We heard in the Finance Committee this morning that Nevada’s tax revenue projections are changing.

	FY2008	FY2009
November Forecast	$3.353-Bill	$3.586-Bill
Today’s Forecast	$3.341-Bill	$3.567-Bill

With today’s forecast change, Nevada’s tax revenue is forecast to go up 5.2% in the first year of the biennium and 6.8% in the second year of the biennium.Between the multiplier of the DSA (K-12 funding) and the many areas where Governor Guinn spent more than budgeted, which the legislature is making up with “supplementary funding,” our fiscal staff tells us we will have to reduce Governor Gibbon’s proposed spending hikes by about $70-million for each of the two years of the biennium.I pointed out to the committee that given the expected increase in tax revenues, it was clear to me that we had a spending problem, not a revenue problem. This sparked a heated discussion with another committee member, who suggested that lack of money was the problem, and that the answer was to take what we need to keep expanding spending as fast as we’ve been from the rainy day fund.

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