The state’s financial picture these days is comfortable. Revenue is rolling in at a better-than-expected rate, and the state has more than $500 million in its rainy day fund.

Last week, the Nebraska Economic Forecasting Advisory Board delivered even more good news. It predicted that over the next two years the state will collect $117 million more than expected.

What should the state do with the money?

The possibilities include a tax cut or expanding existing programs. Gov. Dave Heineman already has suggested that the new projection offers room for additional tax relief.

We suggest that the governor and state senators should consider a third alternative.

We think the state should look for a sensible, one-time expenditure that would provide long-term benefit for the state.

Here’s one provocative thought. Consultants have suggested that it might cost $175 million to build a new state fairgrounds. The unexpected revenue windfall isn’t that far off the mark. And some suspect that a brand new, sparkling fairground could be built for considerably less.

The move would clear the way for the University of Nebraska to create a research center on the old fairgrounds like the Centennial Campus at North Carolina State University that was described in last Sunday’s Journal Star.

There are plenty of other university projects that could be financed. UNL Chancellor Harvey Perlman has proposed a $23.7 million renovation of the old Whittier Junior High School building for use as a research facility. Some have also suggested that space in the building could be devoted to a university child-care center.

NU officials also have talked about building a nanotechnology center in the new Antelope Valley corridor.

One advantage to one-time expenditures is that they don’t commit the state to continuing expenses. The State Fair, for example, could continue with its current operating budget in a new location. Even new research facilities might not result in increased costs, because they often are occupied by researchers who bring new grant money into the state.

Even tax cuts can have adverse effect on the ability of the state to weather an economic downturn. Raising taxes is the last thing state officials should do when the state’s economy is struggling. Historically that happens all too often. Remember that the state constitution forbids state officials from behaving like the federal government and just borrowing money to cover their spending.

Both the university and state fair are assets that are valued by all Nebraskans, whether they live in Lincoln or elsewhere.

History shows that the current cycle of generous revenue eventually will be replaced by an era of tight budgets. An opportunity like this might not appear until the next decade. A one-time investment would be prudent.

Tell us what you think

What do you think Nebraska should do with the extra $117 million in revenue? Give us your answer at www.journalstar.com/blog/soundoff.php.