Nevada surplus should hit $155 million by June

Brendan Riley

Tuesday, Feb. 8, 2000 | 9:43 a.m.

CARSON CITY - Nevada's budget surplus could hit $155 million by June - roughly double the projected amount - because of strong growth in casino and sales taxes, said state Budget Director Perry Comeaux.

Comeaux said in an interview Monday that casino-related taxes are up more than 16 percent so far this fiscal year, compared with 4.4 percent growth predicted by the state's Economic Forum last spring.

Sales taxes are coming in at 7.3 percent, compared with the forum's projection of 5.9 percent.

The two levies are the mainstays of Nevada's budget, accounting for nearly three-quarters of the $1.57 billion in revenues the state expects to collect this fiscal year, which ends June 30.

"It's too early to be dancing in the streets - but it's sure a good way to start," Comeaux said Monday. "We're tearing it up right now."

Comeaux said the Economic Forum's prediction, relied upon by the 1999 Legislature in passing the current state budget, will be updated by May 1.

"I assume our estimates will increase over the forum's," he said. "I can't imagine us assuming lower growth."

The surplus began growing at the end of the last fiscal year, a month after the May 31 adjournment of the 1999 session. By the time the books were closed, the state had $21.5 million more than expected.

So far this fiscal year, the growth rate in sales and gambling-related levies is on track to produce another $49.2 million by June 30.

That's in addition to the predicted surplus of $84.6 assumed by the 1999 Legislature. That adds up to a total pot of just over $155 million.

The actual amount will depend on continued strong growth in the two main budget categories - sales and gambling taxes - for the next few months. It also assumes no big surprises in other tax categories or in reversions from specific agency budget accounts to the state's big general fund.

If there are no major surprises and if the second half of the current two-year budget cycle has only modest growth, the budget surplus will be even bigger by June 2001.

That means the 2001 Legislature would have a lot more money for "one-shot" or special projects than the 1999 Legislature did. That's typically what such surplus funds are used for.

Comeaux noted that during the 1999 session there was far less money available for one-shots. Bonds revenues, usually reserved for construction, were even used for maintenance projects in some cases.

"We never do that," said Comeaux. "But it was that or nothing. If the surplus growth continues, this time around we shouldn't have to worry about that kind of stuff."