The Proposed Budget Reserves Process for State Funding in Nevada

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In response to the economic impact of COVID-19 on Nevada’s budget, Governor Steve Sisolak sent a memo in April 2020 to State agencies noting that actual state revenue will not meet previous projected revenue projections and that he is examining the necessity of recommending budget reserves. In practice, these budget reserves are recommended budget cuts to General Fund appropriations for departments. Departments must meet certain targets, though these are subject to change as the economy recovers. The budget reserves that each department must meet are up to four percent for Fiscal Year (FY) 2020 and from six percent to fourteen percent for FY 2021. The Governor’s Finance Office prepared a spreadsheet that itemizes, by agency, division, and/or budget account (e.g., programs, salaries), General Fund appropriations for each fiscal year and budget cut amounts at each potential budget cut point. Using data contained in the spreadsheet, we evaluate the budget reserve targets and the implications for State funding in the current biennium (FY 2020-FY 2021). See here for report: https://bit.ly/2VaTDMZ