Budget finds relief as welfare rolls drop

Thursday, Oct. 24, 2002 | 9:48 a.m.

CARSON CITY -- For the third time in the last four months, the number of welfare recipients has declined and the state program may end up with a surplus instead of a deficit this fiscal year.

"This is a good sign," said Tami Dufresne, coordinator of research and statistics for the state Welfare Division. She said the economy is still too unstable to call it a long-term trend.

Roger Mowbray, budget chief for the division, said the Temporary Assistance for Needy Families program could end up with a $4 million surplus by June 30, the end of the fiscal year.

That contrasts with a prediction several months ago that the program would be $6 million to $7 million in the red, Mowbray said.

The report was tempered by one from the state Taxation Department that said taxable sales in August, one indicator of the economy, grew only 0.6 percent, far below the projected 5.8 percent that the state's budget is based on.

The Welfare Division said there were 32,478 recipients in September, down 7.2 percent from the previous month. That is still 11,000 more than in the same month of a year ago.

The number of people on Medicaid declined to 160,388, a drop of 1 percent from August. Food stamps recipients dropped 0.39 percent to 100,868 in August.

Gov. Kenny Guinn said the drop in welfare numbers is good news.

"Hopefully this is a sign that Nevadans are getting the relief they need," he said. "This has been a double-edged sword. While our state's economy has suffered, so have more Nevada families than ever."

Guinn said Tuesday the deficit this fiscal year may be higher than expected. He planned to take $100 million out of the $136 million "rainy day" fund to help balance the budget this fiscal year.

But he said he may have to tap all of the $136 million. If that is not enough, he would ask the Legislature to accelerate passage of an increase in the liquor and cigarette taxes to supplement the state's income this year.

The challenge still exists, Guinn said, in coming up with money to keep the budget from going into the hole.

While the temporary welfare assistance program may end up with a surplus, Mowbray said there may be a shortfall of $3 million in state funds in administrative costs.