Senators face fiscal triangle

The Bermuda Triangle is fabled and feared by sailors and fliers as a place of mystery and danger.

Nebraska's state senators find themselves trapped in a dangerous financial triangle as they head to the capitol for a special session Wednesday.

On one side, they are hemmed in by declining tax revenues, most dangerously, lower income tax withholdings as the result of layoffs and reduced hours.

The second side is a prohibition by threat of veto or potential citizen revolt against any increased taxes.

The third leg of the trap was drawn by Gov. Dave Heineman, who wants to maintain a property tax credit and avoid dipping into the state’s surplus of about $330 million.

Given those tight constraints, our 49 state senators seemingly have little choice but to go after state agencies and state aid to local government agencies to make up the projected two-year deficit of about $335 million.

The Unicameral may not be able to muster a veto to overcome objections to using some of the surplus, but that option should not be crossed off so soon.

We hope the cuts will be made surgically but, given the short time allocated to the special session, the process may be gory. We also are concerned that senators from the Omaha-Lincoln area will look after their interests to the detriment of us “outstaters.”

More than a few states have made broad across-the-board cuts or mandated unpaid furloughs for state employees. Money for secondary and higher education presents a fat target, but each entity boasts strong support from paid lobbyists and constituents.

Earlier this year, the governor lobbied for salary increases for the state’s teachers. His move was seen in many corners as political pandering as the state’s teachers represent a major bloc of voters.

Another large voter segment is those of us who pay property taxes.

With his presumed re-election campaign a year away, Heineman declaring the property tax credit off-limits can be viewed as another voter enticement.

If the state’s fiscal forecasters are correct in their prediction of increased revenues in 2010-11, dipping into the reserve would not be so intimidating. The more conservative view, given Nebraska’s late entry into the economic pinch, might project a slower recovery as well.

The concern we have for greater Columbus is that we and similar outstate interests will suffer at the hands of the increasingly urban Legislature. We can see the potential for further delays in road and viaduct projects and cuts in school aid that could eventually cost us more in property tax dollars.

Our best chance is for Sen. Arnie Stuthman to rally with senators from here and allied areas to protect those of us who live and work where the true lifeblood of our state flows.

United we can stand; divided, we will lose and pay.