Wednesday, Aug. 28, 2002 | 9:08 a.m.
The revenue that state agencies receive from taxes is down this year. So, in order to maintain a balanced budget, Gov. Kenny Guinn has ordered department chiefs to submit plans by Sept. 5 that would cut their budgets by 3 percent. But across-the-board cuts, while seemingly fair because they affect all equally, when put into practice actually can hurt some agencies more than others. One of the best examples of this can be found in the Department of Human Resources, including its divisions that oversee mental health, handicapped services and child and family services.
As the Sun's Cy Ryan reported Monday, 3 percent cuts will translate into 6 percent cuts in those programs that rely on matching federal funds. And although Guinn and the Legislature have increased the funding to mental health agencies after severe cutbacks were made during the early 1990s, it's not as if the agencies have been living it up. For example, the Division of Mental Health and Developmental Disabilities already has had to save money by implementing a hiring freeze and eliminating some programs that relied on one-time funding that weren't built into the ongoing budget. Cuts in mental health and for handicapped services also can be shortsighted, a case of paying now or paying later. Ed Cotton, director of the state Division of Child and Family Services, noted that a reduction in mental health spending might result in a higher number of cases for th e juvenile justice system.
The principal reason that state government even has to consider making painful decisions such as these is that Nevada has failed to fully fund its government because of a decade-long political fear of raising taxes -- a paralysis that has stricken both legislators and governors. The Governor's Task Force on Tax Policy is now looking at recommendations that would reform the tax system, proposals that will be made to the governor and the next Legislature, which meets in regular session next year. The governor and the Legislature should increase taxes where necessary and, where needed, make cuts to non-essential services. If that's done, future governors would have enough money on hand so that it's not necessary to pare even more from agencies, such as those dealing with mental health and developmental disabilities, that already have been cut to the bone.
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