Today, I notified State employees of my proposed plans to address the projected Fiscal Year 2021 budget shortfall. Preliminary estimates indicate an approximate $900 million shortfall. When combined with the Distributive School Account the shortfall increases up to $1.3 billion.
Before the pandemic, the State was focusing on plans to implement a child, family and community-centered Nevada government. And while our budget looks a lot different now than it did then, I maintain hope we can use this opportunity to reinvent our State under that vision.
This may shift as we receive & analyze new economic data, but I have the responsibility for developing the proposals to address the shortfall based on what we know now. Officials have worked to reduce anticipated layoffs from more than 450 to less than 50 expected at this time.
The plans include 1 furlough day a month for all employees beginning in July, & a freeze on merit salary increases. No additional changes to health insurance and retirement benefits for employees are proposed at this time beyond those approved by the PEBP Board earlier this year.
Based on estimates for the shortfall, without significant federal funding to assist with the state’s revenue shortfall, Nevada will not be able to avoid severe reductions in general fund support for agencies & services that represent the majority of general fund expenditures.
My Office and the Governor’s Finance Office continue to work closely with legislative leadership & staff to review & finalize budgetary proposals to address the shortfall & coordinate timing for an upcoming special session to finalize proposals before July 1.
You can watch the video sent to State employees here:
