Lincoln, NE (February 29, 2022) Nebraska lawmakers are expected to have nearly $500 million in extra tax revenue for spending or tax-cut measures this year plus a record-high $1.7 billion in the state’s cash reserve fund.
The Nebraska Economic Forecasting Advisory Board on Monday predicted a sharp increase in tax collections in the current fiscal year compared to its previous forecast in October. The board approved the new estimates despite huge uncertainty about inflation, global supply chain problems, a statewide worker and housing shortage and the growing Russian conflict in Ukraine, all of which could rock Nebraska’s economy.
The increase was largely driven by the trillions in federal pandemic aid pumped into the U.S. economy.
The forecast is important because the Legislature formulates the State’s Budget based on the figures it contains.