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Published Thursday, Dec. 2, 2010 | 3 p.m.
Updated Thursday, Dec. 2, 2010 | 3:53 p.m.
Nevada general fund revenue and appropriations.
Gov.-elect Brian Sandoval is building a budget that assumes a 10 percent cut to state agencies, $175 million reduced from higher education, the extension of furloughs for state workers and rosier-than-expected projections for state spending on unemployment insurance and Medicaid.
That still leaves the state about $1.2 billion short of having a balanced budget, after Wednesday’s projections of the Economic Forum. Sandoval’s transition team, working with state budget director Andrew Clinger, has asked agencies to come up with additional cuts as high as a total of 30 percent.
Earlier this year, the budget office under Gov. Jim Gibbons ordered departments to prepare budget scenarios with a 10 percent cut. Those plans, which would save the state about $820 million over two years, were released in October.
To save an additional $1.2 billion, there would need to be another 15 percent of state spending, though budget director Andrew Clinger said another round of cuts would not be across the board. (Senior state personnel, speaking on the condition of anonymity because they’ve been asked to keep the numbers confidential, have said they’ve been instructed to prepare for additional cuts by the budget office, which is now being run by the Sandoval transition team.)
Heidi Gansert, Sandoval’s future chief of staff, said some of the 10 percent cuts that have been proposed will not happen, including some proposed cuts that have garnered protests from social service advocates.
In particular, she said that a proposed elimination of personal care attendants for the elderly and disabled would be restored.
The Las Vegas Sun highlighted those cuts in October.
Eliminating that program would have saved the state $55 million. And every cut deemed too severe will have to be replaced by a cut somewhere else.
“We’re revising the list to make sure that we’re protecting the most vulnerable people,” Gansert said, declining to be specific.
Sandoval has until Jan. 24 to prepare his budget and state of the state address. He has consistently promised not to raise taxes, despite skepticism from legislative leaders in both parties that he could reasonably balance the budget without additional revenue.
Earlier budget office estimates had put the deficit number closer to $3 billion, which conservatives attacked as being inflated to scare the public into agreeing to new taxes.
Sen. Sheila Leslie, D-Reno, said Sandoval’s administration could not just make assumptions about certain things being passed or cut. She criticized the 10 percent number.
“This is clearly the spin coming from the governor’s office to minimize the budget hole, so he can maintain his no new tax pledge and convince the public that the problem isn’t as big,” Leslie said.
Gansert said simply the $8.3 billion number is wrong.
“The numbers are the numbers,” she said.
Leslie acknowledged that employee furloughs or something similar, saving the state $480 million over two years, would likely be extended though.
Higher education officials, who have so far refused to detail how they would cut their budgets, were not immediately available for comment on Thursday.
Sandoval senior adviser Dale Erquiaga said the administration was looking at all options, but was favoring structural changes.
“We have to put behind us the one-time solutions,” he said.
Sandoval’s senior staff have spent hours meeting with department heads over the past few weeks to find places to cut.
Yeah, bang-up job planning this one, Gibbons Jr.
Start with a 15% across the board cut. So, then another 15-20% across the board cut. [or if you "spare" educcation, another 30% across the board cut.
Right! Yeah Sandoval, the 55 Million in home health aid cuts really goes far [LOL]. Now only 1.450 BILLION to go.
How about 4 day a week furloughs for state workers, or a 20 week school year. Or maybe only 2 days per week for year 1-12 pupils. Or, maybe you just pack it in and we save your salary too.
Chunky says:
We can't continue spending more than the state collects in revenue.
The cuts suck but few people seemed to complain or hear the complaints when we were living high on the hog!
Are there people here, individuals who are willing to pay more taxes? Businesses? Are more taxes the answer?
It's like giving medicine to a sick child who kicks and screams but we have to get to a balanced budget because there are no other options. However we got here, someone is now tasked with getting us out of this mess.
Don't expect any of it to be warm and fuzzy.
That's what Chunky thinks!
if we cut education any more we will be even lower than 50th in the nation we are now!!
Governor elect Brian Sandoval will not take the oath of office for another month and the Democrats are already trying to demonize him.
Please wait until the guy is on the payroll before you start your name calling...
Tax the brothel industry-their head lobbyist asked for his industry to be taxed back in February and the "morality" chickens in the legislature refused to do so. As it stands, at least $250 million per year could be brought in if the brothels were allowed in Clark and Washoe, WHERE MOST OF THE PROSTITUTION TAKES PLACE ANYWAY.
Expand the Las Vegas Constables office program that forces people who have not registered their cars to do so state wide.
Before you rape education even more, before you cut the pay and benefits of state workers even more (they already make 2/3 of a city or county workers wage and the benefits are gone, yet you want to hit them more?), why not make sure people who OWE the state money are paying their fair share? From people who have not registered their cars to Wal-Mart who does not pay their fair share in taxes already.
STOP PUNISHING NEVADA FAMILIES! STOP FORCING THEM AND THEIR CHILDREN TO SUFFER THESE CUTS!
The tax structure out here is laughable. The taxes are soooo low and because of the reliance on gaming revenues and sales tax they are incredibly unpredictable. The tax environment is definitely business friendly, but really how well has it worked so far in bringing a diversity of business to the state? I'm sorry. but people out here need to wake up and smell a state income tax. A 3% to 5% state income tax would be a dependable, reliable source of revenue for the state. I'm sorry, but I would rather pay a small increase in taxes than lose my job all together because of the severity of the budget cuts required to close the massive budget deficit. Our schools are already failing, how can we afford to cut more money from them and expect them to improve? Money in education does work if utilized properly. It can reduce class sizes, provide updated facilities, and more support. The problem is that we no longer make parents accountable for their kid's actions. Teachers are required to mother them, counsel them, and teach them! Personal responsibility has to come back into vogue in this country and civic responsibility(in the form of taxes) has to quit being demonized and we have to realized our government has to be paid for. Is there waste? Yes! Can we make cuts? Yes! Is that the entire answer to our revenue problems? NO! I am not rich, but to help this state and to help keep people employed I am willing to sacrifice for the greater good by paying a little more in taxes.
And now for ChunkyFailAlways,
>>The cuts suck but few people seemed to complain or hear the complaints when we were living high on the hog!<<
Yes we did. You weren't paying attention. When Bob Beers and Kenny Guinn went on their 300 million spending spree a few years back, throwing money away, many Nevadans as well as the Democrats in the state legislature insisted that those funds be put in the rainy day fund. Republicans like you insisted that it be wasted through the DMV to whoever owned a car. Lousy economic planning, but thats the Republican Party for you.
>>Are there people here, individuals who are willing to pay more taxes? Businesses? Are more taxes the answer?<<
Yes. We need more revenue. We spend so little on education that teachers have to spend money from their lower-than-national-average-salaries to buy paper and pencils for their students that our educational system, which according to Republicans is awash with riches, can't afford. See above for who to tax.
>>It's like giving medicine to a sick child who kicks and screams but we have to get to a balanced budget because there are no other options. However we got here, someone is now tasked with getting us out of this mess.<<
Great Republican logic. It never solves the problem, just waits until it gets to a crisis and employs the solution that hits the working people the most and doesn't DARE touch the rich.
>>Don't expect any of it to be warm and fuzzy.<<
And don't expect CFR to ever make any sense.
Mr. Hilton,
How can you say Walmart does not pay their fair share? They pay the same as any other business in Nevada. They collect and pay sales tax, they pay license fee's to the city, county and state. They are no different then any other business in Nevada.
Nevada does not have a business tax so I guess you can not really single them out as not paying their fair share.
There are going to be cuts to services and people are not going to be happy about it. There is not enough money to go around.
City, county and state need to get payroll in line with private sector jobs. It has been proven many times they are over paying for public workers. Thank the Unions for that one, they have some good strong people running them. Taxpayers can no longer afford to reward public workers with pay and benefits that the privet sector can not even offer. Time for pay cuts, not furloughs. If they don't like the cuts, they can find a private sector job.
When we had extra to put in the rainy day fund some Governor felt the need to rebate it to people depending on how many cars you had registered in Nevada. Everyone thought it was great to get $100 or less back from the state instead of building up the fund that now has NO MONEY IN IT. How far did that little rebate get you?
People are going to have to stop expecting government to keep doing for them, there is no more money. Government needs to keep the basics covered and cut the fat. Government was never meant to be the catch all for everyones problems.
The brothel industry offered to be taxed but don't look at that for bailing us out. One, it has not happened, two, it is not going to be the millions of dollars that some people keep throwing out there as a number. It will help, but in the over all picture it will be pennies.
Can Mr. Sandoval step up and stand strong and make cuts that other elected officials and the public are not going to like? Will he do what it takes to keep his office next election or will he do what really needs to be done in this state?
Only time will tell.
Mr. Hill, your ranting posts forget one thing. Mr. Sandoval ran on a no new tax pledge, and he won. Period. Your ardent "let's increase taxes" rave ignores the fact that, apparently, more people don't want new taxes than those who do-right?
Sure, our kids are stupid, the DMV is a half day joke, and it takes forever to get paperwork, like homestead exemptions, processed in this City. But this is a Democracy, and the people are apparently willing to put up with such poor service. People like you want the legislature to control everything, not the people. Happens all the time back East. Fine, move back to Massachusetts or New Jersey, pay through the nose for schools when you're retired. Please leave now.
BTW-the state income tax will never happen here-it's in the constitution that it is illegal. Think the people, Mister Smartypants, will vote for one? I hope you know the answer.
>>How can you say Walmart does not pay their fair share? They pay the same as any other business in Nevada. They collect and pay sales tax, they pay license fee's to the city, county and state. They are no different then any other business in Nevada.
<<
Wrong. Big box stores from out of state like Wal Mart are granted tax breaks that small businesses that are STARTED BY, MANAGED, and OWNED by NEVADANS don't get. The big out-of-state corporations need to pay their fair share just like small businesses. Stop the corporate welfare.
"City, county and state need to get payroll in line with private sector jobs. It has been proven many times they are over paying for public workers. Thank the Unions for that one, they have some good strong people running them. Taxpayers can no longer afford to reward public workers with pay and benefits that the privet sector can not even offer. Time for pay cuts, not furloughs. If they don't like the cuts, they can find a private sector job."
Wrong once more. State employees are making less than the private sector even after you factor in the benefits because, unlike the private sector, state employees CANNOT unionize as you mentioned! Vegaslee, you have NO IDEA what you are talking about.
"When we had extra to put in the rainy day fund some Governor felt the need to rebate it to people depending on how many cars you had registered in Nevada. Everyone thought it was great to get $100 or less back from the state instead of building up the fund that now has NO MONEY IN IT. How far did that little rebate get you?"
Exactly the point I made. Republicans wasted that money instead of saving it for when we needed it. Now, ANOTHER Republican has come along to take ALL THE PAIN out on Nevada families!
"The brothel industry offered to be taxed but don't look at that for bailing us out. One, it has not happened, two, it is not going to be the millions of dollars that some people keep throwing out there as a number. It will help, but in the over all picture it will be pennies."
People like you, who poo-poo solutions when they are offered, are PART of the problem! When business liek Wal-Mart pay their fair share, when people who should have their cars registered have done so, and when the brothel industry is ALLOWED to make the money they can, lets see even IF there is a problem!
Vegaslee, people like you, who are convinced that government can do no right, hurt us all in the long run. Like it or not, we have government and always will. Now, tell your fellow nay-sayers to get out of the way and let the people with the ideas lead!
AND STOP PUNISHING NEVADA'S WORKING FAMILIES BY CUTTING THEIR PAY, CUTTING THEIR BENEFITS, AND GIVING THEM FURLOUGHS!
The voters of Nevada decided on "No New Taxes." If there are to be no new taxes, then Nevada's units of government will HAVE TO CUT EXPENSES, even if it means closing down some of the nonessential programs.
We all must learn to live within our means...
Gibbons Junior, indeed. Thanks Nevada, for re-electing a Gibbons clone.
"Vegaslee, people like you, who are convinced that government can do no right, hurt us all in the long run."
Mr. Hilton,
Don't read into what I write what is not there.
The problems that most states have and the Fed's have is the American people. They expect more and more from the "government" but don't want to pay for it.
There are many government jobs that are paid much higher then the private sector, numbers and facts have proven that. Deny that all you want but you won't be able to back it up with numbers.
You also can not find me a single Walmart/Sam's store in the state of Nevada that was given a tax break to build a store in this state. If you can provide information stating otherwise then I will back down.
You have not given me any solutions yet you say that I "poo-poo" them.
Fact is the American public needs to learn to do for their self, take responsibility for their self and stop expecting government to be the end all for all their problems.
Yes, we have government, let them do the job they where set up for and not try to be everything to all people.
Mr. Hilton,
Teacher pay in Nevada ranks between 19th and 22nd depending on which union you ask. The reason we are below average is because big spending high population states like California, New York, Massachusetts skew the average. Without the furloughs, the average teacher in Nevada would be making $73,000 a year in salary and benefits (and that comes from the Nevada Department of Education). That isn't bad dough either.
Besides much research shows paying teachers more money doesn't result in states recuriting better teachers - it simply results in school districts paying more money to recruit from the same pool of teachers. Read Ballou and Podgursky's book "Teacher Pay" for more information.
Finally, how much you spend on education matters for less than how effectively you spend what you have. In fact the vast majority of researchers agree that spending has little to no bearing on student outcomes. Do your own regression analysis if you like, I'll even show you how. The vast majority of tests you'll run will produce the following results - that there is no statistically significant correlation between per pupil spending and student achievement.
Mr. Hilton,
Facts on State Employees vs. private sector.
http://www.npri.org/publications/wait--y...
Nevada's state and local workers are also paid above the median level nationally and much research shows it is also above the state's private sector as well. And yes some, not all, not even a majority I believe, of the state workers belong to a union. Have you even heard of AFSCME? I don't know where you got your information from Mr. Hilton, but its wrong.
Everyone knows cuts are needed but few are willing to accept them. If a ship is sinking due to a hole in the hull, wouldn't it be prudent for the people on-board to fix the leak? Some of us believe there are a lot more areas where the budget can be trimmed. The choices are difficult but times are difficult right now and these difficult times have to be dealt with. These tough decisions are what we expect our elected officials to make. For those who object to cuts in state-funded higher education, please show me where anyone has a RIGHT to a college education funded by taxpayers.
To Patrick Gibbons:
You need to do your homework before your start spouting off. First, there is a vast difference between the compensation of Clark County, City of Las Vegas, Henderson versus the State of Nevada employees. City and Counties pay much better than the State of Nevada. The State of Nevada employees are NOT unionozed, it is against Nevada law. There are a number of "employee associations" who can support employees but have zero power and authority to negotiate wages and benefits. The compensation is set by the Nevada Legislature, and these workers have had their pay frozen for four years. The past few years, State of Nevada employees have been taking unpaid furloughs. Teachers in Nevada have NOT, because they have collective bargaining and their contracts have NOT been renegotiated (to my knowledge, the city and county employees have not had to take furloughs either). The State of Nevada has the least amount of government workers per capita in nation. So, Nevadans are getting a pretty good return on what little taxes they pay to support their state government (not talking city and county here).
So before you start kicking around some poor DMV or NDOT worker, know what the heck you are talking about.
Get the U-Haul trucks ready. The no-tax brigade moves closer to no-tax, no services unless you can call it a "fee" and bill the user. Two of the main goals of the republicans, and most of the middle-class and poor who think they are republicans and vote that way will be the most affected.
Having your pay frozen is much better than unemployment.
Teachers do not "have to" pay for papers and pencils for students...they CHOOSE to.
User pay is the way to go. If you use the service, then help pay for it...
For the last time, I hope. STATE EMPLOYEES can not have Unions only Associations. It is about time the legislature figures out why city and county governmnets are not paying their fare share for these Union deals. Collective bargaining is not afforded to State workers only City and County. So make them pay for it.
City and County employees have been overpaid for a loooong time. I recall legislators, in budget hearings, asking/suggesting they bring salaries a bit closer/lower like state employee salaries for the same jobs. It might not be possible to CUT SALARIES WITH AGREEMENTS IN PLACE but we can ELIMINATE POSITIONS. So employees and unions will have that choice--either cut salaries or lose positions OR BOTH. We have too many teachers. Put them on year-round work and extend school days/years. STOP HIRING. Anyone on probation (city, county, schools) is OUT OF HERE.
How many times and how many years do "experts" (who are paid nicely to do these studies, by the way at taxpayer expense) need to continue looking for all the usual places to "CUT" in a budget? It is no wonder, Nevada continues to be ranked one of the lowest educated/thinking states in the USA!!!
Nevada citizens have NOT enjoyed the benefits of one possible taxable sustainable income source, the brothel industry, for over 40 years, thanks to the very moral, biased, discriminating, and those who are prejudiced, NEVADA LAWMAKERS, 40 years worth, that are/were suppose to serve and represent citizens, and IMPROVE the quality of life for Nevada!
It is not about political parties. It is about the people of Nevada. Most of whom are too ignorant to be mad enough to do anything about these Nevada Lawmakers. That is part of the budget problem. Let's start making lawmakers accountable! They are trusted with our state's care & welfare and have failed us, over and over, year after year.
The other part of the budget problem has to do with enforcing laws regarding the hiring of illegal individuals. No one wants to touch that. Just keep in mind, THEY are using social services, educational services, medical services, and unemployment too. They are illegal HERE, which is a crime, and we do zero about it. Hummmm.
Then teachers are now put under the gun (their careers and pay tied to the performance of each child, legal/illegal/English speaking/ or not, to miraculously be as any average AMERICAN student's performance). Forget that teachers have not had what is like COLAs for the last few years in their pay, although their cost to live in Nevada has gone up. Factor that teachers also pay out of their pockets to purchase items for their classrooms, so education can continue to a given standard that seems to keep going UP all the time, but not always producing expected results. Most people know that teachers give a phenomenal amount of their time towards student and school related activities, UNPAID.
Appreciation is shown by further pay and benefit cuts and more workload expectations. Teachers are amongst low/mid middle class, whereas the administrators are high middle class to high class (superintendent level). Please have mercy on the working teachers in this state!
Enough with all the tax trimming studies!
Let's tax the brothel industry and see what happens. Let's enforce the USA border and illegal alien laws that already exist and see what happens. Let's reinact online gambling and tax it and see what happens. And IF it brings INCOME, let's have a lottery, and see what happens.
Most citizens in Nevada cannot afford higher taxes. Let's try the alternative that doesn't really tax them nor increase their taxes, unless they actually use those "certain services." Let's try that first and see what happens, please. Thank you!
Ten Percent across the board is impartial.
It is simple and makes it easier for budget managers and heads.
If a household was told to reduce expenses by 10%, it could be done.