Report shows spending rose

CARSON CITY -- When the economy tanked, you tightened your belt and hunkered down. The state tried to do the same, cutting back on what it had planned to spend.

But a new report released Tuesday shows Nevada state government actually spent 4.5 percent more during the fiscal year that ended June 30 than it did the previous year.

State spending during the past fiscal year climbed to $7.5 billion, up from $7.2 billion from the previous year, according to the four-page Report to Our Citizens released Tuesday by state Controller Kim Wallin.

The controller's office releases the report each year as a way to provide a snapshot of state revenue and spending.

Even as spending increased, revenue received by the state dropped by about 2 percent, or $131 million, according to the report.

The rise in spending might come as a surprise to some, in light of the focus of public discussion on cuts to planned spending.

State government cut planned spending by nearly $1.5 billion during the calendar year, including more than $300 million during a special session just before the end of the fiscal year that ended in June. The catch is that these cuts were made to a budget substantially larger than in previous years; the two-year budget allowed for a 15 percent increase in spending.

Deputy Controller Mark Taylor said the numbers in the report are not as dire as some might have expected because the recession was just beginning during the time studied -- July 1, 2007, to June 30, 2008.

"The recession was not as deep as now, and expenses were still strong, but revenues were starting to slow down," he said. "It shows the beginning of what we are experiencing now."

Taylor also noted the figures cited in the report include federal grants and revenue given to state government. Nearly $3 billion in federal funds were given to state programs during the fiscal year -- an increase of $100 million over the previous fiscal year. Federal grants and funds supplemented the state's two-year general fund budget of $6.8 billion.

"It's important that people understand the dependence we have on the federal government, how the growing federal debt affects the citizens of Nevada," Wallin said.

She noted in the report that the federal debt has risen to $10 trillion, up $4 trillion over the past eight years.

The state's share of that debt, if calculated on a per capita basis, would be $6.9 billion, or just about the total annual state revenue from all sources.

Those with better-than-average computer skills can download the report and even have it read to them by voice.

A longer report, the Comprehensive Annual Financial Report, also will be available for citizens to download in a few days.

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