Treasurer uncovers $40 million

CARSON CITY -- Nevada's budget problems got some help Tuesday when the treasurer's office announced it had identified $40 million in unanticipated revenue that can help ease the state through its economic slowdown.

In a letter to Gov. Jim Gibbons, Treasurer Kate Marshall said she had found $23 million in additional revenues from the unclaimed property fund that can be moved to the state general fund. The state earns interest income from property that for various reasons has gone uncollected by Nevada residents.

Another $17 million in savings was identified in the state's long-term bond obligations. The state sells bonds to finance major construction projects.

The additional revenue to the state from the unclaimed property fund comes though Marshall said her office has continued to return the unclaimed money to its owners whenever possible.

The office has returned more than $12 million this fiscal year, compared with about $3 million in the same period a year ago.

The $40 million is well beyond the share of cuts in the treasurer's office sought by Gibbons. The 4.5 percent cuts in agency budgets amounts to $139,000 in the treasurer's office over the two-year budget, and Marshall is looking for ways to save money in her budget.

The governor cannot mandate the cuts to the treasurer's office because it is an independent constitutional office.

Marshall said in her letter that she will continue "to assist the state in prudently managing its finances while it recovers from the economic slowdown."

The identification of the "found money" was conveyed in the letter and in a meeting Tuesday with Marshall, Gibbons and others.

The $40 million is a little more than 7 percent of the total $542 million Gibbons said the state needs to make up over this year and next year because of lower-than-anticipated growth in tax revenues.

State Budget Director Andrew Clinger, who sat in on the meeting with Gibbons and Marshall, said the additional funding will be banked for the time being.

"We're certainly not going to make any changes to our existing plans at this point," he said.

They include 4.5 percent cuts across nearly all state agencies and education budgets to save about $285 million.

The rest of the shortfall is to be covered by cuts in capital projects and one-time expenditures and by using most of the state's rainy day fund.

"It's great," Clinger said of the news of unanticipated new revenues.

"It will definitely help our bottom line. We definitely appreciate Kate and her staff coming up with this."

Contact Review-Journal Capital Bureau writer Sean Whaley at swhaley@reviewjournal.com or (775) 687-3900.