Nevada’s current budget

Governor Joe Lombardo released his FY 2026-2027 budget proposal and gave the state of the state address in January 2025. The FY 2026-2027 budget was enacted in June 2025.

Nevada did not enact a FY 2024-2025 supplemental budget. Nevada enacted its FY 2024-2025 biennial budget in June 2023. The budget reported general fund spending of $5.2 billion in FY 2024.

Under the American Rescue Plan, Nevada received $2.7 billion in direct state fiscal aid and $890 million in local government aid from the federal government. As of January 2025, Nevada had fully allocated its state ARP. States must spend the funds by Dec. 31, 2026.

According to the National Association of State Budget Officers (NASBO), Nevada’s total expenditures in fiscal year FY 2025 were $18.3 billion, including general funds, other state funds, bonds, and federal funds. NASBO reported that total expenditures across all states in FY 2025 were $2.9 trillion, ranging from $5.4 billion in Wyoming to $413.8 billion in California.

According to NASBO, Nevada’s recent expenditure totals (general fund spending/total spending, including federal transfers) were:

• FY 2025: $6.1 billion/$21.0 billion
• FY 2024: $5.3 billion/$19.8 billion
• FY 2023: $4.7 billion/$18.5 billion
• FY 2022: $4.5 billion/$16.5 billion
• FY 2021: $4.6 billion/$18.7 billion
• FY 2020: $4.5 billion/$15.0 billion
• FY 2019: $4.5 billion/$16.1 billion

For more on Nevada’s budget, see

• the Nevada Governor’s Finance Office,
  
• the Nevada State Controller’s Office,
  
• the Nevada Legislative Fiscal Analysis Division, and
  
• the Nevada Legislature Research Library.

Nevada’s budget institutions, rules, and constraints

Nevada uses a biennial budget. The legislature must pass a balanced budget, but it can carry a deficit over into the following year. Nevada further limits both spending and revenue with a budget formula based on inflation and population growth. The rules are binding and require a legislative supermajority or vote of the people to override. A two-thirds supermajority is also required for all tax increases. The state also limits total authorized debt and debt service incurred by the state.

(Note: Some states have informal budget institutions that constrain overall spending growth or a specific expenditure’s growth.)

Overview of Nevada’s state and local expenditure and revenue sources

Each state allocates spending and taxes differently among different levels of governments, and local governments often administer programs with state funds, so combined state and local government data show a more complete picture of individual benefits and contributions when comparing states.

Per the US Census Bureau, Nevada’s combined state and local direct general expenditures were $28.7 billion in FY 2022 (the most recent year census data were available), or $9,029 per capita. (Census data exclude “business-like” activities such as utilities and transfers between state and local governments.) National per capita direct general expenditures were $12,083.

Nevada’s largest spending areas per capita were elementary and secondary education ($1,806) and public welfare ($1,724). The Census Bureau includes most Medicaid spending in public welfare but also allocates some of it to public hospitals. Per capita spending is useful for state comparisons but is an incomplete metric because it doesn’t provide any information about a state’s demographics, policy decisions, administrative procedures, or residents’ choices.

Nevada’s combined state and local general revenues were $36.1 billion in FY 2022, or $11,377 per capita. National per capita general revenues were $13,619. Nevada does not levy an individual income tax or corporate income tax but does have a gross receipts tax. (Census counts this revenue as either general sales tax revenue or selective sales tax revenue.) After federal transfers, Nevada’s largest sources of per capita revenue were general sales taxes ($2,727) and property taxes ($1,345). Nevada also collects a relatively large amount of revenue from taxes related to gambling. Census categorizes much of this revenue as amusement tax revenue. In 2022, Nevada’s per capita amusement tax revenue was $427 while the nation’s was $34.

Nevada’s economic trends

Nevada’s per capita income (per the Bureau of Economic Analysis) was $68,657 in 2024, ranking 25th among the states. It was below both the national average of $72,425 and the Far West regional average of $77,823. The state’s median household income (five-year estimate) was $78,260 in 2024, ranking 22nd among the states and below the national average of $80,734. Nevada’s poverty rate was 12.4 percent in 2024 (five-year estimate), below the national rate of 12.5 percent.

Although Nevada’s averages tell a story about the entire state, Nevada is composed of diverse localities. For example, the city of Sunrise Manor’s median household income was $58,421, and its poverty rate was 20.2 percent; the city of Enterprise’s median household income was $98,462, and its poverty rate was 8.7 percent.

Nevada’s unemployment rate historically tracks the national average. However, during the Great Recession, the state’s unemployment rate rose above the national rate.

Unemployment rates (like other economic indicators) often vary significantly by race and ethnicity. In Nevada, the average unemployment rate in 2024 was 4.9 percent for white residents, 6.4 percent for Black residents, and 5.4 percent for Hispanic or Latino residents.

The major industries that contributed the most to Nevada’s gross domestic product (GDP) in 2024 were finance, arts and entertainment, professional services, government, and construction. Arts and entertainment and construction contributed more to Nevada’s GDP than they did to the nation’s and region’s GDP, while professional services and government were less important to Nevada than they were to the nation and region in 2024. Gambling is included under arts and entertainment.

Looking at more specific industries, among those that accounted for at least 1 percent of Nevada’s GDP in 2023, accommodation produced far more for the state than for the nation, contributing 8.3 percent to Nevada’s GDP and 0.9 percent to the nation’s. Other industries that overperformed in Nevada relative to national averages in 2023 were construction, food services, mining, and performing arts.

Nevada’s politics

Governor Joe Lombardo, a Republican, was elected in 2022 with 50 percent of the vote. The next gubernatorial election is in 2026.

Nevada has a divided government. Democrats control both the Assembly (27 Democrats to 15 Republicans) and Senate (13 Democrats to 8 Republicans). All Nevada Assembly seats are on the ballot in 2026 because members serve two-year terms. Senators serve four-year terms; roughly half the senatorial seats are on the ballot in 2026, and the other half will be up for election in 2028.

Nevada’s demographics

As of July 2024, Nevada’s population was 3,267,467. That was up 20.8 percent from 2010. The state’s population growth rate was faster than than the nation’s 9.9 percent growth over the same period. The Urban Institute estimates the state’s population will increase 50.3 percent between 2010 and 2030, more than the nation’s estimated growth rate of 16 percent.

Additional resources

• The State and Local Finance Initiative’s Backgrounders explain the tax and spending issues highlighted in these briefs.
  
• The State Economic Monitor presents updated data and customized visualizations of state economic indicators.
  
• State and Local Finance Data: Exploring the Census of Governments allow users to sort, customize, and download the Census of Governments State and Local Finance series data featured in these summaries.
  
• The State Tax and Economic Review series provides quarterly reports on state tax collections and underlying economic trends in all 50 states.
  
• The Urban Institute’s State Tax Data Subscriptions provide access to up-to-date revenue data in all 50 states.