Sisolak says massive budget cuts coming

Gov. Steve Sisolak said Tuesday that Nevada is facing an economic shortfall of $812 million for the fiscal year that ends in just three weeks.

In a press release sent to reporters at 5:10 p.m., 10 minutes after the close of business, he said that includes $265 million in General Fund appropriations needed under state law to make up any shortfalls in K-12 education funding.

Because of that statute, teachers statewide have continued to receive their paychecks through the pandemic and the state is required to make up any deficits.

Sisolak said Nevada is making “difficult budgetary decisions.” He said Nevada is working with state agencies to identify reductions necessary while protecting the health and safety of the state’s residents.

“We are working diligently with our state agencies to identify the reductions necessary for fiscal responsibility while prioritizing the resources necessary to protect the health and safety of Nevada’s residents,” he said.

Sisolak said his administration is proposing $67 million in state agency operating budgets reductions plus $49 million by reversing one-time expenditures.

The legislative Interim Finance Committee will review those actions Friday.

The governor and IFC have already approved moving $402 million from the Rainy Day account to the general fund to help cover the deficit.