Nevada in bad company

CARSON CITY -- If misery loves company, then Nevada's state government can find solace in a national report Thursday that found seven other states will experience even higher tax revenue declines in the current fiscal year.

A National Conference of State Legislatures study found total tax revenues in Nevada will decline by 5 percent during the fiscal year ending next June 30, when compared with the past fiscal year.

That really isn't news because the figures come from the Economic Forum projections in May that were used to create the current state budget. The figures were developed before the Legislature increased taxes by a record $1 billion.

But Nevada's tax losses pale in comparison with states such as Alaska, projected to suffer a 45 percent drop because of declining oil revenue. In Louisiana, the decline is 13.9 percent, in Wyoming, a 10 percent drop.

The report comes on the same day that the Conference Board, a private economic forecaster, said economic activity nationally rose for the sixth straight month despite rising unemployment.

But the reality for the states, according to the state legislature group, has been a "steep and unrelenting decline."

"Even pessimistic forecasts have not been met, producing cavernous holes in state budgets," the group said.

Ohio, Connecticut, Iowa and Vermont also are projected to experience sharper revenue declines than Nevada.

Five states, including Michigan, with the highest unemployment rate in the nation, did not take part in the study.

Twenty-six of the 45 states that participated in the study predict their tax revenues will decline in the current fiscal year, compared with last year.

Like Nevada, 19 other states have increased taxes this year to make up for the tax declines.

Contact reporter Ed Vogel at evogel@reviewjournal.com or 775-687-3901.