Shhh ... the grown-ups have a secret

Newly empowered Nevada Democratic legislative leaders and Nevada's batshit crazy Republican governor (the nation's worst) have a plan to plug the state's $300 million (give or take) budget hole but if they tell anyone what it is the magic beanstalk turns back into a pumpkin or whatever so they know something that you don't and they're not going to tell you yet because you can't handle the truth.

Hmm. That's not change we can believe in.

Of course, the nation's most mentally unbalanced governor will probably text the secrets to some female reporter or other before the weekend starts in an effort to try to impress her by how important he is. "For more details meet me in a parking garage." That sort of thing. And then we'll all know.

Anyway, look for more cuts to services and programs benefiting poor people who don't vote. Obviously. Also, traces of data gleaned from scattered reports (AP, INP, Sun, RJ, Appeal)  indicate that a tax exemption or two might be eliminated, and that the state treasurer thinks Nevada can borrow $150 million from an investment account her office manages.

And in what might be the most under-reported story 'round here of late, the routine of pissing away untold (no really, it's untold; that's part of the problem) jillions of dollars to bidnesses in the form of tax abatements and "incentives" in the name of "economic development" is headed for a well-deserved and long-overdue demise. It might be only a smidgen of one of the growth industry's more cherished welfare programs that gets rooted out in a tentatively scheduled December special legislative session. But there's no way those asinine giveaways can survive next year's general session.

OK, it's Nevada, and it's giveaways to bidness, so there's always a way for them to survive. But as you know your Gleaner is an incurable optimist.

Though it's super secret, Nevadans can rest assured that the latest plan will be another in a long tradition of budget schemes crafted in accordance with the most hallowed tenets of Nevada's Duct Tape and Bailing Wire School of Policy Analysis. With a little luck -- and maybe a better Christmas shopping season than anyone has any reason to expect -- the plan will allow the state to hobble on to the finish line, i.e., the end o' the fiscal year on June 30.

Or at the least, it should allow the state to muddle through until the Legislature meets next year, when Nevada's taxation system will be fundamentally restructured and a progressive system based on fairness will be established.

Told ya. Incurable optimist.

Comments

[atdleft]

Ah, the art of procrastination! "Let's put together a few quick fixes, and maybe, just maybe, everything will be all right." Are you sure that Nevada's political leaders didn't attend The California School of Dysfunctional (Non)Governance?

Well, at least they took some baby steps to fiscal sanity by proposing some corporate welfare cuts. And hey, at least Nevada voters won't have to pay for a special election to get a budget passed. Yes, there's talk California might do it in 2009!

Wow. I feel so "lucky" to be moving here... ;-)

[Michael Green]

The question seems to me to be this: are Barbara Buckley and Steven Horsford thinking of the immediate problem and both short-term and long-term solutions to it, or are they thinking of their future political campaigns and fearful that if they propose the kinds of things the Gleaner mentions, it might hurt them later.

So, help the state now AND later, or ignore the state's problems now in hopes that this won't hurt them later. I hope that I am not misplacing my belief that these are dedicated public servants. If I am misplacing that belief, they will deserve defeat later.

[dave404]

The concept of "borrowing" from the Local Government Improvement Pool funds (see NRS 354.167) is an interesting concept. Is it legal? Good question. Let's go to the statute!

"3. The State Treasurer may invest the money of the Fund:

(a) In securities which have been authorized as investments for a local government by any provision of NRS or any special law.

(b) In time certificates of deposit in the manner provided by NRS 356.015.

4. The State Treasurer may lend securities in which he invests pursuant to subsection 3 or NRS 355.165 if he receives collateral from the borrower in the form of cash or marketable securities that are:

(a) Acceptable to the State Treasurer; and

(b) At least 102 percent of the value of the securities borrowed.

The State Treasurer may enter into such contracts as are necessary to extend and manage loans pursuant to this subsection"

Looks like NRS 255.170 may be the key;
"(j) Obligations of state and local governments if:

(1) The interest on the obligation is exempt from gross income for federal income tax purposes; and

(2) The obligation has been rated “A” or higher by one or more nationally recognized bond credit rating agencies"

Now, how many of the many, many local governments are going to be happy with their money being used to "bond" the state? How many will pull their funds?

[paul]

I see that we're at the point of "family budget tightening" where the parents take the kids piggy bank money with the promise to pay it back.

If this isn't the bottom....