Guinn to trim budgets in June to save cash

Friday, May 24, 2002 | 9:19 a.m.

CARSON CITY -- Gov. Kenny Guinn says he will start cutting budgets in the first 10 days of June to save $37 million so the state can have an adequate balance in the bank.

Guinn said Thursday he held an "extensive meeting" Wednesday with Budget Director Perry Comeaux about the state's financial condition.

All of the cuts will be made on "one-shot" items such as computers, cars or equipment purchases.

"We've been holding this money and it's too late for the agencies to spend it wisely," Guinn said after a meeting of the state Board of Examiners Thursday.

The governor wants to have an ending fund balance, or a reserve in the bank, of $91 million on June 30. He said he can achieve that without slicing programs.

Comeaux estimated that $50 million to $60 million for one-shot projects was put on hold after Sept. 11. Some of that has since been released, however.

As examples, he cited money for the computer system at the University and Community College System of Nevada and new cars purchased for newly hired law enforcement officer.

The governor said he wants to hold off as long as he can before making the reductions. This will give him extra time to see if the economy is starting to rebound.

Reports on tax collections released this month have been gloomy. The state Department of Taxation reported this week that receipts from the sales tax fell by 2.9 percent in March, the third decline in the last four months.

Winnings by Nevada casinos dipped 5.8 percent in March, the sixth time in seven months there has been a drop in the gross revenue.

Comeaux said he is hoping that the public assistance numbers will level off. Those receiving welfare in March fell by 0.23 percent, after a long rise in cases. But Medicaid recipients rose by 1.4 percent.

The Examiners Board met formally Thursday to certify there would be a bank balance of $54.7 million as of June 30 without any cuts in the budget.