A slight drop below expectations for state tax receipts was not enough to convince the Nebraska Economic Forecasting Advisory Board on Friday to adjust the optimistic projections it made 4 months ago.
At the October meeting, the Forecasting board set revenue projections for the current fiscal year at $6.44 billion dollars for the current fiscal year, $6.47 billion for the year beginning in July, and $6.56-billion for FY 24-25.
Two of the 3 monthly net tax revenue totals since then have fallen short of those estimates with November off by 10% and January by 7.7%. December did top the forecast by 9%, but the fiscal year-to-date total is down 1.5% or $53.8-million dollars.
Governor Jim Pillen took the Forecasting Board’s stay-the-course decision Friday as a very positive and encouraging sign, saying he was “excited” about what it means for residents because it “demonstrates that Nebraska’s economy is strong.”
Pillen said the strong expected numbers means lawmakers will have the money needed to “provide meaningful tax relief and greater opportunities for our kids (and) will keep our state competitive (with) the appropriate level of support in education.”
The projections by the Forecasting Board are used by the governor and Legislature to develop and adjust, as needed, the state budget.