Guinn to meet with lawmakers over budget cuts

Monday, April 8, 2002 | 10:47 a.m.

CARSON CITY -- Though some new programs in health and welfare have already been put on hold, Gov. Kenny Guinn is expected to outline further budget-cutting measures Wednesday to deal with an expected $200 million shortfall this biennium.

The governor is to appear before the Legislative Interim Finance Committee primarily to ask for a $3 million emergency allocation to lobby against the Yucca Mountain high-level nuclear dump site.

But the meeting will also be devoted to examining the budget crunch. Revenues are coming in slower than expected, and costs in social welfare programs have increased since Sept. 11.

"We're not as bad off as we could have been," Guinn said Friday. "We started early" in dealing with the money problem.

He met Thursday with his Chief of Staff Marybel Batjer, Budget Director Perry Comeaux and state Human Resources Director Mike Willden to review ways to save the state money.

Guinn last fall ordered a freeze on state hiring and put a hold on many one-time expenditures, such as purchase of new vehicles and equipment.

Still, a shortfall of $51 million is expected this fiscal year in Medicaid, the program that provides medical care to the needy. Guinn is proposing to draw $21.1 million from an intergovernmental transfer reserve fund to cover that. The rest of the money would come from the federal government and counties.

Willden said that would leave $4 million in that reserve fund, probably not enough to get the state through the next fiscal year.

Another $7.5 million infusion is needed to finance welfare through this fiscal year. Willden said there would be $18 million left in that reserve for next fiscal year if the welfare numbers continue to grow.

After Sept. 11 Guinn granted a waiver allowing workers who were laid off to draw both unemployment and welfare. Willden said that added only 600 families to the Temporary Assistance for Needy Families program, costing $657,000.

Guinn said he hoped to find an additional $10 million of excess money in bond redemption accounts.

Comeaux said is weighing putting a hold on more than $11 million set aside by the 2001 Legislature to help the University and Community College System and state government agencies pay higher utility bills.

The state Board of Examiners on Friday allowed $5.1 million, but members said they may not release the rest of the $17 million set aside because of the budget pinch.

Other money-saving measures already proposed to Guinn:

Willden said he can't comment on any of the proposals until the governor appears before the Interim Finance Committee. And he wouldn't say if the administration has decided on any of the cutbacks.