Lawmakers, governor meet to discuss budget

Both legislative leaders and the governor emerged from a 90 minute meeting Tuesday saying they intend to work together to resolve what Gov. Jim Gibbons said is a $900 million plus revenue shortfall.

"We didn't put anything in concrete at this point in time," said Gibbons advising reporters there will be another meeting Feb. 2 when, hopefully, staff will have a clearer idea exactly what the gap between the current budget and revenue is.

While staff does that work, he said no date will be set for the special legislative session necessary to implement any cuts and other changes to balance the budget.

Assembly Speaker Barbara Buckley, D-Las Vegas, said she was "hopeful legislators and the governor will be working together."

"What we're facing is nothing short of sobering," she said.

Buckley said if budget cuts are the only tool to balance the budget, it would mean 22 percent General Fund reductions on top of all the cuts already made over the past three years.

"It really is a dire situation," she said.

She said Gibbons has agreed to consult with lawmakers before setting a special session and laying out proposed solutions.

"We should work on them jointly, agree on them jointly and get them drafted," she said.

In the meantime, Assemblywoman Debbie Smith, D-Sparks, said lawmakers will hold hearings Feb. 3-4 and Feb. 8-9 to discuss the situation with agencies and other parties, then a town hall style event Feb. 13 to get public input on what to do.

"We need to talk about the ideas that are out there," said Assembly Minority Leader Heidi Gansert, R-Reno.

Gibbons indicated he wanted to call a special session as soon as practical once all the data has been assembled and agreements reached.

The Economic Forum on Friday revised revenue projections used to build the current biennial budget downward by $580.4 million. When the amount of sales tax the state is required to make up to school districts is added to that, the amount soars to more than $818 million. When other revenue gaps such as the roughly $60 million Medicaid shortfall are added in, the amount easily reaches the $900 million figure Gibbons mentioned.

That total will rise even more once the property tax shortfalls school districts are suffering are added in.

In addition to Gibbons, Buckley, Smith and Gansert, northern Assemblymen Pete Goicoechea of Eureka, James Settelmeyer of Gardnerville and Don Gustavson of Sparks, Senators Bill Raggio and Randolph Townsend of Reno - all Republicans - attended the session in the Capitol. Attending by video-conference from Las Vegas were Senate Majority Leader Steven Horsford, Senators Bob Coffin and Joyce Woodhouse and Assemblywoman Marilyn Kirkpatrick - All Democrats - and Republican Senator Barbara Cegavske.

Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.