State agencies submit budget with 14.1 percent cut

By Cy Ryan

Friday, Aug. 29, 2008 | 7:04 p.m.

CARSON CITY -- It hasn’t been a happy day for state agencies.

State departments and agencies delivered stacks of binders Friday to meet the deadline for submission of their upcoming biennial budgets with a 14.1 percent cut from the 2007 appropriation.

Unless there are new taxes approved by the 2009 Legislature, there could be cutbacks in programs and a reduced state work force.

The paperwork has been flowing into the office of state Budget Director Andrew Clinger, who says his staff will have to start working weekends to put together the future spending plan.

Clinger said his staff will be talking with agencies and cleaning up loose ends in mid-September. Then in October, it begins to put together the recommendations of Gov. Jim Gibbons. It’s too early to know what must be cut and if any programs will be scuttled in the next budget.

But Clinger said there was good news Thursday in a meeting with the state Department of Education. It predicts enrollment in the public schools may be flat and grow only 1.5 percent. That means the state will have to put less money into the programs that help support public schools.

Adhering to orders from Gibbons, the state Board of Education earlier this month sliced $188 million from its authorized biennial budget approved by the 2007 Legislature.

The cuts included scrapping the $2,000 bonus given to new teachers who sign to work in Nevada. The education board also eliminated bonuses or higher retirement benefits for teaching in at-risk schools. Class sizes in grades one through three would be increased and the money to buy textbooks was cut in half.

Those families on welfare should not expect an increase in their monthly check in the coming two years. Nancy Ford, director of the state Division of Welfare and Supportive Services, said the average monthly grant for a family of three was raised 10 percent to $383 by the 2007 Legislature.

The state Division of Mental Health and Developmental Services could lose an estimated 180 employees with the 14.1 percent reduction. Dr. Harold Cook, administrator of the division, said some of the positions have never been filled and he hopes to avoid layoffs.

A re-alignment of the reduced staff is being made to meet the expected growing number of patients, Cook said.

If the economy doesn’t improve, it’s unlikely there will be any cost-of-living raises for state workers, school teachers or university personnel.

Under the present scenario, the $6.8 billion two-year budget of the present biennium would be lowered to about $5.7 billion for the coming two fiscal years.

Agencies were directed to cut up to 3 percent this year from their spending programs to keep the state’s budget in balance.

Clinger said those reductions would be counted against the 14.1 percent cuts to be made in the upcoming budget if they were on-going expenditures. An example is where an agency cut positions. The money saved would be included in the 14.1 percent.

But if the agency only reduced one-time expenditures, such as purchase of equipment or vehicles, it would have to come up with plans for the full 14.1 percent.

An Economic Forum will meet at the end of November or the first of December to make its recommendations on how much money will be available for the state to spend starting July 1, 2009. The state cannot exceed that amount.

Clinger said the final touches would be placed on the budget after that projection is made. And the governor will outline the budget to a meeting of the Legislature in mid-January. After that, the Senate Finance Committee and the Assembly Ways and Means Committee will start holding hearings and examining the budget.

The full Legislature will convene in early February for its 120-day session.

Cy Ryan may be reached at (775) 687 5032 or [email protected].