Lawmakers say Guinn not dealing with budget

Wednesday, June 19, 2002 | 11:37 a.m.

CARSON CITY -- The state's budget problems are worse than outlined by Gov. Kenny Guinn, and some state legislators are frustrated by lack of action from the governor.

Legislative Fiscal Analyst Gary Ghiggeri released estimates Tuesday showing the state may be $209.7 million in the red by June 30, 2003. That's about $30 million to $40 million more than estimated by the Guinn administration.

Ghiggeri told the Legislative Interim Finance Committee that even if all of the state's $136 million in the "rainy day" fund would be used, there would still be a hole of $73.7 million.

Assemblywoman Chris Giunchigliani, D-Las Vegas, said the administration is "not dealing with this." She said lawmakers have no idea what Guinn has set aside to cover the shortfall.

"There is no plan to get out of this," she said.

Other legislators asked state Budget Director Perry Comeaux to share with them the potential cutbacks that are being considered.

Comeaux said the governor is not going to make the final cuts to balance this fiscal year's budget until mid-August when more tax revenue information is available and he finds out how much agencies have left in their budgets.

Guinn has already delayed certain new programs and eliminated one-time expenditures.

After the meeting Comeaux said he understood the frustrations of the lawmakers. But he said the Guinn administration does have a plan. He said Giunchigliani doesn't know what the plan is "and that is why she is frustrated."

He said the budget deficit is a "moving target" with each month as tax revenues are collected.

Ghiggeri said delays in making budget cuts for next fiscal year "will only increase the difficulty that agencies face in making the reductions, since it is easier to make the budget reductions, whatever the amount, by spreading the reduction over a longer period of time compared to a shorter period of time."

Most of the reductions this fiscal year will be from one-shot items, Guinn has said, such as car or computer purchases. But during the next fiscal year there will have to be cuts from agency budgets.

Guinn recommended and the finance committee agreed Tuesday to chop $11.9 million from a fund set aside to help state agencies and the University and Community Colleges of Nevada to pay increased energy bills in the next year.

Comeaux said the agencies and the universities would have to live within their budgets in paying power, natural gas and other bills.

The committee did agree to release $5.2 million for remediation programs at low performing public schools to enhance the ability of students to pass examinations. And it approved $927,408 for additional classes for high school students to enable to pass the proficiency examinations to graduate.

It also approved $285,392 from the emergency account to hire five new employees at the state Division of Insurance, as recommended by Guinn. Four of the new employees will be used to speed up the handling of medical malpractice cases that come before the medical-dental screening panel.

In some instances, it may take up to a year to get a decision from the panel of three volunteer doctors and three volunteer lawyers. Insurance Commissioner Alice Molasky Arman said the extra money will help set up additional panels to consider the cases.