CARSON CITY — Gov. Jim Gibbons and Nevada legislative leaders announced at a news conference in front of the legislative building this evening that a final deal had been reached to close a budget deficit that ended up being about $805 million. But they warned that recession-plagued Nevada still faces tough times ahead.
“No one likes everything in this” deal, Gibbons said. “Everyone had to yield something, and everyone came to the table.”
Gibbons said he compromised on his plans to close the Nevada State Prison in Carson City, the Casa Grande youth offender facility in Las Vegas and a 1o percent across-the-board cut to state agencies, including K-12 education. (The cut to the education budgets ended up being 6.9 percent.) Moreover, the final plan includes an increase in the bank foreclosure fee, from $50 to $200, which Gibbons agreed to despite his previous stances against taxes and fees.
Assembly Speaker Barbara Buckley — who kicked off the session on Tuesday urging the Legislature to reduce the cut to education — said the state also managed to avoid some of what she called the worst cuts to health and human services. But she added that the state’s financial system needs to be overhauled.
“I think we need to tear down the financial structure we have now and start over,” said Buckley, who is term-limited and ending her service in the Legislature.
For his part, state Senate Majority Leader Steven Horsford warned that the “challenge ahead is just as great,” and said the next Legislature, which meets in 2011, could face a 50 percent reduction without new revenue. He challenged “those corporations that were not able to be part of this solution” to be part of the next. It was a reference to the casino industry and other businesses, which flatly refused in a Senate hearing to agree to contributing more to help the state solve its deficit problem. (Nonetheless, the final budget plan includes an increase in the fee for new casino licenses.)
State Senate Minority Leader Bill Raggio, the longest-serving state senator in state history, said the special session was historic. “Both parties and both houses worked much more than ever in my career here,” Raggio said, calling the six-day session the most difficult time in his Senate career.
“Next session will be an ever bigger challenge,” Raggio said. He’s serving in his final term in the upper house because of term limits.
Assembly Minority Leader Heidi Gansert used her time at the mike to urge the Legislature to approve reforms, including subjecting labor negotiations with public employees to the provisions of the state’s Open Meeting Law. The idea was discussed but rejected during the special session.
Among other things, the final budget plan includes:
- A reduction in the cut to K-12 education from $211 million to $116.8 million.
- A reduction in higher education from $76 million to $46 million.
- Eliminating a list of proposed cuts to services for the elderly, children and the disabled.
- Putting most state offices on a four-day, 10-hour work week.
- Cutting state contracts by $10 million.
- Avoiding further pay cuts to state employees pay or benefits.
- “Sweeping” state boards, commissions and agencies for nearly $200 million.
- Raising the per-claim mining fee, based on the number of mining claims a person or corporation has filed. The new fees will be $70, $85 and $195.
The bill to implement the final package was being drafted, and Gibbons said the plan would be finished tonight. Just in case, however, he had another proclamation extending the midnight deadline ready to be signed, if needed.
Tags: Barbara Buckley, Bill Raggio, Heidi Gansert, Jim Gibbons, Nevada Legislature, Steven Horsford
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