Sandoval releases some details of his proposed $6.55 billion budget

CARSON CITY - Famed baseball catcher Yogi Berra is credited with saying "It's déjà vu all over again" after watching Mickey Mantle and Roger Maris hit back-to-back home runs.

But Berra could have been talking about Gov. Brian Sandoval because the $6.55 billion budget plan he released for legislative consideration looks a lot like the one he submitted just before the 2011 legislative session. It's a budget that will leave those who need state services crying for more money and those who want less government complaining it's too much spending.

Once again Sandoval does not want to impose any new taxes, other than continuing $649 million in sales and business taxes that otherwise expire on June 30.

And he relies on special initiatives, like diverting to the general fund about
$422 million from other state budget pools, requesting $112 million in advance tax payments from mainly the mining industry, and taking $69 million from the state's $84 million rainy day fund to balance his budget.

Without this money, Budget Director Jeff Mohlenkamp said the governor's budget would be far short of balancing.

More than $1.22 billion in additional federal funds are expected to be given to Nevada over the two-year budget period, according to the budget director.

Counting federal funds, gas taxes and other fees and funds outside the state general fund budget, Nevada government spending in the 2013-15 period would be $17.6 billion, an 11.1 percent increase over current spending, in the governor's proposed budget.

The increase in state general fund revenue - taxes and fees paid by Nevadans - is $342 million, a 5.5 percent increase. The differences are a good indication of state government's greater reliance on federal grants and spending.

Mohlenkamp said these were hard choices the governor had to make to balance the kind of budget he wants for the state without new taxes.

But unlike two years ago, Sandoval is not trying to balance the budget with gimmicks, such as seizing money from local governments and school districts, particularly those in Clark County.

That plan went nowhere - and Sandoval had to break a no-new-taxes promise and increase taxes to balance that budget.

No local government funds are used in building Sandoval's new 2013-15 budget plan, which legislators will start to debate when the 2013 session begins Feb. 4.

Mohlenkamp said the governor no longer will take $38 million in indigent accident funds that county hospitals need to care for injured people.

PUBLIC EDUCATION

Instead of proposing a 9 percent cut in public school funds, Sandoval is requesting a 5.9 percent increase, or $125 million. That means instead of giving schools an average $5,374 per student in state support, the number will increase to $5,567 per student this fall and to $5,697 in fall 2014.

Sandoval also backs portions of the education policy changes that Democrats announced they wanted during a Jan. 8 meeting.

That includes spending $20 million to expand the number of schools, now at 114, with full-day kindergarten by 46 over the next two years.

The governor also wants to spend $14 million to help English language learners from preschool to third grade.

The Millennium Scholarship fund will be given $5 million more in state funds, an increase that makes it solvent until 2018, according to Gerald Gardner, Sandoval's chief of staff.

But Senate Majority Leader Mo Denis, D-Las Vegas, said his party wants full-day kindergarten offered in all elementary schools now, not at some undetermined time.

Sandoval's plan would bring the program into half the schools. He also wants the state this year to reduce class sizes.

"We cannot put to put it off," Denis said. "He (Sandoval) talked about making improvements for the class of 2023. What about the class of 2015?"

Without saying taxes should be increased, Denis said legislators will examine all state taxes and determine whether changes should be made.

Denis said that of the $135 million in additional funds Sandoval wants to give public, $90 million is because of growth in the student population.

But Sen. Ben Kieckhefer, R-Reno, said, "We can't do everything over one session."

About 2,700 small businesses would receive a tax break; they no longer would have to pay the 1.17 percent modified business tax.

To qualify for that exemption, businesses now cannot pay wages totaling more than $250,000 a year. Sandoval would lift that wage level to $330,000 a year.

That means businesses would keep a combined $24 million that otherwise would be put in state coffers.

Under Sandoval's budget, higher education would be given $29 million more. He will back a new funding formula that probably would help colleges and universities in Clark County.

While not giving specifics, Mohlenkamp said increases in the Medicaid caseload will cost the state less than the $200 million earlier projected. He said that was because of formula changes that obligate the federal government to pay more of Nevada's Medicaid costs.

But the Sandoval administration upset members of the news media by releasing scant information during the news briefing by Mohlenkamp and Gardner. They read aloud figures and issued just a one-page statistical report.

Over the past 20 years, governors have issued media members full budgets or 50-page-plus budget summaries.

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.