Gibbons says federal money could help avoid cuts

By David McGrath Schwartz

Friday, Jan. 23, 2009 | 10 a.m.

Hold off on those budget cuts! Gov. Jim Gibbons said the cavalry is coming with federal dollars.

Gov. Jim Gibbons said the federal economic stimulus could include as much $1.3 billion for Nevada, possibly reversing the need for some of his recommended cuts, he said in a letter to legislators released Thursday night.

The money "shows great promise for the partial or full reversal of many of the difficult but necessary spending reductions we are currently discussing."

Gibbons last week released a budget that included $2.3 billion in cuts or revenue enhancements, compared to the budget that he signed in 2007. It has not been received warmly by most legislators.

Gibbons said in the letter that the federal bailout would include money for education, federal health care programs and infrastructure.

Gibbons said if the bill passes Congress and is signed by President Barack Obama, he would submit a supplemental budget bill to reverse some of his recommended cuts.

On Thursday, legislators held hearings on the governor's budget. Democrats took the lead in criticizing many aspects, including 6 percent cuts to teachers and state workers pay, eliminating k-12 education programs and offices meant to protect consumers. But Republicans also cast a skeptical eye when the higher education budget, with 36 percent cuts to funding, were discussed.