Governor Joe Lombardo’s Budget Challenges: A Closer Look at Fiscal Missteps
The conclusion of the 2025 legislative session brings attention to a significant oversight by Governor Joe Lombardo: his failure to propose a balanced state budget, a key constitutional duty. This lapse has sparked criticism and concern regarding the state’s fiscal management and future economic stability.
In January, Governor Lombardo put forth a budget proposal that was not balanced, projecting a $335 million deficit. This came shortly after he emphasized fiscal responsibility in his State of the State address, raising questions about the consistency of his fiscal policies.
Subsequently, Lombardo dismissed his budget director, coinciding with the malfunction of a $160 million financial system. This system, which Lombardo was “proud to announce” as operational from January 2, failed to process essential state expenses, including child support and health savings account payments, exacerbating financial management issues.
The state’s Department of Corrections further complicated matters by revealing a budget shortfall exceeding $50 million. Appointed by Lombardo, the department’s director indicated that the governor was aware of this deficit since early 2023 but did not address it in his budget proposal to the Legislature.
Additionally, the Economic Forum’s forecast marked the first anticipated decline in state revenue since the Great Recession, a situation partly attributed to tariff policies introduced by the Trump administration. Despite this, Lombardo had remarked that Nevadans needed to “feel a little pain” from these tariffs, highlighting a disconnect between fiscal policy and economic realities.
Lombardo’s track record on fiscal management has been further scrutinized due to his 2023 decision to veto housing cost reduction legislation while simultaneously requesting $25 million for office furnishings, decisions that have drawn criticism for perceived fiscal irresponsibility.
Nevada State Democratic Party Executive Director Hilary Barrett:
“Joe Lombardo’s incompetent handling of our state’s budget and finance systems has been atrocious. It is clear that the responsibility of leadership is too big for him. In the last five months, Lombardo has proposed a budget with an unconstitutional, nine-figure deficit, fired his budget director, rolled out a failing and costly new financial system that couldn’t pay out critical state expenses, and his Department of Corrections announced another multi-million dollar budget deficit. At a time when unemployment, food insecurity, and housing costs are on the rise and the Trump administration is cutting critical funding and instituting cost-raising tariffs, Lombardo failed to put forth a balanced budget that prioritizes working Nevadans.”
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