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AP Photo/Cathleen Allison
Economic Forum Chairman John Restrepo speaks during a hearing Monday, May 2, 2011, at the Legislature in Carson City.
Monday, May 2, 2011 | 8:33 p.m.
Sun Coverage
CARSON CITY — Nevada’s budget crisis became a bit less severe Monday with word that the general fund will be enriched by a previously unplanned $274 million, a bit of a windfall that will benefit the beleaguered education and health and human services budgets — and maybe undermine the argument for tax increases.
Business leaders meeting as the state’s Economic Forum — the state’s official crystal-ball people on matters financial — projected a slow but steady uptick in the ailing economy. It won’t be great, they said, but it will be better than the dark days predicted in December, when Sandoval was putting together his budget.
Monday was a day of forecasts, economic models and charts on how Nevada’s economy would fare over the next two years.
But the most important calculations were numbers scratched out with pens by a pair of Republican lawmakers.
Sen. Joe Hardy, R-Boulder City, and Sen. Ben Kieckhefer, R-Reno, both perceived as moderates, did some back-of-the-napkin math and said they’re more comfortable with Gov. Brian Sandoval’s budget.
“Yes, it’s more likely to get passed,” Hardy said. About $200 million means education and health and human services cuts “are not as onerous as in the governor’s original budget.”
Kieckhefer said with the additional money, school district personnel could shoulder the cuts to education without affecting classrooms or programs.
“With additional revenue, not a single class size has to be increased, not a program lost,” he said. “If the union negotiators want to take it in a different direction, force layoffs and cuts, I guess that’s their choice.”
Democrats said the money was welcome, but insignificant compared with the $1.2 billion in cuts Sandoval originally proposed in January.
Steven Horsford
Senate Majority Leader Steven Horsford, D-North Las Vegas, called the additional revenue “a drop in the bucket” that does little to change the inadequacy of Sandoval’s budget.
“It is our responsibility to pass a budget that meets our obligations to our students, seniors and all Nevadans,” Horsford said. “The governor’s budget did not do that yesterday, and it does not do that today.”
Sen. Sheila Leslie, D-Reno, said Sandoval’s budget leaves “gaping holes” in the state’s social services safety net and the additional projected revenue will “not be enough to stitch that safety net back together.”
Sandoval called for $274 million to be added back to the K-12 budget. (The Legislature will have final say.)
Sandoval is scheduled to give a speech Tuesday in which he is expected to hammer home his message: Support my budget, make reforms to education.
One legislative observer said it appeared Sandoval had outplayed the Democrats. “A $300 million add-on, which is small but measurable, can be used to derail any semblance of a plan (by Democrats), even one in its infancy,” the observer said.
The Legislature has been meeting since February, and Democratic leadership in the Assembly and Senate have highlighted how Sandoval’s budget would affect human services, higher education and K-12.
Senate Democrats said they would close K-12 budgets this morning. But they still have yet to release a plan on how to raise taxes. Again Monday, they wouldn’t say how they would raise the money.
“We have 40 more days, my friend,” Horsford said.
Sun reporter Anjeanette Damon contributed to this story.
This is a link to a study that appeared today in the National Science Teachers Association electronic newsletter. Congradulatons, we have been passed by Mississippi. If you think this is UNACCEPTABLE, CONTACT YOUR LEGISLATOR.
http://www.changetheequation.org/index.p...
It does look like Sandoval outplayed the Democrats on this. Certainly so if he knew of this "new" revenue much earlier.
Anyway, put it back into education just as he says. That he took the biggest meat cleaver to education to begin with was atrocious. My kids are coming home with all kinds of news about all the teachers being told they have no job after this month and all the programs (like foreign languages, for crying out loud) that are being eliminated. This isn't trimming fat, this is amputating bone and hacking off muscle.
Really, just let the teachers take it in the shorts! They have all the answers don't they. I'm sure they are making many sacrifices too. Right!
I can understand their reason for raising the projections, but I have some serious concerns. Several years ago, what happened to car travel from California when gas reached $4 per gallon. Was the possible decrease in travel accounted for, and what happens if gas prices continue to rise, possibly approaching $5 per gallon. How much of the sales tax increase is due to the increase in prices due to increase in transportation costs. How much of that sales tax increase is due to big ticket items?
The legislature has still failed to address the major problem. Lack of a diverse tax base. There has been no movement to repeal the Constitutational protection for mining. There has been no move to broaden the tax base such as removing the mining deductions, and a broad based business tax. Until those items are addressed in a responsible and thoughtful manner, we are condemned to repeat the pattern and have to put the bandaid on a patient who is bleeding to death. When will we fix the fundamental problem? When will our elected representatives show some leadership and courage and make the hard decisions that will protect the future of Nevada?
Let's tax those casino comps. Especially those High Roller Suites and those $ 5.00 locals "Free Slots" teasers. How about 25% - they are Free after all. An Income tax with the first 50K excempt. If it causes someone to leave Nevada - a Real Estate Transfer Tax when they leave. Real Mining Taxes - especially on Gold and Silver. There is Plenty of Money, its just a question if politicians are willing to go after it from the people that have it.
Me thinks the Dems will vote the Governor's budget through and get out of town--unless the Dems can show something dramatic.
The extra $274 million just put any Republicans that might have been wavering back into the Governor's camp and it might be enough to bring some Democrats along as well.
Tanker, I cdnuolt blvelee taht.
What percent of 9th graders graduate from High School four years later? 42% for Nevada, by far the worst. So it is cheaper to flunk them.
The problem is that Democrats played all their cards by 2010. The over the top rhetoric about the sky is falling budget cuts seemed silly by 2010 when it was revealed that the 2009 budget cuts brought our budget from $6.9 billion to $6.9 billion.
In other words the Democrats only really cut imaginary spending.
With the economy still worsening 3 years after the crunch began in Vegas people were no longer sympathetic with the Dems position we had to make cuts. We came out of the special session in 2010 with a $6.4 billion budget.
The economy still hasn't recovered but Dems still want to keep the party going as if we never hit a recession 4 years ago. The Dems have made it clear they want at least $7 billion which is more than past budgets (at least nominally) and far more than we're spending now. They'd prefer $7.8 billion which is just ridiculous.
Sandoval's budget will jump from $5.8 to $6.1B and that is not too far off our current budget of $6.4B.
This is the power point from Barrick Mining Annual meeting that John Ralston posted in his column yesterday. We were talking about mining paying it's fair share. Look at it and tell me that they are doing that. The legislature needs to take actions now to eliminate the Constititutional protection for mining, enact a broad based business tax as supported by the Las Vegas Chamber of Commerce. Failure to take these actions will leave the state in exactly the same position it is now, when we do this all over again in 2013. Here is the link. http://media.lasvegassun.com/media/pdfs/...
@Festus. It may be cheaper in the short run, but what does it cost in the long run with no jobs, no educated workforce, and lots more prisons?
*Note, it should say "Legislature" as in "the legislature only really cut imaginary spending" as it was a bipartisan effort to pretend to cut the budget.
No new taxes remains as unconscionable a position as ever.
Where did this $274 million SUDDENLY come from?
Long ago, there was chatter about not having solid numbers, but good Lord, this is one big pile of money that has either been deliberately hidden (due to a political agenda), or times have improved so much, that the State of Nevada is on the economic rebound in high roller fashion!
Something is fishy here.
$4.3 BILLION in tax deductions for mining corporations.
And we should fall all over ourselves because the Governor "gave" $274 million back - which I understand might go to judges, hospitals, social services or some other rural place too. Well that is mighty generous of you Governor! Do you mind if I ask you not to rob me again! I think a chunk of that goes to buy votes Republican votes in the rurals too right?
How much do the 300,000 kids in Las Vegas really get? You asked them to pay $300 each in your state of the state - does this mean they only have to pay $250 dollars now?
Why don't you go tax a grown-up instead of our kids!
hey brian sandoval the greasy slimy maggot...
why don't you give clark county back the money you stole from them???
why don't you make rural nevada rich with mining revenues pay it's fair share???
BRIAN SANDOVAL IS A COMPLETE AND TOTAL FRAUD!!!
a man not worried about racial profiling...
even though he is the son of mexican immigrants...
because his kids don't look hispanic...
BRIAN SANDOVAL IS A COMPLETE AN TOTAL FRAUD!!!
http://www.lasvegassun.com/blogs/ralston...
I'm always wary of "found" money; it seems to be ripe with parlor tricks on the books.
Will this new money still be there in 3 months or will there be an adjustment due to unforeseen changes in the economy?
Seems kind of strange that this is coming to light right when the budget is being debated and there's a push to get it passed.
My guess is this is some new forecast that will be adjusted again in a few months and the pain will continue.
It's heartening to hear that fewer cuts may be required, but speaking of imaginary numbers...Is this money currently available or is the increase based on projected revenue? If projected revenues are part of the equation, I'd be interested in the track record of the Economic Forum and how their past predictions compare to actual numbers. I love how they magically made money appear. What else do they have up their sleeves?
Star, the $274M is just a forecast. Its an estimate of future revenues, more of a guess really. The estimate is generated from dozens of economic variables that seem to suggest our economy is starting to recover (and or inflation).
Leave the Governor's budget ALONE. Rainy day fund or decrease the sweep from CCSD bond fund--CCSD is all but hysterical about that so let them have that back. We should pay more taxes so City, County and SD employees can continue to be OVER COMPENSATED COMPARED TO OTHER STATES/CITIES AND OVER LOCAL PAY RATES?????
Imaginary numbers: the square root of i, the square root of negative one. TRUTHINESS, can you handle it?
Tanker: much cheaper in the long run to DEPORT / encourage voluntary return south that to "educate" 100,000 ILLEGAL STUDENTS? Cheaper to FIRE THE 140,000 ILLEGALS EMPLOYED IN NEVADA while the mommies get TANF cash assistance, MEDICAID and all the trimmings for alleged anchor babies--I.D. fraud using cousin Pedro's birth certificate.
@roseanrose. Immigration is a FEDERAL government issue, not a state issue. If you want that course of action, you need to pursue it with the feds. The Supreme Court has held in several cases that school districts can NOT check immigration status. Any student who walks in the door must be accepted and educated. Where are you getting the 100,000 ILLEGAL STUDENTS from? CCSD doesn't track that information, or are you assuming that any student with hispanic last names must be illegal because of the last name?
So Ben Kieckefer thinks teachers taking a 8% to 15% pay cut doesn't affect classrooms?
When push comes to shove...the major education cuts really don't need to be.Or perhaps it was the pressure from the public.With education being at the bottom within the state,they can't afford to let it slip anymore.This isn't "found" money or the case of someone "discovering" unused money in some basement store room. This is a case of RIGHT and WRONG.
Ok, today UNLV Southern Nevada Economic Index was released that predicted things would be flat for the next 3 to 4 months? Who's right?