Las Vegas Sun

March 29, 2024

Nevada governor declares fiscal emergency

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Steve Marcus

Nevada Gov. Steve Sisolak speaks during a news conference at the Sawyer State Building in Las Vegas,Tuesday, March 17, 2020. Sisolak ordered a monthlong closure of casinos and other non-essential businesses in order to stem the spread of the new coronavirus (COVID-19).

Gov. Steve Sisolak has declared a state of fiscal emergency for Nevada due to the coronavirus pandemic, allowing money to be transferred from the state’s rainy day fund to the general fund.

“We must bring all options to the table and work together for all Nevadans to address the extraordinary budgetary shortfalls and do everything within our power and resources to protect critical government services,” Sisolak said in a statement.

Joint estimates from the Governor’s Finance Office and the Legislative Counsel Bureau-Fiscal Division have the budget shortfall for fiscal 2020 between $741 million and $911 million.

The revenues most significantly impacted are gaming and sales taxes, the statement said.

Sisolak in mid-March ordered casinos and other nonessential businesses closed to try to slow the spread of the virus.

Some businesses were allowed to reopen starting Saturday, but casinos, nightclubs and bars remain closed until further notice.

“With the closure of Nevada businesses, including the gaming industry, that was necessary to protect the health of Nevadans, the drop in revenue is not unexpected and it is significant,” Sisolak said .

“While we appreciate the additional assistance from the federal government to help address the immediate funding needs for the public health crisis, the state is now in a position where (it) will be forced to make very difficult decisions,” Sisolak said.

The governor has said the rainy day fund of more than $400 million could help make up the shortfall.

Sisolak has ordered state agencies to plan for a 4% budget cut in fiscal 2020, and a 6% to 14% cut in fiscal 2021, with even deeper cuts likely.

“How deep and how hard the cuts are going to have to be I think remains to be seen,” Sisolak said.