Gov. Guinn prepared for first 'State of State' speech

CARSON CITY, Nev. - Gov. Kenny Guinn takes center stage tonight to deliver a carefully rehearsed "State of the State" speech that's his vision of both a short- and long-term plan for Nevada.

The short-term plan that he'll deliver to legislators is built around a record $10 billion-plus budget for the coming two years. The plan incorporates many of his campaign pledges - including no new taxes and no pay raises for government workers - and keeps a tight rein on agency spending. Some areas, notably in human services, will see cuts.

For the long run, he's likely to talk boldly about the need for government reorganization and budgetary reforms, privatization of some services, and revamping a casino-dependent tax structure that's now vulnerable to economic shifts.

The state's first GOP governor in 16 years also may press for a larger executive-branch role in deciding how the state's money should be spent - a move certain to agitate some lawmakers.

Nervousness among a few key Democrats was obvious in advance of Guinn's speech, to be delivered in the state Assembly chambers.

On Friday, Assembly Speaker Joe Dini, D-Yerington, and Senate Minority Leader Dina Titus, D-Las Vegas, warned against meat-ax cuts in programs that might, if preserved, save the state money over time. They added working Nevadans and retirees shouldn't be targeted as the state deals with a looming budget shortfall that could hit $135 million.

They also said Guinn should help shore up a state employees' health insurance system, support a schools-to-careers program, and preserve anti-drug programs such as drug courts.

Dini and Titus also cautioned against slashing some child abuse prevention programs and erasing a new effort that provides health insurance to children of the working poor.

Others antsy about the governor's speech included the head of the Nevada State Education Association, who said pay hikes are needed to attract good teachers to public schools in Nevada.

Elaine Lancaster added state spending for public schools should ensure that Nevada continues with efforts to upgrade teachers and properly test students.

She agreed tax restructuring is vital - but the school system shouldn't suffer in the meantime.

Three-quarters of Nevada's revenue comes from sales and casino-related taxes. Options for additional revenue include a shift back to property taxes, levies on services, and even a state income tax.

Higher taxes on Nevada casinos have been suggested by a few lawmakers, but that won't get any backing from Guinn, whose candidate was heavily backed by the gambling industry.

Bob Gagnier of the State of Nevada Employees Association also wants pay hikes for public employees, and questioned the "grim picture" that Guinn is painting.

Gagnier predicted that in April new projections by Nevada's Economic Forum would show extra money and set off a late-session frenzy by lawmakers for pork-barrel projects.

Some legislators also fear Guinn may try to end guaranteed funds for class-size reduction programs and just put the money into general public school funding. That's viewed as a softening of a mandate to cut class sizes that had been pushed for years by former Democratic Gov. Bob Miller.

Guinn's expected bare-bones budget for the next two years assumes $3.2 billion in state general fund revenues. The rest of the funding will come largely from federal sources.

More than half of the state spending will be for public schools, community colleges and universities.

Using the current budget as a guide, about a quarter of the budget will go for human services programs, and about 11 percent for public safety, mainly Nevada's burgeoning prison system.

While the 1999 Legislature won't convene until Feb. 1, review of Guinn's spending plan will start immediately. Combined Senate Finance and Assembly Ways and Means committees are scheduled to hold their first meeting on Tuesday, a day after the "State of the State" speech.

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