The Nebraska Economic Forecasting Advisory Board has increased its revenue predictions for the current fiscal year by $475-million dollars and for the 22-23 fiscal year by $427-million dollars.
The board, which provides the forecast of general fund receipts used by the Legislature to craft the state’s budget, issued its update on Friday.
The increase in revenue is based on anticipated growth in receipts across all categories, including $226 million in individual income tax and $190 million in corporate income tax in the current fiscal year.
Governor Pete Ricketts issued a statement saying “Nebraska’s big economic momentum continues to translate into stronger and stronger tax receipts (with) even more room to work on tax relief and important projects, including replacing the aging Nebraska State Penitentiary.
Executive Director Renee Fry of the liberal-leadning OpenSky Policy Institute calls the forecast “encouraging,” but urges caution because federal stimulus money is propping up the state economy “considerably” and the eventual end of those funds will force “tough choices” when revenue fails to keep up with state obligations.
Sarah Curry, policy director for the conservative-leaning Platte Institute, agrees that the federal stimulus funds contribute to the revenue surplus and complicates the forecast process by distorting what’s “really going on in the economy,” especially if inflation continues at its current high level.