'A new day in Nevada'

CARSON CITY -- While concentrating on the budget problems facing the state, Gov. Kenny Guinn pledged Monday night to strengthen Nevada's ethics laws, continue the fight against sending nuclear waste to Yucca Mountain and begin a college scholarship program.

In his first State of the State message, Guinn said the Employers Insurance Co. of Nevada, formerly called the State Industrial Insurance System, should be privatized. He also called for the removal of the limit on charter schools that can be started in the state, and he said he will cooperate with Southern Nevada officials to deal with growth.

The 61-minute televised address was interrupted 35 times by applause. He was given a standing ovation when he announced his "Millennium Scholarships" program, which will provide help to high school students with B averages who want to continue at a Nevada college or university.

To finance the project, Guinn proposes to use part of the $48 million a year coming to Nevada from last year's tobacco settlement. He ignored the advice of Attorney General Frankie Sue Del Papa, who suggested that no money be spent for the next two years until a possible federal claim against the settlement is resolved.

The governor said the scholarship program would provide students $2,500 a year for those in universities and $1,250 for those in community colleges without using tax dollars.

On the budget, he sliced $140.7 million to achieve a balanced two-year spending program of $3.2 billion without asking for new taxes. And he warned of "lean times ahead" for the state.

The state cannot continue, he said, with the present budget system in which 95 percent of the money is allocated to existing programs, leaving only 5 percent for enhancements.

"I promise all of you that, by the year 2001, I will deliver to this Legislature the most comprehensive review of state government in our history and a budget that reflects those findings ... a zero-based budget," Guinn said.

Carrying out a campaign promise, he suggested that all public officers sign a code of ethics "to stipulate that they have read it, understand it and will adhere to it. Ignorance in the face of the people's trust cannot be an excuse."

Guinn's proposal would raise penalties for ethics violators from misdemeanors to felonies and impose fines up to $25,000, which would be paid from the personal funds of the person who violated the ethics law. The individual would not be able to reach into leftover campaign funds. And a conviction could mean loss of office.

Complaints about ethical violations should be reviewed and completed within 60 days, he said, adding that the ethics commission must write its decisions in plain English.

"It is the goal of this administration to safeguard the public's faith in government, and that will begin at my front door," he said. "I demand the highest integrity from myself and from those with whom I work. And I will expect no less from anyone in state government or from any other elected official in Nevada."

The state, he said, also must face the possibility of limiting growth in the Las Vegas area. He said he doesn't agree with Sen. Dina Titus's plan for a "Ring around the Valley" proposal but applauded her for raising the issue.

He said he would work with local governments and added, "I will not sign any legislation that alters local or regional government and planning in Clark County unless that legislation has been approved by the Southern Nevada Strategic Planning Authority or Regional Planning Coalition."

On the proposed nuclear dump at Yucca Mountain, Guinn said Nevada "cannot afford to relax for one moment or for one day" in the battle to keep the repository out of the state. He has put $1.4 million a year into the budget for the Office of Nuclear Projects, which is fighting the Department of Energy over the site. The federal government has withheld any money for the state office.

Guinn, former superintendent of schools in Clark County, said he believes in competition and wants to take the limits off the number of charter schools that can be created in Nevada. And he wants to simplify the process of applying for a charter school. So far only one has been started in Reno.

The law on charter schools, passed two years ago, allows up to five in Clark County, two in Washoe County and one each in the other 15 counties. There is no limit, however, on the number if the schools cater to at-risk students.

On July 1, the quasi-state Employers Insurance Co. of Nevada will be challenged by private insurance companies to write workers' compensation coverage. Without giving details, Guinn said he wants to cut the employers insurance from state ties.

Employers Insurance has slowly been weaning its way from state government, and this would be the final step.

Much of the speech was devoted to telling the packed house in the Assembly chambers of the problems faced in balancing the budget. And he added that the tough times are not over.

"Fellow Nevadans, the next 10 years are not going to be easy. Our federally-mandated social spending is going to reach incredibly high levels at the same time we need new schools and more prison beds. We're growing at a tremendous rate, but our tourist-based industries, which drive our economy, are susceptible to downturns."

It was here he got his only laugh in the speech. The financial news of the state was so grim, he said, that Budget Director Perry Comeaux suggested Guinn might want to ask for a recount of the election results.

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