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

RECENT EDITIONS
Sun Mon Tue Wed Thu Fri Sat

Opinion


EDITORIAL: Bad budget news

After terrible taxable sales tumble, how long before cuts?

Remember the collective relief of the political and public-sector classes when the Legislature wrapped up its $6.9 billion, two-year spending plan just over two months ago? That relative comfort is history, along with any prospects of the state budget remaining balanced, for either the nearly concluded biennium or the one to come.

The Nevada Department of Taxation reported Wednesday that May's taxable sales fell 21.1 percent when compared with the same month a year ago. Consumers spent $4 billion in the run up to summer last year. This year, with unemployment cracking 12 percent, they spent only $3.2 billion. The year-over-year drop was the state's worst in almost 30 years.


Most Popular Stories
  • VIN SUPRYNOWICZ: What stops mass murderers? A gun
  • SHERMAN FREDERICK: Call evil by its rightful name
  • EDITORIAL: Terrorism on trial
  • EDITORIAL: A pre-9/11 approach to terror
  • LETTERS: Public-sector workers are still doing well
  • LETTERS: Harry Reid: Working hard for all Americans
  • EDITORIAL: They took our jobs!
  • EDITORIAL: 'That's the ticket!'
  • Our politicians are the greatest, all right
  • EDITORIAL: I believe in free speech, but ...




  • With one month remaining in the current fiscal year, state sales and use tax collections are more than $8 million below projections. Sales have declined even faster than the steep declines predicted by the Economic Forum three months ago. Cigarette and liquor tax collections are well below forecasts as well. Combine all that news with 17 straight monthly declines in the amount of money casinos have collected from gamblers, and Nevada lawmakers are again hearing the two words that have consumed their attention for nearly two years: revenue shortfalls.

    "They did expect things to be pretty bad for the remainder of fiscal 2009, but things might still be a little worse on average than they expected," said Russell Guindon, a Legislative Counsel Bureau fiscal analyst.

    No doubt the state will come up with some accounting tricks to balance the current spending plan, or perhaps borrow against its constitutionally dubious line of credit.

    It will be another two months before the state reports economic activity from July, the first month of the new budget cycle and the higher taxes that come with it. No one expects the fiscal news to get better. In fact, UNLV economist Keith Schwer says Nevada's recovery will lag behind any national improvements in consumer spending because our unemployment and housing woes are so much worse than the country's as a whole.

    That means the $6.9 billion figure lawmakers set as the least amount of money they could possibly spend has almost no chance of being realized. That means lawmakers will need to cut many of the programs and one-shot expenses they insisted couldn't be cut.

    Anyone want to set the over/under on the number of months before Gov. Jim Gibbons has to call a special session of the Legislature? Six? Three?

    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

    Leave Your Comment 32 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:

    Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.

    Shrek wrote on August 01, 2009 11:18 PM:
    Think about this, a person is elected to the U.S. Congress and serves only one term. The pension plan pays that person, full salary for the rest of his/her Life. WOW !
    Propose this in 2009:

    START A BILL TO PLACE ALL POLITICIANS ON SOCIAL SECURITY

    Perhaps we are asking the wrong questions during election years.

    Our Senators and Congresswomen do not pay into Social Security and, of course, they do not collect from it.

    You see, Social Security benefits were not suitable for persons of their rare elevation in society. They felt they should have a special plan for themselves. So, many years ago they voted in their own benefit plan.

    In more recent years, no congressperson has felt the need to change it. After all, it is a great plan.

    For all practical purposes their plan works like this:

    When they retire, they continue to draw the same pay until they die.
    Except it may increase from time to time for cost of living adjustments...

    For example, Senator Byrd and Congressman White and their wives may expect to draw $7, 800,000.00 (that's Seven Million, Eight-Hundred Thousand Dollars), with their wives drawing $275, 000..00 during the last years of their lives.
    This is calculated on an average life span for each of those two Dignitaries.

    Younger Dignitaries who retire at an early age, will receive much more during the rest of their lives.

    Their cost for this excellent plan is $0.00. NADA!!! ZILCH!!!

    Now do you wanna talk about their 'gold plated' health care paid for in full by us taxpayers?

    Let's demand that Congress suspend all the perks they are doling out to themselves until we taxpayers get the same benefits they vote for themselves. ARE YOU WITH ME?

    Contact your elected officials here: (enter your zip code on the left side of the page)
    http://www.congress.org/congressorg/home/


    patrick wrote on August 01, 2009 08:49 PM: Judy:

    Now that sounds like a plan only a republican who is soon to be evolved out of existence could love.

    In fact, sounds like the "plan" that the minion of the devil formerly in the White House forwarded to the Congress when he wanted to bail out his buddies in the banks with.

    No thanks, but I suggest you offer than to say, Hank Paulson, or Halliburton they might "give 'er a go".

    Soon to be evolved out of existence and STILL don't believe in evolution.

    LOL


    Patrick3 wrote on August 01, 2009 08:43 PM: patrick,you and fred are the only ones I have seen who can put their 2 cents worth in amd get change back


    Judy wrote on August 01, 2009 08:38 PM: patrick,I have a deal for you. You and your cronies give me billions of dollars,and I will show you a plan where I will take care of you and all your friends.The only catch is you can't read it and neither will I,but trust me it is for your own benefit. DUHHHHHHHH


    patrick wrote on August 01, 2009 08:13 PM: Republicans being evolved out of existence; "enjoy" them while they last cause your next chance to see them might be in a zoo.


    SamT wrote on August 01, 2009 07:45 PM: The Great (post-racial) Hope has gone off the reservation, and, while sliding down the slippery slope of oblivion, deranges his dedicated, though mindless, toadies. Plain for all to see: seeking comfort in delusion.

    Such haplessness! Unfortunately, for them, there's much, much more to follow.

    HAHAHAHA!


    Carol wrote on August 01, 2009 03:20 PM: There were no cuts in the last go around. Not any forthcoming. Just a reduction in the rate of spending increases. Plus record tax increases.

    As unemployment hits new highs every month, note that not one public employee has ended up unemployed in Nevada or anywhere else in the country. The lowest unemployment (near 0) is in the suburbs of Washington, DC.
    Clark County employees are enjoying record pay raises and incomes that are 50+% above comparable private sector jobs.

    All the wasteful spending from State, County, CCSD, City have come off the same "projections" of record growth & record tax revenue. Nevada has money to burn they said. And, they burned it. Opposition to runaway spending fell on deaf ears. For example, CCSD borrowed $2 billion only a year ago based on a projection that was total fraud. But, the lackey, moronic school board and most of you bought it so there's no going back. Schools will be in the toilet for the next 20 years.

    From a historical perspective, things aren't that bad. Go back 10 years and project at a normal growth rate of 2% and we're above that now. With proper planning, we'd be doing fine right now.

    You hear the message to get rid of all of them over & over. That message keeps falling on deaf ears every election. So, quit griping already.


    adios dollar wrote on August 01, 2009 01:20 PM: The activity on the stock market this past week was just the maggots feeding off the corpse of a dead system.

    I hope everyone's prepared for this year's October surprise.


    tommy wrote on August 01, 2009 01:15 PM: Another story from Bloomberg:
    Five More U.S. Banks Are Shut
    Down, Bringing 2009 Tally to 69

    http://www.bloomberg.com/apps/news?pid=20601087&sid=a3KVKk_i5_cM

    Expect more to be shut down next Friday, and the Friday after that.


    Dianna wrote on August 01, 2009 12:29 PM: If the DEA is reading these postings they have got to wonder what patrick uses. Whether it is homegrown/made, imported or what. I'm sure they definitely want to look into his medicine cabinet. Who knows maybe they are watching him now. Remember patrick this is the party that gave us Janet Reno, Waco and Ruby Ridge.


    Read All Comments