Nebraska Taxes Down

Nebraska's economy may not be in a free-fall like some states', but there is new evidence it is taking something of a dive.

On Tuesday, state officials said total tax revenue in January was down 8 percent, or $29 million, below projections made early last year. All categories of taxes were down.

But the largest drop was in individual income taxes, which fell below projections by more than 15 percent for the month.

The bad news for the month comes as the Legislature crafts a two-year budget.

Gov. Dave Heineman has called for spending increases that are far below the historical average and for some reliance on the state's record cash reserve.