Guinn says still ironing out major decisions in budget

Gov. Kenny Guinn said Monday he's still working on the major decisions that will shape his 2002-03 budget.

But he said even though he sees major changes in some programs, that doesn't mean more taxes.

"There's nothing in this governor's budget that includes new taxes," he said. "This is built on reallocation. We're trying to indicate to Nevada's taxpayers how well we can do if we refocus."

Guinn met with legislative leaders from both parties earlier in the day to discuss what their priorities are.

But he said his basic instructions to state agencies haven't changed in the past six months. They are to budget for no more than their existing budget and if new or expanded programs are needed they should find the money by cutting something else. He urged state agencies to be creative in changing how they do business to better serve the public.

He said the surplus should rise to about $200 million this year instead of the $150 million projected last July.

Candidates for the money, he said, include a variety of children, senior and health programs. He said that follows the outline he gave in July: $50 million of the surplus into health, $50 million in education and $50 million into construction, facilities and technology.

The only firm commitment he made for the extra $50 million in projected surplus was to establish $13 million fund to cover the cost of retirement for state district and supreme court judges. The state is already committed to pay that retirement but there is no fund to cover the cost.

Guinn said $13 million invested now would save $45 million over the next 40 years.

In addition, the Economic Forum voted Nov. 30 to increase the total revenue available for the budget by $43 million. In building the budget, Guinn said salary increases for state workers and university system professional staff remain a top priority.

Teachers, he said, also need raises but have access to collective bargaining at the local level, "which professors and state workers don't have."

A salary survey released last week showed state workers 26 percent below comparable other employees, including those in local governments. And the State of Nevada Employees Association has asked at least 5 percent next year and 3 percent more in 2003.

But Guinn noted he can't yet say what his proposed raises for state workers would be.

Legislative Democratic leaders said their priorities include not only state worker pay increases but salary increases for teachers.

Guinn said his other priority will be health care program improvements, including raises for foster parents, grandparent programs, expanding Nevada Check Up for the children of lower income workers and Senior Rx for senior prescription insurance.

He said most of those program improvements will have to be paid for by savings generated within existing agency budgets. He said those savings are coming in with some creative changes proposed in a number of areas.

"So we've created more money that can be reallocated," he said.

Legislative Democrats also echoed some of those sentiments, calling for better utilization of existing health care programs.

"We're not talking about expensive, new programs but using existing funds for programs with the potential of helping thousands of Nevada families and seniors," said Assembly Majority Leader Barbara Buckley, D-Las Vegas.

Guinn said since he has changed so many of the rules this past year a good share of the budget is still in the process of being developed. That budget must be finalized and sent to the printer by Jan. 16. It will be presented to the Legislature and made public Jan. 22.