(Lincoln, NE) Gov. Dave Heineman today called for caution and careful prioritization of spending following the Nebraska State Forecasting Board release of its revised revenue forecast for this year and the following two years.
Total state general fund net receipts for the current fiscal year (2004-2005) are now projected at $2.949 billion, an $83 million increase over previous estimates. General fund estimates for fiscal year 2005-06 were set at $3.052 billion, a $90 million increase over previous estimates, and estimates for 2006-07 were $3.181 billion, which represents a $110 million increase. When combined, the revised forecast for these three years represents an increase of $283 million.
Gov. Heineman said, “I anticipated that the projections would be increased and I’m pleased to have another indication that the economy is growing stronger. With that said, I think it is imperative that we continue to take a long-term view of all spending and resist any temptation that might exist to spend freely in light of these optimistic projections.
“In my view, the new numbers strengthen the argument for fulfilling the low-level judgment in one payment. This one-time obligation should be satisfied with one-time revenues. Beyond that, my overriding message is to continue to exercise caution on any further spending commitments.”
Gov. Heineman also cautioned against relying solely on these projections, recognizing that the Forecasting Board is scheduled to meet again in April.
