Nevada’s Spending Crisis: A Warning for Lawmakers in 2025
For career politicians, every budget shortfall seems to be a justification for raising taxes. As Nevada’s 2025 legislative session begins, there are already murmurs about the need for more revenue. The end of the federal government’s COVID-era stimulus has left gaps in spending, and many in Carson City are looking for ways to fill the void. If history is any guide, that means tax hikes are on the table.
But here’s the reality: Nevada doesn’t have a revenue problem—it has a spending problem.
Nevada’s Budget Explosion
Over the past 12 years, state spending has skyrocketed. In 2013, Nevada’s two-year general fund budget was $6.7 billion. By 2023, that number had nearly doubled to $12.7 billion—a 90% increase in just over a decade. Meanwhile, total state spending—including federal funds and other allocations—has grown even more.
Some of this growth is due to population increases and inflation. Nevada’s population grew by 16% from 2013 to 2023, while inflation has risen about 35% over the same period. But those factors alone don’t explain a near doubling of the budget. The simple truth is that state lawmakers keep spending more, despite promising that tax hikes would fix everything.
The Tax Hike Shell Game
Time and again, Nevada politicians have justified massive tax increases by claiming they will improve critical services like education. Here’s a look at how those promises have played out:
- 2015: The state enacted the largest tax increase in Nevada history, including a new commerce tax. The goal? Improve education.
- 2016: Recreational marijuana was legalized, and tax revenue was promised to improve education.
- 2021: A mining tax hike was signed into law, sending hundreds of millions of dollars to improve education.
- 2023: The state allocated a record-breaking $2.6 billion in additional education funding. The purpose? You guessed it—improve education.
Despite these repeated tax increases and funding boosts, Nevada’s education system remains among the worst in the country. More money hasn’t solved the problem. It never does.
The Real Problem: Out-of-Control Spending
Rather than addressing structural inefficiencies, the state has poured more money into a failing system. Instead of demanding accountability and reform, lawmakers simply increase budgets. The result? A permanent cycle of higher taxes and more waste.
Education is just one example. Across state agencies, spending has ballooned without clear evidence of improved outcomes. The bigger government grows, the more it demands.
A Free-Market Approach to Fiscal Responsibility
Nevada must shift away from big-government tax-and-spend policies and embrace free-market solutions. Here’s what lawmakers should do in 2025:
- Cap State Spending Growth
- Tie spending increases to inflation and population growth instead of letting budgets spiral out of control.
- Zero-Based Budgeting
- Instead of automatically increasing budgets, require agencies to justify every dollar they spend. This forces efficiency and eliminates waste.
- End Corporate Welfare & Tax Incentives for Big Business
- Stop subsidizing massive corporations while over-taxing small businesses and individuals.
- Audit Government Programs for Performance
- Implement outcome-based funding models that tie public spending to measurable results, ensuring taxpayer dollars aren’t wasted.
- Resist All Calls for New Taxes
- Nevada has more than enough revenue. The solution isn’t higher taxes—it’s responsible fiscal management.
Conclusion: Time for Real Accountability
Nevada is at a crossroads. Lawmakers can continue down the road of endless spending and taxation, or they can take a stand for fiscal responsibility. The Department of Government Efficiency (DOGE NV) will continue to highlight government waste, push for accountability, and fight for a taxpayer-first approach to budgeting.
The time for excuses is over. Nevadans deserve better.
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