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Wednesday, Feb. 3, 2010 | 8:04 p.m.
Gov. Jim Gibbons
Robin Reedy
Sun Coverage
Sun Archives
- $4 billion in local revenue might play in state budget game (1-30-2010)
- State budget comes up $800 million short (1-22-2010)
- Forecast: Economy will begin to rebound in mid-2011 (1-22-2010)
- Gibbons’ no-talk order further divides branches (1-22-10)
- Governor candidate Brian Sandoval floats budget plan (1-13-2010)
- Special session may require help of state Supreme Court (1-10-2010)
- State budget director: Prep for another 10 percent cut (12-15-2009)
CARSON CITY — Gov. Jim Gibbons’ senior staff released recommendations Wednesday evening to eliminate 235 jobs, close Nevada State Prison, and cut funding for school districts and higher education by 10 percent each.
The recommended budget cuts would also impact services to the poor, elderly and mentally disabled.
In total, the cuts would save about $328 million, according to the administration's figures.
When other cuts are included, the plan results in about $418 million in reductions, according to Gibbons’ chief of staff, Robin Reedy. That’s a far cry from the $881 million required to balance the budget. But it provides the first details about how the governor would make those cuts.
Gibbons’ senior staff presented the proposed cuts to lawmakers Wednesday during a three-hour meeting.
Democratic lawmakers seemed to acknowledge the plan’s merit, and would not dismiss any specific portion of it as unworkable.
“The list contains many things no one wants to see happen,” said Assembly Speaker Barbara Buckley, D-Las Vegas. “My guess is that many of the things will happen.”
“It’s a start,” said Senate Majority Leader Steven Horsford, D-Las Vegas. “These are all very, very ugly options. But they’re the types of things we hoped we would see. It’s far from meeting the $881 million shortfall, so we have a ways to go.”
Both Horsford and Buckley said lawmakers would spend tonight reviewing the cuts and preparing questions for the administration for when they meet again at 7 a.m. Thursday.
Reedy and Deputy Chief of Staff Lynn Hettrick said they did not want to say yet how the rest of the shortfall could be addressed.
Hettrick said they were still researching some ideas to see if they are legal or would generate revenue in time. Hettrick repeated that there would be no tax increases.
Among the items included in the governor’s presentation:
• Closure of Nevada State Prison in Carson City, eliminating 136 jobs.
• Reduction of funding to school districts by about 10 percent, or $166 million.
• The layoff of 27 people at the Gaming Control Board, which regulates the gaming industry.
• Reduction in hospital reimbursement rates of 5 percent, saving $6.2 million in state money and $9.2 million in federal money.
• Cuts to personal care services, including clinical screening for new clients and limits on incontinence supplies and medical glove coverage for providers.
• About 140 fewer housing placements for the homeless mentally ill, resulting in more mentally ill people on the street and in emergency rooms, but saving the state general fund about $4 million.
• A 10 percent, or $6 million, cut passed on to Clark County’s Department of Family Services, which provides foster care and child protective services to children.
How does the state simply reduce hospital payments? They still require the service be delivered to the patients the state is responsivle for they just are going to pay less. Then the hospitals will charge all the private paying patient more. Then the private insurance companies will raise premiums to cover these government forced increase in charges and the THEN the politicians will all call the insurance companies evil for raising rates.
This is what has been going on with health care every year for decades and the spiral continues.
Whew! At least the mansion servants, limo chauffers, and state jet fleet was spared.
Dummocrats will roll over and have their belly scratched while wagging their wimpy tails.
How much would a 1 cent a gallon gas tax bring in? This is nothing but a teachers union busting charade by Governor Paranoia.
I am sure Governor Paranoia will implore the Power company and the gas stations and the (fill in the blank) to reduce their prices 10% too.
This is the most unqualified state executive in the history of the USA. The Worst Governor Ever. He makes Arnold look brilliant.
Does anyone know how this will affect the school lunch program?
School lunch programs are largely federal, not state.
Comment removed by moderator. Comment contained an advertisement.
eliminate the "fake cps" job that does nothing but waste $ diferentil response. Waste of cash
nothing about salary cuts, they are all out for themselves. But yet they are quick to cut positions, but they can't reduce thier salary. I see a revolt brewing
So today we learn the Governor's plan for fixing Nevada's economy? Increase unemployment.
Way to lead, Jim.
Every state should consider a flat 5% sales tax and lift the ban on Internet taxes. Everyone would be on an equal playing field.
Nevada, and many other states, would have better balance sheets if they could collect 5% from online purchases.
My Samsung 46" tv ($1,800) shipped from Amazon and I was not charged a dime in sales tax.
The same purchase at the local furniture store would have provided $126.00 to the state.
Multiply this by millions of shoppers and you get the picture.
Thank you, Governor.
Now, you and the legislature need to do the following to make up the difference:
1. Increase the tax on mining so that they are paying their fair share. You can do it by reducing the benefits on the write offs they get, since to directly raise their tax would need a change in the state constitution.
Why do this? Because they are not paying their fair share. While Nevada families are paying 7.25% in sales tax, mining is paying 0.5%.
2. Increase the tax that big box stores like Wal-Mart pay. When compared by ration to small businesses in Nevada, small businesses are paying much more. Time to belly up to the bar and pay your way instead of depending on welfare tax breaks, Wal-Mart.
3. There is 4 billion in Clark County for construction projects that are not being built. The total shortfall is 881 million, according to the Governor. See the solution?
Now, instead of harming Nevada families further, make business and government pay their fair share by doing the above and lets all get back to life.
CJ- Run for governor!
Gibbons and the Gang of 64 have many options.
I guess we all get "tea-bagged" because they don't really care about anyone but big money interests.
Government can be streamlined, but these draconian cuts will lead many to see Nevada in the rear-view mirror.
yah, speedstrum, I get the picture... more of my money going to an already overbloated government.
The answer isn't more taxes; the answer is less spending.
"The recommended budget cuts would also impact services to the poor,"
I love the obvious that is brought up whenever the talk is about budget cuts.
OF COURSE tax funded budget cuts would impact the poor because they're the largest group of people benefiting from social services.
Duh.
Needle-
Did I advocate more taxes? NO!
I advocate collecting taxes that I should have paid on my TV that is sitting in my living room!
Your Interstate roads were built with "more taxes".
We went to the moon with "more taxes".
You are using the Internet that was built by DARPA- that was funded with "more taxes".
You eat food that is subsidized by "federal taxes".
Your neighbors house is now owned by a bank that accepted "more taxes".
Your parks, sewer, water, energy, education and FREEDOM (military) are paid for with "more taxes".
Nevada is the second lowest taxed state in the union and you still bitch- you must be a tea party executive by now.
Proposed spending cuts MUST significantly EXCEED revenue projections because additional revenue reductions will be required in the form of TAX-CUTS to re-start the economy.
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RE: CJJAMES
"2. Increase the tax that big box stores like Wal-Mart pay. When compared by ration to small businesses in Nevada, small businesses are paying much more. Time to belly up to the bar and pay your way instead of depending on welfare tax breaks, Wal-Mart."
Every night at 11:30 PM PST a giant switch goes off and millions of dollars are sent to Walmart Headquarters in Arkansas. About 15 minutes later about 40-80% of that money coupled with the rest of the countries collections are shipped to China. We get in return the high paid, extremely hard to find almost full time paychecks back into the community. What a bargain.
At least when WalMart only used made in the USA items (which is how they prospered) we had a fighting chance.
Then the Walton Family uses their billions to con all these airhead republicans that think business is God and should be obeyed at all cost will get these same airheads to feel sorry for them because of the inheritance tax they will do everything possible to avoid.
And Nevada suffers, China builds another skyscraper. And the neocons call Obama a socialist.
And the even dumber democrats (You see all the neocons rushing to their defense while they are politically slitting their throats) are going to try to justify this as a fait accompli.
I wrote a letter to State Senator Horsford about 2 weeks ago. No reply. That is what he will get when he asks for my vote again. No reply.
I guess no one has read his budget cuts. Lay off 27 Gaming employees. Well I can see the casino foaming at the mouth. No more on the spot inspections of the counting procedure. Wonderful no more checks and balancing.
He will not be getting my vote by cutting education
Keep up the work Gov Gibbs. And help The Mayor Kick King Obama out of Vegas. unless he whats the to play two billion on RED ......
These cuts are going o hurt us all. What will they do for the next budget if there is no secondary stimulus program?
CJ has a good start.
(1) I have been saying for years that mining needs to be taxed their fair share by eliminating the write offs. Gaming does not get to write off their expense to bring in the winnings and why should mining, especially when gold is so high. Where will the mining companies go? gold is here...
(2) a small pay cut to state employees exempting teachers. Why you ask, because teachers in this state are still below the national average while the majority of other state employees are above average. This can be done in reducing benefits and not actual pay cuts, but pay freezes for many years to come would be smart. We can talk later about merit pay for teachers as I believe that needs to be implemented instead of union bargin agreements.
(3) Capital road projects and other items need to be re evaluated and spent where it is needed. Better priority needs to be set based on congestion. A small increase in fuel tax is not a bad idea as sitting in traffic will cost you more then a few pennies a gallon at the pump.
(4) Then in the future we need to look at taxes across the board. Low to no taxes on business won't bring new business to Nevada alone. We need a better education system, transportation network and more. This does not come free, but we can do it with a new tax structure that is still low burden compared to other states and make it that much better for all.
(5) Local governments need to look at their employee programs and figure how to better save. Invest wisely today while costs are down to save tomorrow. This includes new energy efficiencies, reduction in water costs through smart landscaping and more. Change employee programs and hire where needed to reduce severe overtime. If the local governments finances are in order and given better control of their tax collections everyones budgets will be easier to balance.
THS
Where were you state employees already took a 4.8% cut in pay. Taxes this state is number 27 in local and state taxes. Go to Utah then you will know taxes. They tax the food you buy in grocery store.
THS -
teachers make up 70% plus of the state work force - they work 180 days compared to 240 that real state workers work (365 less weekends less 11 holidays less 10 vacation)so they make GOOD money. Plus their retirement IS PAID FOR - we pay for ours by either a) lower pay or b) a 11.25% per paycheck deduction. I for one am tired of teachers crying about their pay and feeling they should be exempt from cuts. The school administrators and teachers should also have to take the cuts we state workers have had to. So far they have NOT taken a cut. Let them pay the 11.25% of their retirement!! Sounds fair to me.
He will also not get my vote by cutting ed. See ya Jim!
The Democrats here posting are saying to raise taxes.
The Democrats leadership is saying to do all via cuts.
Why you do not elect Democrats that are so spineless or that ignore your wishes?
How is it that these proposed budget cuts do not address overpayments yet to be collected and fees which have not been collected. For example, the administrator of Nevada Medicaid and it's fiscal staff made a big "to-do" during the 2007 legislative session about an auditor finding an overpayment of $8M to Clark County...has that $8M overpayment been collected yet? And we have all heard about all the overpayments and fees left uncollected by various state agencies...I saw none of those issues addressed in the Governor's proposed cuts. Why is the Governor's office ignoring this money yet to be collected? Tell state workers to do quit belly aching about salary cuts and lay offs and get out there and do their jobs...go after these big bucks!!
Cut teachers, cut casino regulation, cut road building, cut incontenence supplies, cut medical care. But, retain the governor's gold-plated medical insurance policy, retain his limo, retain his mansion, retain his expense budget.
The real solution is to move the state government out of Carson City to area 51. They already operate in sci-fi fantasy mode. Let the UFO's provide the lights. Let the legislators buy their own parkas and fans.
Or, do what Sarah Palin did in Alaska: really tax those mines. She taxed and taxed the oil companies. Or, do what the GOP does in other states and really tax casinos... not the 6 or 7% but the 15-25% elsewhere. Or, admit we need an income tax of a few percent. Then we can get rid of the $500/year tax on car registration while most states charge 30-40 dollars. There are plenty of solutions. BTW, those that threaten to not vote for Gibbons: what took you so long? It was clear he was a loser years ago.
Hey folks -
don't forget gibbons doubled the salaries of his staff and it is this staff that are making the purposals for cuts. When they retire - their retirement will be based on these inflated salaries. What a hipocrit! He forms the SAGE committee to go after retirement benefits and then pulls this stunt? Sandoval is just a new face on gibbon's policies and stance and has copied gibbons so don't be fooled by a pretty face!
Well it's clear from the comments above that cuts in Education won't make a difference. Hell, forget grammar and spelling; some of the "statements" above border on word salad.
Hm. Oh that's right! That's what you do today. You read the words you have an affinity for and then you put them together to make whatever point and/or thought you'd like.
Silly me.
Education! Pfft. Who needs it? Effectively communicate? I don't understand the question...
I have to laugh at some of these people that keep saying cut government services to save money. I bet these are the same people who go to do business that requires a local government and whine and complain that they have to stand in line too long. Sorry but most of what I hear are hypocrites. Just wondering.
Another way to say money would be to put all of the local government entities on a 4-10 schedule and close the doors on either Monday or Friday. Cuts definately have to be made but now is the time for thinking out side of the box. Same old same old does not work anymore. Bring nevada into the 21st century.
just propose tax breaks for our rich and lazy, that'll solve everything, it worked the past 8 years so well. yuck yuck,
always the poor paying for the rich getting away with the store. good old usa
There are some fat-cat state workers collecting the big bucks and doing minimal work in return. Hit them hard with mandatory furloughs. Teachers should be exempted for all the *!##*! and low wages they have to put up with, only if they do work 9 months at teaching. Most are struggling with part-time jobs the other 3 months to make ends meet. As for the mining biz, it's unconscionable what they get away with. Demand that the gov call the legislature into special session to change the state constitution - and lock out the miner's lobbyists who will whine about all the jobs that will go away. Like "ths" above said, if the miners want our gold, they have to come here to get it. It's not going away.
ths, can you run for governor?
Hey badwater - You start out with "some fat cat state workers" but then you lump all state workers together. Just another day in hypocrite land. Are you another one who lumps all immigrants as illegal or bad for our country? Just wondering.....
Can't our elected representatives try to come up with better budget solutions than butchering the funding system of our schools and universities depend on, forcing major layoffs, and cutting vital health care services our handicapped citizens and others need for their very existence?
How about taxing major corporations?
It's been stated over 300,000 companies incorporated in Nevada pay no taxes on corporate income and that all states have a Corporate Profits tax except Nevada, Washington and Wyoming. The corporate profits tax in is between 5% and 6.9% in neighboring states
If Nevada had a Corporate Profits Tax, the revenue generated from Nevada's hundreds of big chain stores would help greatly to close the budget shortfall.
When is the legislature and governor going to face up to the fact that our 30 year tax system based on "don't raise anyone's taxes" is dysfunctional and in need of a serious overhaul.