Gov. Ricketts Comments on Revised Revenue Forecast
Taylor Gage, 402-471-1970
Luke Robson, 402-471-1967
LINCOLN – Today, Governor Pete Ricketts commented on action by the Nebraska Economic Forecasting Advisory Board, which raised the revenue forecast by $25 million for the current fiscal year 2017-18.
“These new numbers seem to indicate a growing economy, but we must remain cautious through the end of the fiscal year,” said Governor Ricketts. “By law, the increase in revenue for fiscal year 2017-18 must be directed toward Nebraska’s cash reserve fund. It should not be used for spending. As we continue to experience volatility in state tax receipts, state agencies must continue to demonstrate budget restraint.”
The board also raised the forecast for fiscal year 2018-19 by $365 million. This includes the $335 million direct impact of the federal Tax Cuts and Jobs Act (TCJA) on Nebraska taxpayers, a state tax increase that will be offset if the Legislature enacts LB 1090, a bill strongly supported by Governor Ricketts. Excluding the direct impact of the TCJA, the board’s forecast increases its projection for fiscal year 2018-19 by $30 million.
“The Tax Cuts and Jobs Act eliminated the personal exemption and raised the standard deduction to help simplify the federal tax code,” said Governor Ricketts. “If the Legislature doesn't pass LB 1090, that means a family of four will pay at least $536 more in state taxes each year. I continue to strongly support LB 1090, and will work with Senators this session to prevent this big tax increase on Nebraska’s families.”
The personal exemption is a tax credit each taxpayer can claim on their taxes for themselves and each of their dependents. The state-level personal exemption credit was tied to the federal personal exemption. Since Congress eliminated the federal exemption, the state level credit will go away starting in tax year 2018 unless the Legislature passes LB 1090.