Home subscribe manage Las Vegas Review-Journal
  Jobs Cars Homes Shopping Travel Weddings Golf Best of Las Vegas Photo   Search:

RECENT EDITIONS
Tue Wed Thu Fri Sat Sun Mon

News
Apr. 10, 2008
Copyright © Las Vegas Review-Journal

Gibbons, legislators OK more cuts

Budget director warns shortfall might mean more reductions

By SEAN WHALEY and ED VOGEL
REVIEW-JOURNAL CAPITAL BUREAU

Gov. Jim Gibbons, second from left, announces a plan for more cuts in state spending Wednesday at the Capitol in Carson City. The meeting also included, from left, Budget Director Andrew Clinger, Senate Majority Leader Bill Raggio, Assembly Speaker Barbara Buckley and Assemblyman Morse Arberry.
Photo by The Associated Press

CARSON CITY -- The good news is that Gov. Jim Gibbons and legislative leaders agreed Wednesday on more cuts needed to balance a two-year state budget with a projected shortfall of $914 million.

The bad news is the shortfall might become even greater, making additional cuts necessary.

Newsvine Digg Fark Technorati reddit StumbleUpon del.icio.us Slashdot Propeller Mixx Furl Twitter MySpace Facebook Google Bookmarks Yahoo! Bookmarks Windows Live Favorites Ask MyStuff myAOL Favorites

Most Popular Stories
  • Alleging fraud, authorities raid voter group
  • NORM: Simpson planned acquittal party
  • Nevada's economy dead last
  • NORM: Hard-core fans ask: Has Jacko moved?
  • NORM: Bobbitt trains for boxing bout in LV
  • NORM: Letterman gives an 'A' to O.J. jury
  • Judge: Attacker 'gleeful'
  • PALACE STATION ROBBERY: Audiotapes convicted O.J.
  • NORM: 13th Agassi slam another big hit
  • Circle of friends surrounds lost pal



    • An agreement reached late in the day excludes further cuts to public education and state operating budgets. No layoffs are expected, and employees still will receive a 4 percent pay increase in July.

    "We have reached a bipartisan, bicameral and administrative resolution on this whole process," Gibbons said in announcing the budget agreement.

    The state is getting hit with greater demands for assistance, including Medicaid, a health care program for the poor, while at the same time dealing with tax revenues that are far below projections.

    The projected $914 million shortfall amounts to 13 percent of the nearly $7 billion state budget approved last year for the current two-year budget cycle, which ends June 30, 2009.

    In a short meeting in the governor's office in the Capitol, Gibbons and lawmakers agreed on the last $55 million in cuts needed to cover the projected shortfall. They include:

    •Saving $17.5 million by not continuing to pre-fund the state health insurance program for retirees. Gibbons succeeded last year in getting funding to start to cover the unfunded liability. About $33 million has been set aside.

    •Eliminating $2.1 million for a juvenile detention facility in White Pine County.

    •Eliminating $3.9 million in funding to cover greater than expected utility expenses for state agencies and the university system.

    •Cutting $286,500 for a bridge over the Clover Creek Wash at Caliente.

    Some programs were spared the budget ax, including $1 million in homeless funding to local governments, including $600,000 to Clark County.

    Assembly Speaker Barbara Buckley, D-Las Vegas, said, "It was very important to the Assembly not to further harm education or the health care division, which already have taken harsh cuts."

    Senate Majority Leader Bill Raggio, R-Reno, said, "We really have taken some very heavy hits," adding that more cuts might be necessary in coming months if the economy does not start to recover.

    Although pleased with their efforts, Budget Director Andrew Clinger warned that further cuts could be possible.

    In a report to lawmakers meeting earlier in the day as the Interim Finance Committee, Clinger said few options are left if more cuts are needed.

    Officials should know the state's fiscal status better by the end of May, he said.

    "This problem could be worse -- to the tune of $20 million to $30 million worse," he said.

    Meanwhile, unresolved issues remain concerning the budget savings projected by the Department of Corrections.

    Buckley said the Interim Finance Committee still must give final agreement on plans to close the Southern Nevada Correctional Center in July and transfer the 500 inmates and prison staff to other prisons.

    In January, Gibbons cut the state budget by $565 million, but a slumping economy required an additional $349 million in savings and cuts.

    To balance what was originally a two-year, $6.8 billion budget, lawmakers agreed to drain the state's $267 million rainy day fund and cut more than $190 million from construction projects, primarily for the Nevada System of Higher Education and the Department of Corrections.

    In addition, $60 million in new revenue, including additional interest income from the state's unclaimed property fund, was identified by Treasurer Kate Marshall.

    Contact Review-Journal Capital Bureau chief Ed Vogel at evogel@reviewjournal.com or 775- 687-3901. Contact Review-Journal Capital Bureau reporter Sean Whaley at swhaley@reviewjournal.com or 775- 687-3900.



    Leave Your Comment 14 Reader Comments
    Terms & Conditions
    The following comments are provided by readers and are the sole responsiblity of the authors. The reviewjournal.com does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please notify the web editor.

    Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 48 hours. Please do not submit a comment more than once.
    Current Word Count:

    sam wrote on April 11, 2008 08:00 AM: Here's a suggestion to consider: How about a voluntary furlough for state employees? Ask if anyone wants to take 2 weeks off without pay. Would that save enough money to make it worthwhile?


    OK wrote on April 10, 2008 06:41 PM: It's a good think CCSD has cut their budget by only having one SAP consultant left on board. Not!!! There are still at least 10 on board at 100 - 300 dollars an hour and they're not going anywhere anytime soon. This was brought up to a board member who promptly put her head back into the sand. No wonder the district continues to circle the drain on a daily basis.


    william neehans wrote on April 10, 2008 02:43 PM: why not just close all of the schools; lay off all of the state employees;don't need fire and police bcause we can take care of those individually--then we'd have BILLIONS MORE for prisons which we would need for the kids on the streets breaking into to homes and robbing us...instead of ESCAPE FROM LA,we could do a new film ESCAPE FROM VEGAS! That's right, build more prisons for the uneducated Vegas masses!


    Moth wrote on April 10, 2008 12:37 PM: We could bill Mexico. Better yet,
    have the Coast Guard takeover the Mexican coastline. That way all of our citizens that are living down there on pesoes can help pay for the illegals with the new property tax we collect!


    Herb wrote on April 10, 2008 12:28 PM: Nevada is the most dangerous state in the country. Prisons should not be cut. The new juvunile prison should be built.

    It's tragic that the state has decided expanding the welfare state is a greater priority than keeping the citizens safe from dangerous criminals.

    If there is any karma, those of you who are pleased that the state cut prisons instead of programs "for the children" will become a victim of a brutal street crime. Afterall, it is your warped sense of priorties that contributes to making this place as dangerous and crime infested as it is.


    Judy wrote on April 10, 2008 10:45 AM: You want the illegals out of Nevada, send INS into the casinos!
    Oh my goodness, do we dare??
    Clearly now is not the time to check legal status for the cheap labor in the casino (gambling) industry when they are being asked to contribute their far share of tax dollars?
    When will it ever end?


    Don wrote on April 10, 2008 10:22 AM: Come on, let's all say the unsayable, yet we are all thinking it: We have too many public employees, pay them way more than the private sector would, and have far better benefits than the average worker has. All this and we are thanked by lower productivity. I can fix the deficit problem and you can too.


    CAS127 wrote on April 10, 2008 09:50 AM: "employees still will receive a 4 percent pay increase in July"

    Can't mess with the bought votes, otherwise our entire "democracy" might collapse and be shown for the fraud that it is


    Helen Weils wrote on April 10, 2008 09:01 AM: Hey, Dan, all I've heard is 5,000 illegals have left. If 80,000 have left, show me the proof!


    nvnospin wrote on April 10, 2008 08:54 AM: Dan, the illegal’s are leaving Arizona and soon to be leaving Utah, because the free ride is over for corrupt employers. Some are going back to their homeland, but I suspect far more are just moving into neighboring states that don't enforce the law.

    Nevada doesn't have similar legislation and we can expect to have a few more illegal’s wonder our way in hopes of getting a job.

    Meanwhile we'll have to pay for their medical care, schooling and welfare. Of course the employer will get cheap labor and still charge the highest price possible so he or she can line their pockets are our expense.


    Read All Comments