Economic Forum says state will have $1.2 billion less to spend

CARSON CITY -- The Economic Forum decided today that Nevada's state government will have $5.65 billion in revenue to spend in its two-year budget that begins July 1.

That is $1.2 billion less than government spending was set at for the current two-year budget.

The forum said state tax revenues will decline by 9.1 percent during this fiscal year compared to last year, and increase by 0.2 percent in the next fiscal year and then increase by 3.3 percent in 2010-11.

Earlier today, Global Insight, an economic consulting firm hired by the state, said it does not see the Nevada economy recovering before 2010.

The company projected Nevada will lose 48,400 jobs during 2009 and hit an unemployment rate of nearly 9 percent early in 2010 before starting slowly to improve.

Janet Rogers, an analyst with the state budget office, said the company's pessimistic forecast does not show a turnaround until late in 2010.

The forecast of the Economic Forum, a group of five private business leaders, is binding on the governor and the Legislature in creating state government's 2009-11 two-year budget.

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.