District 1, your Nebraska Legislature is over one-third through the 2021 session. This week is the final week of committee hearings before we transition to full-day floor debate for the rest of the session. 

Before our state’s biennial budget is debated on the floor, the Nebraska Economic Forecasting Advisory Board provides revenue projections so we can better balance our budget. This board was created to assist both the Governor in developing estimates of revenue and the Legislature in setting the rates of income and sales taxes. 

Every year, the Nebraska Economic Forecasting Advisory Board provides an advisory forecast of general fund receipts. These receipts are what the Legislature uses to craft the state’s budget. Basically, this board gives the Legislature a good idea of how much money the state can spend during session.

In its final meeting before the debate begins on the state budget, the Nebraska Economic Forecasting Advisory Board raised revenue projections. It is now estimated that state revenue will come in roughly 4% higher than previous projections. Total projected revenue receipts for the next fiscal year were raised to $5.08 billion, an increase of $165 million. The 2022-23 fiscal year projections increased by $93 million. 

Nebraska is a very financially stable state; because of that, we are in one of the best positions nationwide for a strong economic recovery. An influx of federal recovery money- meant to offset losses that we would have suffered had we not been in a more stable position- means there are funds to provide tax relief across Nebraska.

The Governor’s proposed budget already worked to control state spending, but the projected increase in revenue will save the state of Nebraska even more money. Too many of our residents are still struggling to pay their property taxes, and it only makes sense that we give any excess funding back to our taxpayers through substantial, sweeping property tax relief. Other relief ideas on the table that I support are Senator Lindstrom’s bill to eliminate taxes on Social Security income and Senator Brewer’s bill to eliminate taxes on military retirement income. Our Legislature is faced with a unique opportunity in this session to make some long-overdue changes to our tax code, and I’m excited for that debate.

As always, I welcome your input on issues important to you. Follow along on my Facebook and Twitter pages, both entitled “Senator Julie Slama” for more updates, or contact me directly at Senator Julie Slama, District 1 State Capitol, PO Box 94604, Lincoln NE 68509-4604; telephone: 402-471-2733; email: jslama@leg.ne.gov.