The 'AA' rating on Nevada's bonds reflects: A growing, although heavily tourist reliant, economic base; Strong financial management with low but adequate reserves; and Moderate but growing debt coupled with strong pay-as-you-go financing efforts. The bonds are secured by the state's full faith and credit and are payable from general ad valorem property taxes levied against all taxable property within the state's statutory overlapping levy limit of $3.64 per $100 of assessed value (AV). Nevada--similar to other states--faced a relatively significant projected 2004-2005 biennial budget gap, which totaled approximately $811 million at the outset of the budget process. In January, the governor proposed a budget that closed the budget gap with nearly $1 billion in tax increases and also sought...
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