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Sunday, Feb. 7, 2010 | 12:23 p.m.
Gov. Jim Gibbons
Sun Archives
- Governor’s speech will lay out state’s budget problems (2-7-10)
- State budget comes up $800 million short (1-22-10)
- Forecast: Economy will begin to rebound in mid-2011 (1-22-10)
- Gibbons’ no-talk order further divides branches (1-22-10)
- Special session may require help of state Supreme Court (1-10-10)
Nevada's budget is so far out of balance that by one account the state could lay off every worker paid from the general fund and still be $300 million in the red. The economic downturn has hit so hard that prisons may be closed, entire colleges shuttered and thousands left without jobs.
Against the backdrop of an imploding economy and an $881 million shortage, Gov. Jim Gibbons will try in an emergency "State of the State" address Monday to explain the depth of the state's financial crisis and how fixing the gaping hole in the budget.
It won't be pretty.
Nevada, with a heavy reliance on discretionary spending through gambling and sales taxes, has been especially hard hit by the recession as tourists and gamblers hold on to their money. The state's unemployment rate has hit 13 percent, and a once booming housing market that created thousands of high-paying construction jobs has gone bust, with Nevada topping the nation in foreclosures.
In his address, Gibbons plans to call the Legislature into a special session in late February and instruct lawmakers on areas they can focus on. It will be left to the state Assembly and Senate to tackle painful education and social services cuts.
"Nevadans need to get used to the idea of shrinking state government," said Gibbons' spokesman Daniel Burns.
Senate Majority Leader Steven Horsford, D-North Las Vegas, said Nevada faces "very, very ugly" options. Horsford will give the Legislature's response immediately after Gibbons' televised 6 p.m. speech.
Details of the governor's address have not been released. But the first-term Republican who is seeking re-election has released pages of proposals for closing the hole in the $6.9 billion budget passed by the 2009 Legislature.
The governor has said he anticipates 234 state layoffs, and notices already are being sent to employees who must be given a 30-day warning.
Lynn Hettrick, deputy chief of staff, said the governor wants to try to avoid more layoffs because the state must pay the full cost of unemployment benefits for affected workers. Nevada is on track to borrow $1 billion from the federal government to meet jobless claims because its unemployment insurance trust fund has gone broke.
"When we lay somebody off, it doesn't save us very much money," Hettrick said. "Between that and taking the money out of the economy, it really doesn't make sense for Nevada to lay off people."
Still, budget cuts could result in thousands of layoffs with the shock waves reverberating for years.
While Gibbons has told state agencies to prepare for 10 percent cuts, his proposals so far total only $418 million, less than half the deficit.
Assembly Speaker Barbara Buckley, D-Las Vegas, said balancing the budget would require 22 percent cuts across the board. She said the state could lay off every worker paid from the state general fund _ and still be $300 million short.
Gibbons, a staunch no-tax proponent, has said new taxes are not an option, and legislative leaders seem to agree raising taxes is unpalatable in the sour economy.
Eric Herzik, a political science professor at the University of Nevada, Reno, said the governor's speech will set the tone for Nevada's immediate future.
"This is a time for Jim Gibbons to either cling to his very limited vision of Nevada, or articulate a vision that is very different than the past. Everybody talks about a diversified economy, getting away from a reliance on gaming. But so far nobody's done anything about it."
Nevada's education system could take the brunt of the blow.
Schools superintendents have pleaded for flexibility from mandates on class sizes and full-day kindergarten, and appealed for an emergency declaration to suspend collective bargaining agreements with teachers. They also proposed reducing the required 180-day school year. Each day eliminated would save about $13 million.
While most state employees beginning last July were required to take one day off per month without pay, teachers were essentially exempt because of their contracts.
Administrators say unless negotiations are reopened and teachers agree to salary cuts, layoffs are unavoidable.
Walt Rulffes, superintendent of the Clark County School District, the nation's fifth largest, said without concessions, a 10 percent budget cut would require him to lay off more than 2,000 teachers.
But Lynn Warne, president of the Nevada State Education Association, opposed cutting teacher salaries unless it was agreed to through collective bargaining.
"I must tell you that we all are tired of the hand-wringing and the seemingly rehearsed response, 'There is no appetite for taxes,'" she said during a recent Interim Finance Committee hearing.
We hope the Gov. addresses the part of the budget in which collected restitution is put into the State general fund and disseminated to the State rather than to the victims of the crimes.
"Gov. Jim Gibbons will try in an emergency "State of the State" address Monday to explain".
He's on the right track. An "emergency" needs to be declared so re-organization can go forward in the bankruptcy court. This will protect all State, county and city employees who are owed monies from PERS.
For the State to continue doing business without a state of emergency, PERS is first come first served until drained.
"'Nevadans need to get used to the idea of shrinking state government,' said Gibbons' spokesman Daniel Burns".
Gov. Gibbons should start shrinking government by laying off Daniel Burns. Daniel Burns has the criminal evidence under NRS 199 of child abuse. When asked to respond, Daniel Burns becomes irate.
"...Lynn Warne, president of the Nevada State Education Association, opposed cutting teacher salaries unless it was agreed to through collective bargaining".
Hence, the need for a state of emergency. Without a declared emergency, all collective bargaining units (attorney generals, district attorneys, unions, etc.) could sue State of NV. As a result, State of NV would be worse off than it already is.
"Nevada is on track to borrow $1 billion from the federal government to meet jobless claims because its unemployment insurance trust fund has gone broke."
^^^^^^^^^^^^^^^^^^^^^^
WAIT a minute...isn't that [gasp...] "Socialism"?
Ah...yeah. It sure as hel! is...and a decision made by a republican?...depending on the goverment he HATES and RAILS against to cover his ass(ets)in a time of dire need...
He's "going socialist" to try to save his state after his party nearly crashed the planet.
Wouldn't it be amuzing to have our government refuse to assist Nevada in her time of need, and tell this republican Obama-hating moron gov to just "go eat cake".
You know, like the GOP in congress are saying to the American people with their wall of obstruction...refusing to work with this president, and deliberately undermining this country, and everyone in it, to uphold their failed ideology, and make this president fail.
Na. We won't do that. That is not what America is about. We take care of our people...or, do we?
There seems to be a small percentage of radical morons--conservative righties, who would prefer to see people die than help make changes to the murdering insurance cartel that has a stranglehold on Americans lives--picking and chosing who lives and dies--based on greed. And the big excuse they use against reform is, yep, "socializm" equating reform to a "Government takeover of healthcare"--pure scare tactics as you can see by the gov's insta-flip.
This is a "socialized" nation period, and there is not a dang thing wrong with America helping Americans.
Get a grip on reality you fringe-righties and support your fellow citizen by supporting HC reform.
Gibbons needs to get used to his own shrinking member:
http://www.lasvegasnow.com/Global/story....
I can't wait to hear the rest of the "love condo" story at 5 pm.
Nothing like working for the state while your boss, the Love Guv, pops viagra and chases women and yells, "cut, cut, cut!"
I'm sure he'll do everything he can . . . except even begin to discuss the possibility of raising taxes on the mining industry. etc.
This is like the same article that his been on here everyday the last two weeks.
renomouse...
THE LOVE CONDO! I like the Love Shack, but hey, at least the grist is finally beginning to hit the mill.
That Governor Gym, what a SLY FOX!
Looks like Mr. Gibbons' sins may FINALLY be coming back to bite Gymmy in the butt. KARMA time, GYM!
As to the big "emergency address" to the state, gee, Gym, I wonder what you'll say?
"We're broke, and I don't know how to fix us."
DUH!!!
The beginning of solving the problem can only begin this November when all the incumbents who are protecting Big Mining and Big Gambling have to go look for another job.
We need new revenue streams which should include:
1. A lottery, and
2. Mining paying a fair royalty for what it is extracting.
Operating under principles set down in 1931 and 1872 obviously aren't working in 2010. With 33,000,000 "gamblers" visitng Las Vegas last year we made $0 from a lottery (which exists in almost every state but ours).
It's going to take new approaches other than the "same" if we are going to educate the kids, keep police and fire systems operating, and keep our water and sewer supplies above those of a third world country.
Looking forward to Governor speak about budget crisis which was forced upon this state by demorats in the capital!
Did you forget last year Governor's budget was veto'd by demorats and RINO Dennis Nolan(R)?
Gibbons had prepared budget for based upon insight he and budget leaders had.
They saw shrinking economy and planned on this!
Demorats saw DC spending of taxpayer dollars as course to follow and as such, governor's conservative and entirely realistic budget was veto'd by entire group of demorats with RINO Dennis Nolan (R-9th) and Gibbons has been taking heat for this demoratic budget!!
Demorats have been hiding watching Governor take hits for their blunders!
Not likely, entire demoratic leadership in Clark County, Nevada and throughout our country are refusing to take ownership of budgetary blunders!
Many of us, who are educated voters and who vote for candidate based upon educated views and process, not on emotional or racial issues, i.e. entire black population.
I do hope these people who are uneducated and vote via emotion versus educated views lose their way on path to voting booths this year!
We can not afford the two party system anymore where it has evolved to simply choosing between careerist politicians from either party!
We need Independents more than ever this year! Clark County Commissioners to state offices!
We must vote solely INDEPENDENT THIS YEAR!!! Enough of corrupt two party systems, we must start voting logically using educated and informed processes to vote most viable candidate in.
This is no different than a job interview!
Who gets job is most qualified candidate and who has most energy, desire, etc., to help us excel not just a person who will tote party line! We have had that for years now and it is time to return Nevada back to its true roots of being Independent state of this union!
In Clark County Commissioner race this year, there is an Independent American running who is a visionary, knows where he wants Clark County to go, proven American via being a career military individual, who is rated as 100% Service Connected for injuries sustained on active duty, an ex-immigration officer who knows definition of illegal, and an ex-Federal Inspector General, the pitbulls of government oversight. He is also a small business owner and was extremely successful in this endeavor!
To top it all off, he is an INDEPENDENT AMERICAN!!!
He is not corrupted by two political parties constant fighting and bickering!
He is above fray and his only goals are what he can do for this county and follow voices of citizens of Clark County versus corrupt political machinery of Rory Reid/Susan Brager(D)!
I am voting INDEPENDENT THIS YEAR BECAUSE ENOUGH IS ENOUGH OF CORRUPTION HERE IN CLARK COUNTY AND LACK OF VISIONARY PEOPLE!!!
I AM ALSO SICK OF POLITICAL CARRERISTS JUST STICKING IT TO US AS TAX PAYERS!!!
Shrinking government from Dan? Gibbons doubled his staff's salaries so Dan's making twice as much plus his retirement will be based on this salary increase! and Gibbon's had the audacity to form the SAGE committee to go after retirement benefits?? What the ? Hipocrite comes to mind.
1. Immediate change to four day work week, 32 hours, for all State positions.
2. No over-time.
3. Legalize cannabis and tax it.
4. Legalize prostitution and tax it.
5. Value engineer all departments, with department heads feedback.
6. Modify tax on Mining from percentage of net to percentage of gross.
7. Release 25%-33% of correction facility inmates, specifically those who are being held due to minor possession charges that may have led to additional charges.
8. Request Congress divert $1B from Pentagon budget to Nevada over next four years.
David Curtis
Governor Candidate
Green Party NV
www.Curtis4governor.com
texexnv --
Mining and lottery are all well and good -- for 2013 -- but what do you suggest Nevada do to fix this hole now? Both of those require constitutional changes that can't take effect for several years.
DavidCurtis,
Releasing inmates will raise the crime rate, period. What exactly do you mean by "those who are being held due to minor possession charges that may have led to additional charges"? I would like to see the stats that show how many inmates are in on "minor" possession charges alone. I bet it's not 25 or 30 percent. If I had to guess it would be closer to 10 percent or less. And would you have to increase the size of government to regulate cannabis sales and taxation? How about the same for prostitution? Who is going to regulate these things if not? Just some questions for you.
The "crime" rate is keep artificially high by the fact that cannibis is illegal, and that DMV makes criminals out of drivers who neglect to keep their documents current.
I personally interviewed inmates at CCDC and a MINIMUM of 33% were in for possession charges.
Cannabis should be taxed like cigarettes and alcohol are taxed, only better, fairer.
The "crime" rate is kept artificially high by the fact that cannibis is illegal, and that DMV makes criminals out of drivers who neglect to keep their documents current.
I personally interviewed inmates at CCDC and a MINIMUM of 33% were in for possession charges.
Cannabis should be taxed like cigarettes and alcohol are taxed, only better, fairer.
Johnmanrules,
Prostitutes are (nearly) already regulated.
The County requires they obtain exotic dancer or escort licenses.
It would merely be a new license type.
New license type = new revenue stream.
To retain the same state worker to citizen ratio we had before the recession, the state would actually have to lay off about 1,500 workers not 239.
Walt wouldn't lay off 2,000 teachers either (though the decline in student enrollment they could lay off about 200 and not impact class sizes). CCSD employs 1 adult for every 8 students and just 1 out of 3 workers is an actual classroom teacher. To just cut teachers when they have so many other employees would just be bizarre.
Rejco100 is totally correct there
rejco100,
I really have no idea what you are talking about. I know plenty of non-felons who cannot find a job right now. To choose whether to hire a felon or not, I am pretty sure an employer who is looking out for the best interest of his or her business would choose a non-felon based simply on decision making ability and trustworthiness.
Davidcurtis,
You interviewed inmates at CCDC, that is not paid for by the state but by the county. I thought you were talking about the state budget here. I was referring to NDOC. You would save the STATE zero dollars by releasing inmates from CCDC. If you are referring to misdemeanor marijuana possession charges, I still have trouble believing that 33% are incarcerated for that.
Mr Gibbons you have no idea what you are talking about and do some basic numbers as found on the CCSD website (FAQ)
The 8:1 ratio is correct, however, look at what is going on at 352 schools:
38,000 employees (average 110 per school)
309,000 students (average of 880 per school)
1,399 Administrators (average 4 per school)
18,000 licensed employees (55 per school)
11,000 support personnel (33 per school)
$7,600 per pupil.
Of the 33 per school 4 are drive busses (1495 busses)
Let just assume the other 29 are as follows for our average school of 880:
1 school nurse
1 financial person (pay the bills)
1 personnel (do the paper work)
2 administrative assistants to support personnel and finance
4 Custodians/mantanence
9 kitchen/food service
4 Administrative Assistants--front desk, support administrators
5 Teachers Aids (1 for every 10 teachers).
2 Library techs.
Is this excessive for a school with 880 students (no)
Teachers--17:1 on average, but a teacher only teaches 5 or 6 class periods--in other words increase the load to 19:1
Assume that 5 are counselors or librarins
About 22:1 average ratio district wide.
Additionally there are 18 part-time employess which are substitute teachers or temp workers.
Where do you want to cut?
Is this excessive (the method allocates all overheads to the school)
All of this is being done on a budget of $6.7 million. Looks like a deal to me.
Johnmanrules, interview some folks at the State facilities and please let me know what you find.
davidcurtis, yes I'm gonna get released and f@ck over somebody so I can score a sell on crack or meth or the local Del Taco. Once a crimal always a crimal.
Terribula,
Not all licensed employees are classroom teachers. There are about 12,000 classroom teachers in clark county whose salaries are paid for by the general fund and a few more purchased by class size reduction.
Check CCSD's budget yourself: http://ccsd.net/directory/budget-finance...
Check my math Patrick. Show me where you are going to find these efficiencies. Is it in the support staff? Just teachers? Lets double the number of non-teachers from 5 to 10. Show me where the economies are. Where is the fat?
It is your story not mine.
Like I said, give the money to the schools, make them compete for students, and give them control of the budget. They'll figure out the right budgets themselves, based on the needs of their unique students. You want a one size fits all solution.
For that I can only say
1) Vouchers and tax credits (The savings grow larger and larger as the years go by - $1.3 billion in the first 10 years from a modest phased in program).
2) More charter schools (a program like Arizona could save us up to $320 million a year in capital expenditures - that and a more competitive bidding process)
3) Eliminate professional development (waste of time and teachers agree) savings: $16 million in CCSD
4) Eliminate funding bonuses for earning degrees and eliminate class size reduction funding. Use all or a portion of those funds instead for merit pay bonuses. Class size reduction hasn't done anything for us yet, won't in the future either -- we have no way of identifying who the good teachers are and frankly small class sizes are only as good as the teacher. Savings: over $200 million. You could always follow the governor's recommendation and just give the schools that money instead.
5) Outsource transportation, grounds keeping, maintenance, and food services. Savings: (at least $36 million in savings statewide, using the low end figures from districts in Michigan who did the same).
6) Cut PBS funding through K-12 education
7) Cut all-day kindergarten
PS, did you miss the part where I said CCSD overpaid a low bid on a remodel by $1.4 million and by $170,000 for landscaping? Those add up you know. We also know the district spent millions of dollars putting microphones in classrooms -- to what end? How will the students benefit. You say there is no fat to cut, you just aren't paying attention.
If you want me to tell you where to cut, help me get access to CCSD's deepest darkest secrets the stuff they don't want us to know and the stuff that gets teachers and principals to scared to talk about.
PS, there is no economy of scale in public education.
This is why the average private school tuition is lower than the average public school per pupil cost. Private schools even have smaller class sizes.
http://www2.ed.gov/about/offices/list/oi...
http://www2.ed.gov/about/offices/list/oi...
(I've actually seen the US department of education put the private education tuition down as low as $6,600 for the 2003-04 year)
http://nces.ed.gov/programs/digest/d08/t...
*public school expenditures: http://nces.ed.gov/programs/digest/d09/t...
PS,
If tourists spend less money and the tax rate stays the same, then the state collects less revenue. That is still not a tax cut. It doesn't come close to qualifying as a tax cut in any language.
A genuine tax cut would be a rate reduction. That might encourage people to spend more money since companies could offer lower prices or use additional profits to expand operations or keep people employed.
Every dollar the government spent already killed a dollars worth of jobs (or more) or consumption in the private sector. You keep forgetting this point.
Invest on Bio-fuel and Thermal energy. This will create funds for the State. It takes money to make money.