Nevada budget cuts deeper than any other state
State Director of Administration Andrew Clinger said Tuesday that, by percentage, Nevada is having to cut deeper into its budget than any other state in the nation.
Clinger said he discovered that fact while attending the National Association of State Budget Officers meeting in Washington D.C. last week.
He said many state budget directors were reporting cuts of 5 percent and 6 percent cuts but that jaws dropped when he told them Nevada is making 14 percent cuts and may be looking at as much as 20 percent.
He said the biggest reason for Nevada’s problem is the housing market.
“It has a lot to do with the fact we had a large run up in housing prices and that housing is a larger percentage of our construction.”
He said high gas prices and slumping automotive sales – long the second-largest generator of sales tax revenue – also contributed to the problem.
Clinger said the latest report he received from consultants shows that, in the second quarter of 2008, one in 43 households in Nevada received a foreclosure notice. In Las Vegas, the rate was one in 35, giving that city the third highest foreclosure rate in the nation behind Stockton (1:25) and Riverside (1:32) in California.
Nevada saw a total of 24,657 foreclosure filings in the second quarter of 2008. That is up 26 percent from the first quarter of the year and up 147 percent from 2007.
Nevada’s rate is now four times the national average and highest in the nation. California is in second with a rate of one home in 65 and Arizona third with one in 70.
Nevada, Clinger said, also suffered more than many states from the rise in gasoline prices, which either kept some tourists from coming to the state or reduced the amount of money they were able to spend once here.
• Contact reporter Geoff Dornan at email@example.com or 687-8750.