There has been rampant speculation on whether the Governor will call a special session in early 2010 to deal with Nevada’s worsening revenue collections. The Governor recently announced plans to convene the Economic Forum and obtain an updated revenue forecast by January 19, 2010. The announcement came after quarterly revenue reports showed the state was $50 million behind the projections used to build the biennial budget after only a quarter of the first fiscal year of the biennium (fiscal years for state government purposes run from July 1 to June 30). If that kind of revenue slide continues, it means the state could be facing a deficit of $400 million for the current biennium.
The last time the Economic Forum was convened for an emergency meeting was in June 2008, and a special session to address the forum forecasts was called shortly thereafter. It seems inevitable that the upcoming meeting of the Economic Forum will serve as a precursor to another budget-related special session, especially given the fact that the Governor has expressed an intent to convene the Legislature in order to qualify for certain federal education dollars. If a special session is called, it makes sense to call it shortly after the Economic Forum makes its projections, otherwise those projections could quickly become stale.