\In this May 7, 2020, file photo, Nevada Gov. Steve Sisolak speaks during a news conference in Carson City, Nev. (AP Photo/Scott Sonner, File)

LAS VEGAS (FOX5) -- Ahead of the Nevada Legislative Special Session on Wednesday, Gov. Steve Sisolak released his Fiscal Year 2021 budget proposal.

Gov. Sisolak said the total estimated shortfall of the General Fund is about $1.2 billion in Fiscal Year 2020-21.

The report calls for “deep cuts in services and proposals” and says budget balancing efforts addressed in the Legislature’s upcoming special session will not include passing any new taxes.

“Considering any new revenue streams would require substantial time to setup, administer, and implement, they are not viable as an immediate option to address this emergency situation,” the report said.

The Legislature, however, may consider “augmenting existing major revenue sources” by raising taxes.

“If the legislature is able to move a revenue package forward, with the two-thirds vote required, the Governor is willing to consider the legislation,” the report said.

Nevada levies no state income tax on its residents. The state funds most of its budget with tax revenue from the gambling and hospitality industries, both of which are highly susceptible to economic booms and busts.

The news presents a setback for labor unions representing state workers and teachers, who have clamored for the state to diversify its revenue streams rather than make cuts since the onset of the pandemic.

Instead, the report says, “the actions proposed to address the current shortfall are similar to the actions taken by the State during prior recessions in Nevada.”

The document (read in full below) includes information of the economy prior to the pandemic and details the timeframe for COVID-19 response.

According to the report, visitor volume for the Las Vegas area was down 95.9% in May, compared to a 90.8% occupancy rate the prior year. In April, it was down 97.3%.  

The report noted the highest point of statewide unemployment, 30.1%. 

NV Fiscal Year report jobs chart

Gov. Sisolak included a list of notable proposals submitted to the legislature: 

  • Over $500 million in reductions to agency budgets
  • Reductions in one-time appropriations
  • Reversions from the IFC restricted contingency funds
  • Transfers from other funds to the State’s general fund
  • Furlough days for state employees in the fiscal year, and holding open more than 690 state employee vacancies
  • A tax amnesty program
  • Acceleration of net proceeds of minerals

"A total of $190.6 million has been identified for reduction within [Nevada System of Higher Education], including reduced operating costs, not filling vacancies and repurposing capital funds. Furloughs are also included for NSHE academic and administrative faculty," the report states. 

The K-12 funding was detailed as such:

  • Nevada Department of Education – approximately $10 million
  • K-12 Categorical Funding – A reduction of approximately $156 million from the $711 million in legislative approved categorical funding for FY 2020-21, including:
    • Class size reduction (approximately $6 million out of the $165 million legislatively approved for FY 2020-21 for class size reduction, in addition to an estimated $12 million balanced forward from the prior fiscal year)
    • Read by Grade 3 (approximately $31 million)
    • Funding for the New Nevada Education Funding Plan (approximately $70 million)
    • Teacher school supply reimbursement funding ($4.5 million)
    • Reductions to certain teacher incentives, college and career readiness programs, school safety, financial literacy and other categorical programs (approximately $29 million)
  • • One-time appropriations from the 2019 Legislative Session, including:
    • SB 458 – School Gardens ($205,000)
    • AB 235 - Grants for Mentorship Programs ($25,000)
    • SB 551 – School Safety: Facility Improvements ($8,404,930)


Nevada COVID-19 Fiscal Report by FOX5 Vegas on Scribd

The Associated Press contributed to this report.

Copyright 2020 KVVU (KVVU Broadcasting Corporation). All rights reserved

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(6) comments


1st dump the unemployment division,sell off anything & privatization! 2nd dump the dmv few properties & private sector could buy a piece of the pie smog station , could have the tags right there ! Ez ! 3rd dump the prisons sell them ! And a whole lot more ! Don’t feel sorry for these horrible people in government!


SCHEUER VS RHODES sue this man !! no immunity!!


Sleazlak will probably give himself a raise while cutting millions from schools. Hes CORRUPT SCUM. REMOVE ALL DEMOCRATS OR BECOME PORTLAND IN NEXT 2 YEARS. Thats our choice. DemocRats are corrupt antiAmerican Communist Trash. They all need to be VOTED OUT. Sisolak is a thieving hateful loser, ruined Nevada in 1 Year! Like ALL Demo Rats do. He works for S oros to destroy America.


It has been reported that the average salary of a public employee in Nevada is about $10,000 per year more than the average salary in the private sector.

Don't come to me for a tax increase until this is changed by reducing public employee salaries....


The numbers don't seem to match the report you are referencing, could it possibly be an old report from before 2009? While public employees without a bachelors degree in Nevada make about $4000 a year more than the private sector, public employees with a bachelors degree make about $20,000 less per year than the private sector. (source: US Census Bureau, University of Minnesota, IPUMS-USA)


Boy I’m sorry the labor unions are disappointed. We need a union that represents the taxpayers not the tax grabbers!

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