REVENUE PROJECTIONS: Budget shortfall rises day by day - News

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Jun. 18, 2008
Copyright © Las Vegas Review-Journal

REVENUE PROJECTIONS: Budget shortfall rises day by day

Governor to seek even bigger cuts

By ED VOGEL
REVIEW-JOURNAL CAPITAL BUREAU

CARSON CITY -- Gov. Jim Gibbons is expected to announce today that state spending must be cut by far more than the $60 million to $90 million he estimated on Friday, when he called for a special legislative session to address the budget shortfall.

State Budget Director Andrew Clinger will brief the media today on new projections for the shortfall state government will face between now and June 30, 2009.

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Members of Gibbons' administration wouldn't speculate on the size of the shortfall.

The governor and legislators already have cut spending by $914 million as tax revenues have fallen.

Gibbons announced last week that he would call the Legislature into a special session on Monday to find a way to continue cutting spending without laying off teachers, state employees and university faculty.

But some lawmakers predicted Tuesday that the special session, which Gibbons says will last no more than five days, will become chaotic and accomplish nothing unless the governor and legislators agree in advance on a plan for cuts.

"Where is his own plan?" asked Assembly Majority Leader John Oceguera, D-Las Vegas. "Every other governor had a plan and agreement with legislators before he called a special session."

Oceguera said Gibbons should have informed legislators earlier exactly how much would need to be cut and proposed how he would make the cuts.

Without specific proposals from Gibbons, Oceguera said, legislative analysts won't be able to plan for the special session.

Oceguera sent Gibbons a letter Tuesday in which he complained about the governor's inaction.

"Without a plan for a special session, it will be difficult, if not impossible, to discharge our duties expeditiously and economically," Oceguera stated in the letter.

Gibbons' chief legal counsel, Josh Hicks, said he met Tuesday with top legislative staff members and briefed them on Gibbons' "options" for handling the shortfall that will be outlined in the governor's special session proclamation.

Hicks said legislative staff did not indicate during the meeting that they would not have enough time to prepare for the special session.

Hicks wouldn't give details on Gibbons' options, saying only they include:

• Postponing a 4 percent pay raise for state government workers and educators;

• Cutting spending;

• Directing funds that state agencies did not spend in the current fiscal year toward the shortfall.

"We will prepare an agenda for the special session, but we do not want to limit them (legislators) in the options they consider," Hicks said.

Gibbons will not issue a proclamation officially convening a special session until Sunday, according to Hicks.

The governor also will make a televised speech on the need for the special session Sunday evening, according to Hicks.

Oceguera said he still believes the governor and legislative leaders can come up with spending reductions that won't require legislators to meet in a special session.

Democratic lawmakers are scheduled to huddle this evening in Las Vegas to come up with their own plan for spending reductions to introduce at the special session.

They want to avoid postponing the 4 percent pay increase for state employees, teachers and university faculty on July 1.

Some Republicans also are working on a plan to cut spending without touching the raise.

Senate Majority Leader Bill Raggio, R-Reno, however, is already drawing up a bill to postpone the pay increase one year.

The delay would save the state $130 million.

"That is not going to happen," said Assemblywoman Sheila Leslie, D-Reno.

Raggio and Assembly Minority Leader Heidi Gansert, R-Reno, "are the only legislators I know that are for it," Leslie said.

Hicks said he would not speculate on the size of the budget shortfall.

But Gibbons has scheduled a meeting of the state Economic Forum for Friday.

The group of five business leaders estimates the amount of revenue that will be available to state government.

Four of the five members of the forum are new and will be attending their first meeting on Friday.

Consequently, Oceguera said he wondered what insight they might offer.

As new members, they will not be sure of what they are doing, he said, and will simply rely on the projections given to them by Clinger and legislative fiscal analysts.

Review-Journal writer Sean Whaley contributed to this story. Contact Review-Journal Capital Bureau chief Ed Vogel at evogel@reviewjournal.com or 775- 687-3901.

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Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background. Karen wrote on June 19, 2008 01:46 PM: I think that maybe what needs to be looked at is the GSA Domestic Per Diem Rates for travel. This system, to me is where a LOT of State money is going. People are literally profiting from traveling for the State of Nevada. There is a meal and incidental expense rate table and if someone doesn't even eat breakfast they can still claim up to a whopping $12.00 for it and for dinner it could be $31! What are some State workers fine dining all of a sudden???? I think we should drop this system and go by RECEIPTS only! If you ate something, get a receipt and you will get reimbursed for what you DID spend your $ on, not what you didn't spend your $ on! Seriously! This system is a farce! I think the State could save tons of $ by being more common sense about where all the $ has really been going!!!!! Maybe then we could get our raise, huh? Joe wrote on June 19, 2008 02:03 AM: A 10% income tax is the dumbest idea I've ever heard. Because once you decide to do that it's gonna go up to 11%, then when the budget gets crazy again, it's gonna go to 12% and soon we'll be like every other state w/ income taxes.... Why don't we just raise the hotel tax and stick it to the tourists? Why don't we add a $0.25 fee per cab ride, show your NV license, and you don't have to pay. It's not like the tourists are gonna stop coming... Smooches wrote on June 18, 2008 09:42 PM: This Governor may also have to find funds to put aside for the lawsuits that are underway by inmates inside our states prisons. And that includes crime victims of abuse through the Nevada legal system. http://noelwaters.blogspot.com ] starting with some of the actions of the big man who wants to be elected judge in place of Maddox. Wynn Dealer wrote on June 18, 2008 07:04 PM: Agree on the 10% tax on wages. Since most of us in the gaming business make our money from tax free gifts, this option makes sense. The State employees could pay back 10% of their salary in tax to the State. Sounds like a cicular jerk, but makes ironic sense! STATE INCOME TAX wrote on June 18, 2008 06:56 PM: Time for a State Income Tax. Most Nevadans are undertaxed and don't appreciate the services they are getting. A flat 10% tax on all wages should increase their awareness of their public servants patricia martin wrote on June 18, 2008 06:10 PM: Denying middle and lower-middle class workers a four percent COLA when these employees are struggling to cope with skyrocketing food, gasoline and energy costs is abhorrent. It's time community leaders and legislators unite to develop a long-term steady funding mechanism for Nevada's K-16 education system. D-Tacos and D-Taxes wrote on June 18, 2008 05:25 PM: The article shows how Government cannot work together when necessary, with so much self-interest and bias. See the hostile, noncooperative (blocking) attitude of D-tacoOceguera. Hey, the comment below on "DinaTaxes" is too funny!!! She's be crying for years, but has no appreciation of the word "Budget". D- wrote on June 18, 2008 05:07 PM: quote from article Gibbons announced last week that he would call the Legislature into a special session on Monday to find a way to continue cutting spending without laying off teachers, state employees and university faculty. end quote Lets see - our Teachers have propelled us to the BOTTOM of the education ladder in the entire contry State Wokers - overpaid and under qualified and talk to people as if they are god.. University staff- we graduate very few in programs that guarantee they will never be gaingully employed AREN'T THESE THE PROGRAMS WE NEED TO GET RID OF??? Who creates JOY, part 2 wrote on June 18, 2008 04:23 PM: Dave404, you just lost yourself in your delusion. You are another one who things Government is indispensible and that we'd all die without it. You do not even appreciate the word "FAT" and "downsize", do you? Government should not be involved so much in "regulating" functions. Face it, "regulation" is in many or most cases just another way for "revenue collection", not real regulation. Just another way to fund a stupid job. They collect money for something that is truly not "regulated"! Take for example, the recent syringe/medical fiasco. That is a great, recent example of Government collecting licensing fees and other fees, yet doing no sort of regualtion. Got it? Also, you refer to items that involve FEDERAL FUNDING, so get your head clear. I am referring to state and local functions. You also fail to recognize that Builders are forced to pay for roads and parks. Solutions wrote on June 18, 2008 04:12 PM: Charge 100,000 pesos to every Illegal Alien! That should help offset the deficit. FORCE everyone on Welfare who is not working to Help the Businesses in the recipients' neighborhood for FREE(sweep parking lots, wash windows, wash cars, mop floors etc). The Business will sign a LOG sheet that the recipient needs for welfare payment. This will help buisnesses that employ people and give a sense of contribution to recipients. Allow Police/Fire to BILL us for their time when they respond to a call. Our Tax dollars then will just go to fund mysterious salaries and sweet pensions of those bumping into each other as they clock out at 4:30 p.m every day. Read All Comments