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AP Photo/Nevada Appeal, Cathleen Allison
Nevada Gov. Jim Gibbons delivers his State of the State address in Carson City.
Published Thursday, Jan. 15, 2009 | 6:01 p.m.
Updated Thursday, Jan. 15, 2009 | 9:01 p.m.
Nevada State Budget Director Andrew Clinger outlines the proposed state budget in a media briefing Thursday morning at the Capital in Carson City. Gov. Jim Gibbons is delivering the State of the State address at 6 p.m. From left, are State Director of Cultural Affairs Michael Fischer and Josh Hicks, Gibbons' chief of staff.
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CARSON CITY – Gov. Jim Gibbons’ two-year $6.1 billion budget will hit Clark and Washoe counties to help make up the deficit, as well as reducing the benefits of state employees.
If the economy rebounds, the governor would be “happy’’ to call a special session of the Legislature to restore some of the reductions, says Josh Hicks, chief of staff for Gibbons.
Counting federal and other funds such as highway collections, Gibbons is presenting the 2009 Legislature with a $17.3 billion biennial budget or 0.9 percent lower than the 2007-2009 fiscal year spending program.
While it hits hard at the Nevada System of Higher Education with a 35 percent budget reduction, there are smaller cuts to the public schools and human resources programs.
The governor is proposing to take a portion of the property tax away from Clark and Washoe counties totaling $79.1 million over the next two fiscal years. Clark County would lose about $66 million of the total.
There will be an additional 3 percent tax on hotel and motel rooms in those two counties to bring in $292 million over the biennium.
Casinos will suffer a one-time hit of $31 million, as Gibbons wants them to pay the gaming tax on noncollectible markers immediately. Until now, casinos paid the tax when they collected the debts from the unlucky gamblers.
The budget is counting on $107.9 million from the federal economic stimulus package and the state is going to increase from 0.75 percent to 1 percent the fee it charges counties for collecting the sales tax.
A breakdown of the proposed spending for the next two years shows that human services will increase from 28.3 percent to 32.6 percent of the budget; public schools will get 37.1 percent of the state’s general fund budget compared to 34.6 percent; the university system ends up with 13.7 percent, down from the 19.4 percent of two years ago and public safety takes up 9.5 percent of the spending program compared to 9.7 percent two years ago.
Medicaid, the program that supplies medical care for low-income families, is getting $200 million more to cover an expected 10 percent increase in enrollment. Nevada hospitals are being targeted for another 5 percent in reimbursement rates.
The hospitals will also be hit in another area. The state is taking $55 million from the indigent accident fund that reimburses hospitals for treating poor people injured in auto accidents.
The budget reduces by $3 per hour the amount paid to people who care for senior citizens in their home. But it is continuing the senior citizen tax relief program that helps 17,000 elderly persons.
The state’s checkup program that provides preventive care for children will be capped at 25,000 applicants. There are presently 24,000 enrolled. Mike Willden, director of the state Department of Health and Human Resources, estimates there are 55,000 eligible children and pregnant women.
In the public schools, the state’s per pupil support will go from $5,098 to $4,915 next fiscal year and to $4,946 in the 2011 fiscal year. This reduction doesn’t include the proposed 6 percent cutbacks in teacher salaries.
Gibbons proposes to suspend for two years such educational programs as Regional Professional Development, Incentives for Licensed Educational Personnel and Innovation and Prevention of Remediation Grant.
The full-day kindergarten program for at risks schools would remain at the current level. A teacher incentive program won’t be funded for a savings of $50.4 million. But the governor maintains there is enough for books, energy and to meet inflation.
In welfare, the rise in the number of people on public assistance is outstripping the federal share that is contributed. The state will have to put in an extra $12 million because of the limit on the federal share. The welfare division will receive a 10 percent increase in its budget to handle the rise in cases during the next biennium.
The governor’s budget envisions closing eight of the 20 mental health clinics in rural Nevada. And reducing staff at the three hospitals in other areas but the 234-beds at the hospital in Las Vegas will continue to operate at that level. The staff will be lowered but it will still be at the average national rate.
Gibbons is putting more money in the state Health Division to allow more inspections of health facilities. There is enough money to allow for a growth in cases in the child and family welfare programs in Clark and Washoe County, according to budget officials. And that agency budget is increasing 10 percent.
The governor intends to save more than $900 million by reducing the pay of state workers and school teachers by 6 percent; requiring state employees to pay more for their health insurance and retirement and suspending merit and longevity payments to them.
The Department of Cultural Affairs will suffer a 35 percent reduction in its budget, meaning museums will be closed four of the seven days – open only on Thursday, Friday Saturday and Sunday. But Director Michael Fischer said there is federal money for continued supplies for Nevada libraries during these hard times when people use the libraries more often.
The state Arts Council and the Historic Preservation Programs will be reduced by 50 percent in their budgets. The state Museum in White Pine County will be closed.
The proposed budget calls for the state Department of Corrections to receive $480.9 million, down 10.7 percent. It suggests closure of the old Nevada State Prison in Carson City and the conservation camp in Tonopah. Director Howard Skolnik said less crime is being committed and there are fewer people being sent to prison.
There will be major cutbacks in operations of the state park system. There will be seasonal closures of 10 state parks including the visitor’s center at Cathedral Gorge in Southern Nevada and reduced hours at the Las Vegas Mormon Fort.
The Elgin School House Park outside Caliente will be closed because the road washed out. And the Walker Lake State Park will be shut down because water level is so low that the boat launching facility is out of the water.
The Legislative Counsel Bureau, which acts as staff for the Legislature, will take a 20 percent reduction in its appropriation.
The proposed budget for the Nevada Supreme Court rises 12.3 percent to $55 million.
Cy Ryan may be reached at (775) 687 5032 or cy@lasvegassun.com.
He's proposing cutting 500 million dollars from higher education? This man is a laughing stock! That's thousands of jobs, in and out of higher education!
I'm listening to him talk, and he just said, "These are extraordinary times." Yes, Jim, they are.
Your budget doesn't ask mining to pay their fair share. They paid 200 million in taxes, an effective tax rate of one half of one percent! The state constitution calls for a 5% tax. Remove all those tax exemptions for the mining companies, stop the favoritism, and get us back on the road.
Closing museums and libraries? Keeping children from receiving preventative health and medical care?
What a joke.
I guess what burns me more is that his budget is largely symbolic. He's announced it (even though as of a few days ago, he still had no idea what it was going to say), but the budget that will be submitted will be tossed in the trash, where it belongs.
If only we could find a man-sized dumpster to throw Gibbons where he belongs.
First thing to fix the State budget: fire Gibbons!!
A 6% salary cut is an income tax imposed solely on public employees . . . employees who are already experiencing freezes, budget cuts, layoffs, and significant decreases in their benefits. All Nevadans need state services, but only public employees are being taxed to pay for it.
Nevada is already at the bottom of every education measure. If we allow the governor to cut education further, we will spend decades trying to crawl back out of this hole. Our long-term economic health depends on better educated employees and entrepreneurs. Our response to this crisis should be to increase money spent on education and the long-term health of our state
If Nevada had an equitable tax structure, then the appropriate response to this economic downturn would be to make budget cuts. But we have no such equitable tax system. There are plenty of big businesses (big ones, not little ones) who are paying little or no tax. They are making money hand over fist in Nevada, and sending their tax dollars back to schools and children in other states. Why are we allowing this? Why are we allowing our Governor to take the money from our children, our teachers, our state workers, so that companies like WalMart can send their money to California's tax system? Nevadans, say no! We do not have to accept cuts in critical services at this time. We have to raise more money. And the best way to show your community spirit is to demand that our governor and our legislature do it.
A 0.9% decrease in spending from 2008 to 2009 hardly sounds "bare-bones" to me. In the private sector, a 10% real cut for 2009 versus 2008 wouldn't be surprising in this economy, but then again, the private sector doesn't have the power of taxation.
To those of you who want to argue on the basis of fairness: It is established fact that colleges are not funded equitably in this state. There is clear evidence of long-term favoritism for some institutions over others. If we were talking about the private sector, most of you would argue for fairness. So I ask this much of you: If you are going to support a 6% reduction, could you not at least first follow your principles and demand that equity be established among the institutions prior to those cuts? Otherwise, you are allowing some within the system to benefit at the advantage of others in the system. Again, I ask you to consider your definition of "fairness" and whether you would not ask the same of us if this were a private sector matter. Please contact your legislators and the governor and ask that these discrepancies be addressed and resolved prior to any cuts.
Two things:
1) The Gov is likening himself to a modern-day Robin Hood, taking from the rich (counties) to give to the poor (state). Furthermore, weren't all the hysterical Freepers around here crying about Obama and income redistribution? But when their hero, the Gibbers, proposes essentially the same thing, they're mysteriously silent.
2) The Governor is required to present a balanced budget, yet Gibbons' proposed budget requires at least $100 million in bailout funds from the federal government... funds which have not been passed yet and may never be passed.
After violating the law with his appointment of Montero to the Tourism Commission, is he now fragrantly violating the state constitution by proposing an unbalanced budget?
I think Buckley said it best: that's some Enron-type accounting our Governor's proposed.
Barrick Gold is Canadian owned. All their profits go to Canada. Time to tax the gold mines in Elko and Eureka Counties and pay for some of the state services.
Why is it across the board 6%, no matter you are making $40K as a CCSD teacher, or $141K as the Governor himself?
When it comes to paying taxes, there are so called "tiers". The higher your income, the higher percentage you pay. How come when it comes to salary cut, suddenly it's ONLY for state workers, and it's one rate? It's very convenient for the high pay Governor and his cronies, isn't it?
And those private sectors that need to be pampered - since those who already lost their jobs will not suffer any pay cut, then those who are making good income, should help in this bad economy, as much as the state workers, so why are they not included?
Dear Governor, it's called taxes, and unfortunately, when you said that you didn't raise our taxes, you lied. You raised K12 teachers' taxes. You raised K12 teachers' taxes so you can use the money to help the private industries. I moved from private industries, took a voluntary pay cut, to teach at K12. Now I am given the mission of saving private industries. Am I dreaming? Warren Buffet needs my help?
You guys joking? $17.3 billion is bare bones?
That is 9% higher than 2005-2007 budget!!!!
"You guys joking? $17.3 billion is bare bones?
That is 9% higher than 2005-2007 budget!!!!"
Why are you quoting 2005-2007 and not 2007-2009? are you afraid of those numbers? Do you not understand that our population has grown since that budget was passed? Are you such a kool-ade drinker for this bum of a governor that you are willing to accept anything he says? When Our soon to be President (thank God) suggested this very thing, did you not rail against it on these same sites? Has your memory pulled a Palin? How bout you volunteer to give up 6% of your salary and eliminate your health care?
I guess you think it's OK to TAX state employees 6%, eliminate step pay and raise their costs, creating more foreclosures and less spending, and not tax the Mining companies the constitutionally mandated 5%. I can see you are for selective enforcement of the law. Thank you.
CMON... Yes, ol' Patrick/KDR from the very right-sided Nevada Public Research Institute WOULD think it ok to royally screw public educators and state workers. He, of course, is an expert on all things that cost a nickel of tax money & will tell us all how it can be done better(read; cheaper) and more efficiently/effectively. And tell us it's all for our own good. He IS a wise one.
Now then. Did our illustrious Guv not tell us,
"I will be the Education Governor." "I will put education FIRST."
Yes, he in fact did.
Gym Gibbens, ejukashun Gobner.
Jim Gibbons is doing exactly the right thing. I work in the private sector and I have seen a dramatic dip in my income. We are in a serious recession and everyone needs to tighten their belt including teachers.
Higher education should be cut dramatically. It is a well established fact that college graduates earn significantly more that non-college graduates. Therefore they don't need to be subsidized by taxpayers. They should haul more of their own load through student loans.
Raising taxes will only drive business and entrepreneurs out of the state. Remember these are they guys that actually create the jobs and pay state worker salaries.
I urge anyone against this proposal to please email or call your legistlature for more info on your district go to
http://mapserve.leg.state.nv.us/website/...
There's a political strategy at work here, in putting education in the cross hairs, there will be a hue and cry to restore it. Gibbons then has carte blanche to cut any state workers (lower paid, while the higher ups get their percs)while claiming it wasn't his idea to make cuts in state programs (especially for the poor, homeless, children).
State employees, look at what is around you and let the legislators know what to cut. That may preserve jobs and prevent job cuts.
And for God's sake, look at the unclaimed property website. The State Unclaimed Property Division owes the State Unclaimed Property Division money! How rediculous is that?
There needs to be a state procedure for each agency such that if they move, someone from that agency notifies the postal service, and this would effectively eliminate this loss of funds (the main cause of unclaimed property). There needs also to be a procedure to claim such funds. Most of the unclaimed property didn't need to go into limbo like this. That's hundreds of thousands of dollars!