Las Vegas Sun

April 25, 2024

Easy ride might become rough for budget

CARSON CITY - Gov. Jim Gibbons' proposed $6.8 billion budget has generally received the kid gloves treatment in a preliminary review by the lawmakers who will shape the state's spending program for the next two fiscal years.

Both sides, however, soon may be lacing up the boxing gloves.

During five days of review, legislators had plenty of questions about some programs and grumbled about a lack of details from the Gibbons administration.

Gibbons said the Legislature has "been kind" so far to his budget - which is simply his proposal on how Nevada should be run the next two years, a game plan that legislators can either accept, reject or amend. He promised to provide the details requested on programs such as the "empowerment" concept that would give greater autonomy to local schools.

Sen. Bob Beers, R-Las Vegas and vice chairman of the Senate Finance Committee, said the administration to date has given lawmakers "the 60,000-foot view."

"We start zooming in next week," when the Legislature opens Monday, Beers added.

Sen. Bob Coffin, D-Las Vegas, complained that "the people presenting (the budget) didn't understand it any better than the legislators did."

"The new ideas have to be thought out, and they must get back to us with details," Coffin said.

Assemblyman John Marvel, R-Battle Mountain, said lawmakers have seen only "bits and pieces" of the budget, without enough detail to identify the administration's priorities.

"We have a lot of questions, and it's not going to be an easy road," Senate Majority Leader Bill Raggio, R-Reno, said.

The state's total spending program for the next two fiscal years is $18.2 billion, a 15 percent increase over the present biennial budget.

Beers expressed displeasure that Gibbons' proposed budget "doesn't address the overtaxation of our residents." New studies show Nevada's taxation rate has gone "from below average to above average taxation per capita," he said.

But Beers said he was heartened to see that Gibbons' budget adds money to state programs "in an amount much closer to the rate of growth in the state of Nevada, which is refreshing."

That is one major reason Beers expects Gibbons' budget to "pass easily."

The governor has called for lowering the modified business tax based on gross wages paid by employers from 6.3 percent to 6.2 percent. Gibbons also wants to eliminate the $1,750 quarterly excise tax imposed on bank branches.

Gibbons plans to retain the property tax assistance program for more than 14,000 low-income senior citizens who can receive up to $500 a year based on their tax or rent.

There are trouble spots ahead, however, for Gibbons' budget.

He has recommended, for instance, a raise for doctors who treat Medicaid patients, but has not proposed a similar increase for hospitals, where rates have not been changed since 2002.

And while the budget includes $110 million for construction of health science buildings by the Nevada System of Higher Education, Assemblywoman Sheila Leslie, D-Reno, noted that it does not provide operational funds.

Coffin took issue with Gibbons' plan to set up another study committee on transportation.

With traffic congestion worsening in Southern Nevada, "we can't wait two years" for solutions, Coffin said.

"Our infrastructure is not keeping up with the growth," he said.

Another likely battleground is Gibbons' empowerment program, under which 100 schools would be allowed to set their own priorities rather than follow district mandates. To finance that program, he would scrap a retirement benefit for teachers working in at-risk schools or teaching subjects for which teachers are in short supply.

His administration told budget committee members Monday that it would be another two weeks before specifics about the program will be ready.

"I find this astonishing," Leslie said. "I realize Gibbons didn't have much time, but if you're going to propose a brand new $60 million program, I would expect some details."

Democrats also want to fund full-day kindergarten in every school, something that's not in Gibbons' budget.

Under a constitutional amendment authored by Gibbons and his wife, Dawn, the Legislature must pass an education budget before it can approve spending programs for the rest of the state agencies.

"A big hang-up will be complying with the Education First initiative," Beers said.

Other budget battles likely will include:

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