Nebraska Budget Deficit Rises to $72M After Tax Revenues Fall Short

State officials hopeful for rebound in April tax receipts to offset March losses.

Apr. 15, 2026 at 5:36pm

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A minimalist illustration using bold geometric shapes and primary colors to represent the concept of a state budget deficit, conveying the abstract nature of economic trends without any literal depictions.Nebraska's budget deficit highlights the challenges of state fiscal planning in an uncertain economic climate.Lincoln Today

Two weeks after Nebraska lawmakers filled a $646 million hole in the state budget, a new round of tax receipts has brought the state back into an expected deficit of $72 million. The state Department of Revenue reported that March tax revenues fell 14.8% below forecasts, equating to about $78 million less in revenue for the state's coffers.

Why it matters

Nebraska's structural deficit that began in 2025 continues to add to a projected deficit in the next biennium, currently estimated at $631 million. The latest budget shortfall highlights the state's ongoing fiscal challenges and the need for lawmakers to closely monitor revenue trends and make necessary adjustments to balance the budget.

The details

The faster processing of tax refunds by the Department of Revenue impacted Nebraska's individual income tax receipts for March, which came in 56.8% below forecasts - a $121 million difference. Corporate income taxes also fell 12.7% below forecasts, equating to a $12.5 million loss. However, sales and use tax receipts for March were 22.4% or $41.1 million above forecasts, indicating the state's overall economy is performing well.

  • On April 1, Nebraska lawmakers passed a pair of bills adjusting the state's two-year budget, leaving an expected surplus of roughly $6.2 million.
  • The latest tax receipts data was released by the Nebraska Department of Revenue on Wednesday, April 15, 2026.

The players

Nebraska Department of Revenue

The state agency responsible for collecting and processing tax revenues in Nebraska.

Nebraska Economic Forecasting Advisory Board

The board that provides economic forecasts to guide the state's budget planning.

Nebraska Gov. Jim Pillen

The current governor of Nebraska, who praised the Department of Revenue for its quicker processing of tax returns.

Nebraska State Sen. Rob Clements

The term-limited chair of the Legislature's Appropriations Committee, who said a major contributor to the lower receipts is the faster processing of tax refunds.

Nebraska State Sen. Brad von Gillern

The chair of the Revenue Committee, who noted that people expecting a refund often file early, while those expecting to make a payment wait until the April 15 deadline.

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What they’re saying

“The Department of Revenue has made major improvements that are allowing tax returns to be processed faster, which means money is getting back to Nebraska families quicker.”

— Jim Pillen, Governor of Nebraska

“We will have a better view of the revenue picture when April numbers come in, which will likely offset March.”

— Brad von Gillern, Chair of the Revenue Committee

What’s next

If Nebraska remains in a projected deficit by the time the longer 90-day legislative session begins in 2027, lawmakers will be tasked with balancing the current budget before the biennium ends on June 30, 2027, and also setting the next biennial budget that spans July 1, 2027 through June 30, 2029.

The takeaway

Nebraska's ongoing fiscal challenges, including a structural deficit that began in 2025, highlight the need for state lawmakers to closely monitor revenue trends and make necessary adjustments to balance the budget. The faster processing of tax refunds has impacted the state's revenue picture, but officials remain hopeful that April's tax receipts will help offset the March losses.