LINCOLN, Neb. (AP) – Nebraska Gov. Pete Ricketts says he’ll look for ways to restrict state spending in next year’s session in response to a projected tax revenue shortfall.
Ricketts pledged Monday to work with lawmakers on budget “modifications” that would bring state spending into line with money that’s available. He wouldn’t rule out tapping the state’s $369 million cash reserve, commonly known as the rainy day fund.
Nebraska is on track to face another shortfall next year after the state’s economic forecasting board lowered its revenue estimates by $217 million for the current two-year budget cycle.
On Friday, Ricketts announced that he has ordered state agencies to continue several cost-cutting measures that were put in place last year.
Ricketts says the shortfall is at least partly driven by a struggling farm economy.