Guinn ready to chart course tonight with State of State message

CARSON CITY -- Gov. Kenny Guinn will deliver his first State of the State message tonight, focusing on education, calling for stronger ethics laws and unveiling a lean $3.1 billion biennial budget.

He has already said he will not propose any new taxes and won't recommend any pay raises for state workers or schoolteachers but will protect funding for public schools.

Because tax revenues are not forecast to grow as fast as in the past, there's a $137 million shortfall in money available to keep programs operating at the present level.

"I don't anticipate any surprises," Senate Majority Leader Bill Raggio, R-Reno, said. Raggio has been a strong supporter of Guinn's, and it will fall on him to carry out the governor's legislative package.

"Education will be his focus," Raggio said. "There is going to be cutting of base budgets. There are going to be disappointments. But the alternative is to raise taxes, and that will not be in the governor's message."

Guinn's televised address will usher in a new era in which the governor gives his message two weeks before the opening of the Legislature. But legislators will be flown to Carson City to be present in the Assembly chambers for his speech.

Assembly Speaker Joe Dini, D-Yerington, agreed that there was "no appetite" to boost taxes. But Dini and Senate Minority Leader Dina Titus, D-Las Vegas, urged Guinn, if possible, to preserve some social programs.

While Guinn has closely guarded the details of his budget plan, the two legislators said they asked Guinn to rescue the financially troubled health-insurance program for state employees, which has gone from a $20 million surplus to $16 million in the red.

Raggio said he was "sure" that will be a high priority for Guinn. "I hope everybody is on board to save that," Raggio said.

Education will also be a closely watched item in Guinn's budget. During his campaign, the governor stressed his commitment to education, particularly kindergarten through high school. In recent years, the percentage of money in the budget going to public schools has declined while the share for the University and Community College System of Nevada has increased.

Guinn may stem that trend with this budget.

The Nevada State Education Association, the union of school teachers, on Saturday urged the governor to do more for education. Association President Elaine Lancaster said there must be additional money for teacher training, student testing and schools that are not meeting state standards.

Lancaster was unhappy with the proposed salary freeze. "How are we going to attract the best teachers for Nevada's students if we continue to pay less than other states?" she asked.

It's expected that Guinn will rein in some of the social programs started by the administration of Gov. Bob Miller, such as "Family to Family" and the effort to insure children of families of the working poor. While not cutting their present budget, he may limit future growth.

Dini and Titus want careful consideration before trimming the children's insurance program because they say it saves money and leads to better lives for families.

In addition, the two Democrats want the Republican governor to save the school-to-careers program, which prepares students for jobs; drug prevention and drug courts, which can lead to a drop in crime; programs to help welfare recipients get and keep jobs; and child-abuse prevention.

Raggio, chairman of the Senate Finance Committee, said all of the programs mentioned by the Democratic leaders are "worthy." He added, however, "We have to fit them in with other priorities."

The Economic Forum, a panel of five lay members, forecast that there will be $1.532 billion in general-fund revenue available next fiscal year, an increase of 4 percent from the present year, and $1.591 billion for the 2001 fiscal year, an increase of 3.8 percent.

Guinn must build his budgets on those estimates. The forum returns May 1 to revise its projections. If there is an increase, there may be a scramble for any extra cash that might be available.

Guinn is expected to recommend that the Legislature toughen the laws on ethics -- something he promised in his campaign. Among his proposals are increased fines and penalties that could bounce a violator from office.

Guinn, the first Republican governor in 16 years, has also stressed that there must be better planning to enable the state to survive during times of reduced tax revenues. Two years ago, the state had ample money and started a number of new programs.

Guinn this time must find the money to pay for them. For instance, the state is building a new prison in Southern Nevada that will open in the coming biennium. And there's the new veterans home to be constructed in Boulder City that will need operating funds when it is completed within the next two years.

The Senate Finance Committee and the Assembly Ways and Means Committee will begin its review of the budget Tuesday and continue for the next two weeks before all the lawmakers arrive for the Feb. 1 opening.

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