state budget:

Legislators settle on spending plan

Lawmakers agree to cut higher education by 12.5 percent

Published Tuesday, May 12, 2009 | 6:24 p.m.

Updated Tuesday, May 12, 2009 | 7:41 p.m.

Archive of Sun politics stories

Legislative leaders finalized a spending plan on Tuesday, agreeing to spend "just south of $7 billion," according to Senate Majority Leader Steven Horsford.

Gov. Jim Gibbons' spending plan is $6.2 billion for the next two years, and the shortfall gap, which sources say is in the high $700 millions, would have to be raised with taxes or other additional revenue, such as taking money from local governments.

The final piece of the budget was higher education and a fund that provided money for K-12 education grants. Monday night, Senate Democrats wanted cuts to be held at 12 percent; Republicans and Assembly Democrats wanted to settle on 13 percent.

On Tuesday, a joint budget subcommittee voted to recommend a 12.5 percent cut. Additionally, the committee voted to suspend rules so that tuition increases would go directly into higher education, instead of the state's general fund.

Dan Klaich, executive vice chancellor for the Nevada System of Higher Education, said that with tuition increases, the cuts compared to the 2007 Legislature's approved budget would be reduced by 10 percent.

The Legislature recommended that tuition increases be limited to 5 percent each year.

Asked if students should be prepared for some increase, Klaich said yes.

He said other effects to higher education would be "defacto if not explicit caps on enrollments" at some institutions.

Gov. Jim Gibbons had recommended a 36 percent cut to higher education, a number that Republicans and Democrats agreed was too much.

Discussion: 4 comments so far…

By travislv86

5/12/09 at 7:59 p.m.

Suggest removal

So that only took a few months. So 700 mil in taxes". is that about 250 a resident? 20 bucks more a month, that is going to break everyone's bank? Just raise sales tax, the citizens need to pay for this. To save 20 a month I'll stop going to starbucks and come out a grand ahead at the end of the year. Or I can skip my anniversary dinner on the strip that generally costs about 250 as well. The drama for me is how this is still going to get messed up and go to special session, and captain sheet for brains will have the final say.
By afveteran

5/12/09 at 8:25 p.m.

Suggest removal

The governor and the legislators needed to cut a billion more from the 2 year budget, a more realistic figure and one that we the taxpayers could live with.
By nevadaappleslices

5/12/09 at 9:39 p.m.

Suggest removal

woohoo, UNLV is almost recession proof! learn the lesson kids that you should grow up and work for the state.
By Mastermcom

5/13/09 at 12:13 a.m.

Suggest removal

So much for the budget ... now how do you pay for it ... hey here's a clue ... tax the mining guys, they not only have the money, but they pay less than 2/10 of 1% in taxes on the gross revenue that they take out of Nevada. But there
product: gold & silver is going up in value.

With the TARP plan, you can bet the prices of gold and silver with pretty much double by 2010,
and then double again by 2012. Unless of course,
interest rates rise by 200%.

So a gross revenue tax on mining of 3% would solve most if not all our state money problems.
We'd be covered also for when the value of the dollar plummets into the abyss.

But it will not happen because the legislature is are cluless about finance. But so what else is new. This is Nevada.

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