Las Vegas official says city facing financial crisis

Las Vegas officials don’t yet know how badly the novel coronavirus will hurt the city’s budget, but business closures may trigger financial turmoil that rivals the Great Recession.

But unlike the economic downturn more than a decade ago, this crisis came on suddenly, with an assortment of sales tax-paying establishments shuttering practically overnight.

Health and safety measures enacted across the U.S. are likely to hit all local governments in the wallet but it is expected to strike a particularly hard blow on the city, which collects more than half of its income from consolidated tax revenue — principally sales tax.

“We’re the most undiversified city probably in America, and tied almost exclusively to tourism and entertainment, and there’s a consequence for that,” City Manager Scott Adams said.

Read more: https://www.reviewjournal.com/news/politics-and-government/las-vegas/las-vegas-official-says-city-facing-financial-crisis-1992251/