LINCOLN–(News Release Apr. 27)–The Nebraska Economic Forecasting Advisory Board voted on Wednesday to make minor adjustments to current fiscal year revenue projections for general fund receipts. The Forecasting Board voted unanimously to adjust current year revenues downward by 1.2%. They now expect the State to have over $6.3 billion in revenue by the end of the tax year.
Additionally, the Forecasting Board raised projected revenue receipts for Fiscal Year 23-24 by $25 million and for FY24-25 by $55 million. Together, these increases keep forecasts level over the next three years and are a vote of confidence for Nebraska’s strong, diversified economy. The vote signals that Governor Pillen’s plans for tax reform have a sustainable path forward this Legislative Session.
“The Forecasting Board delivered promising news,” said Governor Pillen. “This is a sign of Nebraska’s economic strength and means ‘full speed ahead’ on tax relief for hardworking Nebraska families.”
Nebraska Senators Lou Ann Linehan, chair of the Revenue Committee, and Robert Clements, chair of the Appropriations Committee, were present at the Forecasting Board meeting and share Governor Pillen’s optimism following the vote.
“The Forecasting Board represents the economic diversity of Nebraska, and each one of them issued a vote of optimism for Nebraska’s economic future,” said Senator Linehan. “As chair of the Revenue Committee, this news means we can responsibly advance Governor Pillen’s tax relief packages at the pace we have laid out in LB754 and other legislation.”
Current economic outlooks suggest there will be nearly $3 billion between Nebraska’s General and Cash Reserve Funds by the end of the fiscal year, leaving room for both tax reform and sound investments in the state.
“As chair of the Appropriations Committee, it is important to watch forecasts carefully. I was glad to see the Forecasting Board’s outlook,” said Senator Clements. “This vote is a clear sign that we can provide more meaningful tax relief to Nebraskans while also providing the necessary funding in the budget to advance our state.”
Nebraska’s business and agriculture community also responded to the news:
“Nebraska’s economy is strong and is staying strong,” said NE Chamber President Bryan Slone. “A little over a 1% drop in projected revenues, followed by an increase over the next two years, paves the way for the tax relief needed to accelerate growth in Nebraska’s core sectors and address emerging priorities like attracting talent and growing Nebraska.”
“This vote signals that Nebraska’s revenues remain strong and that delivering additional property tax relief has a clear path forward this legislative session,” said Nebraska Farm Bureau President Mark McHargue. “Nebraska’s farmers, ranchers, and producers look forward to significant progress on Nebraskans’ number one priority—comprehensive tax reform.”
More information on Governor Pillen’s plan for comprehensive tax reform can be found here.