Nevada Democrats outline budget plan

CARSON CITY " Democrats in control of the Nevada Legislature said Thursday they'll reject the deep cuts in education and health care programs included in what they termed a "shortsighted" budget plan drafted "in a back room" by Republican Gov. Jim Gibbons.

Assembly Speaker Barbara Buckley, D-Las Vegas, and Senate Majority Leader Steven Horsford, D-North Las Vegas, said they'll produce an alternative to Gibbons' $6.2 billion spending plan by March 30, following hearings to gather public comment.

The legislative leaders said a revenue plan to cover their proposed spending will be developed by mid-April. They didn't say whether that would entail new or higher taxes, something that Gibbons opposes in most cases.

At a Las Vegas news conference, Buckley and Horsford said a preliminary review of the budget, which began last week and ended Wednesday, confirms that Nevada is in one of the worst financial crises it's ever endured.

"We will not fail Nevadans by acting in a knee-jerk way and skipping the hearing process," Buckley said, adding that lawmakers will take a "thoughtful" approach to the budget process.

"If it's not happening elsewhere, we will govern," Buckley added.

Gibbons denied that his budget plan was a "back room" product, adding that the legislative leaders "find it easier to simply criticize cuts while hiding from the alternatives."

"Every state entity met with our budget office before and during the time my proposed budget was put together," Gibbons stated. "Legislative staff were invited to and attended every meeting with agency personnel."

Gibbons also said Buckley had been touring the state last year "ostensibly seeking solutions" to the economic downturn.

The Assembly speaker said a first step, once the 2009 legislative session starts on Monday, will be to develop an expanded reserve fund that would be a "forced savings account" to protect the state against a future economic downturn.

Lawmakers also will review expected "stimulus" money from the federal government, that could add up to $1.6 billion to the $6.2 billion Gibbons expects in state revenue over the coming two fiscal years.

But even with the stimulus funds, now being considered by Congress, the state would be below the more than $8 billion that Gibbons' budget office has described as the amount needed to continue government services at current levels while accounting for

increased demand.

"These are 1-shot funds and can't be relied upon for continued operations of state government," Buckley cautioned.

Gibbons said that while his current budget calls for major cuts in many areas, funding can be restored to "various programs and to personnel as appropriate" once details on the stimulus plan are available.

Legislators also will review the many business tax breaks that have built up over the years in Nevada. Buckley said the state "may just not be able to afford" those tax abatements during the current recession.

Horsford said legislators also will focus on ways to track down tax cheats who haven't been paying money owed to the state. He said that uncollected taxes could amount to $150 million.

Horsford also outlined plans for creating thousands of "green collar" jobs in clean-energy areas, making use of federal funds expected under the Obama administration's economic recovery program.

Gibbons said he welcomed the "green collar" initiative, noting he called for expansion of the renewable energy industry in his State of the State address and was "glad to see that the Democratic leadership is on board with our vision."

Buckley said lawmakers also will develop new protections for consumers to prevent more housing foreclosures. Nevada has the highest rate of foreclosures in the nation.