The freshly introduced Assembly Bill 587 would, if approved, move $350.5M from the State of Nevada’s Rainy Day Fund to the general fund.
Transferring the funds is intended to combat potential federal spending cuts. More specifically, AB587 would transfer around $289M to the 2025-2026 general fund, while an additional $62M is to be withdrawn for the 2026-2027 general fund. The bill states the money is to be unrestricted.
AB587 comes after an economic forecast predicted the Silver State’s 2026-2027 general fund to fall $191M. While lawmakers have tried to reduce the cost of approved legislation, many bills are still quite expensive. The bill was proposed by State Representative Daniele Monroe-Moreno.
Another factor that led to the proposed legislation was the downgrading of the United States’ credit rating. Monroe-Moreno said her goal is to ensure Nevada does not have to cut any services. She later specified the legislation is not intended to expand services.
The Rainy Day Fund currently has more than $1.3B. This isn’t the first attempt to use the fund this year, as Assembly Speaker Steve Yeager proposed withdrawing $90M to provide higher pay to teachers in positions that proved difficult to fill.
Opposition to the bill argued it would be better to conserve the Rainy Day Fund for federal health care uncertainties. Detractors also said depleting the reserves could lead to further budget cuts, staff reductions and the cancellation of various programs. (Source)