Nevada state budget and finances

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Nevada budget and finances
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General information
Budget calendar:
Biennial
Fiscal year:
2015
State credit rating:
AA (as of 2014)
Current governor:
Brian Sandoval
Financial figures
Total spending (state and federal funds):
$8.7 billion (estimated for 2014)
Per capita spending:
$3,073.51 (estimated for 2014)
Total state tax collections:
$7.0 billion (2013)
Per capita tax collections:
$2,517.16 (2013)
State debt:
$52.8 billion (as of 2014)
Per capita state debt:
$19,152 (as of 2014)
State budgets and finances
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Total state expendituresState debtTax policy in Nevada
Note: This page utilizes information from a variety of sources. As such, the currency of the information varies somewhat. The information presented on this page reflects the most recent data available as of February 2015.
Between fiscal years 2013 and 2014, total spending in Nevada decreased by approximately $130 million, from $8.86 billion in fiscal year 2013 to an estimated $8.73 billion in 2014. This represents a 1.5 percent decrease. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Nevada a credit rating of AA.[1][2][3]
As of 2014, Nevada's state debt per capita was $19,152, ranking 13th highest in the nation.

Spending

Definitions

The information below comes from the National Association of State Budget Officers (NASBO). These spending figures are broken into three broad categories in order to facilitate comparison between the states.[3]

  • State funds: State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
  • Federal funds: Federal funds are "funds received directly from the federal government."
  • Total spending: Total spending is calculated by adding together the totals for state and federal funds.

These figures exclude spending from the sale of bonds.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[3]

In Nevada in fiscal year 2014, estimated per capita spending totaled $3,074, a smaller amount than in any neighboring state.

Total estimated state spending, FY 2014 ($ in millions)
State State funds Federal funds Total spending Population Per capita spending
Nevada $5,903 $2,823 $8,726 2,839,099 $3,073.51
California $140,239 $81,059 $221,298 38,802,500 $5,703.19
Oregon $20,175 $8,090 $28,265 3,970,239 $7,119.22
Washington $25,171 $9,102 $34,273 7,061,530 $4,853.48
Per capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[4]
Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures
Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in Nevada can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[3]

In Nevada in fiscal year 2013, public assistance accounted for 0.6 percent of total government spending, a smaller share than in any neighboring state.

State spending by function as a percent of total expenditures, FY 2013
State K-12 education Higher education Public assistance Medicaid Corrections Trans-
portation
Other
Nevada 22.3% 8.5% 0.6% 22.7% 3.2% 7.4% 35.3%
California 21.4% 6.6% 3.9% 25.1% 5.0% 6.0% 31.9%
Oregon 14.3% 1.1% 0.7% 21.4% 3.9% 6.1% 52.6%
Washington 23.4% 14.3% 0.9% 11.9% 2.7% 8.9% 38.0%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Spending trends

Between 2009 and 2013, the share of the Nevada state budget spent on Medicaid increased from 14.7 percent to 22.7 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[3][5][6][7][8]

Spending by function from 2009 to 2013 (as percentages)
Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
2013 22.3% 8.5% 0.6% 22.7% 3.2% 7.4% 35.3%
2012 23.6% 9.7% 3.2% 25.4% 3.8% 9.5% 24.9%
2011 21.5% 10.0% 0.7% 18.3% 3.5% 9.5% 36.5%
2010 21.5% 10.8% 0.7% 18.3% 3.9% 11.4% 33.5%
2009 20.6% 9.6% 0.7% 14.7% 5.2% 16.5% 32.6%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.[9]

In 2013, total state tax collections in Nevada equaled $7 billion. Per capita tax collections equaled $2,517.

State tax collections by source ($ in thousands)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes Total 2013 population Per capita collections
Nevada $235,143 $5,468,363 $586,801 N/A N/A $736,319 $7,026,626 2,791,494 $2,517.16
California $1,982,208 $48,074,580 $8,743,748 $66,809,000 $7,462,000 $112,710 $133,184,246 38,431,393 $3,465.51
Oregon $19,893 $1,369,266 $923,123 $6,260,161 $459,744 $128,700 $9,160,887 3,928,068 $2,332.16
Washington $1,939,883 $14,647,173 $1,359,685 N/A N/A $720,303 $18,667,044 6,973,742 $2,676.76
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
Nevada tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In Nevada, sales taxes and gross receipts accounted for nearly 78 percent of total state tax collections.[9]

State tax collections by source (as percentages)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes
Nevada 3.35% 77.82% 8.35% N/A N/A 10.48%
California 1.49% 36.1% 6.57% 50.16% 5.6% 0.08%
Oregon 0.22% 14.95% 10.08% 68.34% 5.02% 1.4%
Washington 10.39% 78.47% 7.28% N/A N/A 3.86%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget

See also: Historic Nevada budget and finance information

Fiscal years 2014 and 2015

DocumentIcon.jpg See budget bill: Legislatively Approved Budget 2013-2015

Nevada state budget -- 2014
Nevada State Legislature
Text:SB 475 (This is one of five major budget bills that comprise the 2014-2015 biennium budget)
Legislative history
Introduced:March 25, 2013
House:June 3, 2013
Vote (lower house):35-6-1
Senate:June 3, 2013
Vote (upper house):17-3-1
Governor:Brian Sandoval
Signed:June 12, 2013

The Nevada State Legislature approved a $6.6 billion budget for the 2014-2015 biennium. The budget included most of the recommendations submitted by Governor Brian Sandoval, such as adding money for public schools and early development learning and restoring a 2.5 percent state employee pay cut. It was the first increase in funding for schools since the 2009 recession.[10]

The approved budget was comprised of five major budget bills. Outside of education funding, the general appropriations bill laid out $4 billion for the General Fund for the biennium, with $1.98 billion for the first year and $2.02 billion for the second.[10]

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Nevada had a state debt of approximately $52.8 billion. Its state debt per capita was $19,152. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounted to $16,178 per capita in the nation.[11]

Total state debt, 2014
State Total state debt State debt per capita Per capita debt ranking
Nevada $52,838,629,000 $19,152 13
California $777,918,403,000 $20,449 9
Oregon $86,678,268,000 $22,229 8
Washington $89,579,477,000 $12,988 32
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: Nevada public pensions and Nevada public employee salaries

A 2012 report from the Pew Center on the States noted that Nevada's pension system was funded at 70 percent at the close of fiscal year 2010, below the 80 percent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."[12]

Taken together, the funding ratio for the state's pension systems decreased from 77.30 percent in fiscal year 2007 to 70.97 percent in fiscal year 2012, a drop of 6.33 percentage points, or 8.2 percent. Likewise, unfunded liabilities increased from approximately $6.3 billion in fiscal year 2007 to $11.2 billion in fiscal year 2012.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[13][14]

The table below lists the Standard and Poor's credit ratings for Nevada and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[15]

State credit ratings, 2004 to 2014
State 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Nevada AA AA AA AA AA+ AA+ AA+ AA+ AA+ AA AA
California A A A- A- A- A A+ A+ A+ A A
Washington AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA AA AA
Oregon AA+ AA+ AA+ AA+ AA AA AA AA AA- AA- AA-
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[16]

The table below notes what share of Nevada’s general revenues came from the federal government in 2012. That year, Nevada received approximately $2.8 billion in federal aid, 25.5 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[16]

Federal aid to state budgets, 2012
State Total federal aid ($ in thousands) Federal aid as a % of general revenue Ranking
Nevada $2,798,426 25.48% 44
California $54,145,284 27.16% 40
Oregon $7,830,552 36.04% 13
Washington $9,743,127 28.59% 37
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

According to Recovery.gov, the official government website for the Recovery Accountability and Transparency Board, under the American Recovery and Reinvestment Act, Nevada received $2.35 billion in federal stimulus funding from the American Recovery and Reinvestment Act between February 2009 and June 2013.[17]

Budget process

The state operates on an biennial budget cycle that starts July 1 of each biennium. The sequence of key events in the budget process is as follows:[18][19]

  1. Budget instruction guidelines are sent to state agencies in January.
  2. Agencies submit their requests to the governor in August.
  3. Agency hearings are held in September and December.
  4. The governor submits the budget to the Nevada State Legislature in January.
  5. The legislature passes a budget in May or June. A simply majority is needed to pass a budget.

In Nevada, the governor has no veto authority over the budget.[19]

The governor is required by statute to submit a balanced budget. In turn, the legislature is constitutionally required to pass a balanced budget.[19]

Agencies, offices and committees

The following standing committees in the Nevada State Legislature deal with budget and finance matters:

  1. Finance Committee, Nevada State Senate
  2. Taxation Committee, Nevada State Assembly
  3. Ways and Means Committee, Nevada State Assembly

The Nevada Legislative Auditor audits Nevada's state agencies and publishes audit reports online. The legislative auditor is a statutory officer appointed by the Director of the Legislative Counsel Bureau with the approval of the Legislative Commission. The legislative auditor serves an indefinite term. The office's qualifications and duties are defined by law.[20]

The Nevada Controller is one of the six constitutional officers of the state and is elected to a term of four years. The controller is the state's chief fiscal officer, charged with administering the state accounting system and the state's debt collection program under the Nevada Constitution Article 5, Section 19.[21]

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[22] According to the report, Nevada received a grade of D- and a numerical score of 52, indicating that Nevada was "lagging" in terms of transparency regarding state spending.[22]

Budget and finance ballot measures

Voting on
state and local
government budgets,
spending and finance
State finance.jpg
Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
See also: Spending and finance on the ballot and List of Nevada ballot measures

Ballotpedia has tracked the following ballot measures relating to state and local budget and financial matters in Nevada.

  1. Nevada Economic Development Investment, Question 1 (2000)
  2. Nevada Installment and Lease Purchase Agreements, Question 5 (1994)
  3. Nevada Money Lending and Stock Holding, Question 5 (1992)
  4. Nevada State Debt Limit Building Retrofitting Exemption, Question 6 (1996)
  5. Nevada State Debt Limit School Exemption, Question 7 (2002)
  6. Nevada Tax and Spending Control Initiative (2006)
  7. Nevadans for Nevada

Recent news

This section displays the most recent stories in a Google news search for the terms "Nevada budget."

Some of the stories below may not be relevant to this page due to the nature of Google's news search engine.

Nevada state budget and finances - Google News Feed

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Contact information

Department of Administration Budget Division
209 East Musser Street, Room 200
Carson City, Nevada 89701-4298
Phone: 775-684-0222
Fax: 775-684-0260

See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
  4. United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
  5. National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  6. National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  7. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  8. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  9. 9.0 9.1 Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
  10. 10.0 10.1 Elko Daily Free Press, "Legislature approves $6.6B Nevada budget," June 5, 2013
  11. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  12. Pew Center on the States, "The Widening Gap Update,” accessed October 17, 2013
  13. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  14. Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
  15. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
  16. 16.0 16.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  17. Recovery, "Stimulus Spending by State," accessed March 20, 2015
  18. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  19. 19.0 19.1 19.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  20. Nevada Legislature, "Legislative Counsel Bureau, Audit Division," accessed March 19, 2015
  21. Nevada State Controller's Office Website, "Home page," accessed October 31, 2009
  22. 22.0 22.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014