Lawmakers learn revenues up by $105 million

Brendan Riley

Thursday, April 29, 1999 | 6:35 a.m.

CARSON CITY - Nevada lawmakers learned Thursday they'll have $105.5 million more than expected in state revenues to spend this year and in the coming two years.

The state revenues, primarily gambling and sales taxes, are higher than what Gov. Kenny Guinn had expected. But the governor and key lawmakers said it's still not a lot and won't do much more than restore numerous budget cuts he made earlier.

The revenue increases came from the state Economic Forum, which looked at conservative estimates from Guinn's budget office and more optimistic figures from casino regulators, legislative budget analysts and other experts.

The forum last December had made a lower projection, but since then big month-by-month tax revenue gains had been reported.

The new estimate includes $39.1 million that will be added to the $1.5 billion in revenues for the current fiscal year, which ends June 30.

Another $66.4 million will be added to the $3.1 billion in taxes projected to flow into state coffers in the coming two fiscal years.

Guinn said much of the extra money will be needed to fix the state's NOMADS computer system, shore up Medicaid funding and restore several social services programs that he had cut earlier.

While benefit increases for state employees weren't immediately mentioned, Guinn chief of staff Pete Ernaut said that's still being discussed. Guinn had promised earlier to make some sort of benefit for the workers a top priority.

Senate Majority Leader Bill Raggio, R-Reno, said the Economic Forum's projections - which by law must be followed by lawmakers as they complete work on the budget - didn't leave "a lot of wiggle room."

Assemblyman Richard Perkins, Speaker Joe Dini's majority floor leader, said the projections aren't as high as the lawmakers' fiscal experts had estimated, and that means there's little room for special "pork" projects.

The Economic Forum's estimates had been awaited by many legislators who were hoping to get a piece of the budget action for their districts prior to the scheduled May 31 adjournment of the 1999 session.

But Raggio, Perkins and Ernaut all said the Medicaid funding problem alone takes a large chunk of the extra money. The governor's plan is to spend $35 million this year to restore a Medicaid reserve fund.

Under Guinn's proposal millions more would be spent on K-12 and university system projects, and a NOMADS welfare computer project this year and in the coming two years. For NOMADS, that includes $4.6 million in fines due the federal government for not having the welfare computer system up and running on time.

Guinn also wants to spend another $4.6 million over the coming two years for an internal audit division to help keep track of state agency funds.

Small amounts would be restored for programs including one for foster grandparents, Holocaust education, a Classroom on Wheels project, and the Retired Senior Volunteer program.

Similar priorities were mentioned by Raggio and Perkins - although Perkins also warned that the proposed 2000-2001 budget as it stands now can't "stand on its own."