Economic forecasting board lowers revenue projections

The Nebraska Economic Forecasting Advisory Board voted to lower revenue projections during a Feb. 27 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 FY2017-18 were lowered primarily based on anticipated decreases in individual income tax receipts of $55 million in FY2016-17 and $20 million in FY2017-18.

Total projected revenue receipts for FY2016-17 were lowered to $4.31 billion, a decrease of $91 million. Projected total revenue receipts for FY2017-18 were set at $4.51 billion, a decrease of $51.2 million.

In addition, overall projected revenue receipts for FY2018-19 were set at $4.73 billion, a $26.3 million decrease.

The preliminary budget put the state $134.7 million short of achieving the minimum cash reserve. The net impact of the revised forecast adds $152.9 million to that imbalance, which now totals $287.6 million.

The next board meeting is scheduled for April 26.