More Bad News For the State of Nebraska

The state's Economic Forecasting Board announced Friday the state's budget shortfall has increased by 104-million-dollars. That leaves the state's total budget shortfall at 315-million.

Most state government observers had expected the shortfall to increase between 20 and 40-million. So the forecasting board's 104-million-dollar shortfall increase was quite a bit more than expected, apparently due to weaker tax receipts the past few months.

Governor Johanns reacted to Friday's projections, calling for deeper spending-cuts, rather than tax-increases. Johanns has proposed a one percent reduction to higher education and aid to local governments, and also has called for 2.5 per cent in cuts to some 35 state agencies.

This latest economic forecast is used as a blueprint by the legislature's appropriations committee as it crafts a budget-proposal for lawmakers to debate.