Economic forecasting board lowers revenue projections

The Nebraska Economic Forecasting Advisory Board voted to lower revenue projections during an Oct. 30 meeting at the Capitol. The board provides an advisory forecast of general fund receipts used by the Legislature to craft the state’s budget.

Revenue projections for the current fiscal year and FY2016-17 were lowered primarily based on anticipated decreases in sales and use tax receipts of $49.3 million in FY2015-16 and $63.2 million in FY2016-17.

Total projected revenue receipts for FY2015-16 were lowered to $4.4 billion, a decrease of $70.8 million. Projected total revenue receipts for FY2016-17 were set at $4.56 billion, a decrease of $83.4 million.

The projections included decreases in corporate income tax and miscellaneous tax receipts for both fiscal years. The projections were offset slightly by minor anticipated increases in individual income tax receipts.

The general fund financial status ending balance for the biennium is now estimated to be $132.4 million below the minimum reserve, after adjustments to the calculation of the reserve requirement.

Additional adjustments to the general fund financial status will occur during the Nov. 18 meeting of the Tax Rate Review Committee.

The next Nebraska Economic Forecasting Advisory Board meeting is scheduled for Feb. 26.