Assembly working to blunt education, public services cuts, but it will be costly

By David McGrath Schwartz

Thursday, Feb. 25, 2010 | 2:01 a.m.

A Democratic alternative to Gov. Jim Gibbons’ plan to bridge the state deficit began to take shape late Wednesday, with Assembly Democrats compiling a list of the governor’s proposed budget cuts they intend to undo.

Among their goals was to reduce Gibbons’ cuts in K-12 education by half and restore $50 million to health care and social services. Although closed-door negotiations continued late Wednesday, parts of the Democrats’ plan emerged, signaling the Legislature will have to raise millions of dollars more than Gibbons had proposed in fees to close the $887 million deficit.

In a moment of political theater, Assembly Speaker Barbara Buckley, D-Las Vegas, called for members to raise their hands if they wanted to reduce the cut in state funding for K-12 from 10 percent to 5 percent.

“If we’re not reaching an agreement privately, we have no choice but to ask folks where they stand here,” Buckley said. “I don’t mean to put anyone on the spot. But we need to move on. We need to balance the budget.”

All the Democrats voted in favor, and none of the 14 Republicans raised their hands.

The smaller cuts in school budgets will likely force legislators to find $87.5 million in revenue or additional trims.

Assembly Minority Leader Heidi Gansert, R-Reno, said, “We’re all very concerned about education, both K-12 and higher education.” But “I’m not sure we’re ready to commit to something other than the 10 percent (cut). We do support education, we do care about kids. I’m not sure we’re willing to raise our hand on certain percentages or different amounts at this time.”

After one day of rehashing the governor’s budget proposal Tuesday, the second day of the special session Wednesday saw some bills put forward, including passage in the Assembly and Senate of a bill that would allow Nevada to apply for federal Race to the Top education money. The Assembly also heard issues such as sweeping funds and increasing business license fees.”

Gibbons amended the session’s agenda, setting a Sunday night deadline for the Legislature to adjourn.

Legislative leaders said they intend to finish before Sunday regardless of the governor’s deadline.

To do that, they will need to complete their plan and leave enough time to override Gibbons’ expected veto of portions of the package.

Only Gibbons has released a comprehensive plan to close the $887 million deficit.

For each of Gibbons’ proposed cuts that Democrats eliminate, they must come up with an equivalent cut or more money.

Democrats have discussed raising $50 million from mining, $64 million from gaming and $8.5 million from higher business license fees. But so far, the cuts they have publicly proposed to undo would outstrip that revenue.

Other parts of the emerging plan include:

• $8.5 million in fee increases for businesses. Secretary of State Ross Miller justified the increase by saying that because of increased responsibilities, layoffs and furloughs, wait times for business licensing spiked from an average of four days a year ago to 37 days. The head of the Nevada Registered Agent Association testified in favor of the bill.

• Scuttle some of the proposed sweeping of various accounts because of constitutional concerns.

• Restore $24.7 million in health and human services cuts.

Gibbons reduced some of the proposed cuts to the agency that drew the loudest protests. He said federal money could cover restoration of $24 million in cuts that included eliminating housing assistance for the mentally ill and mentally disabled, hiring front-line welfare workers and providing dentures for the poor and elderly.

But legislators want to restore money to care for the elderly in their homes; to eliminate a 10 percent proposed cut to Clark County child welfare; and avoid implementing increases in health insurance premiums for children of poor families.