Economic forecasting board lowers revenue projections

The Nebraska Economic Forecasting Advisory Board voted Feb. 27 to lower revenue projections over the next two fiscal years in their last meeting before debate begins on possible budget adjustments.

The board provides an advisory forecast of general fund receipts used by the Legislature when crafting and revising the state budget. Prior to the meeting, lawmakers were facing a projected $471 million shortfall.

Revenue projections for the current fiscal year were raised slightly based on an anticipated increase of $100 million in sales and use tax receipts, offset by projected decreases of $80 million in corporate, individual and miscellaneous income tax receipts.

Total projected revenue receipts for FY2025-26 were set at $6.970 billion, an overall increase of $20 million above the previous projection.

That slight increase was offset, however, by the forecast for projected total revenue receipts for FY2026-27. That projection was set at $6.625 billion, a decrease of $175 million, and was based on anticipated decreases across all categories except individual income tax receipts.

The next board meeting is scheduled for Oct. 30.