By Staff Posted December 16, 2009
In a December statement, Governor Jim Gibbons said the state’s budget is in the red once again.
After last year’s cuts and increases in tax revenues, many thought the state’s economic picture had improved. However, according to the governor, Nevada still faces some serious fiscal issues.
“Preliminary indications show Nevada has spent in excess of 50 million dollars more than it has taken in-just in the first three months of the fiscal year,” said Gibbons.
Gibbons will convene the Economic Forum with a mandate of reporting to him by January 19, 2010.
According to the statement revenue increases have been outpaced by increases in spending.
As a precaution, Gibbons is asking the directors of state agencies to prepare budgets that include spending cuts of 1.4% and 3%.
Unfortunately this may not be the worst case scenario.
“I may request more budget reduction scenarios as we develop a better picture of our revenue shortfall,” said Gibbons.