Governor Responds to Misleading Statements by Legislative Leaders

Governor Jim Gibbons responded to comments made by Assembly Speaker Barbara Buckley and Senate Majority Leader Steven Horsford. The two legislators released a joint statement earlier this week suggesting that they have had insufficient time and staff to fully understand the fiscal situation in Nevada. Today, they released a “plan to have a plan” by Spring for Nevada’s budget.

Gibbons pointed out that the Legislature actually has more full-time fiscal staff than does the Governor’s budget office. Gibbons also pointed out that Speaker Barbara Buckley has been touring the state throughout much of the last year, ostensibly seeking solutions to the severe economic downturn. She and Senator Horsford attended two Special Sessions of the Legislature last year to address and solve revenue shortfalls. Yet now they contend that they have had only a few short days to address the topic.

“I find it incredibly disappointing that some members of the Legislature would suggest that they have not had the resources, the opportunity or the time to find solutions to our budget situation,” Gibbons said. “Our citizens expect us to find solutions to the economic crisis instead of making excuses as to why we have not found those solutions.”

Gibbons has called for Speaker Buckley and Senator Horsford to present an alternative plan with specific solutions, although as of yet nothing has been presented. “So far, both find it easier to simply criticize cuts while hiding from the alternatives,” Gibbons said, noting that Speaker Buckley stated publicly last Fall that this is not the time to raise taxes on hard-working Nevadans. “I agree with her that now is not the time to increase taxes, but I cannot help but wonder how she plans to keep the promises she made during election season to not raise taxes while still avoiding spending cuts,” Gibbons continued.

With unemployment at over 9%, the highest level in over 25 years, few businesses or individuals can afford to pay more in taxes to support the spending levels many would like to see.

Governor Gibbons welcomed the Democrats as they join in promoting renewable energy as a major industry for Nevada’s future. “As I said in my State of the State address, I hope for bipartisan support for our plan to expand our renewable energy industry, and I am glad to see that Democratic leadership is on board with our vision,” Gibbons stated. “We are already well on our way to developing the infrastructure, public-private partnerships, and private investment needed to make Nevada an energy exporter and create thousands of new jobs,” Gibbons said, “The support of the Legislature will help make this dream a reality.”

Gibbons also expressed pleasure that Senator Horsford and Speaker Buckley are agreeing with his State of the State proposal to set aside revenue while the economy is good, so those funds can be used during the inevitable economic downturns.

The Governor also noted that the budget he submitted to the Legislature was certainly not created “in a back room without input from those most affected. “ I will not stand by quietly while Speaker Buckley and Senator Horsford besmirch the hard work performed by me and my staff in assembling the budget,” Gibbons said. “Every state entity met with our Budget Office before and during the time my proposed budget was put together. Legislative staff were invited to and attended every meeting with agency personnel. Only the Nevada State Higher Education system refused to participate at the level I hoped they would.”

Gibbons noted that the upcoming legislative session is expected to cost $15 million. That translates to $125,000 per day. “I hope our majority leaders will remember that each day spent bickering and criticizing without offering workable solutions costs our taxpayers money and compounds our budget problem,” Gibbons stated.

Gibbons has proposed a balanced budget for the upcoming biennium that is composed of a variety of solutions, including new revenue, revenue reallocations, and reduced spending. Gibbons has also stated that once a federal stimulus bill is passed, revised recommendations will be submitted to the Legislature.

“Since the Constitution requires that I submit a budget in January, we could not hold off on creating this initial budget until we had the details of the federal stimulus plan. Once we have those details, we can restore funding to various programs and to personnel as appropriate. President Obama has requested that this plan be completed and ready for his signature in a few weeks.”

Governor Takes Next Step In Renewable Energy Plans
 
Letter Sent To President To Pave Way For Special Funding
 

Governor Jim Gibbons has taken another step toward making Nevada the renewable energy center of the Nation. Yesterday, Gibbons sent a letter to President Barrack Obama requesting changes to Internal Revenue Service Codes as part of any stimulus package. Such changes will allow special funding for electric power infrastructure in Nevada.

Plans call for the establishment of a non-profit (501(c)3) corporation to market Tax Exempt Private Activity Bonds in order to finance the construction of power transmission lines in Nevada. Money to improve the state’s power infrastructure would come from Nevada’s bonding capability, as well as public/private partnerships. Private companies have already expressed interest in building transmission lines in Nevada or in partnering with the state to do so. No taxpayer funds would be involved. Certain IRS Codes would need to be changed to permit the state to increase its bonding capacity without impacting other public projects.

“Nevada is profusely blessed with solar, wind, and geothermal energy production potential,” Gibbons said, “The time for ‘talk’ passed long ago, I am taking this action now because we are prepared to move to the next level.” Gibbons pointed out that Nevada is already well-positioned to harness renewable energy and deliver it throughout the area. “These are ambitious plans that will help move our state and our nation away from dependence on fossil fuels and also create thousands of good jobs here in Nevada.” Gibbons said. Cost estimates for the power transmission infrastructure are approximately $3-billion. This is a long term plan that will position Nevada for a bright future in renewable energy.

Gibbons plans to make Nevada an energy producing state able to at least meet its own energy needs. Gibbons created the Nevada Renewable Energy Transmission Access Advisory Committee which has been working for more than 18-months planning and identifying transmission line routes and sites for renewable energy facilities.

The Governor’s letter to the President was also addressed to Senator Majority Leader Harry Reid and House Speaker Nancy Pelosi.

Letter to President Obama (pdf)