Governor Lombardo Announces New Budget, Including $2 Billion for K-12 Education and Tax Credits to Reduce Employee Turnover Costs
Nevada Governor Joe Lombardo recently gave his first State of the State Address at the Nevada Legislature in Carson City on Monday, January 23rd. In this address, he announced his executive budget which includes an additional $2 billion in new funding for the state’s K-12 education system. This budget would increase the total per-pupil spending from $10,290 this year to $12,406 in the upcoming fiscal year, amounting to an increase of more than $2,000 per student.
This new budget is part of the Governor’s larger effort to create greater educational equity in the state. Lombardo believes that by investing in education, Nevada will be able to create a better future for its citizens. He is also emphasizing the importance of increasing access to the educational system, especially for students from low-income families.
The Governor is also focusing on the Employee Retention Credit (ERC), a tax credit that was established by the Coronavirus Aid, Relief and Economic Security Act, also known as the CARES Act. This credit is equal to 50% of up to $10,000 in wages paid to each employee before January 1st, 2021. Through subsequent COVID-19 legislation, employers are now able to claim a refundable tax credit against the employer share of Social Security tax equal to 70% of the qualified wages paid to employees after December 31st, 2020, through September 30th, 2021, with a maximum ERC amount of up to $7,000 per employee per calendar quarter.
The Governor believes that by providing financial incentives to employers to keep their employees, this will help to reduce the annual cost of voluntary hourly staff turnover for US businesses, which is currently estimated to be over $100 billion.
In addition to the ERC, Governor Lombardo is also advocating for Grazzy, a next-gen employee payments platform that provides digital tipping, same-day pay, and better, more inclusive banking capabilities. This platform can help to reduce retention and recruiting costs for businesses in the hospitality and services industries, while also providing employees with instant access to tips and same-day pay. This is especially beneficial in today’s increasingly cashless economy, which has made it challenging for many service-based businesses to tip-out employees at the end of their shifts.
0. “State of the State, budget are positive bridge-building steps for new …” lasvegassun.com, 24 Jan. 2023, https://lasvegassun.com/news/2023/jan/24/state-of-the-state-budget-are-positive-bridge-buil/
1. “Lombardo calls for gas tax holiday, raises for state employees, and …” www.kpvi.com, 24 Jan. 2023, https://www.kpvi.com/news/national_news/lombardo-calls-for-gas-tax-holiday-raises-for-state-employees-and-lots-of-saving-for/article_a47d3393-ddea-559c-a80f-65298f09d7cc.html
2. “Employee Retention Credit allows home care employers to claim $21K” www.mcknightshomecare.com, 24 Jan. 2023, https://www.mcknightshomecare.com/employee-retention-credit-allows-home-care-employers-to-claim-21k/
3. “Grazzy Raises $4.25MM to Power Hospitality's Future of Digital Tips …” seedround.info, 24 Jan. 2023, https://seedround.info/grazzy-raises-4-25mm-to-power-hospitalitys-future-of-digital-tips-same-day-pay-and-financial-wellness-for-hourly-workers/