Budget Shortfall Not as Steep For Nebraska
The state revised the forecast and the shortfall isn't as bad as originally projected.
LINCOLN, Neb. - When Nebraska lawmakers convene in January, they will have a smaller-than-expected budget shortfall to fill, according to new state revenue estimates.
The Nebraska Economic Forecasting Advisory Board set new estimates Friday that will shrink the state's projected shortfall for the two-year budget that begins in July 2013.
Lawmakers were expected to face a $624 million shortfall when they returned to the Capitol, but the new projections will shrink that by $231 million.
Board members say Nebraska farms have persisted through this year's extreme drought, and unemployment remains relatively low. But they say businesses are hesitant to invest because of uncertainty over federal tax laws.
State officials caution that the numbers will likely change once adjustments are made to the state's school-aid formula and other parts of the budget.