Facing revenue shortfalls driven by the weak housing market, Gov. Jim Gibbons Friday formally ordered spending cuts for state agencies.
Gibbons, a Republican, said the cuts still represent reduced spending increases rather than actual reductions from Nevada’s previous biennial budget, and said there is no need for new taxes.
“I will not ask the taxpayers of this state who are already paying more for gas, more for food, and more for housing to also pay more in taxes so that the state can continue to operate above its resources,” he said in a statement. “Through modest reductions in spending, the state can continue to provide essential programs and services without further burdening our hardworking taxpayers.”
“To address the budget shortfall, a significant portion of the fund to stabilize the operation of the state government (rainy-day fund) will be utilized in FY 2009 as well as the deferral of certain capital improvement projects and one-shot appropriation items,” Gibbons’ statement said. “However, I cannot with good faith call for the utilization of the full balance of the rainy-day fund because it is fiscally irresponsible to drain it just a few months into a 24-month budget cycle.”
