Legislator: Give found funds to schools

CARSON CITY -- A Sparks assemblywoman on Monday urged Gov. Jim Gibbons to spend some of the extra $40 million discovered last week by the state treasurer to reduce cuts in public education funding.

Assemblywoman Debbie Smith, D-Sparks, said the additional revenue offers Gibbons an opportunity to reduce per- pupil spending cuts.

The governor announced last month that he will cut $92 million from public education spending between now and July 2009. He has left it up to local school boards on how to make the cuts but suggested they could save $64 million by not beginning or expanding programs like full-day kindergarten and education empowerment programs. That would leave schools $28 million to cut, or 1.5 percent of their budgets.

Last week state Treasurer Kate Marshall announced that she had found an extra $40 million in unclaimed property and other funds, money that can be returned to the state general fund.

"I have heard over and over from school superintendents that one of the biggest challenges they are facing is the fact that about 90 percent of the cuts to their per pupil funding must be made in this school year, which is already half over," Smith said. "I would urge the governor to use this revenue to soften the impact of these cuts to our public schools."

State Budget Director Andrew Clinger said last week that state government must be cautious with the additional revenue.

Largely because of the drop in the real estate market, Gibbons had to cut state spending by $565 million. Clinger must analyze each month, as state tax revenues come in, whether additional cuts are needed.

Melissa Subbotin, Gibbons' press secretary, said she had not seen Smith's request, but she also cautioned against spending the money when the chance exists that the revenue shortfall could become worse.

Despite the revenue shortfall, state government spending in the current two-year budget period still will reach $6.5 billion, or $700 million more than the last two-year budget cycle.

Gibbons has requested that the Legislature in 2009 allow him to use $232 million of the state's $267 million rainy-day fund to offset additional cuts in state agency budgets.

The governor also is cutting 4.5 percent out of state agency budgets -- or a total of $283 million -- and eliminating about $50 million in construction programs and one-time state expenditures.