One-third of Lake Tahoe is in Nevada, a state in dire straits.
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RENO - Nevada Governor Jim Gibbons' delivered a dire State of the State address to northern Nevadans Monday evening.
The following edited version of the Governor's entire address highlights key issues for taxpayers, voters and residents.
Hello, I’m Governor Jim Gibbons. I am always honored to speak directly to you. But the truth is, I would rather that the circumstances did not compel me to address you tonight....
While there is some evidence to suggest that our nation is approaching the end of this economic decline, the fact is, this recession still has a crippling hold on Nevada. Nevada's unemployment rate is 13 percent... the second highest unemployment rate in the nation. More than 140,000 Nevadans have lost their jobs, and 90,000 more are projected to join the unemployment rolls over the next 18 months....
... Home values in Nevada plummeted 24.5 percent in the third quarter of 2009... the steepest decline of any state and more than 6 times the national average. Nevadans are losing their homes to foreclosure at a rate that is four times the national average....
... As your Governor, my job is no different than that of your family or your business. You have your checkbook in one hand and your bills in the other, and you do your best to make ends meet. Nevada’s General Fund revenues – money which we use to pay for important services like education, public health and law enforcement – dropped 17 percent in 2009. Between now and June 2011, the state General fund will fall about $1 billion short of its $6 billion budget. Just like Nevada’s families, just like Nevada’s businesses – it is time for Nevada government to face facts and make tough choices about the services we can and cannot afford.
This unprecedented economic situation is a crisis. Therefore, I will be issuing a proclamation convening a Special Session of the Nevada Legislature on February 23....
In 2007, Nevada’s economy began a downturn which I knew was not temporary. The Executive Budget I prepared in January of 2009 scaled back state government to weather this crisis. More importantly, the balanced budget I submitted imposed no new taxes and allowed no expansion of state government. The Nevada Legislature disregarded my solution. They raised taxes one billion dollars, and they made government bigger. They made the wrong call. I vetoed their new taxes and their inflated spending. I thought it was wrong then. I KNOW it’s wrong now. I planned responsibly. They gambled on new taxes and we all lost....
Despite the Legislature’s new taxes, our state revenues continue going down. More taxes have not helped Nevada’s economy. They never will. Even with $1 billion in new taxes, the state budget is now nearly $1-billion short.... did raising taxes work? NO. Now, the State of Nevada MUST reduce spending by nearly $900-million. I recently released dozens of proposals to get our budget back on track. I’d like to talk about a few of them with you tonight....
... Last year I recommended 6% salary reductions for all state workers. The Legislature imposed furlough days instead. The furlough program is not working.... New across-the-board salary reductions for state workers may be necessary, but that will be a last resort. And just so you know, my entire staff in the Governor’s Office has had their pay cut 6 percent. I am donating 6% of my own salary back to the state.
It is with deep sadness and disappointment that I must propose laying off several hundred state workers. Just like the layoffs in the private sector, state government must do the same. My heart is heavy about this because these are hard-working public servants who will have their lives severely impacted....
Unfortunately, the gravity of our situation is so dire, we will have to make reductions to some healthcare programs. We are trying to combine programs that duplicate health services, and we are making every effort to minimize the impacts of these reductions. I will protect programs that protect our youngest and most vulnerable citizens....
But wait, there's more. State of the Silver State, Part 2 of the Governor's speech outlines how else the Governor proposes to make up the budget shortfall. Government workers and education union members are just a few targets in the governor's sights.
This article is part of the series: Elections 2010: What color will Nevada bleed?
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(Photo: http://www.destination360.com/north-america/us/nevada/lake-tahoe )
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