Nevada Stands to Lose $40M if Fed Cuts Linger - KTVN Channel 2 - Reno Tahoe News Weather, Video -

Nevada stands to lose $40 million in federal dollars if automatic budget cuts set to kick in at midnight Friday extend through September.

Gov. Brian Sandoval says his administration has been preparing for months in case Congress fails to reach an agreement to stave off $85 billion in broad-based federal spending reductions.

Sandoval late Thursday told reporters the state has $15 million in a rainy day fund that will help mitigate loss of federal money. Areas that could feel the most pain are education, some health and human services programs, and public safety.

But the overall economic punch to the state is hard to determine. Part of the so-called sequester cuts include mandatory furloughs for federal employees, including civilian personnel at the state's military bases. (AP)