Guinn expects more budget cuts

Wednesday, March 27, 2002 | 9:44 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- With the possibility that the state could fall short $210 million this biennium, Gov. Kenny Guinn is looking for more places to cut or put off programs.

Guinn said today he does not want to reduce spending to public schools or health programs or to withhold scheduled 4 percent pay raises for state workers.

More than 1,000 vacant positions in state government are frozen, and Guinn said the present employees are being asked to do more every day.

He said he hopes to delay some "one shot" spending, such as buying new equipment or autos. Some enhanced programs scheduled to start July 1 may have to be postponed, he said.

"We hate to do that, but we have got to balance the budget," he said.

The governor did not single out where he might take action. But there are several options.

For instance, medical providers to the Medicaid program are scheduled to get an increase in their payments starting July 1. Dentists and doctors are due for a 3.7 percent increase, and hospitals would receive 2.3 percent more for treatment of in-patients and 6.7 percent for out-patients.

On July 1 the state is scheduled to eliminate the assets test for pregnant women and children to qualify for the Child Health Assurance Program. That could be delayed.

Guinn estimated tax revenue would fall short $100 million this year. Already $30 million has been saved by holding positions vacant and other steps, he said.

Unless something drastic happens next fiscal year, Guinn said, budget experts expect another $100 million to $110 million shortage.

Meanwhile costs for welfare and Medicaid are increasing, pushing up those costs. Those two programs will have to tap into reserve funds set aside for the purpose.