Gibbons to reveal plans for shortfall
CARSON CITY -- Gov. Jim Gibbons plans Monday to reveal steps the state might take to deal with tax revenues that have fallen below projections.
But his spokeswoman declined Friday to reveal details about the plans, or the severity of the budget shortfall.
Gibbons' Press Secretary Melissa Subbotin said details about a news conference Gibbons will hold Monday are not yet available, but that it is obvious that the state faces a budget problem.
Nevada's $6.9 billion two-year budget depends on state revenue growth of 5 percent during the current fiscal year and 6.8 percent during the next fiscal year.
The state Economic Forum, a group of five private business members, set those rates of growth before the Legislature adjourned in June. Gibbons and the Legislature were bound by law to use their estimates in creating the budget.
But sales tax revenue in July alone was $10 million less than the Economic Forum estimated.
Gaming revenue figures for August, released Wednesday, were down 4.4 percent from a year ago.
The Nevada Gaming Control Board also reported gaming taxes from the first three months of the fiscal year had fallen $15 million below projections.
Figures were not available Friday for the state real estate transfer tax, a tax that was projected to bring in about $124 million.
But state economic analysts said during a meeting last week that the real estate market is on a prolonged downturn that might not change before 2010.
