Senators vote to pump more money into benefits program

Members of the Senate Finance Committee agreed Monday that state retirees shouldn't have to suffer because of a calculation error in building their budget.

Gov. Kenny Guinn's proposed budget would subsidize each retiree with $280.78 a month next year and $316.26 a month in 2005.

But when the numbers were recalculated, the total amount in the budget -- about $20 million a year -- would only cover a subsidy of $242.86 a month next year and $280.13 a month in 2005.

Without more state money, the retirees would have to make up the difference -- from $32 to $52 a month more for health benefits for the next two years.

Jim Richardson, speaking for the Nevada Faculty Alliance and other employee groups, urged the senators to fund the difference. He said retirees are already being hit with other increases and reductions in the benefits they receive.

Sen. Bob Coffin, D-Las Vegas, said it wouldn't be fair to retirees to penalize them for a budget calculation error.

The budget office recommended instead maintaining the current subsidy but, in effect, ignoring the shortfall and fixing it in the 2005 Legislature.

"That sounds like smoke and mirrors to me," said Sen. Bill Raggio, R-Reno.

"Why don't we put it in. Let's do it and bite the bullet," he told other members of the panel.

With that, the committee voted to increase the state's contribution rate for retired state workers to cover the $5.3 million total shortfall.

That will require adding $3.3 million in general fund money to the budget for the coming two years. The remaining $2 million comes from non-general fund agencies like the departments of Transportation and Public Safety.

Sandra Tiffany, R-Henderson, was absent for the vote. The other six members of the committee supported the decision.