Omaha World Herald on October 30: Tax cuts look less likely after forecast predicts $132 million less state revenue
LINCOLN — Gov. Pete Ricketts could have a tougher time getting tax cuts passed next year.
Nebraska’s official revenue forecasting board shot a $132 million hole Friday in the state budget, which covers the two years ending June 30, 2017.
State Sen. Heath Mello of Omaha, the Appropriations Committee chairman, said the new, more pessimistic projections mean lawmakers and the governor will have a more difficult session next year and will have to set priorities.
He said cuts to the budget approved earlier this year are possible, along with looking for other ways to bring projected tax revenues back into balance with budgeted state spending.
“It’s going to lead to a very lean legislative session, and not just on the spending side,” Mello said. “Engaging in any risky tax reform is not responsible moving forward.”
Ricketts issued a statement saying the new forecast shows the wisdom of holding the line on state spending growth this year. The budget allows for a 3.5 percent increase in general fund spending over the two-year period.