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.
The state's 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.
Lawmakers 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.