Democrats have questions about Guinn proposals

Assembly Democrats made it clear Monday they don't like parts of the governor's proposed budget - especially a plan to eliminate the health benefits subsidy for retired state workers.

Gov. Kenny Guinn called on lawmakers to eliminate the subsidy for all future hires, saying those currently employed or already retired would continue to get the benefit.

"I'm very puzzled about the discontinuation of benefits for employees who, in some cases, will have no ability when they retire to get Medicare or health benefits anywhere else," said Majority Leader Barbara Buckley, D-Las Vegas.

She and Sheila Leslie, D-Reno, said those retirement benefits are one of the few places where state salary and benefits are better than local- government offerings, and it makes no sense to give that advantage away when the state often loses employees to local government.

"I strongly oppose taking that benefit away," said Ways and Means Chairman Morse Arberry, D-Las Vegas. "People work for us for years. and then to say they don't deserve any help with benefits when they retire. No."

Speaker Richard Perkins, D-Henderson, said he also opposes taking away a benefit.

But Senate Majority Leader Bill Raggio, R-Reno, said he agrees with Guinn the state faces a crisis with the rising cost of subsidizing retirement benefits.

He said ending the support for future state workers "may be the only solution."

Arberry said the entire budget plan must be carefully reviewed. He said the governor proposed a long list of new and expanded programs, but he is concerned some agencies which have been held down for years may need more help than Guinn gave them.

"We've asked agencies to cut back again and again over the years, and now that we have a bit of money, we need to look at those agencies and see what their needs are," he said.

Leslie said she has questions about Guinn's plan to sell $100 million in bonds to prop up the Millennium Scholarship fund. Tobacco-settlement money was supposed to carry the scholarship program for Nevada high school graduates for at least another 10 years. But now with thousands of students using it and tobacco money declining below projections, the program is expected to be in the red next year.

Guinn and state Treasurer Brian Krolicki say the bonds would make the program solvent for another 10 years. But Leslie and others say it's a short- term fix fraught with problems, and the state should look at other alternatives.

One suggestion has been to condition the scholarship money on need, rather than simply awarding it to every graduate with a B-average or better.

Contact reporter Geoff Dornan at nevadaappeal@sbcglobal.net or 687-8750.