STATE BUDGET:

Cuts would hurt neediest most

Elderly, disabled and kids would lose essential services; teacher bonuses would end

By David McGrath Schwartz (contact), Cy Ryan (contact)

Friday, Oct. 17, 2008 | 2 a.m.

Recommendations to the governor for budget cuts to education

Carson City — Thousands of poor children cut off from health insurance. Bigger classes in elementary schools. Three hundred mentally disabled people losing housing assistance.

A grim picture emerges in budget documents detailing the future of state government under proposed budget cuts, the deepest since the Great Depression. Over the next two years, Nevada’s government, far from robust to begin with, will be able to provide fewer services at a time when the number of residents seeking welfare, unemployment benefits and health care aid is expected to rise.

“We’re doing harm,” said Mike Willden, director of Health and Human Services. “Absolutely, we’re doing harm.”

Documents showing agency recommendations for the upcoming state budget became public this week. It’s clear there are few painless decisions in the spending reductions brought on by a sharp decline in the state’s economy.

The Education Department, for example, is recommending money for new text books and instructional supplies be cut in half, saving $67 million.

The Corrections Department’s budget calls for closing the Nevada State Prison in Carson City and prison camps in Pioche and Tonopah at a savings of $25 million — moves that will likely result in prison staff being laid off.

At Health and Human Services, the agency recommends eliminating nonemergency vision care and orthodontia for uninsured children in low-income families.

Scaling back bathing, grooming and dressing services for an estimated 1,600 homebound elderly and disabled citizens will save another $12 million, and cutting housing support for 85 mentally ill Las Vegans will save $2.2 million.

“It’s ugly. We’ve been preparing for ugly,” said Ben Kieckhefer, the governor’s spokesman.

“We’re not going to help everyone who needs help,” he said. “People are struggling, and we’re putting people in a position to struggle more. It’s tough to stomach.”

The governor has not seen all the proposed cuts but will receive a “comprehensive briefing” next week, he said. But, Kieckhefer added, “the governor believes the state has to make do with the revenue it has.”

Gov. Jim Gibbons instructed the heads of state government departments this summer to prepare spending plans for the next two years that are 14.12 percent below funding levels approved by the Legislature in 2007.

Since then, the state’s economic outlook has grown grimmer, leading Assembly Speaker Barbara Buckley, D-Las Vegas, to say cuts could grow to 18 to 20 percent. Gibbons last week did not dispute that assessment.

The proposed cuts released this week could be adjusted by the governor. The state’s spending plan also must be approved by the 2009 Legislature, which convenes in February.

The governor isn’t required to release his final proposed budget — which covers the two years from July 1, 2009 to June 30, 2011 — until January.

Kieckhefer acknowledged that there isn’t much room for adjustment.

Welfare

The proposed welfare budget calls for closing offices in Yerington, Winnemucca and Hawthorne and the Owens Avenue office in Las Vegas, and eliminating 116 frontline case workers. That means the department will be slower to process applications for welfare recipients, the aged and blind.

With the economic downturn, the welfare division estimates its cases in the temporary assistance to needy families program will rise 9.4 percent in 2010 and 10.4 percent in 2011. The division is recommending a reduction from $9 million to $6.5 million a year for child care discretionary grants to families. Welfare Administrator Nancy Ford said these are families whose income is too high to qualify for welfare or other programs, but that need help paying for child care while a family member is in training, in school or in a low-paying job.

Ford said she’s going to retire Oct. 30 after seven years in the job and 30 years in state government. The state’s budget problems helped her conclude that now is the right time.

“It’s pretty ugly out there,” she said.

Mental health

Harold Cook, administrator of the Mental Health and Developmental Services Division, said the proposed cuts will lead to “less access to services, reduced services to those receiving services and longer waits for those wanting services.”

Patients in rural Nevada seeking care for mental illness, substance abuse and developmental disabilities will have to travel longer distances because of the office closures, Cook said.

The division’s proposed budget would cut 96 workers at the Rawson-Neal mental health hospital in Las Vegas. But Cook said he thinks the state can provide the same level of care to patients while bringing staffing ratios more in line with national standards.

There will also be a cap on autism treatment programs throughout the state. In Clark County, the state will treat only 21 patients and waiting lists will grow.

“Studies indicate early intervention helps reduce the long-term effect of autism,” Cook said. “Waiting longer for service will hinder progress and increase the long-term care costs.”

Medicaid

The most significant effects on the state’s Medicaid program will come in hospital services and long-term care for the elderly and disabled, said Chuck Duarte, administrator of the Health Financing and Policy Division, which runs the program.

The state has imposed a 5 percent cut in payment rates to hospitals and the plan is for another 5 percent reduction. Willden said complaints are flowing in from hospitals and doctors, and many physicians say they will no longer take new Medicaid patients, or drop the ones they see.

“What it will cause is access problems,” Willden said. “Low-income families, seniors, the disabled will find it harder to find health care providers, because many won’t accept Medicaid.”

Nevada Check Up, which provides health insurance to low-income children, will cap enrollment at 25,000, Willden said. There are almost that many children in the program now, with another 4,000 on the waiting list. The savings will total $3 million.

Duarte said even with these and other reductions, the department’s budget will be higher because of more cases and inflation, which under federal law the state has to account for.

Applications for Medicaid rise with unemployment, which is predicted to climb from the current 7.1 percent to 8.5 percent next year.

Education

The amount per student the state sends to school districts would be reduced by as much as $120, from the current average of $5,213.

Keith Rheault, state superintendent of public instruction, said the cuts, which would save $51 million, won’t allow for new programs or innovations in public schools.

“It doesn’t give one more dollar to the districts to do something better,” Rheault said.

Also lost will be the $2,000 bonuses used to recruit teachers to Nevada. Rheault said districts consider the money “critical” to luring teachers to the state.

The proposed budget would also eliminate extra retirement credits and bonuses for teachers working in at-risk schools or in hard-to-fill positions in areas such as mathematics, science, special education, English as a second language and school psychology.

Rheault said “thousands” would lose the extra benefit at a savings of $26.1 million.

The recommended cuts would also translate into larger classes in the primary grades. One student would be added to the 1-16 teacher-pupil ratio in first and second grade and to the 1-19 ratio in third grade.

“Everybody is going to share the pain,” Rheault said.

Discussion: 10 comments so far…

By JoeF

10/17/08 at 7:43 a.m.

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Way to go, Gibbons. Shut down all the human health services. Instead, try cutting your pay to match the time you work!
By stown

10/17/08 at 7:56 a.m.

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There is no way out of this economic crisis without raising taxes. The taxes should be levied against the people and services visiting this state. There is plenty of options and its time not to be closed minded. There will be numerous low income people impacted and our seniors along with the disabled. We wont a gOvernor to lead not be at a sage grouse convention when this Stat needs leadership. Good news only one more year of him.
By KDR81

10/17/08 at 8:30 a.m.

Suggest removal

NPRI wrote about this, when government is faced with cuts they cut services not employees. Employees are the most expensive cost.

Government treats us citizens as a cost, not customers, or people needing help.

http://npri.org/publications/spending-li...

And stown, you can't tax your way out of an economic crisis. Try standing on a bucket, grab the handles, and try and lift yourself up.

1) We have a crisis in the economy
2) Take money away from economic activity

= Economic crisis solved? Nonsense.

If you want to solve the crisis, cut spending, slash tax rates, deregulate so it is easier to start a business, and figure out creative ways of getting the job done when it comes to education, welfare, roads, and the elderly!
By jfnance32

10/17/08 at 8:52 a.m.

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Raising taxes on businesses that are just trying to stay alive is dumb.

How many private people's jobs will be cut?

That is what Democrats what to do is to put people out of work by raising taxes on businesses.
By really

10/17/08 at 10:19 a.m.

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We need to send back the illegals who are milking and draining our system. This is not onlya Nevada problem but a national problem. Until such time that we put fences up and electricfy them nothing will change. Just think of all the taxpayers money that we are not getting rerturned to us for our use!
By azsk8fan

10/17/08 at 1:39 p.m.

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I agree, really, we need to do something about the illegal immigration situation first and foremost - the job situation will improve for Americans and the money (taxes) it takes to provide services for these illegals will be better spent on the Americans who earned and paid in to begin with. So much of our money is being sent back to Mexico and our economy isn't seeing the dollars that's for sure......... Both Parties are to blame for this situation - I believe big business wants to keep the illegals here so they can continue to pay sub-par wages and both Parties are reaping the benefits (payoffs) - ever hear of a poor politician? Didn't think so.........
By lvmachead

10/17/08 at 3:14 p.m.

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The right wing rhetoric is so predictable it's pathetic. I don't think some of you even read all the news.

The report calls for cutting 116 front line caseworkers from closing offices and 96 more people from the mental health division. Adding one student per class in 1st and second grades will result in fewer teachers for those grades. In another article in one of our local papers the prison department was looking at closing facilities in Carson City and Tonopah, cutting workers from those facilities. So "government" is losing people.

Our illegal residents pay the same taxes as everyone else, either through sales, gaming, or property taxes that are part of their rent payments, so if they left more revenue would disappear as well as business at local establishments. I agree something needs to be done about illegal immigration, but they are not the burden on the economy some say.

Finally, the spector of the small busnessman going out of business and leaving the state if they have to pay taxes. Most proposals have left the smallest businesses alone and gone after the larger companies like Wal-Mart, but even if all were included, they would survive here just like they do in Utah, Arizona, or California, all of which have much more aggressive tax policies.

The tax structure should have been fixed eight years ago when Guinn presented his study and proposals, but no one in elected government has the stomach to do what is needed, now we have to do something and it will hurt everyone, but the alternative is living in a state with the worst schools, support systems and infra structure in the country and our ability to attract new business will disappear.
By Matois

10/17/08 at 4:07 p.m.

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I am SO sick of going to the grocery store and watching seniors buying meager supplies while the illegal Mexicans are stocking up on steak, sugared cereals, chips, candy and soda - all on my tax dollar. Let's make cuts where cuts are needed - the illegals. It is so sad that the welfare application demands applicants who say they are a US resident and citizen to prove it and jump through hundreds of red tape hoops, but also says below that if you are not a legal US resident you will NOT be denied benefits. Put on MORE case workers and weed out the fraudsters using their anchor kids' social security numbers to get benefits. A recent study in California showed that the average illegal Mexican family of 5 received cash and services and housing and food totaling just under $5,000 per month. Who would want to work or go back to Mexico when the US will pay you to stay here?
By GuepardTongue

10/17/08 at 5:38 p.m.

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Socialist Epilog

A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasure. From that moment on the majority always votes for the candidates promising the most money from the public treasury, with the result that a democracy always collapses over loose fiscal policy followed by a dictatorship.

The average age of the world's great civilizations has been two hundred years. These nations have progressed through the following sequence: from bondage to spiritual faith, from spiritual faith to great courage, from courage to liberty, from liberty to abundance, from abundance to selfishness, from selfishness to complacency from complacency to apathy, from apathy to dependency, from dependency back to bondage.

Alexander Tyler, 1787
By dbltrbl

10/18/08 at 6:58 a.m.

Suggest removal

What does it achieve to put an indigent child (no fault of theirs) into first grade never having received any routine medical care (they CAN get help with those first immunizations), rotten teeth from never having seen a dentist, and no opportunity to put a thing in their stomach to ensure their mind can learn instead of fretting about hunger pangs, and no vision or hearing checks that would be standard with being followed by a doctor. To do all of the above sets up any child for failure; only to hear the cycical response, "See! I told you they couldn't make it!"

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