California Journal of Politics and Policy

In June of 2023, the Nevada Legislature passed the state’s 2023-2025 budget. Buoyed by continued increases in the state’s share of the sales taxes and revenue tied to gaming, entertainment, and tourism as well as business activity, the $10.9 billion general fund budget was the largest in Nevada’s history. After four years of unified Democratic control of state government, the 2023 session was the first budget passed under divided government since 2017. While partisan and interbranch tensions were ever present as evidenced by a record 75 vetoed bills, Nevada’s Republican governor and Democratic-controlled legislature supported substantial investments in K-12 education and state employees. Enthusiasm for long-term spending obligations, however, was tempered by the fact that the general fund budget’s two largest revenue drivers—sales and gaming taxes—fluctuate with macroeconomic conditions. The continued reliance on these revenue sources perpetuates Nevada’s history of booms and busts and undermines the state’s ability to make long-term investments in its human capital and physical infrastructure. Consequently, the budget choices adopted by the governor and legislature reflected broad compromises and investments, while other areas, including costly but much needed reforms to state government, went unaddressed.