The Governor’s Finance Office in Carson City presented a structurally balanced budget at a legislative meeting, addressing a deficit of $335 million identified in Gov. Joe Lombardo’s initial proposal. Democrats had raised concerns about the deficit, attributing it to counting one-time appropriations as recurring expenditures. The Governor’s staff made amendments to cut out duplicate funding, explore reversions, and establish balance.
The budget amendments totaled $164.1 million for fiscal year 2026 and $263.2 million for fiscal year 2027. Some changes identified duplicate costs, while others factored in more reversions and unused funds. Democrats expressed worries about using one-time funding for a state-funded pre-K program, fearing potential future budget cuts.
Assembly Speaker Steve Yeager emphasized the need for a commitment to raise revenue in the future to avoid pulling the rug out from under people. Republicans did not ask questions during the meeting, highlighting concerns about unsustainable spending due to COVID-19 relief funds. Sen. Rochelle Nguyen raised concerns about potential Medicaid cuts, prompting the Governor’s team to consider contingency plans.
In light of potential federal Medicaid cuts, Senate Majority Leader Nicole Cannizzaro, along with other senators, sent a letter seeking information on the effects of these cuts. The legislative session began with a focus on balancing the budget and addressing the deficit to ensure financial stability for Nevada. For more information, contact McKenna Ross at mross@reviewjournal.com. Follow @mckenna_ross_ on X.
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