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By Cara McCoy 
Wednesday, Nov. 11, 2009 | 1:10 p.m.
Beyond the Sun
Sun Coverage
The financial woes of states like Nevada and California are no secret, but a report released today indicates the states’ fiscal problems could be a harbinger of bad times to come for the entire nation.
Nevada, along with neighboring states California, Arizona and Oregon, are among the 10 most troubled states to watch, according to a Pew Center on the States analysis, "Beyond California: States in Fiscal Peril."
The other states on the list are: Florida, Illinois, Michigan, New Jersey, Rhode Island and Wisconsin.
Pew researchers said the 10 states on the list account for more than one-third of the country’s population and its economic output. What state governments do to balance budgets can have an effect on the rest of the country and could slow down its recovery, researchers said.
In their analysis, researchers determined factors that contributed to California's problems and then analyzed the degree to which other states have experienced those problems.
The factors they looked at were loss of state revenues, relative size of budget gaps, increasing joblessness, high foreclosures rates, legal obstacles to balanced budgets and poor money management practices.
According to the report, the last time Nevada’s economy was in this bad of shape was the year it opted to legalize gambling – a move intended to pump revenue into a sparsely populated state struggling to recover from the Great Depression.
This time, gambling is the cause of its problems: tourism is down and those who do visit are spending less, the report says.
Researchers said Nevada's gaming-based economy is "in jeopardy." They said 60 percent of Nevada's budget revenue comes from gambling and sales tax, and that year-over-year, revenue has fallen a record two years in a row.
That lack of revenue has been disastrous for the state budget, they said. Because there is no personal or corporate tax, the budget for state services will continue to suffer as long as gaming and sales revenue remains low.
Researchers cited the challenges inherent in changing Nevada's tax system because, unlike in most other states, some tax laws are part of Nevada's constitution.
"Increasing the sales tax or adding an income tax, for example, would be nearly impossible because it requires voters to amend the constitution," researchers pointed out.
The group also noted fractures in state government, as Gov. Jim Gibbons’ support from the Republican Party has waned and he’s had battles with the Democratic-controlled Legislature, using his veto stamp on a record 41 bills.
The research group scored all 50 states based on data available July 31.
At the time Pew analyzed the numbers, the unemployment and foreclosure rates in Nevada were the second highest in the nation. The median home valuation has dropped more than in any other state and new construction has “virtually stopped,” researchers said.
Ten years ago, Nevada led the nation in the percentage of jobs created; in contrast, only Michigan now has a higher percentage of unemployed.
It’s not just Nevada that’s in trouble.
"The 10 states are hardly the only ones at risk in this time of record-setting revenue drops, high unemployment and far-flung fallout from the housing bust and credit crisis. Virtually all states have been stressed by the downturn," said Susan Urahn, managing director of the Pew Center on the States, in a statement.
"We expect that when state lawmakers next spring turn to crafting their new budgets for 2011, many will confront an even tougher set of challenges. States already have made significant cuts, revenues continue to drop, and stimulus funds will be running out."
The study cited the unbalanced economies of Nevada, Florida, Michigan and Oregon, which have struggled partly because their economies have been dependent on a particular industry.
Researchers noted that their report isn’t a comprehensive diagnosis of states’ fiscal health; rather, it’s a means to understand why the recession has impacted some states more severely than others.
The report is dead on. Start making salary reductions at the State and local level. Many of these individuals need to take a 5% to 10% payroll cut. Some could take a 50% pay cut and would still be great salaries.
http://transparentnevada.com
Here is the entire salary list for the citizens of Nevada to look over.
http://transparentnevada.com/salaries/al...
Reducing salaries is only a part of the probelm. A much larger issue is that Nevada is way too dependant on gaming and tourism. There will be no construction in the near future either.
There has been talk of diversification for years, but companies won't move here because of the university stinks, and the public schools are below standard.
It is a matter of we get what we pay for. No diverse business base, no diverse tax base.
every election you hear the fire department
whining how they need more money.
just look at the salaries of these people.
they imply that if they don't get more money
they will be unable to fight fires.
when's the last time you saw a fire?
those guys sit around the fire house all day and
drink, eat and watch h.b.o. television.
for this the citizens pay these rediculous wages
I didn't realize these fire fighters make twice as much as some of these salary of pepole with much more education and training.
How wonderful the world is if you can smooche your way into this. Sit in your office from 9-5 and collect paycheck every day. Attend few training seminars and go on trips.
Can you believe the retirement for these fat cats?
No wonder this country is so screwed up.
Nevada's employee payrolls are so far out of balance with the private sector its ridiculous. If we do not get control over salaries and benefits of gavernment employees they will bankrupt this state for sure. Its not just fire fighters folks. They have janitors making $60,000 a year. Unless you are requiring a college degree for janitors thats a ridiculous salary. I believe everyone needs to make a living wage but come on. I have a friend who is a fire fighter and loves his job because he hardly ever has to work and he pulled down over 120,000 last year. When is the abuse of the taxpayers going to stop????
Pension plans are outrageous.
I live nextdoor to a retired cop, Retired at 5o! at home in the pool and will be paid for life. Come on, 50?
info4u,
Thanks for the link.
The Firefighter numbers are sure to cause some outrage with the taxpayers.
this is omninous..
Nevada is not alone in their fight to balance state, county and city budgets.
Calfornia, Arizona, Oregon, Illinois, Florida, New Jersey, Michigan, Wisconsin and Rhode Island are having severe problems like the State of Nevada.
http://www.pewcenteronthestates.org/repo...
http://news.yahoo.com/s/ap/20091111/ap_o...
Maybe the State needs to stop reinstating retirees. If your going to spend tax payer money why not hire someone who is part of the 14% unemployed?
Florida, Michigan, Oregon, California and Arizona all have far more diverse tax codes than Nevada.
Adding a business tax or a personal income tax won't help either - especially since the business tax is the most volatile tax source around.
A severe and DEEP cut in high paid employess has to start immediately. These salaries are so far out of line its not even funny.http://transparentnevada.com/salaries/al...
Take a HARD look...its your TAX money going down the tubes.
Why would you want to live next door to a cop?
I looked at the Pay Lists. Where do I sign up for one of these Jobs ????
Any entity funded by theft through taxation deserves to fail.
"We cannot solve today's problems with the same level of thinking that created them." - A. Einstein
: }
Look at the list. The union jobs like firefighters are overpaid. However, non union government professionals, like attorneys and doctors, are underpaid (in many cases vastly underpaid) compared to the private sector.
Just saying the salaries are the problem is missing the point. Its the unions that are causing the discrepancy. The same is true in the private sector as well as the public sector.
Is the salaries here really a product of capitalism or socialism? Likely a type of socialism you will find in old Soviet system. People stealing from others because they can get away with it.
Betcha, the same people receiving this type of outrageous pay are same people complaining that the new health care is socialist agenda blah blah....paying too much taxes blah .. blah..
They don't have to worry about health care because they already get free health care from govt. for rest of their life with pension plan. They just don't want rest of us to get decent health care at affordable price.
"We cannot solve today's problems with the same level of thinking that incubates social parasites." -- Harley's twist on Einstein
: )
I cant believe what these government employees are making here in Nevada. This is a BIG wake up call. Certainly no more taxes is the watchword at this point.
http://transparentnevada.com/salaries/20...
So .... Governor Gibbons was actually smart in requiring all the cuts he demanded.
The democrat leaders at the state level fought tooth and nail all the way. The only way to get what was needed was for him to continually veto anything less than what he required.
Every time, without fail, whenever leaders are asked to trim their budgets the first thing to happen is the scare tactics of cuts hurting children and the elderly.
Increase class sizes, Have school only 9 months of the year, stop building more schools that have to be staffed and maintained. Increase the length of the school day. Get our money's worth of the HVAC costs for these buildings. It is ludicrous to have school going in the hottest months of the year.
While we are at it, close some of the fire stations, and stop sending out fire trucks on every 911 call that comes in. What a waste. They only watch most of the fires burn themselves out anyway. If anyone actually believes they are going in to to do anything , better think again. It is only about containment.
Reduce NDOT's budget and require more competitive bidding for even small projects that would normally be considered maintainence. Companies will do the work right now at "cost" just to keep their doors open.
There are answers, just none that public employees and their administrators want to look at.
The first priority is to find and deport all illegal aliens sucking off of our system, don't forget that in California alone there are an estimated 12 million illegals draining the state's recources..
CALIFORNIA
Actually, there are nearly 3 million immigrants living in the State of California.
SOURCE:
http://www.usimmigrationsupport.org/cali...
In 2000 more than 32%, or nearly 2,200,000 illegal immigrants, resided in California. With the highest illegal immigration rate in the nation in the year 1999, California requested compensation of $600 million from the federal government (under the federal State Criminal Alien Assistance Program or SCAAP) towards the incarceration of illegal immigrants.
California taxpayers had to pay the additional $360 million as the federal government only paid $240 million in compensation.
California's illegal immigration in 1996 was estimated to cost taxpayers in California around $8 billion.
California provides nursing home care, pre-natal care, and Emergency Medicaid to both legal and illegal aliens, a cost that is footed by California's taxpayers.
NEVADA
As of 2007, FAIR estimates the state's illegal alien population at about 170,000 persons which equates to less than approximately 6.8% of the overall population. The annual fiscal cost to Nevada taxpayers for emergency medical care, education, and incarceration projected by FAIR is currently $518 million and is estimated to rise to $950 million per year by 2010 and $1.8 billion per year in 2020.
Some economic analysts claim that illegal immigration places an enormous burden on taxpayers in Nevada. Public funds are used to provide quality education, health care and other services to American citizens and legal immigrants, particularly the poor, minorities and children. The cost of these services has been exasperated by the needs of the insurmountable numbers of poor, unskilled illegal immigrants.
The expense is becoming more than the taxpaying American citizen can cover.
SOURCE: http://www.usimmigrationsupport.org/neva...
ARIZONA
Arizona has the sixth largest number of illegal immigrants in the U.S. Approximately 283,000 illegal aliens are believed to reside in Arizona as of 2000, according to USCIS figures. This estimate is 146% higher than the previous USCIS estimate in 1996, and 222% higher than the estimate for 1990. The Arizona border with Mexico is a popular point for illegal crossings.
Arizona authorities requested compensation of $41 million from the federal government in 1999 for the incarceration of illegal aliens in state and local jails and prisons (under the federal State Criminal Alien Assistance Program, or SCAAP). However, only $16 million was received, leaving $25 million in uncompensated costs to be borne by Arizona taxpayers.
SOURCE http://www.usimmigrationsupport.org/ariz...
MORE INFORMATION for you to read state by state.
http://www.usimmigrationsupport.org/arti...
Just keeping people informed.
Federal stimulus money is being used to save state, county and city government jobs by covering budget shortfalls in each state.
A report by the Center for Economic and Policy Research says that state and local budget deficits to the tune of $100 billion a year will offset the stimulative effect of the president's American Recovery and Reinvestment Act.
Stimulus dollars used to cover deficits will have no stimulative effect, and the benefit of stimulus money well-spent will be offset if states increase taxes or decrease spending to close budget gaps, the report says.
SOURCE:
http://www.huffingtonpost.com/2009/05/04......
Do a Google search on "stimulus state budget shortfalls". Here is more info:
SOURCE:
http://bobscorner.tumblr.com/post/996566............
Georgia- State budget shortfall eliminated by cutting $1.5 billion in programs and using $1.3 billion in federal stimulus funds.
Idaho-Governor proposes to use federal stimulus funds to offset state budget shortfall.
Indiana - Senate uses $823 million in federal stimulus funds to eliminate state budget shortfall.
Louisiana- Governor uses federal stimulus funds to partially cover state budget shortfall.
Maryland --Passes budget that cuts $866 million and uses $1.5 billion in federal stimulus funds. State still expects a $1 billion state budget shortfall next year.
New York -Governor proposes to eliminate $17 billion state budget shortfall with new taxes, fees and use of federal stimulus funds.
Oklahoma-Federal stimulus funds will help solve $900 million state budget shortfall.
Tennessee -Governor uses federal stimulus funds to mitigate state budget shortfall.
Virginia--$3.7 billion State budget shortfall eliminated by use of $1.6 billion in federal stimulus funs; $1.1 billion in cuts; and other measures.
Washington --Democrat Legislators plan to eliminate $9.3 billion state budget shortfall by taxes, fees, use of pension funds; budget cuts, accounting gimmicks, and use of federal stimulus money.
Its obvious that business as usual can NOT continue. The first order of business would be to
correct the unconstitutional property tax schemes for NV. Unchecked growth in Property taxes and NV Government services can not be sustained. A fair property tax would eliminate the need for hundreds of Nevada State Tax commission employees across the State saving precious resources. A review of all NV Local and State Gov Jobs to eliminate excess pay and un-needed positions.
Or perhaps we can all just keep our heads in the sand and pretend all is fine and keep going down the road until all the wheels come off.
It is really too bad that some these readers do NOT know the facts. Only 1% of the state employees make over $100,000 per year.
The majority of the employees are probably making somewhere around $55-65K per year. The state contributes about 10% to the retirement and the employee does the same.
The janitors that you may be referring to that make $60k per year are probably Clark or Washoe County employees.
I would like to know where you get your facts. The state pay scale is posted on-line for anyone to review.