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Gaining perspective on the Governor’s Tax Cut

Cutting taxes limits Nebraska’s ability to fund important programs aimed at helping our children get the best possible start in life.  To give us a little perspective, here are 10 policy changes that benefit kids from before birth through their teen years, sized relative to Governor Heineman’s proposed tax cuts. All amounts are 3 year totals.

1 “The two income tax cuts would reduce revenue to the state by $130.8 million in the first full year and $326.6 million over the first three years.” Tax relief gov.’s ‘top priority’ Omaha World-Herald, Jan. 13, 2012 http://www.omaha.com/article/20120113/NEWS01/701139877/103128691#tax-relief-gov-s-top-priority
2 Calculated using number of children enrolled in Pre-K (9,950) multiplied by the per child shortage in funding for early childhood ($1,738) according to the National Institute for Early Education Research (NIEER)
3 $1.5 million cut from Nebraska State Budget FY2011-12, 2012-13 Biennial Budget p. 42
4 $1.16 million in cuts to LB 603 programs Nebraska State Budget FY2011-12, 2012-13 Biennial Budget p. 42
5 Fiscal note LB 599 (2010)
6 Nebraska Medicaid Annual Report, December 1, 2011
7 Based on calculations in the Fiscal Note for LB 267 (2007)
8 Cost of early home visiting program for prevention of abuse and neglect.  Calculated using data from Pew Charitable Trust’s Report, States and the New Federal Home Visiting Initiative: An Assessment from the Starting Line (2011)
9 Estimate of costs from LB961
10 Calculated as the cost of the providing Multisystemic Therapy (average cost $9,500 annually), Family Functional Therapy ($3,500) or mentoring ($1,000) to the 13,630 youth arrested for non-violent crimes in 2010 as reported in Kids Count in Nebraska 2011 Report.  Average costs of these programs from No Place for Kids, Annie E. Casey Foundation, 2011.
11Calcuated using 2010 values in Kids Count in Nebraska 2011 Report.

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