Economic forecasting board reduces revenue projections

The Nebraska Economic Forecasting Board met Oct. 29 to revise its forecast for the current fiscal year and adopt projections for the next biennium. The board provides an advisory forecast of General Fund receipts on which the Legislature crafts the state’s budget.

During its February meeting, the board projected that state revenues would amount to $3.422 billion in fiscal year 2010-11. The board reduced this forecast to $3.364 billion, a difference of $58 million. The current forecast assumes 5.8 percent growth from the preceding fiscal year.

The board adopted its first forecast for FY2011-12 and FY2012-13. Net receipts for FY2011-12 were set at $3.435 billion, a 2.6 percent growth from the revised FY2010-11 forecast. The forecast for net receipts in FY2012-13 was $3.59 billion, which is 3.9 percent greater than the FY2011-12 forecast.

The board’s forecast would result in an estimated shortfall of $1.395 billion with projected appropriations.