LINCOLN - Nebraska will get an extra $266 million in tax revenue for the state budget between now and June 2021, based on new Thursday estimates that could give lawmakers more wiggle room to pay for state government services and cut property taxes.

Members of the Nebraska Economic Forecasting Advisory Board cited strong economic growth in the state’s biggest cities as they approved the new projections, even as some voiced concerns about rural areas.

Overall, “we’re in pretty darn good shape” with the state budget, said Tom Bergquist, director of the nonpartisan Legislative Fiscal Office.

The new forecast sets the stage for a new debate over how to use the money after several tight budget years that prompted lawmakers and Gov. Pete Ricketts to curb state spending growth.

Under state law, about $161 million of the new incoming money will flow automatically into the state’s cash reserve fund, which is designed for emergencies and one-time expenses. That will leave lawmakers and Ricketts with about $102 million in leftover money at their disposal in next year’s session, after accounting adjustments.

Sen. Lou Ann Linehan, chairwoman of the Revenue Committee, said the extra revenue needs to be used to reduce local property taxes, a frequent complaint of farmers and homeowners. She said the extra money puts lawmakers in a good position to address the issue in the new legislative session that begins Jan. 8.

“It really makes it a lot easier to do something,” said Linehan, of Omaha.

But a Nebraska tax-policy think tank urged lawmakers to put even more money into the cash reserve, noting that state officials have drawn heavily from that account to balance the budget over the last several years.

“It would be extremely risky to use what could be a temporary uptick in revenue to fund ongoing spending obligations or tax cuts,” said Renee Fry, executive director of the OpenSky Policy Institute.

If Thursday’s estimates are accurate, the state’s cash reserve will rise to about $616.1 million by June 30, 2021. The record-high balance for the reserve was $719 million in 2016, but that number was as low as $296 million in January of this year.

Forecasting board members said business growth and demand for housing both appear to be strong, but several voiced concerns about the impact of this year’s flooding and hailstorms as well as nursing home closures in rural Nebraska.

“Small communities are still struggling, and I don’t see that changing anytime soon,” said board member Richard McGinnis, of Kearney.

Board member Steve Seline, of Omaha, said Costco’s massive new chicken plant in Fremont is likely to boost the state’s corporate income tax collections.

“Things are cooking along right now,” he said.