Nevada governor discusses $800 million-plus budget shortfall

[UpInArms]

Source: Associated Press via San Jose Mercury News

CARSON CITY, Nev.—Nevada Gov. Jim Gibbons meets with top lawmakers and holds a media briefing Monday to outline his preliminary plans for dealing with a state revenue budget shortfall now expected to exceed $800 million by mid-2009.

The Republican governor, who already has imposed 4.5 percent budget cuts to cope with the shortfall problems, didn't release his latest projection in advance of Monday's events. But Senate and Assembly leaders who compared Gibbons' projections with higher estimates from their own analysts said the governor's figure would easily top $800 million.

The shortfall projections, which have increased fourfold since last September, were updated following last week's grim economic news of a continuing slump in sales by Nevada merchants. Also, the state is dealing with higher-than-average unemployment.

The state's cut of sales taxes is now $61 million, or 5.7 percent, below forecasts for the current fiscal year. A recent Gaming Control Board report showed that the state's taxes on casino winnings are $48.2 million, or 8.5 percent, below forecasts for the same period. Taxes on the casinos and on sales are the two largest revenue sources for state government.

Besides gambling and sales taxes, an update at the end of February showed that insurance premium, real estate transfer and business taxes also are down.



Read more: http://www.mercurynews.com/breakingnews/ci_8750679

[ColbertWatcher]

1. How the hell is Nevada unable to meet their budget!?

Unpossible!

[movonne]

2. Probably the casino's are not paying there share of the taxes...I

would imagine they would have a big hold on the political front..

[enlightenment]

3. They pay quite a bit, but probably not their "share"

the current tax is 6.75% on gross revenue - it's been that way since 1996 or 1997.

There's been a proposal around for about a year or so; a push for an initiative to raise the tax to 9.75%, but it's going no where fast. Let's face it, the casinos have the state by the short hairs and they argue that an increase of that amount is really gouging.

We have the lowest tax rate of any gaming state. New Jersey has a 9.25%, Mississippi is somewhere in the 20 percent range, and in Pennsylvania they pay over 50%.

We don't have a state income tax for individuals and we don't tax corporate incomes. And now we have a complete and total moron as Governor, who is so deep in the pockets of big business that he eats their lint.

Not surprising at all that we have such a huge deficit.

[Javaman]

4. Time to install slots in the churches nt