With projections of increased state cash at his back Gov. Pete Ricketts is doubling down on a pair of expensive and controversial spending items along with a hefty tax cut.

Ricketts is upping his support for a $230 million new state prison and a $500 million canal aimed at keeping water in the South Platte River flowing to Nebraska from Colorado.

Last week the state’s revenue projectors said Nebraska’s economy is growing and is expected to put $775 million more in the state’s hands over the next two years.

At the same time state officials say if no money is spent the so-called rainy day fund will hit nearly $1.3 billion dollars, far more than is needed.

Gov. Pete Ricketts (R): We’ve got a lot of important priorities in this legislative session. The fact of the matter is we are in a very strong financial state to be able to do all these things. We can manage this all within the budget…and with stronger forecasting it makes it only more important that we hit upon all these different projects.

State Sen. Lou Ann Linehan (R): I don't know how we justify keeping $1.3 or $1.4 billion in a rainy day fund. It’s not our money. We have people who have worked really hard. One of the reasons our revenues are up is because people are working overtime; we've had a great economy in Nebraska versus the rest of the country. But it's because people are working. They weren't sitting home and they worked hard and we need to let them keep their money.” 

A bill to chop the top individual Nebraska income tax rate from nearly 7 percent to just under six percent in 2025 was recently given the halfway go-ahead by the Legislature.

The tax cut is estimated to cost the state several hundred million dollars over the next five years, raising concerns that state services—especially for those who need them most—will be cut.

As for the canal Ricketts insists that without it 90 percent of the water now coming to Nebraska will stay in Colorado to serve a growing population on the Front Range including the cities of Denver, Boulder and Colorado Springs.

Colorado officials, including the governor, have dismissed Ricketts’ claims.