Nebraska’s tax revenue exceeded projections in August, marking only the second instance of surpassing expectations this year. This financial boost is a promising sign for the state, particularly as it works towards fiscal stability.
In August, the state collected $653 million in net receipts from sales, income, corporate, and miscellaneous taxes. This amount exceeded the forecast by $7.6 million, or 1.2%. Notably, sales tax collections were significantly higher, surpassing forecasts by 16%, although other tax receipts fell short of expectations.
This recent performance represents the first time since January that net receipts have outpaced forecasts. From the start of the fiscal year on July 1, net receipts have been $7 million, or 0.7%, above projections. However, compared to the same period in the previous fiscal year, they are currently $2 million, or 0.2%, lower.
Governor Jim Pillen expressed his satisfaction with the report, stating, “Our revenue is on track. That’s great news, but we still have a lot of work ahead of us to deliver a balanced budget for hard-working Nebraskans.” He further emphasized the importance of continued spending cuts to guarantee that the state operates within its financial limits, likening the approach to running a business—a method he believes Nebraskans expect.
