Today Governor Gibbons asked state agencies to plan for budget reductions of up to 10%. The request comes less than a month after agency heads were asked to submit plans for reductions of up to 3%. The request can only mean that the administration feels that state revenues will not improve anytime soon and that drastic measures will need to be taken in order to maintain a positive cash flow.
Budget reductions of this magnitude, on the heels of significant spending reductions for the biennium that were approved by the Legislature in early 2009, would likely mean that state employees can either expect longer furloughs or layoffs as the bulk of state spending is on personnel. Either way, Nevadans will experience a reduction in service levels from state agencies as the state government continues to weather one of the worst economic recessions it has ever experienced.
It looks like Nevada’s elected officials will continue to be faced with the herculean task of maintaining basic service levels in a situation where there are no good solutions.