LINCOLN, Neb. (AP) — Nebraska lawmakers who have worked to erase a nearly $900 million projected revenue shortfall could face a new challenge next week when a state board approves new revenue estimates.
The projections set for release Wednesday could force senators to make last-minute tweaks to the $8.9 billion, two-year budget package.
The proposed budget would increase spending by an average of 1.1 percent for the next two-year cycle that begins July 1. That’s far less than average.
State revenue has fallen short of projections partly because of a sluggish farm economy. Sen. John Stinner of Gering says another drop could force lawmakers to cut more, tap the state’s rainy-day fund or pass a law to temporarily reduce the amount of money the state needs in its reserves.