“I want to set this expectation for everyone,” Ricketts said in an interview with The Associated Press, as he prepared for the final session of his term. “Don’t think you’re going to come here and spend a lot of money. Were not.”

Nebraska’s current two-year state budget is expected to grow an average of 1.8 percent per year, to about $ 9.78 billion by June 2023, according to the Legislative Office of Taxation. This increase is lower than the long-term average, which is traditionally closer to 4%. Ricketts has said he expects to “fine tune” this current budget to accommodate new demands from state agencies, but will oppose large spending increases.

Ricketts gave few details on his priorities for this year’s session, but said he planned to focus on tax cuts, public safety, investments in the state’s natural resources and 1 .04 billion dollars in federal money in the event of a pandemic. Federal law prohibits the state from using its pandemic aid money for tax cuts, but many Republican-led states, including neighboring Iowa, have announced plans to cut tax cuts. taxes using their own income.

And in November, a federal judge banned the U.S. Treasury from enforcing a provision of the American Rescue Plan Act that prohibited states from using their pandemic relief money to offset further tax cuts. The law directed $ 195 billion in flexible relief funds to states, but clarified that states could not use it as a way to cut taxes by using federal relief dollars to make up for lost revenue.

Ricketts has said he will also continue his efforts to limit the amount local governments can collect in property taxes, a move endorsed by conservative taxpayer groups, but which will certainly meet stiff opposition from K-12 public schools. of Nebraska, the largest consumer of property tax dollars. .

“There will be a number of things that we want to continue to build on when it comes to tax breaks,” Ricketts said.

Ricketts said he would present lawmakers with two budget plans, one for the government’s current spending from the state’s general fund and the other with recommendations on how to spend the $ 1.04 billion in the budget. US federal bailout law.

Senator John Stinner, chairman of the Legislative Assembly Budget Drafting Appropriations Committee, said he aimed for lawmakers to debate the state’s general fund budget by mid-February and pandemic aid budget by March. Stinner said he heard some lawmakers want to use pandemic money for mental health services and workforce development programs to address the workforce shortage in Nebraska.

“One of the things we have to make sure is that we don’t use this money for living expenses,” he said.

Senator Lou Ann Linehan, chair of the Legislative Assembly’s Revenue Committee, said she believed lawmakers would be able to enact tax cuts to the state’s general fund budget, as long as ‘they would limit the spending of this account. Nebraska’s general fund budget has a surplus of $ 412 million this year thanks to higher-than-expected tax revenues, although critics say revenues have only increased due to billions of dollars in funding. Short-term federal stimulus injected into the state’s economy.

“It is not normally acceptable to keep between $ 400 million and $ 500 million of taxpayer money that we do not need,” Linehan said at a press conference Thursday.

Ricketts said he also planned to lobby for a new state prison to replace the Nebraska State Penitentiary at Lincoln, which was built in 1869. He argued that the new prison would improve inmate safety and staff and provide more opportunities for inmates to rehabilitate. programming.

However, some lawmakers are fiercely opposed to the idea and have pledged to fight any effort to approve funding for the $ 230 million project.

The 2022 regular session will be the last for Ricketts, who is stepping down in January 2023 due to the term limitation. Ricketts said he plans to focus on his job as governor until the end of his term. He declined to discuss his future plans.

___

Follow Grant Schulte on Twitter: https://twitter.com/GrantSchulte