Las Vegas Sun

February 13, 2012

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SUN EDITORIAL:

Protecting Nevada’s future

There are other ways to handle state budget deficit than broad service cuts

Thursday, Jan. 14, 2010 | 2:05 a.m.

As the Legislature and Gov. Jim Gibbons prepare for the all but inevitable special session to address the budget deficit, they should consider the incredible need in the state caused by the recession.

Las Vegas Sun columnist Jon Ralston recently wrote, in the Sun’s sister publication In Business Las Vegas, about some staggering numbers affecting social services. Applied Analysis, a Las Vegas consulting firm, reported that the social services in Nevada are strained. For example:

• A program that provides temporary assistance for families had nearly 28,000 beneficiaries in September, a 40 percent increase over the previous year.

• The Supplemental Nutrition Assistance Program, formerly known as the food stamps program, helped more than 238,000 recipients, a record. That is nearly 10 percent of the state’s population.

• The number of people eligible for Medicaid grew by 20 percent in September from the previous year to more than 225,000.

So what does the government do? Unfortunately, the governor has tried to use the recession as a way to shape the state to his anti-government philosophy. He wants to gut the state budget, including education and a variety of crucial services. Despite what Gibbons and his like-minded allies say, the state has never been extravagant in its spending.

In fact, over the past few decades, spending has not kept up with the state’s growth, and there has been a paucity of services as a result. The state’s schools, for example, are funded well below the national average for per-pupil spending. Nevada’s services, as it is often pointed out, regularly rank near the bottom of the nation in terms of funding and quality. As UNR professor Elliott Parker has noted in a previous commentary for the Las Vegas Sun, Nevada’s government is the smallest in the nation — judging by either the number of employees per capita or the state’s general fund expenditures as a share of the economy.

However, Gibbons has continued to talk about making cruel cuts. Assembly Speaker Barbara Buckley, D-Las Vegas, sent a letter to Gibbons on Tuesday, suggesting several other ideas to protect important areas of the budget, particularly education, which has become a favorite Gibbons target. Buckley noted that by looking elsewhere, the state could reduce the size of the deficit. For example, she said the state may have up to $20 million in untapped reserves and unclaimed property it could draw on. She also said an audit conducted last year found that there were between $93 million and $163 million in unpaid insurance premium taxes, yet she said there had been “little effort” by the Gibbons administration to pursue the issue. Buckley asked: “If collection of owed taxes would yield fewer or even possibly no cuts to education, why wouldn’t we do it?”

Good question.

The bottom line is that there are other ways to handle the state budget crisis than just blindly cutting, which will only set the state back further and harm Nevada’s children. We hope the governor is listening.

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