Gibbons, budget director say another special session unlikely
August 11, 2008
Neither Gov. Jim Gibbons nor his budget director believe another special legislative session will be needed to keep the state financially solvent.
“There are no guarantees,” said Gibbons. “If the amount of revenue needed is not met by our cash flow, we would probably have to rethink the idea.
“But, right now, I don’t think that it’s at all needed or necessary. We were very conservative with the Economic Forum numbers and the special session,” he said.
Director of Administration Andrew Clinger agreed saying he believes the state will have enough cash in the treasury to pay its bills until the 2009 Legislature convenes in February.
He said, however, the answer will be clear next month after the final quarter’s revenue figures come in. Gaming and sales tax collections are reported monthly but other major general fund revenues including the Modified Business Tax, Real Estate Transfer Tax, Insurance Premium Tax are reported quarterly.
Clinger said unless those revenues come in dramatically lower than projected, the state will make it financially.
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“With the Rainy Day Fund transfer being made, I think we’re OK,” he said.
That transfer, authorized by the 24th special session of the Legislature June 27, put $267 million into the general fund.
“We’re not at the point where we feel like a special session is necessary,” he said.
Clinger said the June projections show the state’s economy beginning to recover in the second half of this fiscal year. Gaming Control Board analyst Frank Streshley said recovery in the gaming collections should be helped along by the opening of three new casinos in southern Nevada by the end of the calendar year: The Eastside Las Vegas Cannery this month, the Aliante Station in November and the Wynn Encore in December.