Panel approves Gibbons’ budget cuts

CARSON CITY -- State legislators put their stamp of approval Friday on nearly $236 million worth of budget cuts ordered earlier this year by Gov. Jim Gibbons.

Legislative approval never appeared in doubt, despite complaints voiced by some Democratic legislators who didn't like the governor's budget-trimming process or wanted some budget cuts restored.

Getting lawmakers' backing was made necessary by an opinion from the attorney general's office advising Gibbons the reductions he implemented in January had to be submitted to the Interim Finance Committee.

The 21-member committee, made up of the Senate Finance and Assembly Ways and Means committees, approves budget changes when the full Legislature is not in session.

The panel, meeting in four different locations around the state, could have let the budget reductions take effect without a formal vote, but it decided to meet to hear about the cuts from state Budget Director Andrew Clinger.

Most of the reductions have already been implemented by state agencies, the university system and the public education system. They are in effect for this fiscal year, and for fiscal 2008-09, which begins July 1.

Gibbons did not seek legislative support for the across-the-board reductions. Later reductions were the result of agreement between Gibbons and legislative leaders.

"A lot of these cuts have already been done," said committee Chairman Morse Arberry, D-Las Vegas. "And we need to just move forward on them. Some of us don't like the cuts, we don't like the amounts, but there is nothing else we can do at this particular time."

Sen. Bob Coffin, D-Las Vegas, failed in his effort to kill cuts to two programs, the Division of Parole and Probation and the Division of Mental Health and Developmental Services, for the next fiscal year.

Coffin said the two areas are critical to Nevada and need to be protected from spending cuts.

While several lawmakers agreed with Coffin's concerns, most did not want to start picking apart the 62 pages of spending reductions.

Voting against final approval of the reductions were Coffin and Assemblywoman Ellen Koivisto, D-Las Vegas. Koivisto supported Coffin's efforts not to cut the two programs.

Some lawmakers at the two-hour meeting took swipes at Gibbons for not making the reductions in consultation with lawmakers.

Not on the lawmakers' table at the special meeting were reductions to future budgets, or any discussion of a possible reduction in the 4 percent cost-of-living raises set to take effect July 1 for state employees and teachers.

Any reduction of the pay hike would require a special session of the entire Legislature, which could only be called by Gibbons.

Gibbons Press Secretary Ben Kieckhefer said Friday the governor is not considering any cut to the cost-of-living allocation at this time, and said a suggestion that he would seek to cut it in half is not accurate.

"We don't anticipate cutting the COLAs at this point," he said. "We are definitely not cutting the COLAs from 4 percent to 2 percent. A special session is a possibility."

The budget office submitted a total of 315 budget changes, called work programs, to the legislative committee for approval.

The changes included $55.2 million in spending reductions for public education, $46.5 million for the Nevada System of Higher Education, $14.2 million for the state Medicaid and Checkup programs and $6.7 million for the Department of Corrections.

Clinger said about $30 million in cuts required from the state's 17 school districts are still outstanding and have not yet been received by his office.

The cuts equate to about a 4.5 percent reduction in most state agency budgets. There were a few programs exempted, including child welfare.

The cuts are part of a package of spending reductions and other measures needed to reduce spending this biennium by $913 million. This number is now higher by at least $31 million due to a continuing slump in tax revenues.

The cuts discussed Friday are not connected to a new round of reductions sought by Gibbons for the new biennial budget, which will begin July 1, 2009. Gibbons wants to see reductions of about $600 million a year in the upcoming budgets of the various state agencies, including public education. These budget recommendations will be considered by the entire Legislature when it convenes in February.

Friday's vote by the panel will resolve a budget impasse between Gibbons and Controller Kim Wallin, who had not implemented the 4.5 percent spending reductions sought for her office because lawmaker approval had not been obtained.

Contact Capital Bureau reporter Sean Whaley at swhaley@reviewjournal.com or 775-687-3900.