Fears Over Fiscal-Cliff Leave Nebraska with More Money Than Expected
LINCOLN, Neb. (AP) —
Investors who were spooked by Washington's fiscal-cliff showdown have
created a one-time cash windfall for Nebraska.
Economic Forecasting Advisory Board predicted Thursday that the state
will receive an additional $125 million before the current fiscal year
ends in June. By law, all of that revenue will flow into the state's
cash reserve fund.
State budget officials say the increase appears
to have come from nervous investors who ended up selling and paying
capital-gains taxes. They stressed that the increase is unusual.
are also expected to see a net $51.4 million more than they had
expected for their upcoming budget. Sen. Heath Mello, the Appropriations
Committee chairman, is urging caution as lawmakers move forward.
Gov. Dave Heineman says lawmakers should now focus on lowering taxes.