Rogers, county officials defy Gibbons on budget cut lists

CARSON CITY -- University system Chancellor Jim Rogers and Clark County government officials snubbed Gov. Jim Gibbons on Monday as they refused to submit lists showing where they would cut their budgets.

Rogers followed through on his pledge not to send the administration a list showing how he would reduce spending for the Nevada System of Higher Education, which is funded by the state, by $64 million.

And the county did not prepare a list of how it would cut spending on child welfare and juvenile justice, which is partially funded by the state, by $3.6 million.

Gibbons asked selected state agencies three weeks ago to prepare priority lists on how they would trim their budgets by 5 percent, or a combined $184 million, if asked to do so because of lower than anticipated tax revenues.

Agencies faced a 5 p.m. deadline Monday to send the information to the governor.

Clark County was asked by state Health and Human Services Director Mike Willden to trim its spending.

Gibbons told Willden to prepare a plan to reduce total Health and Human Services spending by $80 million. That was the largest cut request made by the governor.

A spokesman for Health and Human Services declined Monday to release a copy of its cut list.

Gibbons spent Monday touring military bases in California with state Homeland Security Chief Rick Eaton, and could not be reached for comment.

Melissa Subbotin, Gibbons' press secretary, emphasized that the governor is only considering possible cuts at this time, but that he expected all agencies to prepare the cut lists.

If an agency doesn't, then the administration will have no choice but to make the cuts itself, she said.

"We will evaluate the university system budget," she said. "We will look at the funding increases they received last session and proceed with what reductions may be necessary. We are all in this together and we should work together."

A law passed in June requires the Board of Regents, which oversees the university system, to obey any financial directives made by the governor, but there is no penalty for ignoring such requests.

Rogers said he recognizes the governor has the power to reduce the system's budget as he sees fit.

"I can't stop them from doing that," he said. "But I am not going to be a part to shutting this system down in any way."

A legislative source said the administration could force Rogers to make cuts by simply reducing the amount of the checks it prepares to cover system expenses. That way, Rogers would have no choice but to cut spending according to his own priorities.

Clark County Commission Chairman Rory Reid echoed Rogers' comments in a letter sent to Gibbons.

"My fear is that any response would imply that such cuts are necessary or acceptable," he said. "While Clark County is more than willing to participate in a dialogue with you and legislative leaders about the future of these programs, we believe strongly that they should be one of the last programs to be cut, rather than the first."

Gov. Kenny Guinn did not receive such resistance to his directives when he cut state spending in 1999 and after the Sept. 11, 2001 terrorist attacks.

"That's because he talked to people ahead of time," Rogers said.

Unlike Guinn, Gibbons just made an announcement of what he expected state agencies to cut, the chancellor said. That occurred at a meeting of his Cabinet three weeks ago.

The governor spared public education, the prisons system and public safety agencies from any possible budget cuts.

On Thursday, Senate Majority Leader Bill Raggio, R-Reno, said he considers the university system as important as public education. Raggio also said child welfare and mental health spending should not be cut.

He and Assemblywoman Sheila Leslie, D-Reno, both said the economy could rebound and it may be too early to make reductions.

Raggio suggested Gibbons prepare a cut list plan that legislators could consider during their Nov. 14 Interim Finance Committee meeting.

If he needs to reduce state spending, then Gibbons should look at delaying the start of his educational empowerment program and the expansion of full-day kindergarten programs, Raggio said.

Subbotin said the administration will wait several days or longer before deciding where to make state government budget cuts. Officials want to secure additional data to verify whether gaming, sales and other tax revenues continue to drop before making actual budget cuts, she said.

The cuts are under consideration because sales and gaming tax revenue fell nearly $35 million below projections during the first three months of the fiscal year that began July 1.

Most of the decline has been blamed on the slump in the residential home sale market.

Subbotin said budget analysts want to see data on real estate transfer taxes.

"They are probably looking at this as we speak," she said.

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or (775) 687-3901.