Las Vegas Sun

March 28, 2024

Sandoval sees flat budget in next biennium

CARSON CITY — State agencies were briefed today on preparing their budgets for the next two fiscal years.

Mike Willden, chief of staff for Gov. Brian Sandoval, said the present two-year budget is $7.3 billion and that is expected to rise to $7.5 billion in the next two fiscal years.

“We are not out of the woods yet,” Willden told state executive heads who crowded into a hearing room for the briefing. The administration is preparing for a flat budget.

One veteran state executive said before the briefing, “They’re going to tell us how much we don’t have.” And apparently he was right.

Willden told the agencies to prepare for a 5 percent reduction plan if expected tax collections don’t materialize.

This will be the final budget presented by the governor to the Legislature.

Dale Erquiaga, chief strategist for Sandoval, emphasized this could be a blueprint for future governors. The priorities are education, efficiency in government, public safety and economic development.

The governor has already been told that the Nevada Highway Patrol and state prisons can’t hire enough people. Sandoval, at a Tuesday meeting of state Board of Examiners, of which he is chairman, acknowledged, “It’s all about money.”

Erquiaga said one of the priorities of the governor will be post-secondary education, getting students ready to take on technical.

Willden said there has been a tremendous growth in the Medicaid program, and the federal government is reducing its share of the cost.

Willden said the sales and cigarette taxes are coming in below estimates. But gaming taxes and business incorporation fees are above predictions.

The newly enacted commerce tax will first be collected in August and is expected to bring in $120 million.

Erquiaga said Sandoval will release his “budget strategy” April 11. Agencies are required to present their proposed budgets to the administration by Sept. 1.

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