$2.5 million returned to general fund by court

CARSON CITY -- The Nevada Supreme Court has notified Gov. Jim Gibbons that it is returning to the state general fund far more than the 5 percent spending reduction that might be sought by the governor.

Chief Justice Bill Maupin released a letter Thursday in which he told the governor that the court in September returned $2.5 million, or about 24 percent of its general fund appropriation of $10.5 million.

He said the court expects in September 2008 to return about 11 percent, or more than $1 million, of its state appropriations.

Gibbons asked the court in October to prepare a list of how it potentially could reduce its spending by slightly more than $500,000 a year.

The governor asked selected state agencies to propose ways to cut their budget by 5 percent. He said the cuts could be necessary because of declines in projected tax revenue, particularly sales taxes.

During a Wednesday discussion with legislators and local political leaders, Gibbons said the state's economic problems have worsened and at least $285 million in cuts might be needed to balance the state budget.

"We are sensitive to the current economic situation and will continue to consider its impact on judicial budgets as we make decisions that are crucial to the functions of the judiciary," Maupin stated in his letter to Gibbons.

As an independent branch of government, the court system is not legally required to follow Gibbons' budget cutting requests. However, Maupin said the judiciary "has assisted, and will continue to assist the state in addressing the projected revenue shortfall."

He said the $2.5 million was returned even before the Gibbons administration reported a revenue shortfall.

The chief justice said the court will try to abide by Gibbons' request that state agencies impose a hiring freeze, although there are several positions that must be filled.

Maupin said the expected return of more than $1 million in September 2008 to the general fund is because of salary savings and other cost saving steps. He said the court was helped by an unanticipated one-time revenue assessment of $750,000 from Las Vegas Justice Court and salary savings of $150,000 from not filling vacant positions.