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Gov. Jim Gibbons said the state's economic outlook is not as dire as has been reported despite the state's well-publicized $520 million budget shortfall Tuesday at a meeting of the Fallon Rotary Club.
Nevada, while facing economic challenges like all other states, is in great shape, and certain sectors of state government will actually see an increase in funding, the governor said.
"I want to make sure we all understand what's going on in the state's budget," Gibbons said.
In recapping the state's financial situation, Gibbons said the state had a $1 billion spending increase in its budget over the previous legislative session. By September, Gibbons said, the state was facing a $285 million shortfall. The governor said at that time he asked for a 5 percent budget reduction for certain state agencies, excluding schools and public safety.
Nevada, while facing economic challenges like all other states, is in great shape, and certain sectors of state government will actually see an increase in funding, the governor said.
"I want to make sure we all understand what's going on in the state's budget," Gibbons said.
In recapping the state's financial situation, Gibbons said the state had a $1 billion spending increase in its budget over the previous legislative session. By September, Gibbons said, the state was facing a $285 million shortfall. The governor said at that time he asked for a 5 percent budget reduction for certain state agencies, excluding schools and public safety.
However, as September progressed to November, the state faced a growing deficit that climbed to $440 million. Gibbons said he thought a 5 to 8 percent budget reduction in selected services would correct the shortfall. By December, though, the final budget shortfall totaled $520 million.
"Everyone thought the sky was falling," Gibbons said.
At that point, he issued the directive to reduce all budgets by 4.5 percent across the board. Gibbons said that because all state agencies would have received a 12 percent budget increase over the biennium (2007-2009), and K-12 education was given a 21 percent increase, both sectors will still see an increase when all is said and done, despite a 4.5 percent decrease.
"But we don't read that," Gibbons said, taking a jab at media outlets that he said choose to focus on the negative.
"Everyone thought the sky was falling," Gibbons said.
At that point, he issued the directive to reduce all budgets by 4.5 percent across the board. Gibbons said that because all state agencies would have received a 12 percent budget increase over the biennium (2007-2009), and K-12 education was given a 21 percent increase, both sectors will still see an increase when all is said and done, despite a 4.5 percent decrease.
"But we don't read that," Gibbons said, taking a jab at media outlets that he said choose to focus on the negative.
He compared Nevada's budget shortfall to California, which faces a $14.5 billion deficit, saying the Silver State's two-year shortfall is equivalent to one month's shortfall in the Golden State.
"Indicators are telling us we're coming out of it," Gibbons said of the economic slump the state, and nation, are facing. He urged people to "go out and invest in the state of Nevada" by buying real estate now while prices and interest rates are low.
He touched on water issues and said before the state allocates water, it needs to take inventory of its resource and identify its uses before releasing any surplus. Instead of pitting northern and southern Nevada against each other over water, Gibbons proposed scrapping the idea of a pipeline to move water down south. He suggested the state aid in building water desalinization plants in California and trade water credits on the Colorado River.
"Water in a desert state is the most precious resource we have," Gibbons said.
"Indicators are telling us we're coming out of it," Gibbons said of the economic slump the state, and nation, are facing. He urged people to "go out and invest in the state of Nevada" by buying real estate now while prices and interest rates are low.
He touched on water issues and said before the state allocates water, it needs to take inventory of its resource and identify its uses before releasing any surplus. Instead of pitting northern and southern Nevada against each other over water, Gibbons proposed scrapping the idea of a pipeline to move water down south. He suggested the state aid in building water desalinization plants in California and trade water credits on the Colorado River.
"Water in a desert state is the most precious resource we have," Gibbons said.
On energy, the governor also urged the state to continue expanding into alternative sources.
"The destiny of this state is renewables," Gibbons said.
He envisioned Nevada one day becoming energy independent and selling surplus energy to neighboring states.
"The future is a whole lot brighter than you read about," Gibbons said. "I'm very proud to be your governor."
"The destiny of this state is renewables," Gibbons said.
He envisioned Nevada one day becoming energy independent and selling surplus energy to neighboring states.
"The future is a whole lot brighter than you read about," Gibbons said. "I'm very proud to be your governor."
