OpenSky followed along with the Nebraska Economic Forecasting Advisory Board’s February meeting, and while we are pleased with positive developments reflected during the meeting, we advise caution as the budget process continues since we can’t rely on economic growth alone to resolve the state’s budget challenges. Nebraska still faces a significant budget shortfall, and the 109th Legislature will need to pay for existing legislation, including proposals for additional property tax relief that would put further constraints on the state budget. At the same time, Nebraska’s budget needs to withstand unprecedented pressure as the Federal government considers cuts to programs like Medicaid and SNAP that comprise a large portion of the state’s budget.
Below are details on the forecast:
FY 25 – Total
The NE Department of Revenue projects Nebraska will collect $100 million more for FY 2025 than the previous NEFAB forecast.
FY 26 – Total
The NE Department of Revenue projects Nebraska will collect $5 million more for FY 2026 than the previous NEFAB forecast.
FY 27 – Total
The NE Department of Revenue projects Nebraska will collect $60 million more for FY 2027 than the previous NEFAB forecast.
FY 26 – Details
Forecasting board projects no change in sales tax revenue for FY 2026 from the previous forecast.
Forecasting board projects no change in personal income tax revenue for FY 2026 from the previous forecast.
Forecasting board projects a $15 million increase in corporate income tax revenue for FY 2026 from the previous forecast.
Forecasting board projects a $10 million decrease in miscellaneous tax revenue for FY 2026 from the previous forecast.
FY 27 – Details
Forecasting board projects no change in sales tax revenue for FY 2027 from the previous forecast.
Forecasting board projects a $60 million increase in personal income tax revenue for FY 2027 from the previous forecast.
Forecasting board projects no change in corporate income tax revenue for FY 2027 from the previous forecast.
Forecasting board projects no change in miscellaneous tax revenue for FY 2027 from the previous forecast.
The next meeting of the Nebraska Economic Forecasting Advisory Board, and the final meeting before the Legislature considers its biennium budget, will be April 25 at 2pm.
