The Nebraska Economic Forecasting Advisory Board voted to increase revenue projections during a Feb. 28 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 FY2018-19 were raised primarily based on anticipated increases in individual income tax receipts of $20 million in FY2017-18 and $45 million in FY2018-19.
Total projected revenue receipts for FY2017-18 were increased to $4.53 billion, an increase of $25 million. Projected total revenue receipts for FY2018-19 were set at $5.04 billion, an increase of $365 million.
The revised projections for FY2018-19 include an estimated $327 million increase in individual income tax receipts and $8 million in corporate tax receipts as the result of the federal Tax Cuts and Tax Jobs Act of 2017.
LB1090, a bill introduced by Papillion Sen. Jim Smith, is intended to offset those federal changes by implementing credits, deductions and exemptions that would reduce state revenue by $326 million in FY2018-19, as estimated by the state Department of Revenue.
The next board meeting is scheduled for Oct. 26, 2018.