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StumblePublished Wednesday, Dec. 1, 2010 | 4:26 p.m.
Updated Wednesday, Dec. 1, 2010 | 7:20 p.m.
The Economic Forum emerged from its hibernation today, saw two more sour years for the state’s economy and settled that the governor and Legislature will have $5.3 billion in general fund revenue to spend for the next two years unless they raise taxes.
The number is about what state financial expected - somewhere between $5.2 billion and $5.4 billion. But the forum, made up of five appointed business leaders, made official that Gov.-elect Brian Sandoval and then the Legislature will have to balance that with state spending requests at $8.3 billion, which assumes a half billion dollars in furloughs for state workers ends.
“Now the game is on in terms of these are official numbers,” Russell Guindon, a legislative fiscal analyst told the Economic Forum on Wednesday.
The five forum members generally settled on a consensus that Nevada would not see any rapid recovery, and certainly no return to the salad days of 2006 and 2007.
Visitor volume to the Strip would increase, but folks wouldn't gamble or spend like they used to.
“This could be our Great Depression,” said John Restrepo, chairman of the Economic Forum and a private fiscal analyst. Changes in how consumers spend their money “could make this a game-changer for awhile.”
New Economic Forum member Andrew Martin, a CPA, said he wanted to be a bit more pessimistic than his colleagues, but said he was generally comfortable with the forecast.
The Legislature created the Economic Forum, which is appointed by the Governor and Legislative leaders, to take politics out of setting state revenue. Years ago, lawmakers had been known to push a more optimistic viewpoint on how much money the state would get so they could spend more without raising taxes.
Restrepo and other board members said no one has tried to influence the work of the nonpartisan panel.
Like other experts, the Economic Forum members struggled initially to forecast just how bad Nevada’s economy and tax revenue would get. Since 2008, there have been three special sessions to readjust for downward revenue.
But since February, the board members on the commission have been about right, even a little conservative, on their predictions.
Their new forecast has the current fiscal year ending with about $80 million more than they had previously predicted.
We (taxpayers) have been given the 1 billion dollar tax ramming for the past few legislative cycles. Glad to see it finally turned around to see them getting it this time.
No sympathy - at all!
So the state is Three Billion Dollars SHORT.
Now it is time for Mr. Sandoval to come through. He kept saying he had plans to cut $500,000 out of the state spending but that is not going to do it.
He never would tell us how he planned on cutting any of the budget. Now he HAS TO TELL US.
We all know some cuts can be made but what is he really going to cut now that he has to do the job.
Be ready, there has to be cuts to public services when you are Three Billion Dollars short.
"Their new forecast has the current fiscal year ending with about $80 million more than they had previously predicted."
Well, I got told I'm getting laid off in June today. The stores are going to suffer when I quit shopping! And the poor slob who gets to keep his job and do mine and the job of one other full time person is going to be crying.
Life in the fast lane!
tbvegas, the problem is that you and me have been paying the taxes and the corporations are skating in this state.
Chunky says:
Man-up or Woman-up and make the cuts to balance the budget. We're not like the Feds, we can't print extra money if we need it.
Our governments, corporations and citizens got fat and now it is time to cut the fat and get lean again.
It is unsustainable to continue spending more that we earn or take in in revenue.
The sooner we get lean, the sooner we'll be competitive again.
That's what Chunky thinks!
I say reduce that figure by half. reduce salaries to pre 70's and make it work. what happened to all the money the state took from the county's.... and they still need more. greedy azzz, your selfishness has cost people thier life line to stay afloat. now it is nothing more than 1 month and thats it for 12 months.