Guinn urges thrift among state agencies

Thursday, March 16, 2000 | 11:18 a.m.

CARSON CITY -- Reflecting an expected tightening of the economy, Gov. Kenny Guinn has told state agencies not to suggest new programs unless they can develop savings within their present budgets.

In a speech to the Nevada Taxpayers Association in Las Vegas on Wednesday, Guinn said he has instructed his Cabinet and state departments not to include one dollar more than is budgeted for the next fiscal year.

"They will have to pay for new programs through increased efficiency and savings from existing budgets," the governor said. "As a businessman, I know that we must tighten our belts another notch to face an uncertain financial future from a position of strength."

State Budget Director Perry Comeaux said the only budget increases allowed will be for growth in existing programs, such as that spurred by more inmates in the prisons or children in school.

"It will be the status quo except for growth," Comeaux said. "But there will be no new programs unless they fit into one of the governor's super priorities."

In 1999 Comeaux said agencies sought close to $2.7 billion a year, but there was only $1.6 billion available.

"The last time, we whacked out $900 million," he said.

Guinn said that during the next 10 months he will be developing his "super priorities," programs he wants to spend any extra money on. Comeaux said if an agency feels strongly it must have a new program, it will be able to approach the governor to include it in the super priorities.

The agencies must submit their recommended spending programs by Aug. 15 to Comeaux's office.

While the governor can demand his department heads comply with his orders, he can only ask cooperation from the state Board of Education and the Board of Regents of the University and Community College System of Nevada. About 55 percent of the state's budget goes into educational programs.

"We've asked them for their cooperation," Comeaux said. "We will see what happens."

The governor said he has kept his promise made in 1999 to reform "the way we look at and prepare the state budget."

Some recommendations from a committee -- set up to find ways to improve government efficiency -- should be ready next week.

Guinn said that at the 2001 Legislature he will "present a financial picture and economic plan that will extend beyond the next biennium and provide a sound platform for the economy future of our state."

Guinn has kept open about 1,000 jobs in state government because of fears about possible lagging revenues, but tax collections recently have been above projections.

Guinn estimates he will have around $110 million in 2001 for one-shot items -- such as buildings or roads or special projects. But that money can't be used for such ongoing expenses as salary increases.

Preliminary projections made two months ago showed aid to public schools could nearly eat up all of the state's budget in the next eight years if there is no change in tax revenue.

During the past 10 years, tax receipts for the state averaged about 8 percent per year, but the governor doesn't see this being sustained in the next eight to 10 years.

Sales tax revenue may tail off following the completion of the recent round of major resort construction in Las Vegas, and Indian gaming is expected to cut into the Nevada casino pie.

And the rising price of gasoline may deter some visitors to Nevada, reducing expected tax revenues.