Nevada Faces $191 Million Budget Shortfall as Lawmakers Scramble to Adjust
By Eric Neugeboren and Tabitha Mueller
CARSON CITY – Nevada lawmakers are confronted with a $191 million budget shortfall as they prepare for the upcoming two-year budget, marking a significant 1.6 percent reduction from previous estimates. A new revenue forecast reveals a nearly $160 million decrease in funding for the State Education Fund, leading to an overall drop of about $350 million in anticipated revenue.
The Economic Forum, a panel of economists responsible for tax revenue projections, estimates state revenue will reach approximately $12.2 billion over the next two years, down from an earlier prediction of $12.4 billion. This marks the first mid-session revenue decline since 2009. The decline is primarily attributed to lower-than-expected sales and use taxes, alongside the modified business and commerce taxes, which are thought to correlate with economic policies from the Trump administration.
As the legislative session nears its end, the budget crunch threatens over 300 bills currently stalled in fiscal committees, with many expected to be scrapped due to financial constraints. Governor Joe Lombardo’s five priority bills are projected to cost upwards of $500 million, already accounted for in his budget proposal.
Lombardo’s spokeswoman described the shortfall as “manageable,” assuring Nevadans of the state’s preparedness to weather financial uncertainties with a robust Rainy Day Fund. Senate Majority Leader Nicole Cannizzaro expressed concerns about the necessity for a possible special session to further address budget cuts, citing chaotic federal policies that impact state revenue.
The looming revenue shortfall raises significant concerns about funding for vital services and programs in the state, as lawmakers scramble to ensure fiscal responsibility and avoid a budget deficit.
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