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Thursday, January 22, 2009

Summary of the state of the state address

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In a speech before the Democratic-controlled Legislature Jan. 15, Gov. Jim Gibbons (R) rejected tax increases and instead proposed dramatic cuts to education and state workers’ salaries — including his own — as a way for struggling Nevada to bring its spending in line with revenues. The governor said his new budget is $2.2 billion smaller than the one he introduced two years ago.

A proposed 36-percent decrease in funding for colleges and universities — or nearly $473 million over two years — was the most severe of the proposed cuts and prompted the state’s chancellor of higher education to say he would “blow my brains out” if it was approved. State worker salaries would temporarily decline by 6 percent under Gibbons’ plan, and employees would pay more for benefits and forgo scheduled raises.

Democrats quickly assailed Gibbons’ proposed budget as being too “draconian” and promised to overhaul the state’s tax system, setting the stage for a head-on collision with the governor during the legislative session.

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