May’s tax receipts show Nebraska’s deficit may exceed its projected shortfall of $170 million.
According to the state’s department of revenue’s report, the May tax receipts were about $43 million below the predicted amount of $554 million.
During the 2026 legislative session there was much discussion about how the state would make up the shortfall. Which led legislators to make spending cuts across the board.
The cuts left the state with a projected surplus of about $6 million. However, the tax receipts for March, April, and May have stayed below forecasts, resulting in a deficit of about $172 million.
State Senator Rob Clements said Nebraska’s budget is not at a critical point yet, adding the shortfall can be absorbed through the state’s cash reserve.
Previously, Clements and other legislators expressed their concerns about drawing funds from the cash reserve.
The tax documents for the past three months showed a pattern of individual and corporate income tax revenues falling below projections, while sales and use taxes were above estimates.
