Nevada's Rainy Day Fund back on track

Nevada's Rainy Day Fund back on track
Gov. Steve Sisolak and Nevada Treasurer Zach Conine speak at the Nevada Recovers Listening Tour. “Our families need help with child care, with jobs and with housing,” Sisolak said. (Photo: Michael Lyle)

CARSON CITY–Gov. Steve Sisolak on Monday said his “balanced, thoughtful budget” was one of the factors that helped to create a rebound in the balance of Nevada’s Rainy Day Fund. This week Nevada Treasurer Zach Conine’s office said the fund’s balance hit $340 million—its highest balance since before the pandemic.

The Rainy Day Fund balance hit an all-time high of $401 million just before the pandemic hit Nevada in March 2020. In May 2020, the rainy day had more. State officials transferred the entire balance to the General Fund to dull the economic impacts of the pandemic and avoid more significant budget cuts.

“A healthy Rainy Day Fund helps protect the State’s finances during times of emergencies, but also lowers our costs of borrowing in times of rising inflation and interest rates,” said Conine. “Thanks to the commitment of Governor Sisolak, the Legislature, and my office, Nevadans can rest assured that the State’s financial situation is strong as we recover from the impacts of the pandemic.”

The new balance in the fund was achieved with a $295 million transfer from the state’s General Fund in mid-January.

State law sets requirements for when money must be transferred from the General Fund to the Rainy Day Fund. Transfers include 1% of total anticipated fiscal year revenue as projected by the Economic Forum, and 40% of the unrestricted balance in the General Fund that exceeds 7% of General Fund operating appropriations.

Source: Nevada Treasurer’s Office