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February 12, 2012

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Gibbons, lawmakers search for common ground on budget

Tuesday, Jan. 26, 2010 | 5:48 p.m.

Gov. Jim Gibbons and legislative leaders met for about two hours Tuesday on the state's budget shortfall, with both sides describing a productive round of talks but offering no details about how they will solve the state's latest budget gap.

Gibbons said the budget deficit has reached $900 million for the current budget cycle, a massive figure that both Democrats and Republicans say will mean major cuts in state spending.

"It was a very good working meeting," Gibbons told reporters after the meeting.

Asked if the Legislature and governor would get along during the special session, Gibbons said: "Absolutely." Motioning to Speaker Barbara Buckley who was watching, he said: "The Speaker has my promise."

Buckley struck a more cautious note, saying "legislative leaders and the governor will be working together on the budget deficit. What we face is nothing short of sobering."

She said there would have to be a 22 percent cut across the board to make up for the $900 million shortfall, if instituted on March 1. On Monday, she told the Las Vegas Sun that legislators have identified about $150 million in funds that could be swept and other one-time fixes. Senate Minority Leader Bill Raggio said "we're certainly looking at serious cuts with a $900 million shortfall."

Buckley said there was no discussion about opting out of the Medicaid system, as the governor has asked staff to look into.

Buckley said the governor has promised to turn over the 6, 8 and 10 percent proposed cuts to lawmakers either Friday or Monday.

There was discussion of the state's furlough plan. "There's a lack of equity," Buckley said. Some employees take their furlough day and then collect overtime the next week. She said there must be a system to avoid abuse.

Legislators and governor will meet again on Feb. 2. The Interim Finance Committee will meet Feb. 3 and 4 to begin hearings. She said the governor will turn over his budget suggestions close to Feb. 8, when he gives his address.

Buckley suggested the session would take a "couple of days." Buckley said the governor promised not to set the special session date without consulting lawmakers.

Gibbons and the Legislature, both Democrats and Republicans, have had a rocky relationship during Gibbons' three-plus years in office. In the last session, he was almost never in the legislative building pushing policies or meeting with lawmakers.

He has recently criticized the Legislature's tax increase, over his veto, for many of the state's economic problems.

"I celebrate the same idea," Gibbons said, when asked for his response to legislators' resistance to raising taxes.

When Gibbons was asked about his plan to impose a trash fee to force higher recycling standards, Gibbons said it was a worthy idea, but one that probably needed to be vetted in a regular session.

The state's part-time Legislature next meets in February 2011.

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