Las Vegas NowI-Team: Grim News on State Budget
State leaders continue to get closer to agreeing on what needs to go.
The biggest problem has been the downturn in the economy, but mostly the tourist economy.It's a disturbing and real possibility: seniors booted from nursing homes, kids pushed into larger classrooms and the mentally ill forced out of care. Those could all be part of the $2.4 billion in cuts from the state budget.
This all comes as lawmakers prepare to cut millions next week in a special session. Monday the Nevada Economic Forum met to look into the future to see just how bad this will get.
The special session will only float the state until next year. Then the real trouble begins. Imagine having to cut a third of your household expenses. It's just like that.
These will be deep, profound cuts people never thought would happen. Lawmakers have been told to expect 34-percent cuts -- that's $2.4 billion that has to go.
The Economic Forum's meeting was stark and troubling. The experts say Nevada will likely see unemployment of 9-percent and no economic recovery until the end of 2010. That means 34-percent in cuts.
State leaders continue to get closer to agreeing on what needs to go. Details have been few, but Speaker Barbara Buckley says the state may need to repeal many tax breaks for businesses. Nevada has low, attractive taxes. That may all change.
"Some of them might have made sense 10, 20 years ago, but our priorities are different," she said.
The biggest problem has been the downturn in the economy, but mostly the tourist economy. Everything from gaming wins to cigarette taxes are taking a beating. If and when people come here, they aren't spending as much as they used to.
If the full brunt of the cuts are put into place, it could mean prisons being closed, prisoners released early and even teacher layoffs.
Buckley and others want to keep education safe from all cuts, but if they do that, everything else will have to see even deeper cuts.
The governor has warmed up to the idea of new taxes, but it is a last resort. Removing the sweetheart tax breaks already in place could help. Staff in Carson City is crunching numbers to see how much that could help. We should have news on that after the special session.
