State budget director: “The governor’s recommended budget as submitted included errors” creating a projected $300-$400 million deficit
Two days after touting fiscal responsibility, Joe Lombardo fired the state’s budget director after Lombardo presented an unconstitutionally unbalanced budget during his State of the State address. Last week, Democrats raised concerns that Joe Lombardo’s proposed budget was not balanced and reallocated funding that legally can not be reallocated.
Ironically, less than a week before he proposed a budget with a structural deficit, Joe Lombardo signed onto a letter with other Republican governors touting balancing budgets and “improv[ing] the efficiency of state governments.” But Lombardo has a growing history of fiscal irresponsibility; in 2023 before vetoing legislation that would have lowered the cost of housing he requested $25 million of taxpayer money to “go furniture shopping” for his office.
What people are reading:
Nevada Independent: Nevada Democrats say Lombardo’s budget has ‘serious fiscal issues,’ $335M deficit
1/21/25
- Legislative Democrats say they’ve identified a more than $300 million deficit in Gov. Joe Lombardo’s recommended two-year budget.
- In the year’s first legislative budget meeting Tuesday, Democratic lawmakers said the budget released last week went $335 million in the red without offsetting revenue, which would represent about 2.5 percent of the two-year budget. Nevada’s Constitution requires the Legislature to pass a balanced budget, where revenues must equal expenditures.
- Senate Majority Leader Nicole Cannizzaro (D-Las Vegas) said they’ve identified a $300 to $400 million deficit, driven by a $1.8 billion increase in general fund operating expenses for ongoing projects and an estimated $300 million for Lombardo’s bill priorities that have not yet been accounted for.
- “We and our staff have confirmed that the budget is in fact not balanced,” Cannizzaro said. “Such a deficit would quickly create ongoing fiscal difficulties for the state.”
- She said lawmakers have a responsibility to fix the budget and gave the governor a 5 p.m. Jan. 29 deadline to submit an amendment.
- “I think it’s safe to say that we are facing a very unprecedented situation with this budget proposal,” Cannizzaro said. “I have been here for a short bit, but cannot recall a time where the governor sent the Legislature a budget that just simply didn’t add up.”
- Lombardo’s administration on Friday fired the director of the Governor’s Finance Office, Amy Stephenson, according to sources. She has been replaced by Tiffany Greenameyer, the deputy director of fiscal services at the Department of Health and Human Services, the governor’s office announced minutes before Tuesday’s meeting began in a press release that did not mention Stephenson.
- Greenameyer acknowledged the issues during the meeting, saying “the governor’s recommended budget, as submitted, included errors.”
- The state’s Economic Forum — a panel of private-sector economists whose revenue projections are legally required to form the size of each two-year budget — predicted in December that the state’s general fund will generate about $6.13 billion in revenue in fiscal year 2026 and $6.4 billion in fiscal year 2027.
- Lombardo’s proposed budget, however, calls for $6.37 billion in expenditures in fiscal year 2026 and $6.4 billion for fiscal year 2027.
- A spokesperson for Lombardo did not immediately respond to an emailed request for comment.
3 News: Lawmakers find ‘serious issues’ with Nevada governor’s proposed budget
1/21/25
- One of Nevada’s legislative leaders says there are “serious issues” with the governor’s proposed budget to cover the next two years of state operations.
- Democratic Senate Majority Leader Nicole Cannizzaro said Tuesday legislative leaders found “serious issues” with the budget during a review over the weekend.
- Speaking during a budget subcommittee hearing Tuesday, Cannizzaro said the budget is not balanced, with spending expected to exceed revenue and create a structural deficit of $300-$400 million.
- The revenue projections rely on using one-time funding and funding that is already obligated to other expenditures, she said. Legislative staff also don’t know what kind of funding is needed for Lombardo’s five major bill proposals.
- “I think it’s safe to say that we are facing a very unprecedented situation with this budget proposal,” Cannizzaro said. “I have been here for a short bit but cannot recall a time where a governor sent the legislature a budget that just simply didn’t add up.”
- Nevada’s constitution requires lawmakers to pass a balanced budget. The senate leader said Lombardo’s proposal would not meet that requirement and needs to be significantly rewritten. She said the governor’s office will have to submit “major amendments” by the close of business on Jan. 29.
News 4 (KXRI): Gov. Lombardo’s finance chief replaced as ‘major structural issues’ in budget identified
- Less than 2 weeks before the start of the Nevada legislative session and following ‘major structural issues’ identified in his proposed budget, Gov. Joe Lombardo announced that he has replaced his finance director.
- It comes as legislative Democrats raised ‘very serious’ issues with the governor’s proposed budget. Senate majority leader Nicole Cannizzaro said during a budget subcommittee meeting Tuesday morning that staff confirmed his proposed budget was not balanced and would create a $300-$400 million structural deficit.
- “I cannot recall a time where the governor sent the legislature a budget that just simply didn’t add up,” she said. “We are now left with a budget that is neither workable nor sustainable. And it’s our responsibility to the people of Nevada to fix it.”
- Cannizzaro said the budget relies heavily on one-time funding to pay for ongoing expenses and also didn’t include enough money to pay for Lombardo’s five major policy bills which he outlined in last week’s State of the State address.
- A spokesperson for Gov. Lombardo didn’t immediately respond to a request for comment.
What they’re saying:
Ben Margiott: “NEW: Sen. Majority Leader Nicole Cannizzaro says staff confirmed this weekend Gov. Lombardo’s proposed budget was not balanced and would create a $300-400M structural deficit.
She called it a ‘very unprecedented situation’ and says they’ll ask for major amendments by Jan. 29”
Dana Gentry: “Senate Majority Leader Nicole Cinazzaro says Dem lawmakers and staff confirmed Joe Lombardo’s proposed executive budget does not add up. Wants proposed changes by COB Jan. 29”
Casey Harrison: “Developing this AM: Gov. Joe Lombardo’s staff is meeting with state lawmakers to discuss the proposed budget his office submitted, which Democratic officials would contain a $335M structural deficit.
The state constitution mandates the state cannot pass a budget w/ deficit.”
Dana Gentry: “Tiffany Greenameyer from Lombardo’s office admits errors in budgeting, attempts to review changes.”
Nevada State Democratic Party spokesperson Tai Sims:
“Joe Lombardo had two years to create a budget that lowers the costs of housing, health care, and school meals, and instead he had to fire his budget director two days after presenting a budget that has an unconstitutional structural deficit in the hundreds of millions. Under Lombardo, things are expensive and while rent costs and food insecurity rise across the state, Nevadans expect their governor to put forth a balanced budget that lowers costs, puts money back in peoples’ pockets, and puts Nevadans first — a promise he made in the campaign trail when running for this office and has now failed to keep.”
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