State Budgets: Nevada Closes Immediate Gap but May Face Tax Increases Soon
December 28, 2008
In December, Nevada lawmakers closed a $341.7 million shortfall in the current $18.2 billion biennial budget with some spending cuts, seizing half of the sales tax reimbursement to businesses, and $160 million of borrowing. Combined with other actions since the year began, the budget now stands at $17.2 billion; the previous biennial budget was $15 billion. Officials are now stating that revenues are expected to be 34 percent below spending for the next biennial budget (although this number doesn’t seem to be verified anywhere), but some are pressing for tax increases. This pressure may succeed, though Gov. Jim Gibbons (R) has limited his proposals to hotel and car rental tax increases while supporting limited raises for state employees.
More on Nevada here.