As tax shortfall looms, Gibbons calls summit to talk about cuts

CARSON CITY -- Gov. Jim Gibbons said Tuesday that he will meet with government leaders from around Nevada next week to discuss the need to prepare for cuts to the state's $6.8 billion general fund budget if anticipated tax revenues don't materialize.

"Reduced revenue projections require us to evaluate our state's spending priorities to ensure that we continue to responsibly manage taxpayer dollars," Gibbons said in comments accompanying the announcement. "This meeting will provide an opportunity for key decision makers and state budget experts to review the state's current and future fiscal status."

Invited to attend the Nov. 7 meeting were legislative leaders, county commissioners, city mayors and Jim Rogers, chancellor of the Nevada System of Higher Education.

Rogers and Clark County officials have resisted Gibbons' request to submit proposals for program cuts to help offset lower-than-anticipated state sales and gaming tax revenues.

Rogers said he will attend the meeting despite his refusal to comply with Gibbons' request to come up with a plan to reduce spending. "Of course I'll be there," he said. "I'll talk to anybody at any time."

Clark County officials want to discuss any potential cuts with the governor.

Initial data released by the Department of Taxation last week indicated that gaming and sales tax revenues for the current fiscal year are down by more than $21 million. Additionally, recent projections compiled by the state Budget Division indicate lower-than-expected revenues for this and the next fiscal year.

As a result of these projections, Gibbons asked many state agencies to propose by Monday ways to reduce spending this fiscal year and the next by 5 percent. Some major agencies and programs, including public education and corrections, were exempted from the proposed cuts.

Gibbons wants a list of $184 million in potential cuts over the next two years if revenues do not bounce back. "Like any family or business facing potential income reductions, the state must create contingency plans to live within its means, and I will lead our efforts to ensure we have a constitutionally mandated balanced budget without dipping further into the pockets of our hardworking taxpayers," he said.

Those asked to attend include Senate Majority Leader Bill Raggio, R-Reno; Assembly Speaker Barbara Buckley, D-Las Vegas; Clark County Commission Chairman Rory Reid; Las Vegas Mayor Oscar Goodman; North Las Vegas Mayor Michael Montandon; Henderson Mayor Jim Gibson; and legislative minority leaders, including Sen. Dina Titus, D-Las Vegas.

Review-Journal writer Lawrence Mower contributed to this report.