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February 3, 2010 / jimnv

The Budget Is Officially Bad

The state’s official revenue shortfall is $881.4 million. What this means according to the budget director:

This will require a 20.2 percent cut in state spending.

There will be a deficit of $707 million by June 20, 2011 if nothing is done now. And that does not include a 5 percent required reserve.

Gibbons says he will not support a pay cut of more than 6 percent for state employees or more than a 10 percent reduction in public education spending. He feels “only” 234 state employee layoffs are needed.

Gibbons supports the suspension of collective bargaining rights for teachers (state employees have no such rights), eliminating 320 empty state positions, welfare funding cuts and closing the Nevada State Prison in Carson City.

A Special Session will probably be called for the week of  February 15th. Gibbons is to formally announce his intentions in his State of the State address on February 8th (Monday).

Sources:

State revenue shortfall $881 million, lawmakers told“, LV Rev Jr., February 3, 2010

Governor releases proposed cuts; 234 layoffs, closure of Nevada State Prisons, loss of child welfare money to counties“, Reno Gaz Jr, February 3, 2010

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