LINCOLN- The Nebraska Economic Forecasting Board (NEFAB) met at 1:00 PM on October 28th in Lincoln to update the predicted economic forecast for the state over the current and coming fiscal years.

The board was presented with impressive figures by the Legislative Fiscal Analyst of the Legislature, which include major increases over previous forecasts. The board voted to raise revenue projections as follows:

For FY2022-23, the forecast is +$621m above the previous NEFAB forecast.
For FY2023-24, the forecast is +$809.5m above the previous NEFAB forecast.
For FY2024-25, the forecast is +$1.05B above the previous NEFAB forecast.

The Department of Revenue representative says high corporate tax receipts are a key reason state tax receipts have come in above projections in recent months. The department, which presents its own projections, closely mirrored the numbers given by the Fiscal Analyst.

The board’s projections for fiscal year 2022-23 were raised based on anticipated increases in revenue receipts across all categories, including projected increases of $405 million in individual income tax and $113 million in corporate income tax.

The Legislative Fiscal Analyst recognized that the state is in an unusual time where revenues have not just exceeded projections, but significantly exceeded projections. The forecasting board discussed the uptake of the LB1107 income tax credit for property taxes paid. One member raised concerns about the difficulty of claiming the credit for average taxpayers. A significant portion of the credit has gone unclaimed.

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