State agencies’ budget cuts mostly free of pain so far

Monday, Nov. 30, 1998 | 11:04 a.m.

CARSON CITY -- With little fanfare, state agencies have been devising plans to slash $88.3 million from the budget this fiscal year so that state government doesn't slip into the red.

The goal is saving money without hurting services to the public.

The suggested cutbacks are in addition to the freeze on government hiring, expected to save $7.5 million this fiscal year, which began July 1.

"These folks understand the situation," state Budget Director Perry Comeaux said. "The money got spread around pretty well when there was extra money last time (1997). They don't seem to mind too much now."

One budget expert said Comeaux has "skimmed the cream" out of agency budgets without much pain. But the official, who asked not to be identified, said deeper cuts may bring some squealing.

Many agencies, ranging from the governor's office to the prison system to the welfare department, are chipping in. The biggest projected savings is $53.4 million from the Medicaid budget, which had a lower enrollment than expected. Another $5.8 million was made available through the state Human Resources Department from higher-than-expected collections of federal funds.

The state Department of Education will be able to save $500,000 because of a lower-than-expected caseload of handicapped children who need specialized services and must be placed out of state. And it is giving up $271,000 it intended to spend for development of new tests for public school students.

Comeaux didn't ask the 17 county school districts or the University and Community College System of Nevada to start slicing their budgets. Nor were statewide elected officials or the state Supreme Court asked to suggest budget cuts, he said.

The state is working on a $1.5 billion budget this year. Comeaux initially estimated agencies would revert or leave unspent about $21 million, but he now wants them to return an additional $67.3 million.

The Economic Forum, a group of five lay persons, meets Tuesday to project how much tax revenue will be received the rest of this fiscal year and for the coming two fiscal years. Comeaux said he may have to look for an additional $20 million in cuts if the economic forum's forecast is below expectations for the remainder of this fiscal year.

There's been little public squawking so far. The governor's office, soon to be occupied by Kenny Guinn, is targeted to save $17,500, and the governor's mansion should return $15,000 to the state's coffers.

Secretary of State Dean Heller is expected to turn back $900,000 in fees collected for expedited work. The state prison system is looking for ways to save $4 million without endangering security. And mental-health agencies are listed for about $2 million in savings.

Other savings projected by Comeaux are $200,000 from the health immunization program; $1.5 million in welfare administration; $200,000 from the welfare work-incentive program; $241,000 from the Commission on Economic Development; $400,000 from the Gaming Control Board; $541,736 from forest-fire suppression; and $403,982 from the state Division of Wildlife.

In some cases, smaller agencies are pinched. But departments have been working out plans so that another division may give up some money and take the pressure off the smaller agency. "There's a lot of flexibility in this," Comeaux said.

The state needs the savings to fill some big holes in the budget. For instance, the state will probably have to allocate an extra $32 million to the public schools. A portion of the sales tax that goes to education came in lower than expected, and the state is required to make up the shortfall. In addition, the estate tax has not yielded what was expected. That money is earmarked to support class-size reduction in the schools, so the state will be obligated for another $7 million to $8 million.

The troubled state health-insurance system is an estimated $14 million in the red and will need to be bailed out by the end of the fiscal year.

The budget reshuffling has taken place as Gov. Bob Miller turns over the reins of state government to Guinn in what up to now has been a smooth transition.

"Gov. Miller has absolutely cooperated. And Guinn dived right in," Comeaux said. "Things could not have gone better."

Despite the required savings, state government is far from broke. There's a $128 million "rainy day" fund that can be tapped if certain emergencies arise.