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Page 53

Nebraska

Benjamin Nelson, Democrat

Legislature: Nonpartisan

Took Office: 1/91

Grade: C

Benjamin Nelson won the governor's seat in 1990 by a

very narrow margin over the tax-hiking GOP incumbent Kay

Orr.  He was reelected in 1994 by a landslide but is prohib-

ited from seeking a third term this year.  Nelson has gov-

erned as a relative fiscal moderate.  He has pushed for mod-

est reductions in taxes and has avoided proposals for huge

increases in spending.  This year Nelson signed legislation

that will use about half of the state's revenue surplus to

extend indefinitely a temporary 5 percent income tax cut and

to cover a temporary one-year half-cent reduction in the

sales tax.  Unfortunately, the other half of the surplus was

spent.  As a result, in Nelson's last year, FY99, general

fund appropriations will rise by a whopping 12.6 percent.

Early in his tenure he supported a state lottery and has

used the revenue to dramatically increase spending on educa-

tion and environmental programs.  Compared with that of his

tax-hiking predecessor, Nelson's moderate fiscal record has

been an improvement.  However, compared with the records of

the many tax-cutting governors in statehouses today, that

record is not so impressive.

Score

Grade

Rank

Overall Fiscal Policy Score

48

C

23

Spending Score

38

C

35

Revenue and Tax Rate Score

53

B

13

Amount

2.7%

Average Annual Change in Real Per Capita Direct General Spending through 1996

1.6%

Average Annual Change in Direct General Spending Per $1,000 Personal Income through 1996

0.0%

Average Annual Recommended Change in Real Per Capita General Fund Spending through 1999

-0.1%

Average Annual Change in General Fund Spending Per $1,000 Personal Income 1996-98

2.7%

Average Annual Change in Real Per Capita Tax Revenue through 1997

0.9%

Average Annual Change in Tax Revenue Per $1,000 Personal Income through 1997

-1.6%

Average Annual Recommended Change in General Fund Revenue Per $1,000 Personal Income through 1999

-1.2%

Average Annual Change in Real Per Capita General Fund Revenue 1996-98

-0.7%

Average Annual Recommended Tax Changes as % of Prior Year's Spending through 1999

-0.24

Change in Top Personal Income Tax Rate, proposed and/or enacted (% points)

0.0

Change in Top Corporate Income Tax Rate, proposed and/or enacted (% points)

14.5

1998 Combined Top Income Tax Rates (Personal plus Corporate) (*0.5)

-0.5

Change in Sales Tax Rate, proposed and/or enacted (% points)

-1.9

Change in Gas Tax Rate, proposed and/or enacted (cents per gallon) (*0.5)