This week, the Economic Forum met to hear presentations that will help them forecast the General Fund revenues at their December meeting. The Economic Forum is a state-appointed panel of private sector business experts who provide forecasts of tax revenue streams that are used to determine the state’s budget.
According to the Legislative Counsel Bureau’s fiscal analysis division, the state collected significantly more revenue than was projected when the Forum made their projections in 2021. Sales tax collections in the 2022 fiscal year exceeded projections by more than $311 million, and the state’s gaming industry had a historic streak of $1 billion-plus gaming revenue months. Collections from the gaming tax exceeded projections by $255 million.
The extra revenue will be deposited into the states’ Rainy Day Fund, which can be used during emergencies, such as a global pandemic or economic recession, to help fund state government operations. About $400 million will go to the Rainy Day Fund, which brings it to where it was prior to the Covid pandemic.
Since the pandemic, Nevada has seen a rapid recovery of jobs and an increase in hourly wages. Visitor volume has not completely recovered, and convention and trade show attendance is still slightly lower than pre-Covid. In the coming years, F1 (2034 and 2024) and the Super Bowl (2024) are expected to add millions in revenue, especially to the Live Entertainment Tax.
The next meeting of the Economic Forum will be held in December, where they will make their forecasts of the general fund revenues for the next two years. The forecasts are then updated in May and used by the Legislature during the 2023 session.
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