platte Institute proposed a targeted, responsible solution for addressing Nebraska’s budget shortfall without reversing the pro-growth income tax reforms enacted in 2023, raising other taxes, or relying on one-time cash transfers currently funding other programs. 

Senior Tax Policy Advisor Michael Lucci outlined a plan to freeze two of the state’s fastest-growing spending programs - the Property Tax Credit Fund and the School Property Tax Relief Fund - at current fiscal year (2024–2025) levels. This action would result in $162 million in savings over the biennium. The growth of these programs in the next two biennial budgets is scheduled to be $197 million.  

“Instead of undoing tax reform or raising new revenue, Nebraska should focus on reining in the spending growth that has outpaced returns for taxpayers,” said Lucci. “These state subsidies for local government spending have now reached billions annually, and they’re not producing the level of property tax relief Nebraskans were promised.” 

The Platte Institute is calling on lawmakers to re-evaluate whether these programs are delivering a strong return on investment and to adopt budget reforms that preserve the state’s competitive tax structure while improving fiscal sustainability. 

The plan also urges legislators to consider using Nebraska’s strong cash reserve as a temporary bridge - if necessary - while avoiding the trap of short-term fixes that lead to long-term instability. 

“We’re at a critical moment where leadership means saying ‘no’ to automatic growth in state spending and ‘yes’ to protecting taxpayers from future tax hikes,” Platte Institute Chief Executive Officer Jim Vokal said. 

To learn more about the Platte Institute’s recommendations or to schedule an interview, contact Ryan Kopsa at (402) 366-4432 or rkopsa@platteinstitute.org.

To view the footage of today’s press conference, click here.  

The Platte Institute advances policies that remove barriers to growth and opportunity in Nebraska. Committed to fostering economic freedom and prosperity, the Institute champions initiatives that enable all Nebraskans to thrive. Visit  PlatteInstitute.org for more information.