Guinn to spare state college: Teacher bonuses, workers’ raises also escape governor’s budget cuts

Thursday, May 3, 2001 | 11:08 a.m.

CARSON CITY -- Gov. Kenny Guinn said today startup money for the proposed college in Henderson will not be cut from the budget.

Guinn also unveiled a plan during a press conference this morning to give $2,000 bonuses to recruit new schoolteachers.

State workers also will get the 4 percent cost-of-living raises, and 4 percent to 5 percent bonuses for teachers are safe, Guinn said, as he predicted that 90 percent of his health proposals will survive.

Guinn and the Legislature are working to cut $121.5 million from the state's budget because of a tax revenue shortfall.

The governor included in his budget $1 million for the startup costs for the Henderson college. And he said today that was safe.

But he said that $2.6 million is being cut from the state's share of the proposed $26 million first building at Henderson. College officials said the cost could be reduced by that amount.

The state planned to put $16 million toward the project but will reduce that amount. Guinn said the school will still have to raise $10 million in private funds.

The governor included $57.5 million in his budget for one-time bonuses for schoolteachers. He estimated the average teacher would receive $2,000.

Using part of that fund and savings from other budgets, Guinn said he can now pay a $2,000 bonus to lure teachers to Nevada.

And that can be raised to $2,500 the following year.

The crisis in education, said Guinn is not being able to recruit new teachers to Nevada.

Legislators also revived discussions about new or increased taxes this session, which is 32 days from adjournment.

Sens. Joe Neal, D-North Las Vegas, and Mark James, R-Las Vegas, rose on the floor of the Senate Wednesday to say the time to fix the budget problems is now, and not in two years. James said the state budget and Nevada's education was "wholly under-funded."

"The time to act is now to address the financial crisis," James said.

Assembly Speaker Richard Perkins, D-Henderson, said there have been discussions in his house on increasing taxes by those who want to put more money in education. But he said it would be "very difficult" to get the necessary two-thirds vote in the Senate on any tax plan.

Senate Majority Leader Bill Raggio, R-Reno, said this budget can be balanced without increased taxes. He said education is getting an additional $700 million each year, or an 8 percent increase with the number of students going up only 4.5 percent.

Although the governor said he is not working on any plan to raise taxes, others are.

In talking about the tax revenue predictions of the Economic Forum made Tuesday, Guinn said, "It turns out not to be pretty, but it's not coyote ugly." He was referring to the deficit, which had been predicted to be as high as $180 million.

Guinn said the $57.5 million set aside for a bonus of 4 to 5 percent for schoolteachers and the 4 percent cost-of-living raises for state workers will not be considered for elimination or reductions to make up the shortfall. He also said he expected that 90 percent of the spending for health programs would survive. But there are other adjustments in store.

The governor has set aside $5 million to help fight locating a nuclear dump in Nevada -- Yucca Mountain -- and to convince people in other states that the transportation of this material is dangerous.

His program to allocate $5 million to the elderly to help pay their fuel bills is still in his budget, but that figure might be reduced, he said. Lobbyists for the University and Community College System of Nevada suggested the system might be a prime candidate for major cutbacks -- as much as $37 million. But Guinn said the system has lower enrollments than expected. Consequently, $24 million can be saved.

"You don't get to keep the money if you don't have the students," the governor said. Some of that money will be used to offset the shortfall. There's also the question of whether the university system wants to contribute 2 percent of a proposed 4 percent increase in salaries for faculty.

University officials have already pleaded with the legislative budget committees to let them keep the money set aside for increased student enrollment that did not come to fruition.

The governor said he has an agreement with legislative leaders to meet and compromise on budget reductions. Meanwhile, tempers are getting short.

Raggio had asked senators, who have requests in for money, to look at withdrawing their bills or signal if they want to go forward with a hearing. He reminded them there was little money to accommodate this.

He said he has 18 bills from senators who want a hearing. He scheduled a meeting of the Finance Committee for late Friday and early Saturday morning to consider the bills. Senate Minority Leader Dina Titus, D-Las Vegas, complained the scheduling of these bills was unfair to the sponsors, the general public and to those in Southern Nevada and the rural counties who won't be able to attend.

"This is a terrible way to set policy," she said.

After Raggio's announcement Neal and James opened their speeches by suggesting that people in this state are being shortchanged. Neal, who has tried for several years to raise the tax on casinos, said it was time for "gaming to open up its coffers to pay for growth."

Neal said school children need books, teachers need raises and state workers should be paid more.

James said he agreed with Neal that more taxes are needed, but they should not be placed on one industry. He said he wants everybody to participate in a tax increase.

In an earlier interview Perkins said the Legislature will have to "grapple" with the problems in tax revenue. But to do it this session, he said, "would be a pretty difficult task."

He said the biggest problem is to get the two-thirds vote on the Senate for any tax increase. "I'm not saying that's a given in the Assembly, but it's a bigger hill to climb in the Senate."

Said Raggio, "I think there will be a need in the future for additional revenues but this time I think we can balance the budget with the revenues we have."

The majority leader has suggested a plan that counties give up part of future revenues that come from growth in the form of property tax collections. He said the state might be able to pick up $30 million a year from this source.

Raggio would permit the counties to keep present revenues. But the state in the future would share the higher property taxes which come as a result of growth.