Las Vegas Sun

March 29, 2024

Nevada Territory

Democrats: Sandoval budget uses $1.1 billion in one-time money

Democrats said today Gov. Brian Sandoval's budget uses $1.1 billion in one-time fixes to balance the budget, pushing budget problems forward another two years, and creating uncertainty for businesses.

Sen. Steven Horsford, D-North Las Vegas and Sen. Sheila Leslie, D-Reno, told reporters today that continuing to use one-time solutions would create a constant discussion about raising taxes.

"This is not forward thinking toward the goal of moving Nevada to a more secure future," Horsford said.

He said businesses have told him they want stability. Over the next months, some of those business groups and industries will testify on Sandoval's budget, Leslie said.

Over the past three years of the recession, Democrats in the Legislature have often complained about budget gimmicks from governors to balance the budget, only to approve those proposals instead of raising taxes or making cuts.

Indeed, Horsford and Leslie acknowledged that some of Sandoval's proposals will be considered.

But Leslie said, "We've reached a point of no return. We swept every reserve," she said. "Where there is a crisis, there are opportunities."

Among Sandovals' proposals that Horsford criticized:

• $319 million from local school district bond reserves.

• Borrowing against future insurance premium tax collections to raise $190 million this year.

• Take $227 million in room tax money that voters said should go to education, and divert it to the state's general fund.

Sandoval's staff has defended the revenue enhancements as necessary to spare education and health and human services from even more cuts. They have also expressed optimism that the state's economy will improve, and with it taxes that pay for services.

Horsford said to maintain the level of services proposed under Sandoval's budget, general fund revenues would have to grow 29 percent over the next two years because the one-time money the governor uses will be gone.

"I want to be optimistic, the governor wants us to be optimistic, but we need to be realistic," he said.

Both Horsford and Leslie said a combination of cuts and revenue enhancements - taxes - will be needed to balance the budget.

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