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Opinion

Gov. Gibbons: State of the State Budget

Gov. Gibbons: State of the State Budget
Chuck Muth
December 9, 2009

(Gov. Jim Gibbons) – As Governor, I recognize we have shortfalls and need to begin making plans for spending reductions to protect jobs and protect services.

Preliminary indications show Nevada has spent in excess of 50-million dollars more than it has taken in — just in the first three months of the fiscal year. The budget has increased excessively and the revenue to support the added spending has not. Total revenue is up – called tax increases – but spending is up even more. This cannot continue. The State of Nevada must live within its means.

I have said many times and I will say it again.

People around hundreds of thousands of dinner tables across this state are looking at their paychecks and income figures, looking at their bills and spending figures, and trying to predict the financial future.

It is prudent for me, as governor, to have the State do the same thing. We will look at state income, study our state spending, and see if legislative staff and Administrative Staff can work together to ascertain what the economic future holds.

I also believe it is prudent to have the Nevada Economic Forum prepared to come together to offer their analysis of the economic future. After consulting with legislators yesterday, I am working on a timeline and a plan to best serve the citizens of Nevada. I will sign an Executive Order calling for the Economic Forum to convene, make a revised economic forecast, and report back to me by January 19.

I have already asked Directors of all state agencies to prepare contingency budgets detailing spending reductions of 1.4% and 3%. I may request more budget reduction scenarios as we develop a better picture of our revenue shortfall. Though the holidays are coming quickly upon us, I want Nevadans to be assured that I am diligently working with my staff to thoroughly assess the economic situation.

These efforts will result in a plan to reduce government spending while preserving as many state jobs and services as possible and putting Nevada’s economy back on the road to recovery and prosperity. I will continue to report to you as we create an action plan for Nevada’s future.”

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