Okay, Now What?

By:  Doug Busselman, Executive Vice President

I watched the speech by Governor Jim Gibbons.  I watched the response by Senate Majority Leader Stephen Horsford.  I watched the pundits exchange their observations after the speech and I’ve read the accounts of how those who get government checks weren’t very impressed with the Governor’s idea that we should have less government.  I’ve read the disparaging insights from the newspaper editorial writers, one upset by the Governor not having a plan and the another generally disgusted about his having one that they didn’t agree with.

I guess if you thought that a speech was going to fix the nearly $900 Million budget hole, you were going to be disappointed.  Those most critical of the Governor’s performance with governmental leadership are in that camp because he hasn’t been willing to break his promise about going along with tax increases.  It would seem that if you are not able to take more resources from the private sector to give to the public sector spenders – you just aren’t a leader?  Statesmanship is based on the ability to reach deeper into somebody else’s pocket and take from them their money and spend it in ever-increasing amounts for the public good…

Beyond those political considerations, the budget hole is still nearly $900 Million and we will be heading to a special session of the Nevada Legislature on February 23.  

From the response by Senator Horsford it didn’t sound like his party was interested in going along with the budget cuts for education.  While being critical of the cuts that the Governor has offered as a starting point, indicating that these draconian cuts only got us less than half way, the Senator didn’t get very specific on what the solution should look like in very exact terms.  He said he wasn’t going to advance an agenda for more taxes (right now anyway), but those who haven’t been paying their’s or their fair share (mining) were on the list for something.  We also can expect for some state government offices to not be open for a full working week and possible complete closure could be in store for others.

We also get to give the Legislature (or at least the small working group of those in charge during the interim) our input, sharing ideas to help solve the situation.

It is going to be interesting to see how the process itself works out and what agreements are achieved between now and the start of the Feb. 23rd special session.  It doesn’t seem that the stuff is lined up to have everything decided before the voting happens, which might result in something other than the slam-dunk that past sessions have been.  

Delaying the outcome will make the time shorter for dealing with the budget hole, if in fact the gap doesn’t get any worse as time goes on anyway…

For my part it would be my plan to contact my elected representative in the Nevada Assembly and the Nevada Senate and encourage their support for doing what’s necessary to cut state government spending.  I will be recommending that the cuts not be considered on an across the board basis, but instead acted on with attention to giving priority government services (like K-12 education) less of a reduction and possibly complete general fund defunding and discontinuation of some current government entities.  Those drawing a government paycheck, including teachers, should receive reductions in the levels of pay they are receiving with some government employees being terminated entirely.

Nevada government cannot spend more money than tax revenue is capable of generating and tax increases cannot and should not be expected to provide the means for more government spending.

 

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