Facebook
Fark
Digg
Reddit
Stumble
Gov. Brian Sandoval’s budget director told the heads of state agencies to plan for a budget without further cuts to spending.
Thursday, Sept. 20, 2012 | 2 a.m.
Sun coverage
The eternally optimistic Gov. Brian Sandoval has made some big promises on the budget he’s building: no cuts to education while keeping taxes at their existing levels — all while demand for government assistance programs continues to rise and his administration looks at undoing at least some of the salary cuts for state workers.
Now, at least one lawmaker is publicly questioning how Sandoval will make it all balance, as he’s required to do before the Legislature meets in February.
“It will take more than the revenue growth that we’re seeing to make significant restorations to salaries and benefits and to keep education whole,” said Assemblywoman Debbie Smith, D-Sparks, who was chairwoman of the Assembly Ways and Means Committee and heads the Legislature’s Interim Finance Committee. “I’m anxious to see the governor’s budget.”
The Sandoval administration has released few details about his budget-writing process. So far, he has instructed state agencies to submit “flat budget” requests. He also has announced that since July 1, 2011, tax revenues have come in $70 million over initial projections.
But even with that additional revenue, Sandoval will have a difficult time avoiding budget cuts.
And a flat budget — in which agencies essentially are allocated the same amount of money they received in the current fiscal year — doesn’t necessarily mean “no cuts.”
For example, the state’s two largest school districts say they will need more money than they are receiving now just to cover increased costs for personnel and utilities.
Health and human services agencies project more poor, elderly and disabled Nevadans will seek government assistance, which would completely erase that $70 million surplus.
And it would take hundreds of millions of dollars to completely restore the salaries for 25,000 state, college and university workers who have taken 4.8 percent pay reductions — a prospect few think is realistic.
Sandoval isn’t the first governor to keep details of his budget-making process private. But since he began campaigning for office in 2009, Sandoval has relentlessly painted a rosy picture of the state.
His broad-stroke budget commitments now are reminiscent of his campaign, when he promised he would be able to let taxes expire without cutting essential government services. As a candidate, Sandoval never released a plan for how he would do it.
After he was elected, Sandoval tried to balance his budget by taking money from local governments and school district building funds. He was forced to pull that idea after an unfriendly Nevada Supreme Court decision, and he ultimately reneged on his promise to let the 2009 taxes expire.
In March, Sandoval announced that he would once again extend about $600 million in taxes for another two years.
On Oct. 15, state agency budget requests will be made public, giving an indication of where the planning process is headed. Sandoval’s final budget recommendation to the Legislature won’t come out until January.
Last week, Sandoval doubled down on his promise not to cut education in an interview with the Reno Gazette Journal’s editorial board.
"I meant it when I said we are not going to cut K-through-12 or higher education anymore," he said.
For education, however, a flat budget would mean budget cuts.
“It wouldn’t be enough,” Washoe County Superintendent Pedro Martinez said. “We all have cost increases we have to deal with, one way or the other.”
Martinez said he expects to ask the state for as much as $14 million to cover increased costs.
In Clark County, the School District expects $40 million in increased personnel costs and $8 million in water and fuel costs.
Other areas of state spending also are seeing an increase in demand.
The projected increases for Medicaid, the state’s health care for the poor, elderly and disabled, and Nevada Check Up, which covers children of low-income Nevadans, will cost $71 million over the next two years, according to a state policy memo issued by the governor’s spokeswoman in June.
That’s without expanding Medicaid under the Affordable Care Act, a decision Sandoval is still weighing.
The Nevada System of Higher Education Board of Regents also passed a budget with a $10 million increase over two years.
Chancellor Dan Klaich said it was fair to say a flat budget for higher education means no cuts with a qualifier.
“It means no cuts that we have control over,” he said.
Neither Sandoval’s budget director, Jeff Mohlenkamp, nor his new chief of staff, Gerald Gardner, were available for interviews this week.
His spokeswoman, Mary-Sarah Kinner, released the following statement: “The state is in the very preliminary stages of the budget process, and when there is more information, we will release it.”
He was elected on promises without any factual plans to back it up and people are surprised that promises have been broken?
The public keeps making the same mistake each election, electing people on promises and not demanding facts and plans.
We get what we deserve.
Where are the jobs? What is Sandoval doing for us? Brian Sandoval is a HUGE failure.
Lets see, we elect a president on Hope and Change and we get garbage. No JOBS, no BUDGET, no FOREIGN POLICY and really no COMMON SENSE whatsoever. TAXES are due to go up and we spend our time hammering a governor who is confronted with a huge mess and saying things that are not proven one way or the other. Ask OBAMA where are the JOBS? (UP IN SMOKE!) What is OBAMA DOING for us? (NOTHING!) Who is demanding the facts about our president who is going to be a non-catalyst in the economy and saving our nation. And the best remark of all made about Sandoval is, "At least his kids look white." The Sun does not write about anything that would reflect a negative outlook on Reid, Berkley or Obama. You cannot even report the news of the crisis in the Middle East without slanting the truth. But let a Republican say something that is true you are right there attacking them protecting Obama and not telling the truth to the American Public...."No guts no glory!"
IS AMERICA DOOMED TO MEDIOCRE IN THE WORLD?
Why do people buy this pap that not raising taxes and not cutting spending will fix our budget problems? This Governor is a typical GOP operative that is boxed in by the rigid ideology of the tea party. Look how he did an about face when he didn't support the changes HE asked for in welfare reform because it would help Obama. Sandoval is not a leader he is a follower and anyone who thinks he will lead us to a new tomorrow is sadly mistaken.
So, for next year, we have WCSD and CCSD looking for an increase of $54m, Medicaid/NCU increases of $35.5m, and NSHEB looking for an increase of $5m. Ignoring all demands for salary restoration/increases, that leaves us with an additional requirement for $94.5m. Assuming, and it's a big assumption, there are no tax cuts, we don't sign on to Obamacare, all other budgets remain flat and tax revenue is up $70m next year like it is this year due to an improving economy, that leaves a gap of $24.5m. The Gov & legislature then needs to find efficiencies & eliminate lower priority spending -- those are the ideas we're looking for. (Other GOP Govs managed to get their states turned around -- some by working Dems, some with going over Dems -- why are our pols having continuing problems turning things around?)
Just love when teabaggers blame Nevada's antiquated tax structure, lack of economic diversification, and fallout from uncontrolled growth on Obama.
If you want to know where the jobs are, get off your whiney rear and visit www.bls.gov. You will find that jobs are being added across the nation. Employment even increased in Clark County according to DETR.
He failed to deliver on the jobs he promised. He never took a stand on "none of these candidates" and blames Obama for his failed leadership.
If you dummocrats wanted something better than this the why didn't you find something better than Rory Reid to run?
If Smith or Leslie have a better budget then please come forward with it.
Or let them run against him. All this whining and ankle biting will get us nowhere at all. It also got us where we are and is likely to keep us there.
So Debbie Smith, Democrat, wants to read this and understand it before it gets passed? To bad Pelosi doesn't think that way.
"I meant it when I said" BS we are supposed to forget he keeps saying that and doing something else!
"He failed to deliver on the jobs he promised."
mred this article is about Sandoval not Obama.
Sounds like Debbie Smith is not in favor of giving state employees anything back that they have lost. Guess they should stay on mandatory furloughs, keep pay cuts, lose more benefits and never get another merit increase. Sounds like this is what she wants. I guess the billion dollars or so that this has saved the state budget over the past 5 years just doesn't matter to her. Wish she was in my voting district so I could give her a huge middle finger from me next election. Five years of downsizing with pay and benefit cuts is enough, especially when there is a reported surplus. That surplus came from my pocket Mrs. Smith.
Student enrollment projections may be decreasing as some of the illegals are leaving the state. What about the media hype that illegals are heading home? K-12 should have built in savings with lower enrollment. Providing the same funding does not guarantee step increases for employees--cities, counties, and school districts should be CUTTING COMPENSATION to firefighters, teachers, grade-level cuts for downgrading positions that can be performed by lower level staff. On the other hand, the administrative costs for "planning" and expanding Medicaid is gonna be multi-millions--DHHS has a repetitious reasoning that they want the same ratio of supervisors and analysts to field staff REGARDLESS OF ECONOMIES OF SCALE available.
The 2011 Barrick Mining annual report is out. If you read it, there are some very interesting facts that emerge.
Barrick Mining either owns outright, or is a partner in a joint venture in 7 gold mines in Nevada.
The Cortez Hills Mine produced 1.42 Million(44.375 tons) ounces of gold at a cost of $245 per ounce. If you assume a conservative profit of $1000 per ounce, you get a profit for the Cortez Hill mine of $1,420,000,000.
Bald Mountain Mine produced 93,000 ounces (2.9 tons) at a cost of $558 per ounce. Assuming a profit of $900 per ounce for the Bald Mountain Mine, you get a profit of $83,700,000.
The Goldstrike mine produced 1.09 MILLION ounces (34.0625 Tons) at a cost of $511 per ounce. Again assuming a profit of $900 per ounce for the Goldstrike mine, you get a profit of $981,000,000.
Ruby Hill mine produced 127,000 ounces (3.96875 tons) at a cost of $334 per ounce. Assuming a profit of $1000 per ounce for Ruby Hill, you get a profit of $127,000,000.
Barrick Mining is involved in three joint ventures in Nevada.
Barrick owns 33% of the Marigold mine. Barrick's share of production was 51,000 ounces (1.59675 Tons) at a cost of $761 per ounce. For the Marigold mine, assume a profit of $700 per ounce. The total profit would be $35,700,000.
Barrick owns 50% of the Round Mountain mine. Barrick's share was 178,000 ounces (5.5625 Tons) at a cost of $612 per ounce. Assuming a profit of $800 per ounce for the Round Mountain mine, we get a total profit of $142,400,000.
Barrick owns 75% of the Turquoise Ridge mine which produced 135,000 ounces (4.21875 Tons) at a cost of $569 per ounce. Finally for the Turquoise Ridge mine, assume a profit of $700 per ounce. This would give a profit of $ 94,500,000.
Barrick is actively exploring in the Carlin Trace in Nevada. The Carlin Trace is one of the richest gold deposts in the world. Barrick's annual report shows that 44% of the companies income comes from North America. Don't forget that Barrick is also mining silver along with the gold in Nevada.
If you add all of the projected and conservative profits, the total is $2,884,300,000. This is a conservative estimate. A recent news report said that the tax income for mining was going to go up because of the increase in gold prices to approximately $81,000,000. Barrick Mining is a Canadian owned company. One of the Directors is the former prime minister of Canada, Brian Mulroney.
This is a link to the Barrick Annual Report for 2011.
http://www.barrick.com/theme/barrick/fil......
@Roslenda. The only problem is that CCSD student enrollment has not gone down significantly. The decrease, if any, will be less than 5,000 students leaving over 300,000 still enrolled in CCSD. The only down grade for teachers is replacing older, experienced teacher with new, inexperienced teacher. By state law, a teacher has to be licensed in order to be in classroom.