It’s The Spending
By: Doug Busselman, Executive Vice President
With the interchange of tax ideas bouncing around this campaign season it seems that the real issue that should be getting attention is getting lost. The focus really should be on the spending. When that side of the equation is dealt with in a responsible fashion, the determination can then shift to the taxation side and figuring out what approach – or combination works.
But, back to the focus of spending –
I recently had the chance to join a group of business interests in a briefing by Nevada Budget Director Andrew Clinger who offered some foundational bullet points to help show the situation for the state’s general fund…
The perception that 90 percent of the Nevada General Fund Budget is spent in places which politically it are difficult to cut, is probably one of the reasons that so many are quick to jump on the “let’s raise taxes” bandwagon. However, in spite of the rhetoric and wailing, there is just cause to put as much as possible on the table for examining for spending adjustments – even (and especially) the hallowed budget allocations for education.
The idea that some have that they should be simply granted whatever they want from state taxpayers is completely out of line. Details like this show that a more complete evaluation of what we’re getting for the money being spent is warranted.
From the standpoint of K-12 education, although it’s too early to simply put the whole category “off limits” – a fundamental requirement before going forward must include the implementation of the reform steps that are spelled out in “Nevada’s Promise: Excellence, Rigor and Equity” which was prepared as Nevada’s unsuccessful attempt to secure federal funds from the Race To The Top grant program. “Nevada’s Promise”, prepared by the Education Reform Blue Ribbon Task Force, contains the foundational components that are required to give us a better education system – not just a lot more money spent.
Getting greater value for the taxpayers’ dollars spent is the bottom line we need to be working to achieve. When we have the confidence that state’s government expenditures are based on priorities we can sustainably afford and are delivering the outcomes we should be receiving in return – then we can move to the conversations about whether taxes need to be increased and what type of taxes work best.
With the interchange of tax ideas bouncing around this campaign season it seems that the real issue that should be getting attention is getting lost. The focus really should be on the spending. When that side of the equation is dealt with in a responsible fashion, the determination can then shift to the taxation side and figuring out what approach – or combination works.
But, back to the focus of spending –
I recently had the chance to join a group of business interests in a briefing by Nevada Budget Director Andrew Clinger who offered some foundational bullet points to help show the situation for the state’s general fund…
- Nevada’s General Fund budget is roughly $6.5 Billion
- The supposed $3 Billion budget shortfall is based on an assumption that the furloughs and step increases for government employees will be going away – if things continue as they have been…$1/2 Billion of the “hole” is fixed
- The supposed $3 Billion budget shortfall is also based on an assumption that the $1 Billion worth of taxes, increased in the 2009 Nevada Legislature, “sunset”
- Education accounts for about 54 percent of the total state general fund budget – 39 percent K-12 and 15 percent for Higher Education
- Health and Human Services accounts for about 30 percent of the state general fund budget (with Medicaid a significant amount of that total and because of the acceptance of Federal Stimulus dollars, tweaking the eligibility for Medicaid isn’t one of the options available)
- When you add in the costs for Corrections (Education, Health and Human Services and Corrections) – you have about 90 percent of the total Nevada General Fund Budget
The perception that 90 percent of the Nevada General Fund Budget is spent in places which politically it are difficult to cut, is probably one of the reasons that so many are quick to jump on the “let’s raise taxes” bandwagon. However, in spite of the rhetoric and wailing, there is just cause to put as much as possible on the table for examining for spending adjustments – even (and especially) the hallowed budget allocations for education.
The idea that some have that they should be simply granted whatever they want from state taxpayers is completely out of line. Details like this show that a more complete evaluation of what we’re getting for the money being spent is warranted.
From the standpoint of K-12 education, although it’s too early to simply put the whole category “off limits” – a fundamental requirement before going forward must include the implementation of the reform steps that are spelled out in “Nevada’s Promise: Excellence, Rigor and Equity” which was prepared as Nevada’s unsuccessful attempt to secure federal funds from the Race To The Top grant program. “Nevada’s Promise”, prepared by the Education Reform Blue Ribbon Task Force, contains the foundational components that are required to give us a better education system – not just a lot more money spent.
Getting greater value for the taxpayers’ dollars spent is the bottom line we need to be working to achieve. When we have the confidence that state’s government expenditures are based on priorities we can sustainably afford and are delivering the outcomes we should be receiving in return – then we can move to the conversations about whether taxes need to be increased and what type of taxes work best.
Posted by Doug Busselman at 8/25/2010 8:29 AM 
Categories: Nevada Budget
Tags: Nevada Budget State Spending Taxes Government
Categories: Nevada Budget
Tags: Nevada Budget State Spending Taxes Government
Nevada's downfall began when the legislature decided over 20 years ago that poor people needed more help and doubled the cash payments to welfare recipients. Now these "entitlements" are supposedly off the table. Hogwash!
Next, class size reduction has not worked, quite the opposite. I went to classrooms with as many as 60 students in them, we all graduated with more learning than the kids receive these days. There's the biggest chunk of the budget right there; education.
Next, abolish the highway patrol, sure, they bring in lots of bucks to the states, but at what cost?
Nevada used to have a lean and mean budget, few social programs, little wasteful spending. It's time we returned to that program. Of course, in those days the rural counties ran the state Senate.
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