Over the next few years Governor Joe Lombardo's team of business experts are predicting a slower growth in wages, the real estate market, gaming, and other impacts.

Over the next few years Governor Joe Lombardo's team of business experts are predicting a slower growth in wages, the real estate market, gaming, and other impacts.

"As a result, in just the state general fund dollars that we're talking about, we're projecting a $191 million shortfall from what the forecast was just in December," said Democratic Senate Majority Leader Nicole Cannizzaro.

Some other focuses are on tourism and unemployment rates. Members of the data research analysis bureau are saying our unemployment rates are currently looking steady but may start increasing next fiscal year.

"Our unemployment rate is currently 5.7%," said Chief Economist David Schmidt. "That's basically steady. This year it's been sort of in the five and a half percent range or a little bit more for the last couple of years really so there's really not a significant change there."

Schmidt says unemployment rates, which are expected to slowly rise from 2025 and peak at 6.55% in 2026, then ease out in 2027.

As far as tourism goes, visitor numbers are projected to dip from over 44 million to 42 million in 2026, then slightly increase again in 27.

Cannizzaro explains.

"Nevada is one of the first and hardest states hit," she said. "You see it every recessive trend, it is harder for us to climb out of that because what our economy is driven on is a lot of discretionary income and people coming to Nevada to explore our beautiful public lands, to come to Las Vegas to stay on the strip, to come for conventions."

Schmidt is saying it's not all bad. Inflation is overall assumed to remain moderate. Increasing from 2.83% in 2025 to 3.15% in 2026 due to tariffs but then dipping down again to 2.54% in 2027.

Governor Lombardo's office released a statement regarding the forum saying,

"Today, the economic forum presented a manageable budget deficit for the 2025-2026 biennium.

While many fiscal decisions remain during the legislative session, the state will be able to mitigate the presented budget deficit.

The office of the governor and governor's finance office will continue to work with the legislature throughout the remainder of this year's budgeting process.

Should any unexpected budget issues arise later in the biennium, Nevadans can rest assured that the state is well-prepared to navigate moments of fiscal uncertainty, especially with the record amount of savings in the rainy-day fund under Governor Lombardo's leadership."