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Sunday, Feb. 7, 2010 | 2 a.m.
Gov. Jim Gibbons
Sun Archives
With the rapid pace of recent developments in Carson City, perhaps it’s time to answer some questions about the state’s troubled finances on the eve of Gov. Jim Gibbons’ rare even-year State of the State address.
Why is Gibbons giving a State of the State address?
Gibbons will deliver the speech to lay out the state’s budget problems and explain why cuts need to be made. Gibbons is expected to call a special session of the Legislature to balance the budget.
How big are these fiscal problems?
Two weeks ago, an outside panel of business leaders met and offered new projections on how much tax revenue state government would receive. The state faces an $881 million general fund deficit between now and June 2011.
It’s a huge number that would require a 20 percent cut in government operations to address if the cuts took effect March 1.
What’s being done about it?
Gibbons met with Democratic and Republican legislators last week to discuss how to balance the budget. On Wednesday, his staff presented to legislators a list of cuts totaling $328 million. With some other fiscal maneuvers, the governor’s staff says the cuts total $418 million.
That is less than half of the total budget hole that must be filled, according to the constitution. Legislative sources say financial maneuvering could bring the size of the remaining hole to $300 million. On Friday’s “Face to Face With Jon Ralston,” the Gibbons’ administration put the budget gap yet to be filled at $250 million.
What are some of the specific cuts being proposed?
The Nevada System of Higher Education and school districts each face at least a 10 percent cut. Clark County School District officials said a cut of that magnitude would mean teacher layoffs and increased class sizes, or pay reductions for teachers and other school district employees.
There would also be 235 layoffs, most of those coming from the Corrections Department with the closure of a prison in Carson City. Also proposed are 10 percent cuts in child protective services and the foster care system in Clark and Washoe counties. State reimbursements to hospitals would be cut. Programs to place mentally ill in housing would be capped.
How will they fill the rest of the budget hole?
That’s the big question, and where any battle between the governor and Legislature will be waged. Some ideas are floating around. They include:
• Taking a portion of $4 billion in funding that local governments have earmarked for public work projects.
• Fee increases.
• Salary cuts for state workers, teachers and university employees.
• Having mining prepay some of its taxes.
Gibbons’ staff have hinted at plans to raise additional revenue but have declined so far to reveal them.
Wait, the governor and lawmakers are meeting without histrionics involved?
They are working together, so far. Lawmakers said they have not signed off on any of the cuts Gibbons’ presented Wednesday, but they also did not dismiss any of them outright.
What about taxes?
No one — no one with a vote, to be more precise — is talking about raising taxes. Democrats and Republicans, who insisted during last year’s session that they cut all they could without harming “essential services,” now say that in this prolonged recession, businesses and people can’t afford to pay more taxes.
Last week you scolded elected leaders for promising transparency and never delivering. Have these budget talks been as secretive as ever?
Robin Reedy, Gibbons’ chief of staff, on Wednesday night shared with reporters a detailed list of the cuts being considered. It was, and still is, early enough in the process for the public to look at the list, review and react.
Cut salaries for all govennment workers making over $100,000. Don't cut income at the families who can least afford it.
"fee increase" that is another name for "taxes" which he has already raised, and I can't believe gibbie supporters don't realize fee means tax by another name.Just say raise sales tax already.All this is costing more money than if he just said, I must raise the sales tax to get us out of this and it will sunset once we recover.
The Governor recommended large cuts last year the Democrats in the legislature would have no part of. The Governor warned them it would lead to massive budget deficits they couldn't close on HOPE.
Now reality is the Governor was right all along. Maybe Gibbons has been a much better administrator than the Democrats want to admit.
That's typical crap from the governor. Where is the specific plan for evening out salary for cops, firefighters and teachers? What about all the administration niche jobs in CCSD that don't have anything to do with students on a daily basis? I've worked with CCSD for nine years and we couldn't even get a sniff of a decent living wage when the boom was happening. Now we are going to get screwed by the city again and cops and firefighters will get a little slap on the hand and the teachers will get railroaded. I still like LV and love my job but I wish we had real leaders who would stop dumping on teachers. I'm 33, have a Masters plus 16 graduate credits and now make as much as a police cadet with a GED. Is there something I'm missing? And for all you education haters since you know my head is not in the sand...
1. There needs to be a lot more empowerment schools so bad teachers can be weeded out and money can be used more efficiently.
2. There needs to be more vocational training for non college-bound students so they stay in school to graduate.
3. There needs to be a serious look at how efficient classes are run since many parents drop off their kids who are unprepared for school. These kids need a babysitter and have no academic or behavioral standards from home and expect us to waive a wand and they will magically start to complete assignments, not disrupt others around them, etc. These students don't really care about their grades since parents didn't care about their education either
4. We need more technology in the classroom to assist educators and pique interests from our good students
neiman, The governor, for 3 years has known the budget was in for trouble----so he said, and what has he done to raise revenue, or create new revenue sources for this state? nil, nothing,nada,nein,neit. He has done nothing but focus on reducing govt spending, which is all fine, except, where he is cutting is not where the problem is.Or the other half of his time has been in and focused on court, from several lawsuits to divorce.How does it feel scottie? state workers got reamed the first go round and no one batted an eye. I could write you a book on what we haven't recieved over the years, and what has been taken away. Not much sympathy here.
Hey Scottie,
There are no firefighters working for the state. As a teacher, I would assume you would look up your facts before posting. If you are talking about state police like Highway Patrol, Parole and Probation and Capitol Police, we have already taken a pay cut (4.6 percent furlough). We have also lost our step increases and our retirement contribution was raised by almost two percent. What have you lost so far? Oh, was that answer nothing? Did you also say that you are going to get screwed by the city again? What city do teachers work for? Do you have any facts correct? So the way I see it, teachers have not even received a slap on the hand yet while state workers have been railroaded.
"...in this prolonged recession, businesses and people can't afford to pay more taxes."
But college students and their parents can?
And state workers can afford to have their pay cut?
I guess students and teachers aren't people?
johnmanrules: I am sure it is a surprise to the Nevada Divison of Foresty that they have no firefighters, no fire engines, and no fire stations.
We're so sick and tired of hearing about budget problems when the obvious is smacking American's upside the head.
Quit funding the freeloaders and illegal immigrants and all elected officials stop wasting our money. Quit your weekend trips, quit paying yourselves wages you don't deserve, and quit working in the interest of special interest groups. When you follow these simple guidelines, budget problem solved and American's would be working and we surly wouldn't be having a financial meltdown.
Why hasnt the Nevada Legislature, Rory Reid, Harry Reid, Sandoval, Titus, Raggio, Buckley or any of the other inept morons puppets running Nevada move to impeach Gibbons for all of his malfeasance? They were all silent..
I don't think you can impeach someone for incompetence.
The argument that the gov was right all along is spurious. If this were the case, he would have proposed even deeper cuts last session over and above those recommended by the economic forum. He didn't.
Revenues didn't show up--gaming, sales taxes, etc--the largest sources. These taxes were in place prior to the last session.
Why doesn't someone in the government suggest legalizing and taxing all illegal drugs? Filling the gap in the state's budget is just one of the many side-effects of this move. It would take a leader to explain to the citizens that the war on drugs is a failure & Nevada is up to the task of turning this 'war' off.
didactic,
I think you might have missed my point. Why don't you look up and see how much those seasonal firefighters make? Or maybe you are referring to the inmates at the prison. Do you know how much they make? The point was Scottie was referring to Clark County, City of Las Vegas, Henderson and North Las Vegas Firefighters. They do not work for the state. But thanks for the "technical" correction. I guess I should have said the state does not have any NON forest fire firefighters. Now take your pay cut like everyone else.
They should add another $300 million in cuts and then drop the Modified Business Tax from the books to get the economy going. If you want to put people out of work or reduce wages, you create a payroll tax. Get rid of the MBT.
More colossal budget cuts to UCLA and UNLV. College is an evil debt trap and it won't prepare you for a job that has been shipped to Malaysia.
Needed reduction beginning in June? Is this correct? Just when the holiday season was thought to be the relief of the narrowly escaped money.
cops, firefighters, ccdc may not work for the state, BUT THEY DRAW A PERS (STATE) pension just like state workers.
if we can't adjust their salaries, we could look at how much the state is contributing to their retirement and reduce that.
they make more in retirement than a teacher makes working.
johnman, you need to go back and look up what entities/agencies get paid with state funds,city funds(I'm sure city budget money just falls from the sky)maybe you need to be more specific. Wrangler, they do get their slary from the state. Just one example is NHP or the troopers.Whether it is city,state or county, it is still taxes, and their wages need to be addressed, in the same fashion as those of us who got cut the first round.I'll be more specific, any agency who recieves their salary and packages through state, city or county funds/taxes,that didn't get cut last round, need their packages reassessed, that includes, teachers, cops, DOC, firefighters, everyone.We got ours, its time you all share in it as well.