Nebraska tax revenue fell below projections in August, prompting Governor Dave Heineman to say the national economic slowdown may be starting to have a more direct effect on the state’s receipts.
Net tax receipts in August were 4.7% below certified projections. So far this fiscal year, which began in July, net receipts are 3.2% below the certified forecast of $519 million.
Senator Cap Dierks of Ewing is a member of the Revenue Committee and says the report is not surprising. Dierks says, “We’re going to see these ups and downs as we try to get by this stressful time we have in this country.”
Dierks says the legislature will have to monitor future revenue reports carefully. He says, “We have the constitutional need to keep a certain percent of our budget available for the crisis, that’s always our target, to keep that certain amount of dollars out there for a rainy day.”
Governor Heineman says he’ll monitor subsequent revenue reports and that he may have to recommend spending cuts for the next fiscal year. The budget for this fiscal year and next was approved in May.
Thanks to Jerry Oster, WNAX, Yankton