Budget Projection Underwhelms

Nevada’s Economic Forum met Wednesday to make the formal projections budget writers will use to develop the next budget.

They didn’t give them much to work with.

According to published reports, the Economic Forum projected that the state will have $5.3 billion in general fund revenue for the two-year budget cycle that begins July 1.

That’s about $1.1 billion less than the state expects to spend in the current budget cycle — and that’s after several rounds of cuts made amid the downward spiral of Nevada’s economy.

The assumptions made by the forum include the end of most stimulus assistance and the expiration of temporary tax increases enacted to plug holes in the current budget.

In the wake of the forum’s report, Republican Governor-elect Brian Sandoval reiterated his campaign pledges not to increase taxes and to let the temporary hikes expire.

Fitch Ratings Thursday affirmed Nevada’s AA-plus general obligation rating and stable outlook. The state’s modest debt load is an important factor in the high rating, according to Fitch.

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