State revenues up in 2009 but only because of stimulus

Total state revenues were up more than $500 million in fiscal 2009, but only because of the stimulus money Nevada received.

Without that infusion of cash, Controller Kim Wallin said revenues would have been down by $500 million.

In her annual report on the state's financial condition, Wallin said fiscal 2009 revenues totaled $7.79 billion including $998.9 million in stimulus funds.

That report also shows that, because of the weak economy and revenue shortfalls, the state spent $1 billion more than it took in - a total of $8.85 billion.

"Expenditures were up even further because of the increased number of Nevadans who were our of work who needed financial assistance such as unemployment and Medicaid," she said.

The bulk of that spending was for checks to the unemployed, more than 100,000 of them now. Nevada's 13 percent unemployment rate emptied an Employment Insurance Trust Fund which started the year at nearly $700 million. The state spent not only that money but, as of last week, more than $200 million in money borrowed from the federal government to cover unemployment.

The rest of what appears to be deficit spending came out of other reserve accounts in different state agencies which were basically spent to statutory minimums or totally depleted to cover unavoidable costs during the recession.

Administration officials who are preparing even more budget cuts this budget cycle will be unable to rely on those sources again since they have been exhausted.

According to the controller's Popular Annual Financial Report, a simplified four-page review of the state's revenues and expenses, federal funding is the only category which went up during the year. Sales taxes, gaming and other taxes along with charges for services and "other" revenue such as the business and insurance premium taxes all fell compared to the previous year. Federal grants in contrast were up 50 percent to $3 billion.

The report takes its numbers from the annual Comprehensive Annual Financial Report, which contains the complete review of the state's financial situation, revenues, expenses, debt and other obligations. Both are available on the controller's website at www.controller.nv.gov