Nevada has its own budget crisis. The Silver State budgets biennially. The Nevada Legislature voted an $8 billion budget late last year. However, it appears that only $5.5 billion in revenue will be raised during 2010 and 2011.
Republican Governor Jim Gibbons says he’ll veto any tax increases. “I don’t know of too many businesses around Nevada today who are looking at reduced revenues that cannot find some way to balance their budget…Sometimes it has been reducing salary levels, reducing benefits, retirements, eliminating 401(k)s. Across the board, these are tough choices.”
Meanwhile, Democratic Senate Majority Leader Steven Horsford asked Nevadans to prepare for tax increases. “Today, I am asking hard-working Nevadans to make a sacrifice for their children’s education and our state’s future…I am also asking corporations, casinos and other interests to share in the revenue solution.”
Nevada’s legislature, which is far more evenly split between Republicans and Democrats than in California, has worked together in the past. It will be interesting to see if a compromise can be reached.