Las Vegas Review-Journal - News

That process, however, might not be completed before May 1, the day the state Economic Forum estimates the amount of tax revenue available for state government to spend over the next two years.

Whenever this process is completed, she and other legislative leaders will explain to citizens what state services will be cut if spending must be reduced and other sources of funding cannot be found.

Tax increases could become an option, although Democrats at this time have not proposed any tax hikes.

"We are going to the people and ask them what services they need," Buckley said.

"The day of the State of the State address was not our day to present specific ideas. It was the governor's day."

The governor proposed a $6.17 billion two-year budget. To provide services at the levels contemplated in the 2007 budget, Gibbons said in his address that the state would have to spend $8 billion. He proposed bridging the funding gap in part by cutting the pay of state employees and teachers and requiring that they pay more of their medical insurance costs.

The Legislature opens its 120-day session on Feb. 2. But legislative leaders are not waiting until May to announce some of their proposals.

Buckley will introduce a bill soon after the Legislature convenes to require state government to set up a budget stabilization fund and bank some revenue to cover its needs during future economic downturns.

Senate Majority Leader Steven Horsford, D-Las Vegas, will propose legislation requiring the state to set spending priorities.

During legislative budget hearings, Buckley said legislators will review every tax abatement and exemption previously granted by the state and determine if they should be continued.

"Some have been very useful and benefited the state, but the state needs revenue to avoid draconian cuts to education," Buckley said.

Starting Thursday, the Senate Finance Committee and the Assembly Ways and Means Committee will conduct five day-long joint hearings on the governor's proposed $6.17 billion two-year budget, a budget that is about 9 percent less than the previous one the Legislature approved in June 2007.

Buckley said several citizens who offered budget suggestions during forums she has conducted since September have been invited to speak Jan. 29.

Horsford called the cuts proposed by Gibbons "unfathomable," and Buckley said: "Mark my words, there will be significant changes."

Democrats control the Assembly by a veto-proof 28-14 margin and the Senate by a 12-9 advantage. If two Republican senators side with the Democrats, they have the ability to push any agenda they want into law over Gibbons' objections.

Gibbons' communications director Daniel Burns said the governor was encouraged by the bipartisanship shown during the special session in December and wants to work with legislators to reach an agreement on the budget.

"The governor's plan keeps core services in place," Burns said. "He knows the state budget is on the table and the legislators and the people should have their say."

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.