Gibbons: Poor casino returns make state's financial woes worse

Gov. Jim Gibbons: Getty Images PhotoGov. Jim Gibbons announced Thursday that last month's tax collections from the state's gaming industry were far lower than projected, a development that could lead to further economic hardship for the state.

Gibbons said in a statement that the tax haul from the state's casinos in June was $19 million less than last June, and "significantly worse" than an economic panel predicted just weeks ago.

"This is an incredibly difficult time for the state of Nevada, and it appears that we may need to prepare for an additional shortfall to our General Fund for the fiscal year that just began," Gibbons said. "We will continue to watch our state revenues very closely in the coming months to determine whether any additional reduction to state spending will be necessary to maintain a balanced budget."

The state legislature had to sit for a special session at the end of June to resolve a $1.2 billion budget shortfall for the upcoming fiscal year, a feat they accomplished by cutting programs — including one designed to pay for educational materials— without raising taxes.

After Thursday's bad news on casino cash, Gibbons was again adamant that a tax increase was not the way for the state to get back on solid economic ground.

"I will continue to balance our budget without looking to taxpayers for more money when they’re already struggling in their own lives," Gibbons said. " Understanding the various economic pressures facing tourism currently, from fuel prices to higher national unemployment, it’s essential that we continue doing whatever we can to entice visitors to come to Nevada.”