State Revenue Projections

[ita]

Nebraska lawmakers may have excess $1 billion to use in upcoming budget

Erin Bamer
Bolstered by high revenue projections, Nebraska lawmakers may have more than $1 billion in excess funding to use in the upcoming budget.

Nebraska’s Tax Rate Review Committee met Thursday to hear the latest report on the financial status of the next state budget, which covers fiscal years 2023-24 and 2024-25. Gov.-elect Jim Pillen will use the information to draft his proposed budget, though it ultimately will fall to the Legislature to pass a budget package.

The report set Nebraska’s cash reserve at $2.3 billion, which is roughly $1.3 billion higher than the maximum reserve level based on state revenues. State Sen. John Stinner of Gering, who chairs the Appropriations Committee, said state law limits the cash reserve from going above 16% of projected revenues. A $2.3 billion reserve would amount to about 35% of total revenues.

Legislative Fiscal Analyst Keisha Patent said Nebraska experienced an “extraordinary” two years of revenue growth. In October, the Nebraska Economic Forecasting Advisory Board increased overall revenue projections for the next two fiscal years by roughly $1.8 billion. This added more than $620 million to the reserve, bringing it to its current estimate.

How do you all wan this money to be used? Cash reserves, infrastructure, more property tax relief? I am hoping the state finally fund there intercity bus projects between Omaha and Lincoln and the one they have planned in central Nebraska, but I am guessing under new leadership, the State is going to just spend it on more highway expansions.

[ChadJK]

Why not put it in an account and leave it so it's there the next time there's a revenue shortfall?

[Louie]

Do they know why they have so much more in revenue this year?

[ita]

Do they know why they have so much more in revenue this year?

That's what I want to know too.

Here's a chart for fiscal year 2020-2021 from this website:



Hopefully they will update for the 2021-2022 fiscal year and we can see where the state saw the increase. It's a pretty big increase, around 17%.

Also, for reference, here's how the funds are distributed:

[Big E]

How do you all wan this money to be used?

State-owned downtown grocery store with 5000 surface parking spots.

[ita]

Nebraska's tax revenues continue to fall below forecasts

Eric Bamer
Nebraska's tax revenues continue to fall below projections despite optimistic predictions for the state's economic future.

A report released Thursday by the Nebraska Department of Revenue showed the state's overall tax collections from October to May are just under 1% lower than what was forecasted, amounting to about a $53 million shortfall.

Despite this, both the Legislature's Revenue Chair, State Sen. Lou Ann Linehan of the Omaha area, and the Appropriation Chair, Sen. Robert Clements of Elmwood, remained unconcerned. Clements said the shortfall could be "easily absorbed" by an estimated $70 million in unspent funds from state departments.

"If there's a squeeze on our economy, I'm not seeing it," Linehan said.

May's net tax receipts were 8.7% below forecast, including a 226.5% drop in corporate income tax revenue. Nebraska also recorded higher-than-expected tax refunds for May at $197 million, 29.5% more than the $152 million forecasted.