Forum cuts back projected gaming revenues by $341 million
The Economic Forum signaled its gloomy view of the Nevada economy today by cutting a total of $341 million from projected gaming and sales tax revenues.
Of that total, $132.9 million will come out of the remaining five months of this fiscal year – $62 million from gaming taxes and the Live Entertainment Tax, $70.9 million from the sales and use tax projections made in May.
They hit Fiscal 2011 harder, taking $70.8 million from projected gaming percentage fee collections and $24.9 million from the entertainment tax as members including Wynn Resorts Chief Financial Officer Matt Maddox said they expect fewer major shows and fewer tourists able to afford them next year.
The FY2011 sales tax projections took the biggest hit, a $112.4 million reduction to $705.4 million.
The forum member consistently chose the lowest of three different projections given them by the collecting agency, the budget office and the Legislative Fiscal Division.
Together, gaming and sales taxes account for two thirds of the General Fund revenues the state relies on.
The forum was called into session to re-project state revenues in the face of growing shortfalls since the end of the 2009 Legislature. Revenue fell more than $70 million short in just the first three months of this fiscal year and the governor’s office says the total shortfall could pass $400 million for the biennium.