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EDITORIAL: Some sage proposals

As worse economic news piles on top of the bad -- declining passenger traffic at McCarran International Airport, declining visitor counts, declining gaming and sales tax collections -- one group of Nevadans is doing a lot more than just squeal about state budget cuts leading to Armageddon.

The Spending and Government Efficiency Commission forwarded its first batch of money-saving suggestions to Gov. Jim Gibbons last week, the result of a months-long review of agency procedures and performance. The tentative recommendations, if adopted by the governor and the Legislature, could save the state hundreds of millions of dollars over the next several years.

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  • Considering Gov. Gibbons is preparing a two-year budget 14 percent below current spending levels, with further reductions possible, every savings opportunity counts.

    Among the suggestions: closing a Washington, D.C., lobbying office; creating a new Department of Revenue to oversee all collection responsibilities now handled by the Taxation Department, the Department of Motor Vehicles and other agencies; and, of greatest promise, gutting the Public Works Board, which adds tens of millions of dollars in costs to every new public building with redundant reviews and meddlesome oversight.

    Other ideas include privatizing the DMV's auto insurance verification program, having some state workers rent cars from private companies to reduce the state's motor pool, and -- gasp -- starting a pilot project for performance-based funding for some agencies.

    These suggestions are a good start. But the SAGE Commission's work won't end here. Its members will continue to mine Nevada's bureaucracies for inefficiencies and savings opportunities.

    In another three or four months, the panel will present its next round of recommendations in time for the start of the 2009 Legislature.

    When that report comes out, the state's biggest cost-cutting opportunity of all should be atop the list: reforming the lavish retirement benefits promised to all state employees.

    Nevada already has about $10 billion in unfunded pension and retirement health care liabilities, and only two ways to pay for them in the years ahead: budget cuts that will make this year's reductions seem like a razor burn, and tax increases that will dwarf the record hikes of 2003. Let's see lawmakers take either of those options to the voting public.

    The SAGE Commission must recommend putting future public employees' benefits on par with those offered in the private sector: a defined-contribution retirement plan, similar to a 401(k), that requires state workers to set aside a portion of their own income to receive a modest, taxpayer-funded match; and health insurance that requires workers to pay a reasonable share of their own premiums, both during employment and in retirement.



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    Heather Chapman wrote on August 25, 2008 01:24 PM: It's really easy to make imaginary swooping cuts in other people's retirements. How childish. What you neglect to understand is that the state has an extremely difficult time keeping quality employees as it is because they cannot match the salaries available in the private sector. The only reason capable and educated employees remain in with the state is because they are compensated for the low wages with retirement and health benefits. You reduce those and there will be no incentive for any one of any worth to stay. You'll have a state being run by the least employable citizens of the state....


    Tim wrote on August 24, 2008 02:10 PM: dearest patty,in a couple of yrs,gov.will still have grown,gov.leeches will still be getting raises,they will still be crying they don't have enough taxes,wasteful spending will still be going on and we will be a couple of yrs.closer to bankruptcy because of the gov.pension and benefit programs.but as long as those in gov.are happy that's all that matters.us taxpayers are just their cash cow anyway.see ya in the poorhouse,unless you work for the gov.


    Bob A wrote on August 24, 2008 11:12 AM: Just the Facts!

    Fiscal year 06-07 general fund was $3,024,395,084.

    Since then the population has increased 7.2% and inflation has increased 16.464%.

    The current appropriation level is $3,100,000,000. This is an increase of 2.4% over FY 07-07, even though population plus inflation (and thus, if enacted, the TASC law would have required RAISING revenues to meet the P+I targets), has increased 23.664%.

    The Nevada Budget Divsion worksheet requires limiting the budget, per Governor Gibbons direction, to $3,204,000,000 in FY 2010 AND 2011.

    The Governor is recommending that spending by the State will be 5.6% more in 2011 than in 2006 (3.3% more than today).

    As of today P+I= 23.66%. Over the next two years population could very well be another 7% and inflation easily another 10% (conservatively).

    By 2011 population + inflation over 2006 will have increased by 41% while the budget has only increased by 6%. Over current spending the budget will grow by 3.3% while P+I will increase by at least 17%.

    Yes, it is going to be a veerrryyyy bumpy ride!


    patty wrote on August 24, 2008 10:28 AM: Dear Tim,

    According to Nevada Policy Research Institute, in June 2008 per capita spending was just 2% above the per capita spending level of 1996.

    Inflationdata.com website shows inflation has increased 3.332% since the end of May 2008. Therefore, per capita spending in August 2008 is less than it was 12 years ago. In fact under Gibbons plan, with an 8% increase over the next 2 years and inflation running 12.34% YTD, Nevada will will cut it's spending 14%.

    Add it all up and this reduction in revenue coupled with inflation and population growth will result in a combined decrease in per capita spending of over 47% over the next 3 years.

    The future of Nevada is going to be very interesting!


    br wrote on August 24, 2008 10:21 AM: I'm an old retiree with plenty of time on my hands. I have a documented record of costs reduction in goverment operations spanning about 50 years. The
    The Spending and Government Efficiency Commission can have my services cheap(FREE). Just e-mail me at hdstmf@live.com. HURRY, my wife is going crazy with me under foot all day. She's been looking in the knife drawer a lot lately...


    Sammy R wrote on August 24, 2008 10:14 AM: mac;
    you are wrong.
    Do you even know how much even a biologist employed by Nevada earns?
    Go to the Nevada website, look up careers, and maybe you'll notice pages of unfiled jobs.
    Feel free to apply for one of those gravy train jobs!
    Remember, the demand for government employees to provide services and protect and care for Nevada's assets is directly proportional to taxpayer demand.


    br wrote on August 24, 2008 10:07 AM: I love the sound of squealing public employees and their unions in the mornings!


    Tim wrote on August 24, 2008 09:27 AM: the gov.is a growing cancer,the only way to stop it is massive treatment.they call a 14% reduction just that,a reduction.because the budget still grew after all the so-called slashing.the people who think we can only tax our way to prosperity are in denial and are in the majority in carson.thank goodness we have a gov.with some spine.


    Brian wrote on August 24, 2008 09:27 AM: How about if the RJ actually starts paying taxes?


    HELENWEILS wrote on August 24, 2008 09:24 AM: This editorial is right on point. However,
    as long as we have so many double dipping
    government employees in the Legislature
    (over a third take 2 Nevada paychecks)
    it will be nearly impossible to cut these bloodsuckers off. Just look at what happened in the special session. The Legislature gave them their up to 10%
    raises despite the economy. Buckley is
    planning to raise taxes on business in the next session. Businesses and JOBS will be leaving in droves. Wyoming
    is already courting Nevada businesses with Much lower fees (50%) and no risk
    of a business tax. http://wyomingcompany.com/
    Anyone who doesn't believe that a business tax will negatively effect new business growth is a stupid Democrat.
    Their symbol is an ASS for a reason!


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