Report: State Budget Grows By One Billion, 7 Percent Growth

The State of Nevada Economic Forum, comprised of five economic experts appointed by Governor Lombardo has provided their forecast for the state’s budget projecting an increase from $11.5 billion to $12.4 billion for the 2025-2027 biennium.

According to their report, the increase in tax revenue was driven by an increase in consumer spending on travel, entertainment and dining and specifically mentions that global entertainment events such as the Super Bowl, Formula 1, and the Las Vegas Sphere contributed to the overall increases in tax revenue.

The report notes:

Along with significant growth in interest income generated from high interest rates and all-time high revenue collections in the state, several extraordinary events during FY 2024 significantly boosted Nevada’s predominantly entertainment-driven economy. In late September 2023, the Sphere opened in Las Vegas with a U2 concert residency, drawing global attention and attracting additional visitors. November 2023 saw the city host its first Formula 1 race, generating worldwide excitement among motorsport enthusiasts. Finally, in February 2024, Las Vegas welcomed the Super Bowl, cementing its reputation as a premier destination for high-profile events.

According to Moody’s Analytics, expected GDP growth remains steady at 3.2 percent growth per year for 2025, 2026, and 2027. With the incoming Trump Administration comes an expectation of cutting corporate taxes, stabilizing inflation and reducing interest rates which will positively benefit the state budget. Yet, the promise of mass deportation efforts causes some concern.

“Our forecast is slightly more conservative, particularly in the final 2025 and especially towards the start of the year and the next couple of quarters, gaining speed further out as we start to see those interest rates come down. So, still expecting growth here, but these numbers are going to be lower,” said Emily Mandel from Moody’s Analytics.

“If we have a more restrictive immigration policy, if we have deportations, or more restrictive legal immigration, for example, that will reduce some of this labor force potentially impacting leisure hospitality, potentially impacting home building, some of these other areas,” said Mandel.