“As a result of the Economic Forum’s projections last week for less state revenue, coupled with the injection of funds from the economic stimulus package, I have determined that it is necessary to reduce our original proposed balanced budget by about $400-million.

To accomplish this I will propose the securitization of the annual payments Nevada receives as part of the tobacco settlement. This will raise about $340-million dollars. All programs funded by tobacco settlement money will continue to be funded for the next two years by proceeds from this sale. This includes the Millennium Scholarship Program and Senior RX program.

I am also proposing transferring the funding of full-day kindergarten so it is paid for with federal stimulus funds. This will reduce the number of schools that have full-day kindergarten. Right now, 114 schools have full-day kindergarten. By transferring the funding source to stimulus funds, up to 91 schools will qualify for all-day kindergarten and 23 schools will need to return to traditional half-day kindergarten.

These moves, like most of the money-saving efforts we have proposed, are difficult decisions. But it is a difficult economic time for everyone. It is the wrong time to ask our citizens who have less, to pay more. Once again, I am showing the Legislature how to balance our State’s budget without raising taxes.

Also, please remember, this economic crisis will end. When it does, we will look at all the proposed reductions we have made to determine which should be restored and when.