Posts Tagged ‘Gibbons’

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Las Vegas Artist Working On Gov. Gibbons Painting Despite Not Being Selected For Official Portrait

By Sean Whaley | 3:11 pm August 27th, 2010

CARSON CITY – Budding Las Vegas artist Alex Krasky was not selected to paint the official portrait of out-going Nevada Gov. Jim Gibbons for display in the state capitol, but he is going ahead with his canvas anyway with the hopes of personally presenting his work to the governor.

When he first learned of the competition to paint the governor’s portrait and submitted his proposal, Krasky decided to go forward with a painting without knowing if he would be selected. When he was not named as the finalist, Krasky said he was already well in progress on the portrait and decided to finish the work.

“I already spent a couple of weeks drawing it so I decided just to keep drawing because, what do I have to lose,” he said. “It’s a good image.

“I want to hand it to him personally, that is what my dream is,” Krasky said.

The as yet unfinished painting shows Gibbons with the Nevada state flag as a backdrop.

Alex Krasky's work-in-progress portrait of Gov. Jim Gibbons

Krasky, 40, was laid off from his job as a federal agency security officer in late 2008 and only took up a paintbrush a little over a year ago after spending years doing sketches. Since that time, he has produced about 50 works, including sketches, and has received some favorable attention for his efforts.

He has painted film director James Cameron and the late performer Michael Jackson in combination with the Cirque Du Soleil cast, among others.

The former Russian left his native country in 1997, traveling through several Latin American countries, sometimes illegally, before finally arriving in the U.S. and becoming a legal resident.

His 36-inch by 48-inch portrait of Gibbons is not in the traditional style but more of a commercial approach, Krasky said. He expects to finish it in a few more weeks.

Gibbons earlier this month picked a Washington state artist to paint his official portrait for the $20,000 commission. Forty-four applications were received.

Jill Lufrano, a spokeswoman for Gibbons, called Krasky’s art “amazing” after seeing it on YouTube.

“Unfortunately only one artist was able to be selected for the official portrait,” she said. “But I’m sure Gov. Gibbons would be delighted to have Alex give him the portrait. It would be an honor for the governor to have it in his collection.”

Krasky said his wife suggested he try painting in oils after seeing his sketches. An art teacher he went to for lessons said his technique was fine and there was nothing she could show him. After being less than impressed by a second teacher, Krasky went forward on his own.

Krasky said he has not tried to sell his work but he has received media interest, including a report last year about his Michael Jackson work by ABC Channel 13 Action News.

“It is my passion,” he said. “The problem is I’m not noticed. I’m just working at home without showing it to anybody.”

Krasky’s works, including the Gibbons work-in-progress, can be viewed on a YouTube video.

___

Audio clips:

Alex Krasky says he will finish his Gibbons portrait even those he was not selected as the finalist:

082610Krasky1 :31 to lose . . right.”

Krasky says he decided to start painting about a year ago and is self-taught:

082610Krasky2 :27 have anything to learn.”

Krasky says he paints for pleasure:

082610Krasky3 :17 it to anybody.”

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Rory Reid Plan To Balance State Budget Without Raising Taxes Gets Favorable Response For Theory, But Details Lacking

By Sean Whaley | 8:50 am August 27th, 2010

CARSON CITY – A plan released today by Democrat governor candidate Rory Reid on how to balance the Nevada state budget without raising taxes received some praise from a free market think tank even though many questions remain, including whether the proposal includes an overly optimistic prediction of future tax revenue growth.

Reid discussed his plan Thursday on the statewide television show Face To Face with Jon Ralston, saying the target he used for a balanced budget was $2.5 billion. If the shortfall is higher, Reid said he has other ideas to close the gap.

Reid said he has balanced budgets as Clark County Commission chairman that are as big as the state government budget for eight years, in good times and bad, without raising taxes. He said every number in his plan can be justified.

He acknowledged signing off on generous employment contracts for local government employees, but said he is now working to reduce those costs.

Layoffs will likely be part of the budget plan, but Reid would not specify numbers.

“There will be jobs lost,” he said.

But Reid defended his plan, saying he is the only major party candidate to present a budget balancing plan.

“Brian Sandoval has no experience with a large budget, and he doesn’t have a plan for action,” Reid said.

Geoffrey Lawrence, a fiscal policy analyst at the Nevada Policy Research Institute, said a review of Reid’s plan shows several good points, but it includes some questionable assumptions as well.

“Overall I’m very supportive of most of the ideas that are in the plan,” he said. “There are also some major assumptions that are made that may or may not bear out.”

Lawrence said one example is Reid’s belief that state tax revenues will come in $615 million higher in the second year of the budget than most people are anticipating. Whoever is governor will have to abide by the forecasts made by the Economic Forum, not rely on a personal assessment of what the level of tax revenues will be, he said.

The next two-year state budget has an anticipated shortfall of at $3 billion compared to what is viewed as needed to provide basic government services and fund education. Expiring tax increases and the loss of federal stimulus funds, along with much lower tax revenues, are the biggest contributors to the funding gap.

Both Reid and Brian Sandoval, the Republican candidate and frontrunner in the race, say they can balance the budget without raising taxes.

Reid’s plan, called “Moving Nevada Forward,” would cut the number of state agencies from 26 to 16, which he claims would save nearly $50 million, and cut funding to state constitutional officers, such as the attorney general and treasurer, by 50 percent, saving $26 million.

Reid would also seek a greater share of federal tax dollars to support state programs, bringing in an estimated $186 million, and cut down on tax deadbeats for $9.2 million in additional revenue.

Reid criticizes outgoing incumbent Gov. Jim Gibbons for the state’s fiscal condition, saying: “It is the legacy of Jim Gibbons, George W. Bush-style mismanagement, and years of postponing tough choices.”

Sandoval’s response to the Reid plan was brief: “Since Rory’s plan relies on $615 million in revenues which don’t exist and over half a billion in cuts which are based on faulty assumptions, it’s impossible to take this plan seriously.”

Sandoval issued a budget plan earlier this year to solve the $800 million shortfall in the current budget, but has not presented his ideas on how he would balance the upcoming budget without new taxes.

The two candidates are scheduled to debate for the first time on Sunday.

Another example of an assumption that needs further explanation is the proposal to cut Medicaid fraud in half to save $41 million, Lawrence said.

“Which is a great idea but if it was easy to do, it would have already been done,” he said.

On the plus side, Reid proposes to extend the employee furlough program and delay pay raises, saving $480 million, Lawrence said.

The plan could move the state in a positive direction if some of the smaller issues can be worked out, he said.

“It would be a boon for the state to have a leaner, more efficient government that still offers quality services,” Lawrence said.

Lawrence said he noticed that Reid frequently criticizes Gibbons for the state’s fiscal condition, but then relies on Gibbons’ SAGE Commission for many of his money saving ideas. The Spending and Government Efficiency Commission created by Gibbons made a number of recommendations on how to improve state government.

Reid did compliment Gibbons on the creation of the SAGE Commission in his Face To Face interview.

___

Audio clips:

Rory Reid says he has experience to balance state budget:

082610Reid1 :19 that I could.”

Reid says Sandoval’s only budget plan was balanced on the backs of kids:

082610Reid2 :17 backs of kids.”

NPRI analyst Geoffrey Lawrence says the Reid plan has some good ideas but also some questionable assumptions:

082610Lawrence1 :17 not bear out.”

Lawrence says the idea of streamlining government is a good one:

082610Lawrence2 :15 offers quality services.”

Lawrence says Reid criticizes Gibbons even though many of his proposals come from SAGE Commission:

082610Lawrence3 :14 the governor, so.”

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Governor Gibbons Evaluating Strings Tied to Federal Support Before Accepting Funding

By Sean Whaley | 1:56 pm August 11th, 2010

CARSON CITY – Gov. Jim Gibbons said today he wants to see what strings are attached to the $82 million approved by Congress this week to hire teachers in Nevada before agreeing to accept the funds.

“What we want to do is study the requirements for taking that money,” he said. “I’m prepared to say ‘thank you’. I’m prepared to say ‘thank-you but no thank-you’.”

The funding would save 1,400 teaching jobs in Nevada this year.

But Gibbons said such appropriations typically require a “maintenance of effort” that means the state has to continue to support programs after the federal funding goes away. The funding for the teachers does include a maintenance of effort requirement.

Gibbons said the state may not be able to afford to comply with the maintenance of effort requirements, hence the review.

Gibbons said he would also prefer more flexibility with the funding. Some Nevada school districts might need a computer system or textbooks rather than staff, he said.

The law appropriating the funds is still being reviewed and once the state’s obligations are clear, Gibbons said he will make a decision on whether to accept the funding.

State budget Director Andrew Clinger said another issue is that the funding is for only one year.

“So what do you do with those teachers you hire for this school year,” he said. “Come a year from now you’ve got to lay them all off because you don’t have the funding to continue the positions?”

But Gibbons acknowledged that any funding that would keep 1,400 Nevadans working, even if only for one year, has to be given serious consideration.

Nevada leads the nation in unemployment with a rate of 14.2 percent in June.

While Gibbons has yet to commit to funding, the Nevada State Education Association welcomed the action by Congress and the President.

“We commend and thank our friends in Congress who stood firm on this issue which provides federal dollars to Nevada in order to save jobs,” said NSEA President Lynn Warne. “We look now to state legislative leaders to work in the same proactive manner in creating funding sources to strengthen K-12 public education in Nevada.”

Gibbons said he is also evaluating the nearly $80 million in Medicaid funding Nevada will receive from the legislation. The money was included in the budget approved by the Legislature for this year.

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Audio clips:

Gov. Gibbons says the federal funding may require a commitment the state can’t afford:

081110Gibbons1 :31 the matching dollars.”

Gibbons said he is prepared to accept or reject the funding after his review:

081110Gibbons2 :05 but no thank-you.”

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Nevada Pronunciation Debate Continues, Governer Chimes In

By Sean Whaley | 12:26 pm August 11th, 2010

CARSON CITY – A proposal by an out-going Nevada lawmaker to officially recognize an alternate pronunciation of the name of the state as an acceptable second-choice has generated a lot of comment, with most residents not surprisingly opposed to the idea.

But some of those posting comments on various news sites also support the idea that maybe Nevadans should be more tolerant of those who “mispronounce” the state’s name.

Others have suggested the resolution sought for drafting by Assemblyman Harry Mortenson, D-Las Vegas, is a waste of time and money.

Asked for his opinion on the pronunciation issue, native Nevadan and Gov. Jim Gibbons said the Ne-vah-da version does bother him. Asked how he reacts, Gibbons said: “Well, I tell them if they want to be socially acceptable they should say ‘Ne-vaaa-da’. We have a Ramada Hotel, but it is in Nevada.”

Mortenson, who won’t be returning to the Assembly due to term limits, said his resolution is intended only to acknowledge the alternative pronunciation of the state’s name used by people around the world. It is not an effort to change the accepted pronunciation of Nevada, which is Spanish for “snow-capped,” referring to the Sierra Nevada.

Another lawmaker will have to introduce the resolution on his behalf if it is to get a hearing in the 2011 legislative session.

Retired state Archivist Guy Rocha has argued, however, that Mortenson’s alternative pronunciation is not Spanish but one that has developed in the eastern part of the United States.

Mortenson’s proposed resolution language follows:

BDR Draft

Whereas there are two common pronunciations of the name of our great state:

(1)   the provincial pronunciation utilized by approximately two-million Nevadans, using a flat A-sound — a sound not unlike the bleating of a sheep, and;

(2)   the cosmopolitan or Spanish pronunciation used by the other seven-billion inhabitants of our planet, using a soft “A” intonation—not unlike a sigh of contentment, and;

Whereas the name Nevada is a Spanish word meaning covered-with-snow, and;

Whereas the Spanish word for covered-with-snow existed for many centuries before the “discovery” of America and the existence of our great state, and;

Whereas it is becoming a continuous, prodigious, and daunting task for the two million colloquial-speaking inhabitants to interrupt and correct the other seven-billion inhabitants of the Planet who utilize the Spanish/cosmopolitan pronunciation, and;

Whereas our colloquial State citizens accomplished their responsibility by interrupting and correcting a confused George Stephanopoulos during a world-wide television broadcast of the Democratic Presidential forum held in Carson City in February of 2007, and;

Whereas the same colloquial State citizens wisely chose not to interrupt President George Bush when he used the Spanish pronunciation during a reelection tour of our great state, and;

Whereas it is almost impossible to correct television pundits worldwide — virtually all of whom utilize the Spanish pronunciation, and;

Whereas the metropolitan area of Las Vegas has grown to exceed two million inhabitants—most of whom are composed of the afore mentioned seven-billion cosmopolitans, and;

Whereas our great state is rapidly transitioning from a colloquial status to a cosmopolitan status, and;

Whereas visitations to the entertainment capitol of the world exceed the visitations to Mecca, and these visitors to our great state should not be subjected to rude corrections of their traditional pronunciation by well-meaning colloquial individuals, and;

Whereas the citizens of our great state are universally known, not only for their fierce independence, they are also known for their open-mindedness, their neighborly attitude, their compassionate charity, and their benevolent tolerance;

Therefore; be it resolved, that henceforth, there will be two acceptable pronunciations for the name of our great state:

(1)    the preferred pronunciation will be the colloquial pronunciation, and;

(2)    the less-preferred pronunciation will be the charitably-tolerated Spanish/cosmopolitan pronunciation.

___

Audio:

Gov. Jim Gibbons on pronunciation of “Nevada”:

081110Gibbons1 :07 is in Nevada.”

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Nevada, 19 Other States File Motion Against Dismissal Of Lawsuit Challenging Health Care Law

By Nevada News Bureau Staff | 3:27 pm August 6th, 2010

CARSON CITY – Gov. Jim Gibbons and representatives of 19 other states today filed a response challenging the federal government’s motion to dismiss a lawsuit against the federal health care law.

The 81-page document was filed in U.S. District Court in Florida where the lawsuit challenging the Patient Protection and Affordable Care Act is being heard by Judge Roger Vinson. Also in the challenge is the National Federation of Independent Business (NFIB) as a co-plaintiff on behalf of its members nationwide, as well as two individual citizens.

“Nevada families are already footing the bill just to set up pre-planning for the Reid/Obama Nationalized Health Care Plan,” Gibbons said. “This unconstitutional and ill-conceived nationalized health care plan is sick and will trample the constitutional rights of all Nevada families.”

Jon Summers, a spokesman for U.S. Sen. Harry Reid, D-NV, said the new health law is already starting to work for Nevadans.

“Some of the largest insurance companies in the state have already stopped the process of denying and dropping people due to preexisting conditions and allowing young adults to stay on their parents’ insurance up to the age of 26 – before those parts for the law have even gone into effect,” he said. “Because of this law, consumers are receiving long overdue protection from big insurance companies. Gov. Gibbons may choose to stand on the side of the big corporations, but Sen. Reid will always stand on the side of working Nevadans.”

Gibbons joined the lawsuit on behalf of Nevada in May using a private attorney after Attorney General Catherine Cortez Masto declined in March to file a challenge, citing cost as one factor. Masto said also there was no need for Nevada to join in a challenge since the state would be covered by any eventual ruling regarding the health care law.

The lawsuit filed March 23 alleges that the new law infringes on the constitutional rights of Nevada residents and residents of the other states by mandating all persons have qualifying health care insurance or pay a penalty. By imposing such a mandate, the law exceeds the powers of the United States under Article I of the Constitution, including the ‘Commerce Clause,’ which has never been applied to allow Congress to compel people to buy unwanted goods or services. Additionally, the penalty enforcing the mandate constitutes an unlawful direct tax in violation of Article I, sections 2 and 9 of the Constitution.

The lawsuit further claims the health care reform law infringes on the sovereignty of the states and 10th Amendment to the Constitution by imposing onerous new operating rules that Nevada must follow.

Gibbons said the burden comes at a time when Nevada faces severe budget cuts to offset shortfalls in an already-strained budget. Nevada’s Medicaid program currently consumes about 17 percent of the state’s total financial outlays.

The U.S. Department of Justice filed a motion to dismiss the case in June, claiming the individual mandate fell under Congress’ ‘taxing and spending’ authority.

The motion to dismiss claims the timing of the lawsuit is too early, but the states responded today that resources are already being spent on planning and operational activities they must undertake to meet the federal requirements of the law. The states argue that they have standing to bring the lawsuit because the federal health care law negatively affects state sovereignty and provides additional stress on already lean state budgets.

Gibbons has a “Cost of Federal Health Care Reform Law” link posted at the top of the state’s website. It says that, as of July 23, “the federal health care reform law has cost the taxpayers of Nevada $195,527.72.”

The hearing on issues raised by the motion to dismiss will be held on Sept. 14 in Pensacola, Fla. Earlier this week, a judge in a similar lawsuit in Virginia ruled against the Department of Justice’s motion to dismiss, allowing Virginia’s lawsuit to move forward.

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Nevada Budget Director Paints Grim Picture

By Sean Whaley | 7:35 am August 6th, 2010

CARSON CITY – State Budget Director Andrew Clinger yesterday painted a bleak picture of Nevada’s next two-year spending plan, saying under current tax and spending levels every single program and agency except for education would have to be eliminated to balance the budget.

“You could eliminate everything, and have nothing but K-12 and higher ed, and you would have a balanced budget,” he said. “So the magnitude of the problem that we face, or the challenge that we face going into the next biennium, is huge.”

Higher and lower education together make up about 55 percent of the state budget each year.

The state appears to be at least $3 billion short right now on what is expected to be a $6.5 billion two-year general fund budget, or about 46 percent less than what is required, Clinger said.

As a result, the Gibbons Administration has embarked on a fundamental review of state programs to determine what services can be continued and which ones may have to be eliminated, he said.

“Is there a better way to do it, is there a different way to pay for it, or is it a service you simply no longer provide,” Clinger said.

The revenue shortfall is due to myriad factors, including:

- Tax revenues coming in far below the levels seen in prior boom years;

- About $1 billion in temporary tax increases approved by the 2009 Legislature that are set to expire next June 30;

- The loss of one-time federal stimulus funds that have helped balance the current budget;

- The elimination of employee furloughs and restoration of employee benefits that were cut in 2009 to balance the current budget. Ending furloughs and restoring benefits would cost about $500 million.

The Legislature can decide to extend the expiring tax increases or look to alternative tax increases, and it can also extend the furloughs and benefit cuts as ways to cut into the shortfall in the 2011 legislative session, Clinger said.

The 2009 Legislature temporarily raised the sales tax by 0.35 percent and nearly doubled the modified business tax on the state’s largest employers to help balance the budget. The tax was reduced for smaller employers.

Any tax increase or continuation would require a two-thirds vote in each house of the Legislature. Neither of the two major party candidates for governor has gone on record as supporting tax increases as a way to balance the budget.

“This is a challenge that this state has never faced before,” Clinger said.

The comments came as the Public Employees’ Benefits Program Board began to look at ways of saving $111 million in the health insurance program for state employees and retirees, made necessary because of the state’s budget problems. The board considered raising deductibles and cutting benefits to reach the target. The plan is not expected to see any taxpayer-paid funding increases in the two-year budget that will begin July 1, 2011.

Jim Wells, the executive officer overseeing the program, yesterday told the board it must make decisions on how to best make the cuts because the preliminary budget is due to Clinger’s office by Sept. 1.

“We do need to make some relatively significant decisions today,” he said.

Clinger said that as a percentage basis, Nevada is in worse fiscal shape than any other state in the  nation.

Nevada is collecting the same amount of sales tax right now as in 1999, adjusted for inflation, he said. This despite large population increases since that time, Clinger said.

“I hope at least January of this year represents the bottom of this, and we’re starting to grow,” he said. “Even though revenues are doing better it’s not going to bring us out of this hole we are in anytime soon.”

Gaming revenues, unlike in previous recessions, have also been hurt in this economic slowdown that some are calling the Great Depression, Clinger said.

For the 12 months ending in May 2010, casino revenues were down nearly 5 percent compared to the same period a year previously. And for the 12 months ending in May 2009, revenues were down nearly 13 percent from the same period in 2008.

Another way to see the effect is to look at the amount casinos take in each year per visitor.

“We are at historic lows on the amount the casinos win per visitor, $170 per visitor,” he said.

The figure also is inflation adjusted, and reflects the amount casinos take in, or win each year, divided by total annual visitors. The $170 figure puts Nevada below any prior low seen in records dating back to the late 1970s, Clinger said.

The two revenues make up the majority of the state’s annual general fund budget.

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Audio clips:

State Budget Director Andrew Clinger says budget situation is dire:

080410Clinger1 :40 face is huge.”

Clinger says that is why a fundamental review of the budget is under way:

080510Clinger2 :23 afford to provide.”

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Nevada Homeland Security Commission Concerned About Cyberterrorism Threat

By Sean Whaley | 11:52 am August 5th, 2010

CARSON CITY – Members of the Nevada Homeland Security Commission expressed concern today that the state does not appear to have a coordinated effort or designated person to deal with the ever-growing threat of cybercrime.

“I’m amazed we already don’t have a handle on this” said commission vice-chairman and former Clark County sheriff Jerry Keller, “I’m absolutely amazed that nine years after 9-11, that we sit in the state of Nevada in a commission that has no authority to effect action except direct grant funds, and we can’t say who’s it; who is the person in Nevada for cybercrimes . . .”

Keller said the state either needs to designate someone who can coordinate efforts to combat cybercrime, or the commission needs to form a cybercrime subcommittee of its own so Nevada can better prepare for and prevent such attacks.

The commission decided to form a subcommittee of its own to bring the panel up-to-speed on cybercrime prevention efforts under way in the state.

The discussion came during a report on the activities of the commission’s Critical Infrastructure Committee by Las Vegas Metropolitan Police Assistant Sheriff Mike McClary, who recommended the creation of a separate cybercrime committee because of the complexity of the issue.

The information is critical for the commission to decide which grant proposals should be awarded the limited funds available to the state, said Chairman Dale Carrison.

Cybercrime, or more specifically cyberterrorism, is the convergence of terrorism and cyberspace, according to testimony provided to Congress in 2000 by a Georgetown University professor.

“It is generally understood to mean unlawful attacks and threats of attack against computers, networks, and the information stored therein when done to intimidate or coerce a government or its people in furtherance of political or social objectives,” said Professor Dorothy Denning.

In remarks earlier this year, FBI Director Robert Mueller said the agency believes, “the cyberterrorism threat is real, and it is rapidly expanding.”

“To date, terrorists have not used the Internet to launch a full-scale cyber attack. But they have executed numerous denial-of-service attacks,” he said. “And they have defaced numerous websites, including Congress’ website following President Obama’s State of the Union speech.”

The 14-member Homeland Security Commission meets quarterly. Keller, who is retired as vice president of security for Wynn Resorts, has been critical in past meetings of the state’s efforts in preparing for an act of terrorism, including failures to improve communications between different first-responders who would react to an incident.

“But we’re absolutely sitting still in the water in this state with making progress on several of these homeland security issues,” Keller said. “And it is very frustrating that we don’t have a person responsible for this; that this hasn’t already been done.

“All we can do is listen, and wait three months and listen again, and wait three more months and listen again, and hope that this gels into a solid product and it just doesn’t,” he said.

Carrison joined in Keller’s concerns, saying different groups are working separately on the issue, but that Homeland Security does not know what all the efforts entail or if they are coordinated.

The commission would like to know, “where we were, where we are and where we are going,” Carrison said.

“Because there is no coordinated effort in this state that I can see that has identified that,” he said.

Glade Myler, a senior deputy attorney general, said there is a cybercrime advisory council within the attorney general’s office that could make a report to the commission. He also noted that Gov. Jim Gibbons in June created the Nevada Crime Commission, which has cybercrime as one of its issues.

Kevin Favreau, FBI special agent in charge of the Las Vegas division, who serves as a non-voting member of the Homeland Security Commission, said cybercrime attacks on critical infrastructure are a focus of the agency’s InfraGard program. It is active both in Las Vegas and separately in northern Nevada and works closely with the private sector, he said.

“I would certainly pledge the FBI’s support to a second subcommittee looking at this issue,” he said.

___

Audio clips:

Former Clark County Sheriff Jerry Keller on lack of cybercrime coordination:

080410Keller1 :19 Nevada for cybercrimes.”

Keller on need to make progress on homeland security issues:

080410Keller2 :19 already been done.”

Homeland Security Commission Chairman Dale Carrison on lack of coordination on cybercrime coordination:

080410Carrison1 :19 what they’re doing.”

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Gov. Gibbons Makes Appointments To State Medical Board, Tahoe Planning Agency

By Nevada News Bureau Staff | 5:06 pm July 29th, 2010

CARSON CITY – Gov. Jim Gibbons today appointed his chief of staff to serve on a panel that oversees planning and environmental issues at Lake Tahoe.

Robin Reedy, a resident of Douglas County which includes a portion of Lake Tahoe, was appointed to the governing board of the Tahoe Regional Planning Agency (TRPA). The seat on the 15-member board, which includes representatives from both Nevada and California, had been held by Donna Ruthe, who in turn was appointed to the Nevada State Board of Medical Examiners by Gibbons.

Reedy said she lived for a time at Lake Tahoe and is familiar with the work of the organization so serving on the board won’t require a big learning curve. She also has a background in finance.

“I saw the impact the TRPA could have, both good and bad,” Reedy said.

With a new governor coming into office in January, anyone appointed to the position could be replaced in just a few months time, she said.

Reedy has worked for the state for 20 years, starting as an account clerk in the Treasurer’s Office while Bob Miller was governor. She was appointed to the position of chief of staff by Gibbons in July 2009. Reedy has a bachelor of science degree in business administration from California State University-Chico.

Ruthe, a Las Vegas real estate executive, is a long-time Nevada resident known for her work with a number of charitable organizations, including Opportunity Village and the Ronald McDonald House. She is also a past-president of the Greater Las Vegas Association of Realtors. She will join the Board of Medical Examiners in August.

Ruthe resigned her position on the TRPA so she could devote her time to the medical board. She will take the seat held by Rene West, who has resigned from the board effective Aug. 15.

Gibbons also reappointed Van Hefner to the medical board. Hefner has served on the board since mid-2008.

The Board of Medical Examiners is charged with ensuring that only well-qualified, competent physicians, physician assistants and respiratory therapists receive licenses to practice in Nevada.

Gibbons lost his re-election bid in the June GOP primary and will leave office in January.

Audio clip:

Robin Reedy on her qualifications for the appointment:

072910Reedy :20 the average person.”

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Nevada’s New Tax Amnesty Program Brings In $3.4 Million So Far

By Nevada News Bureau Staff | 5:17 pm July 28th, 2010

CARSON CITY – A new tax amnesty program initiated July 1 by the Nevada Department of Taxation has brought in $3.4 million in previously uncollected revenue through Tuesday, with just over two more months to go.

Dino DiCianno, executive director of the state tax agency, said about $2.7 million of the total collected so far is sales taxes, another $500,000 is modified business taxes and the remainder is smaller amounts covering liquor, live entertainment, tobacco, business licenses and other levies included in the amnesty.

DiCianno said about $1.2 million in penalty and interest charges associated with the tax payments have been waived as part of the amnesty program.

The amnesty program, which will run for three months, was approved by the Legislature in a special session in February as a way to help close an $800 million gap in the general fund budget.

The amnesty, which will allow taxpayers to pay taxes owed without any interest or penalties, is projected to bring in an estimated $10 million to the cash-strapped state general fund.

The total tax generated so far will not all flow to the state’s general fund. Some of the tax revenue will go to support public schools and local governments.

A previous amnesty authorized by Gov. Jim Gibbons in 2008 brought in more than $27 million. It only covered sales and use taxes, business license fees and modified business taxes.

The new amnesty program, as approved in Assembly Bill 6 of the 2010 special session, is broader, including cigarette taxes, liquor taxes, insurance premium taxes and other levies.

The one-time amnesty is for businesses and individuals who owe taxes that were due before July 1, 2010 and have not been paid. The program will allow penalty and interest to be waived provided the outstanding tax debt is paid in full during the amnesty period.

Certain restrictions apply to taxpayers who have already entered into settlement agreements or offers in compromise with the Nevada Department of Taxation.

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Nevada’s Taxable Sales Edge Down In May After Rare Up Month in April

By Nevada News Bureau Staff | 2:30 pm July 27th, 2010

CARSON CITY – Nevada’s taxable sales fell 1.9 percent in May over May 2009, a decline following April which saw the first positive month for the economic indicator in 20 months, the state Department of Taxation reported today.

May statewide taxable sales totaled $3.1 billion compared to $3.2 billion in May 2009.

Taxable sales are down just over 11 percent so far for the 2010 fiscal year, which ended June 30. One more month of collections, from June, must still be reported for the year.

Clark County taxable sales were down 1.4 percent in May to $2.3 billion, while Washoe County sales were off by 3.8 percent and totaled $425 million.

The largest increases in statewide taxable sales were seen in the categories of accommodations, up 23 percent; clothing and clothing accessories stores, up 10.7 percent; electronics and appliance stores, up 15.8 percent; professional scientific and technical services, up 19.3 percent; and telecommunications, up 14 percent.

Home furniture and furnishings also saw an increase in May, up 6.2 percent over May 2009.

Other major taxable sales categories were down in May, including the construction industry classification by 31.6 percent;, merchant wholesalers- durable goods, off 11.1 percent; motor vehicles and parts dealers, down 1.7 percent; general merchandise stores, off 0.3 percent; and food and beverage stores, down 7.2 percent. Bars and restaurants were down 0.7 percent.

Twelve of Nevada’s 17 counties recorded a decrease in taxable sales for May 2010 compared to May 2009. Esmeralda, Eureka, Lincoln, Pershing and White Pine counties recorded positive taxable sales for the period.

Gross revenue collections from sales and use taxes amounted to $248 million for May 2010 which represents a 3.3 percent increase compared to May 2009, and a 5.8 percent decrease for the eleven months of fiscal year 2010. Of this amount, approximately $2.7 million was collected under an amnesty program.

Compared to the January 2010 Economic Forum projections, the general fund portion of the sales and use taxes is 3.2 percent, or $21.5 million, above the forecast for the first 11 months of fiscal year 2010.

Gov. Jim Gibbons said Nevada’s taxable sales reports are showing signs of improvement, with six successive months of positive or single-digit declines after more than a year of double-digit declines.

“This administration remains committed to addressing these challenges by streamlining operations, improving customer services and maximizing the use of taxpayer dollars,” he said.

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Nevada Loses Out In Race To Top Funds for Education

By Sean Whaley | 1:40 pm July 27th, 2010

CARSON CITY – Nevada failed to make the cut today in its quest to win as much as $175 million in competitive federal funds to improve student achievement, but the details of why won’t be known until next month.

The failure to make the cut occurred even though Gov. Jim Gibbons created a blue ribbon panel to oversee the application process and the state hired a consultant to help finalize Nevada’s grant application.

Nineteen of 36 states made the cut in this, the second round of a competition for a share of the Race to the Top funds. Nevada did not compete in the first round earlier this year.

There was some political bickering over whether Nevada should have applied in the first round, with Democrats pushing for the submission of an application and Gibbons calling such a move premature. Only two states were awarded funds in the first round.

Ray Bacon, a member of the Blue Ribbon Education Reform Task Force and executive director of the Nevada Manufacturers Association, said those working on the Nevada application were aware that the state would score poorly for efforts already under way to improve student achievement.

Members of the panel were hoping the honesty of Nevada’s grant application, which acknowledged serious problems with the state’s educational system, would have helped the state make the cut, he said.

“We haven’t done anything in years,” Bacon said. “We thought the other parts were strong enough that they would pull it up and we might get the benefit of the doubt.”

The expenditure of $40,000 to hire a consultant to help finalize Nevada’s application was worthwhile because it radically improved the final document, he said.

Bacon said he is surprised at some of the states that were successful, including California, New Jersey, Hawaii and South Carolina.

“A lot of them I was expecting,” he said. “I would be surprised if there isn’t grant money given to Florida, Georgia, Massachusetts. Those were clearly pretty damn good applications the first time around.”

Bacon said the state could still benefit from the funding effort if there is a third round of the competition. Another option is to take the application to private foundations to see if there is interest in funding some elements of the plan, he said.

The application will also be a focus of the upcoming Nevada Legislature, where education reform and student achievement will be a top concern, he said.

“I’m disappointed but I think it is going to make this next legislative session considerably more interesting,” Bacon said. “There is nobody in the state who doesn’t recognize we need to make some changes and they have to be pretty damn drastic.”

One issue that became clear in the application process is that no one is in charge of public education in Nevada, he said.

“We’re going to come out of this with someone being in charge,” Bacon said.

Gibbons said the task force will continue in its efforts to improve student achievement even without Nevada making it into the Race to the Top finalists.

“We appreciate the opportunity the Race to the Top competition gave us to take a long, hard and much overdue look at educating Nevada’s children,” he said. “The time is now to modernize the way we deliver education in our schools, both to secure the future of our children and grandchildren and to develop an educated and skilled workforce necessary to diversify our economy and generate economic recovery and prosperity. Education is the intellectual infrastructure for Nevada’s future.”

Among the recommendations set forth in Nevada’s Promise are five specifically-targeted objectives to be accomplished by 2014:

  • increasing the graduation rate to 85 percent;
  • reducing the achievement gap for African American and Hispanic students;
  • increasing the number of graduates enrolling in post-secondary institutions both in-state or out-of-state by 50 percent;
  • increasing student achievement percentages of students proficient or advanced on the NAEP fourth-grade mathematics (from 32 percent to 50 percent) and eighth-grade mathematics (from 25 percent to 50 percent); and
  • increasing student achievement percentages of students proficient or advanced on the NAEP fourth-grade reading (from 24 percent to 50 percent) and eighth-grade reading (from 22 percent to 50 percent).

U.S. Education Secretary Arne Duncan announced the finalists at an event today in Washington, DC.

“As you know, we have $3.4 billion to distribute under Race to the Top – which should be enough to fund up to about 12 states,” he said. “But as I have said many times before, this isn’t just about the money. This is about working together and putting the needs of children ahead of everyone else.

“This entire process has moved the nation and advanced education reform,” Duncan said. “Children are the big winners here because we have all learned so much more about how to find common ground around the things that we know will make a difference in the classroom.”

In a letter to governors, Duncan congratulated the winners, and applauded others for applying for a share of the grant funds and encouraged the states to continue to work on education reform.

A total of 46 states and the District of Columbia applied for either the first or second rounds or both.

The 19 finalists in this second round are: Arizona, California, Colorado, the District of Columbia, Florida, Georgia, Hawaii, Illinois, Kentucky, Louisiana, Maryland, Massachusetts, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, and South Carolina.

The award winners, as well as the complete scorecards for all applicants, will be made public later this year.

___

audio clips:

Ray Bacon says Nevada’s application was weak on existing reform efforts:

072710Bacon1 :21 of the doubt.”

Bacon says Nevada won’t know details of why the application did not make the cut until next month:

072710Bacon2 :15 that in detail.”

Bacon says the application can be used to pursue private foundation funding:

072710Bacon3 :23 on specific parts.”

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Glimmer Of Hope For Tax Revenues, Looming Challenges In Next Budget Cycle

By Sean Whaley | 8:04 am July 27th, 2010

CARSON CITY – The major funding gaps Nevada and other states have been forced to address in their current budgets will continue in the next cycle even as tax revenues finally begin to show signs of life, a national report released today says.

Signs of “delicate” revenue improvement will be offset by the loss of federal stimulus funds, posing ongoing challenges to lawmakers in 2011 and beyond, says the report from the National Conference of State Legislatures (NCSL).

“State Budget Update: July 2010 (Preliminary Report)” presents the organization’s latest look at the state fiscal situation. Based on data collected from legislative fiscal directors in late June and early July, the report provides complete or partial information on 49 states, including Nevada.

States faced a collective budget gap of at least $83.9 billion during enactment of their Fiscal Year 2011 budgets, according to the report. The aggregate figure is slightly less than the original forecast made in NCSL March State Budget Update, which was $89 billion. More gaps are expected in the next two years.

Nevada had the largest percentage gap of any state for fiscal year 2011 that began July 1 of $1.8 billion, or 45 percent of its general fund budget, according to the report.

The Nevada Legislature filled the gap with program cuts and $780 million in new taxes, most of which will sunset after this budget cycle unless extended by lawmakers next year.

In Nevada, the Legislature also had to meet in special session in February to cut the previously approved two-year budget to reflect even lower revenues than projected just nine months previously. A total of $800 million in cuts and targeted fee increases were approved to balance the spending plan, which had already seen significant reductions imposed during the regular 2009 legislative session.

“State lawmakers are going to need extra stamina to push through this next round of budget challenges,” says William Pound, executive director of NCSL. “It will be a long march before state revenues return to their pre-recession levels, not to mention other hurdles lawmakers have to clear.”

The report’s conclusions come as no surprise to Nevada officials.

Nevada Assemblyman Tom Grady, R-Yerington, a member of the Ways and Means Committee, said the challenges facing the state next session are enormous. Lyon County, which Grady represents, is seeing unemployment of more than 18 percent, he said.

“I think it is going to be extremely painful,” Grady said. “We’ve got some real tough decisions that we’re going to have to make in the 2011 Legislature.”

The entire budget will have to be reviewed line by line, Grady said.

One bit of good news for Nevada is that the overall rate of decline in the two major general fund sources, gaming and sales taxes, appears to have slowed. It is expected that actual collections for the fourth quarter for a majority of the general fund revenue sources will be at or above the forecasted amount, according to the report.

Nevada state Budget Director Andrew Clinger reported earlier this month that state revenues are now projected to come in at about $100 million more than estimated by the end of the 2011 fiscal year on June 30, 2011.

This additional revenue will help Nevada deal with the loss of $88.5 million in federal revenues that had been counted on by the Legislature from an extension of enhanced Medicaid funding. The report shows that at least 25 states assumed an extension of this enhanced FMAP funding for their 2011 budgets. It now appears the extension will not be approved by Congress.

“For the first time in a long time we’re seeing some slight improvement in the state revenue situation,” said Corina Eckl, NCSL’s fiscal program director. “But glimmers of improvement are tarnished by looming problems.”

Those problems include the loss of federal stimulus funds, which total nearly $2.2 billion in the current Nevada budget but which will not continue in the new spending plan.

“States are in a tenuous fiscal position, teetering between delicate revenue improvement and the end of the federal stimulus funds,” Eckl says.

The upcoming two year budget, which the Nevada Legislature will begin to address in February, remains a challenge, according to the report. Nevada did not provide a forecast for a budget gap in the next two fiscal years, but the report shows the state is already in fiscal trouble.

Gov. Jim Gibbons requested that agencies reduce their already reduced 2011 appropriations by 10 percent when calculating their budget requests for 2012 and 2013.

“Even with those reductions, total general fund agency requests would total approximately $5.95 billion for the 2011-2013 biennium,” the report says.

But revenues expected for the two years are expected to total only about $5 billion, or nearly $1 billion less, than the initial budget instructions would require in spending.

Without a forecast, the precise size of the budget gap facing Nevada for the next two years remains uncertain, but it will be significant. Gibbons estimated in early June the difference between spending requirements and revenues will be $3.4 billion.

Nevada’s actual spending and revenue collections for Fiscal Year 2010, which ended June 30, won’t be known for several months. Revenues for the year are not yet complete, and agencies have 60 days after the close of the year to finalize spending totals.

Nevada’s revenue estimates for the coming two years will be forecasted by the Economic Forum, a panel of appointed private sector fiscal experts, late in 2010.

____

audio clips:

Assemblyman Tom Grady on budget challenge in 2011 session:

072610Grady1 :27 the 2011 Legislature.”

Grady says balancing the budget won’t be easy:

072610Grady2 :8 and Means meeting.”

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Nevada Transparency Website Still Missing Contract Information, Searchable Functions

By Sean Whaley | 9:42 am July 15th, 2010

CARSON CITY – Nevada’s transparency website, where taxpayers can go to examine details of spending by state agencies, still does not include a critical component that would make the information more useful.

Budget limitations have put a plan to put contract information on the site in a searchable format on hold, said state Budget Director Andrew Clinger.

In the meantime, contracts approved by the Board of Examiners at each meeting are being posted on the Department of Administration’s website, he said. Because the information is in a PDF format however, it is not searchable, Clinger said.

But the information, which now includes descriptions of the contracts, the source of funding for the contract, and whether it is a sole source contract, is available for review, he said.

“Without additional funding at this point I’m not sure when we will be able to have the contracts posted in a fashion that is searchable and those types of things that make it even more transparent,” Clinger said. “It is still on our list of priorities. It just depends on the funding in the next session.”

The contracts approved by the Board of Examiners are also posted by the Nevada Policy Research Institute at its TransparentNevada website. The contracts are searchable by contractor, state agency or description going back to January of this year.

Gibbons issued a proclamation in March of 2008 requiring the creation of a transparency website “as soon as practicable.”

Called the Nevada Open Government Initiative, the proclamation specified the need for an “easily searchable database of financial transactions related to government budgets and expenditures . . .”

The site is up and operating and includes a searchable database where taxpayers can delve into detail showing actual payments to vendors.  Searches can be performed by vendor name or by agency.

It has been criticized in the past by some for not being complete.

In a study grading the states on their transparency efforts on government spending released by the U.S. Public Interest Research Group in April, Nevada received a C and is listed as one of 25 “emerging states” with transparency websites that provide less comprehensive information.

Seven states: Kentucky, Ohio, Illinois, Minnesota, Texas, Missouri and Pennsylvania, received As and Bs.

But Nevada was not far behind, earning a 78 score out of 100 and coming in at 10th in the rankings.

Nevada is identified in the report as being one of 25 states with “checkbook-level transparency allowing viewing of individual government transactions, akin to viewing the government’s checkbook.”

Two areas where Nevada failed to score well were related to contracts. Nevada received five of 10 points for the posting of contract information, and zero of five points for the posting of past contracts. Nevada’s site was penalized because the actual contracts cannot be viewed.

Contract information is a failing for most state websites, according to the study.

“Most transparency websites do not provide enough detailed information on government contracts. Even some of the leading websites provide only a short description (two to three words) of the purpose of the contracts.”

Nevada’s contract information is inconsistent, with some descriptions lengthier than a few words and others briefer. But the information has not yet been posted or linked to the governor’s transparency website. Instead it is found on the Department of Administration’s website.

The difficulty in finding information was another failing of many sites according to the study.

“Transparency websites should be one-click searchable,” the study said. “Residents should be able to search data with a single query or browse common-sense categories. Websites should also let residents sort data on government spending by recipient, amount, legislative district, granting agency, purpose, or keyword.”

“The good news is that state governments have become far more transparent about where the money goes,” said Phineas Baxandall, senior analyst for tax and budget policy at U.S. PIRG and co-author of the report. “But even the leading states have a lot of room for improvement.”

___

audio clips:

Nevada Budget Director Andrew Clinger says some contract information is now available:

071410Clinger1 :26 on our website.”

Clinger says the Legislature will have to provide funding for a searchable contracts database:

071410Clinger2 :21 data they want.”

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Gov. Gibbons Now Evaluating Legislative Requests For Budget Information

By Sean Whaley | 12:43 pm July 14th, 2010

CARSON CITY – Gov. Jim Gibbons said his administration is reviewing requests for information from a legislative panel performing a review of base budgets but said the constant calls for more data and staff responses are burdensome and time consuming.

“We’re struggling to meet the needs of the public with a vastly decreased budget,” he said.

Gibbons said his administration is in the midst of its own top-down review of state spending as a preliminary 2011-13 budget is prepared. The state is looking at as much as a $3.5 billion shortfall in revenue compared to recent budgets, which could mean a spending reduction of as much as 40 percent from current levels without new revenues.

The size of the shortfall won’t become clear until the Economic Forum meets later this year to project tax revenues. The projections by the panel of private sector officials, which will be reviewed a second time in May 2011, must be used by the governor and Legislature in creating a balanced budget.

Gibbons was asked to comment about the legislative information requests following a decision he made earlier this month not to have executive branch staff participate or attend the legislative meeting on the base budget review.

The six-member Legislative Committee for the Fundamental Review of the Base Budgets of State Agencies is scheduled to meet again Aug. 10, and the panel has asked for responses to questions raised at its first meeting. The panel also asked administration officials to attend the August meeting.

The first meeting of the panel earlier this month did not include participation from the administration.

Citing separation of powers, Gibbons has directed his staff not to participate with the legislative panel’s budget review. But in an interview Tuesday, he said the most recent requests for information would be evaluated to determine if they could be accommodated.

Legislative leadership has sent Gibbons a letter asking for participation, noting that previous governors have cooperated with lawmakers performing work during the interim. They also noted that administration officials could be subpoenaed, but one lawmaker said there is no interest on the part of the committee in pursuing that alternative.

Gibbons and his administration are preparing a new budget for the next biennium even though Gibbons will not be governor. He was defeated in the June GOP primary by Brian Sandoval. A new governor won’t be picked until the November general election. The new governor won’t take office until January, just a few weeks before the legislative session begins Feb. 7.

State Budget Director Andrew Clinger sent a memo to all agencies in June saying the process of building the new two-year Nevada budget will be substantially different from past practice.

Given the fiscal crisis faced by the state over the past three years, Nevada can no longer craft a budget by taking the previous year’s expenditures, adjust for one-time expenditures and add inflation and caseload growth, he said.

“We must create a budget process that looks first at the outcomes citizens expect,” Clinger said. “Some of the questions this new budget building approach needs to answer are: What is the proper role of state government? What services must we provide? What is the most efficient way to provide those services? And, what is the best way to pay for them?”

Clinger said the administration has formed the Priorities of Government Working Group to help answer these questions by reviewing and prioritizing all state services.

___

audio clips:

Gov. Gibbons on lawmaker budget information requests:

071410Gibbons1 :21 with fewer resources.”

Gibbons says he would like lawmakers to share their information as well:

071410Gibbons2 :10 comes that time.”

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State Board Again Delays Action On Closing Nevada State Prison Over Governor’s Objections

By Sean Whaley | 7:07 am July 14th, 2010

CARSON CITY – With Gov. Jim Gibbons dissenting, the Board of Prisons yesterday delayed action on a proposal to close Nevada State Prison, meaning it will continue to operate for at least the next several weeks.

Gibbons said the decision by the other two members of the board – Attorney General Catherine Cortez Masto and Secretary of State Ross Miller – means that taxpayers will continue to pay more money to operate an antiquated facility. The decision will also continue to jeopardize the security and safety of those who work at the prison, he said.

“I don’t know why there is reluctance,” Gibbons said. “It’s going to be a very expensive proposition for the state of Nevada if it has to pull it up into code.”

That cost is in the $30 million range, he said.

“And we’re talking millions of dollars in additional cost to operate and run it,” Gibbons said.

But Miller said the latest rationale for the closure, that the 209 positions at the facility are needed at other institutions to cover for one-day-a-month furloughs that have been implemented by the Department of Corrections beginning July 1, is no reason to close the prison. Instead, the department should seek authority to be exempted from the furlough policy, he said. There is $1.5 million remaining in a fund to pay for public safety positions granted furlough exemptions, Miller said.

The furloughs mean lesser visitation, closure of guard towers and other options that will create an unsafe and untenable situation for the prison system, he said.

“All types of options that I really think are beyond what this state would expect in terms of maintaining acceptable levels of public safety in our prison system,” Miller said.

The prison system may have enough beds in other facilities to accommodate the closure now, but there is no guarantee that situation will continue as the economy recovers, he said.

Howard Skolnik, director of the Department of Corrections, said he will not implement any inmate or staff transfers from the prison, except for safety or security issues, until the next discussion of the issue.

Between 650 and 700 inmates continue to be housed at the facility located in the capital.

Skolnik told the board he needs the correctional officer positions assigned to the prison relocated to other facilities to implement the furloughs, a policy approved by the 2009 Legislature as a way to help balance the budget. Correctional officers were exempted from the furlough policy last year.

As a result of the decision by the board, Skolnik said he will now seek to fill the positions at Nevada State Prison that he has kept vacant in expectation of its closure. If the ultimate decision is to close the prison, then layoffs may be required if those positions are filled, he said.

Curt Thomas, a correctional officer at the prison, said the Gibbons administration has put forth a variety of reasons for closing the prison, from it being more costly to operate, to it being old and unsafe to the latest reason: that the closure is needed to implement Corrections Department furloughs.

But closing the prison would be a permanent solution to a temporary situation, he said. The mandatory furloughs are not expected to be a permanent policy, Thomas said.

Skolnik told the board that some of the inmate cells at the prison don’t have running water, so those inmates can leave their cells at night to use a toilet.

State Budget Director Andrew Clinger told the board that the closure was expected to save the department about $4 million. There is no money elsewhere in the state general fund budget to make up that $4 million, he said.

But Miller said the department could seek some funding from the Legislature’s contingency fund, which totals about $8 million.

Clinger noted that the contingency fund is used for firefighting costs, which can vary widely from year to year.

___

audio clips:

Gov. Gibbons on effect of delaying closure of state prison:

071310Gibbons :15 run the prison.”

Secretary of State Miller on Corrections Department furloughs:

071310Miller1 :28 our prison system.”

Miller on why closing Nevada State Prison is a bad idea:

071310Miller2 :16 save much money.”

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