Gov. Heineman has led the charge to reduce property taxes by proposing a $75 million tax rebate plan that would transfer that amount from the cash reserves. This is on top of the $115 million currently targeted for property tax credits. The total of the two amounts would bring $190 million in tax savings to property owners. That plan is endorsed by several groups including the Nebraska Farm Bureau and the Nebraska Cattlemen. They contend that property taxes are a larger expense for ranchers and farmers, so any help with property tax relief would be enthusiastically welcomed. The total in property tax relief would save taxpayers $151 for every $100,000 in property value.

The reason for the cash reserves is to have a next egg ready to absorb major expenses if the economy dips. Given the cloudy horizon of the economic landscape, every Nebraskan can appreciate that logic. The state The question for legislators is how large should the cash reserves be?

There is a considerable case to be made that the cash reserves to not need to that large and that the best way to sustain significant tax relief is to limit spending. It sounds smart until a look at state spending items would reveal that much of the budget is passed along to county, school and city jurisdictions. To limit spending on these programs would add to the stress felt by these local government entities and force those taxes to soar.

This is a unique time in the state's economic history. Crop prices are soaring and the ethanol boom is creating an economic wave in rural areas like that never seen before. Nobody can tell if the current boom can be sustained or if it is a blip on the economic radar.

It seems that the wisest choice is to grant the proposed $190 million tax to give Nebraskans a slight bit of relief at a time when other costs around them are nibbling significantly at the family budgets. But it is also possible to then make a concerted effort to keep the remaining cash reserve funds intact and tucked away for the future. At the same time, continue to question state spending to find efficiencies while throttling down spending wherever possible. New programs should only be initiated if an older program can be eliminated or reduced.

Nebraska only need to cast an eye to Washington D.C. to see the model for fiscal irresponsibility and realize that a balanced budget is a very good thing even if it is mandated by the state constitution, like in Nebraska. A rainy day fund is necessary. Yet if there is a way to also reduce property taxes while keeping the bulk of the reserve intact, Nebraskans would feel very good about their situation.