Tepid Economic Outlook for Nevada Impacts Budget Planning
Nevada’s fiscal future appears uncertain, as experts delivered a cautious revenue forecast during the Nevada Economic Forum presentation on Thursday. This crucial report will guide legislators in determining the state’s budget for the upcoming biennium while considering new policies in education, film tax credits, and key priorities from Governor Joe Lombardo regarding housing and public safety.
The Economic Forum consists of a panel of five economic specialists who are reviewing various models to finalize revenue projections before voting later in the day. The findings are particularly significant given the current global economic trends influenced by U.S. tariffs and an ongoing trade war, which Emily Mandel, a senior economist at Moody’s Analytics, believes will dampen national economic growth. Despite her prediction of avoiding a recession, she noted that Nevada’s employment growth is stagnating, particularly in the vital tourism sector.
Data from the Las Vegas Convention and Visitors Authority indicates a nearly 8% drop in visitation in March, one of the steepest declines since the pandemic began. While gaming revenues have thrived in recent years, the expectations are leaner moving forward, with a projected 5.6% decrease in revenue.
Although Nevada’s unemployment rate remains steady at 5.7%, the highest in the nation, signs of labor market stress are becoming evident. Job searches are lengthening, contributing to the state’s unemployment figures.
As the panel votes on revenue projections, the implications for budgetary priorities remain a pressing concern. This evolving story will continue to unfold as further details emerge.
For inquiries, contact Jessica Hill at jehill@reviewjournal.com and McKenna Ross at mross@reviewjournal.com. Follow on X for the latest updates.
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