Gov. Jim Gibbons said Friday he's postponing a special session of the Nevada Legislature, scheduled to start on Monday, until the end of next week.
Gibbons said he's delaying the session until next Friday to give legislators and state administrative staff more time to prepare given a worsening forecast of the state's revenue shortfall " now more than $1 billion.
His announcement followed a vote by state Economic Forum members to raise a target figure on shortfall growth to nearly $250 million after taking various tax revenue projections into account. He said the session will run through next weekend.
The nearly $250 million is far more than the less than $100 million that the lawmakers' fiscal analysts figured was the amount that will determine what the legislators do about the shortfall at the special session.
The figure approved by the forum also is slightly higher than the $242 million that the governor's budget chief had estimated " a figure labeled "utter fantasy" by Assembly Speaker Barbara Buckley, D-Las Vegas.
"It's utter reality," Gibbons spokesman Ben Kieckhefer said following the Economic Forum vote for the higher figure.
The Economic Forum's projection determines the dollar amount that must be cut by lawmakers, in addition to the more than $900 million already slashed from the budget through 4.5 percent agency-by-agency reductions and other steps.
Moneysaving plans to be considered by the legislators include a delay in scheduled 4 percent pay raises for state workers and educators. They also may consider Lt. Gov. Brian Krolicki's "securitization" plan that would raise $600 million or more through a one-time bond sale.
Lawmakers also could consider budget cuts beyond the 4.5 percent cuts already in place. Gibbons has asked agencies for plans to reduce spending by up to another 4 percent through mid-2009.
A 4 percent cut would save nearly $100 million more, but would have a big impact on many government agencies. State prisons chief Howard Skolnik said he would have to shut down the 1,000-inmate Nevada State Prison in Carson City by January to achieve a 4 percent budget reduction.
The state has faced a series of dismal reports on slumping revenues from major sources, such as casino and sales taxes. Gibbons' budget staff has projected a revenue shortfall of $1 billion or more by mid-2009, and another $1 billion shortfall in the two-year budget cycle that will end in mid-2011.
