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Budget Battles: Lombardo’s Promise of No New Taxes Faces $335M Deficit Hurdle

Governor Joe Lombardo, during his State of the State address, promised Nevadans a balanced budget without raising taxes. However, that commitment has come under scrutiny as lawmakers discovered that the governor’s proposed budget includes a $335 million deficit. This revelation has sparked frustration among members of the Legislative Commission’s Budget Subcommittee, who are now tasked with addressing these concerns before the state legislative session officially begins on February 3, 2025.

On Tuesday, the subcommittee convened to dissect the budget, and tensions were evident. Speaker Steve Yeager (D-Las Vegas) expressed his dissatisfaction, noting the difficulty of working with a budget riddled with errors and miscalculations. “I feel like we’re entering these budget subcommittee hearings really behind the eight ball and behind where we should be and would like to be at this point,” he stated. Other subcommittee members echoed similar frustrations, emphasizing the additional challenges created by the lack of preparation and clarity in the budget submission.

In an effort to address the situation, Governor Lombardo’s office announced a leadership change just before the meeting. Tiffany Greenameyer was appointed as the new Director of the Governor’s Office of Finance, replacing Amy Stephenson. Governor Lombardo expressed confidence in Greenameyer, highlighting her expertise in budget and fiscal matters.

Despite this leadership shift, subcommittee members found little solace in the proceedings. Greenameyer shared that her team of 30 finance professionals had been working for three days on amendments to reduce the deficit from $335 million to $85 million. Yet, many lawmakers felt blindsided by the changes. Senator Rochelle Nguyen (D-Las Vegas) voiced her frustration about the lack of timely communication, saying, “To say that I’m frustrated…is beyond frustrating. I wouldn’t even know where to begin asking questions.”

Greenameyer assured the subcommittee that her team would collaborate with fiscal staff to provide a detailed breakdown of the proposed amendments. However, some issues stood out, including the improper movement of $120 million in one-time funding into the state’s general fund. Subcommittee members pointed out that this money had already been allocated for specific purposes, such as $14 million in tax credits for the Athletics’ stadium and $5 million for wildlife crossings for the Nevada Department of Transportation.

One of Governor Lombardo’s priorities, as outlined in his State of the State address, is to make teacher pay raises permanent and to extend those raises to charter school teachers. However, lawmakers questioned whether these initiatives, along with the governor’s other priority bills, were accurately accounted for in the budget. Senate Majority Leader Nicole Cannizzaro (D-Las Vegas) raised concerns about whether the funding for these initiatives was sustainable. “It appears that several of these bills have ongoing administrative expenses… That also has to be accounted for within the revenues that are available on an ongoing basis,” she noted.

Governor Lombardo’s spokesperson, Elizabeth Ray, defended the budget, emphasizing the governor’s commitment to education. She reiterated that the budget includes teacher raises and Pre-K funding as ongoing operating expenses, rather than one-time costs, to ensure long-term stability. The governor’s team hopes lawmakers will support these permanent investments in education.

Still, the subcommittee pressed for more transparency. Cannizzaro demanded that amendments and proposed changes be submitted by January 29 to allow adequate time for review. Governor Lombardo’s Deputy Chief of Staff, Debi Reynolds, argued that two weeks between the State of the State address and the deadline was insufficient to address every issue. However, Cannizzaro pushed back, asserting that the governor’s team had ample time to prepare.

With lawmakers facing a looming deadline to finalize the state budget for the 2025–2027 biennium, tensions remain high. The challenge ahead is not only balancing the budget but also ensuring that it reflects sustainable funding for critical initiatives, particularly in education.

The implications of the budgetary challenges extend beyond the legislative chambers. A mismanaged budget could have ripple effects on local businesses and industries. For instance, a Las Vegas Truck Accident Attorney might face delays in state-funded infrastructure projects or road improvements, impacting their ability to assist clients effectively. As budget negotiations unfold, it’s clear that the stakes are high, not just for lawmakers but for the broader Nevada community.

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