Las Vegas Sun

March 19, 2024

State budget director: Prep for another 10 percent cut

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State agencies will have to prepare budget cut scenarios of up to 10 percent, dramatically increasing what Gov. Jim Gibbons’ office asked them to prepare earlier this month.

According to a memo sent today by Andrew Clinger, the state’s budget director, agencies will have to come up with recommendations for 6 percent, 8 percent and 10 percent by Jan. 5.

Agencies had been asked to prepare for 1.4 percent and 3 percent cuts, plans that are due today.

In the first six months of the fiscal year, state tax revenue has come in $53 million below projections. The Gibbons administration is still weighing whether it will need to call a special session of the Legislature to deal with budget issues, and has called for the Economic Forum, a group of five business leaders, to reforecast tax revenue by Jan. 19.

“At this time no decision has been made as to whether these budget reserve recommendations will be implemented,” Clinger wrote in the memo. “However, this information will be considered in the decision making process for closing the current projected deficit.”

Earlier this year, the Legislature cut about $1 billion from the budget and raised $1 billion in taxes.

While the state has for the most part avoided layoffs, more than 1,452 positions have been held vacant through attrition and hiring freezes.

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