Guinn warns regents to trim budget

Friday, May 19, 2000 | 11:12 a.m.

CARSON CITY -- Gov. Kenny Guinn has told the university system its proposed 28-percent increase in its upcoming 2001-03 budget is unacceptable, and at least one regent agrees.

Guinn, in a letter to interim Chancellor Jane Nichols, said the regents should present a flat budget, as other state agencies have been directed. If the regents don't follow suit, the governor said he won't present their request to the 2001 Legislature.

"I was both displeased and disappointed to hear that the Nevada Board of Regents was considering sending a $1.14 billion budget to me and ultimately to the Legislature," Guinn said in his letter to Nichols. "As we discussed, this is unacceptable."

Regent Steve Sisolak of Las Vegas applauded Guinn's "tough" stance.

"We presented a fat budget. The state is not Santa Claus," Sisolak said.

But Jill Derby of Gardnerville, chairwoman of the Board of Regents, said the proposed $1.14 billion budget for the University and Community College System of Nevada is "very, very preliminary" and represents what the campuses desire.

She said the board will slice that at its June 22-23 meeting and adopt a final spending program in August.

"There is nothing the Board of Regents has approved so far," she said. "We're only at the starting point. "We're on the same page as the governor in supporting higher education, but he wants the budgets presented in a different format."

Coming in with a flat budget -- or no increases over the current budget -- may be difficult, Derby said, because a new formula is being developed to make sure there is equity among the campuses. She said it will complicate the budget process with the expected moving of money from one campus to another.

Sisolak said it's nonsense to believe the state can keep up with all of the requests of the system, which include funding the proposed Nevada State College at Henderson and a dental school at UNLV.

"We don't need a scalpel. We need a hatchet," Sisolak said about the need to cut the proposed budget. "Higher education has fared very well in the past and we need to tighten our belt."

Regent Mark Alden of Las Vegas joined Sisolak in warning against a higher budget.

"We better listen and send a format the governor requested," Alden said. "If we send a budget the governor doesn't like, we're in trouble."

Alden did see a positive sign in the governor's statement.

"The governor wants the budget driven by outcomes -- how many are graduated and economic diversification of Southern Nevada."

He said that will help UNLV to turn its attention more to research and producing high-tech graduates.

Alden said the proposed dental school, however, "is way down the list," of enhancements. But he said the Henderson college will survive if it raises the money for its buildings and start-up costs from private donations.

Guinn said the support for the university over the last four years has "been among the highest in the nation."

"Unfortunately, we can no longer assume that this growth will continue due to revenue projections that show our state facing some very difficult times ahead," Guinn said.

In January he told state agencies to submit flat budgets. If an agency wanted to increase spending, the director would have to show cuts in other programs or efficiencies to cover the higher costs.

"An agency that submits enhancement requests without showing how those requests will be funded through savings or efficiencies will be denied approval of that request," he said in the letter to Nichols, who indicated she intends to follow his request.

The first step, Nichols said, will be to present a flat budget where efficiencies and savings will be shown so money can be moved around.

In addition, the system will present its projected enrollment growth and later a list of enhancements to be considered if there is enough available money.

She said the governor felt the system's "wish list was too big and too long." Nichols said, however, "The regents will make the final decisions on priorities and enhancement requests."

The governor said he appreciated Nichols' agreement to present a flat budget to the regents, and he said if the regents don't follow the script, "I will not accept nor will I include UCCSN proposals in my executive budget if substantial revisions reflecting this directive are not made."

Cy Ryan covers state government for the Sun. He can be reached at (775) 687-5032.