Mr. Rogers’ “Necessary” Neighborhood

I hate to say I told you so, but…

No, actually I don’t mind saying it at all. And during the last Nevada legislative session I said that the increase in the state’s general fund spending budget was too much. And guess what?

It was too much.

Had the Governor and the Legislature limited the spending increase to the rate of population growth plus inflation, spending would have increased by about 14 percent. But the Governor proposed a spending hike of 18 percent, and the Legislature - including each and every elected Republican - voted to increase spending by more than 20 percent.

Now the spit has hit the spam. There’s a tightening in the real estate market, the economy in general is slowing, and tax revenues are down. As a result, Gov. Gibbons has instructed most of government to tighten its belt by cutting spending by 6 percent.

I’m sure I’ll have the math here wrong, but if you take a 20 percent increase and subtract 6 percent, that leaves you with…viola!…14 percent. Which is the figure spending would have been capped at had the Governor and Legislature limited their spending hike to the rate of population growth plus inflation. What a coincidence, huh?

For some reason the Governor’s order didn’t include K-12 education. Which is a shame. There’s a bundle just sitting there, for example, to expand full-day kindergarten. But I digress.

Like clockwork, all the usual figures are having a cow over the notion of cutting spending. And the biggest moooo’er of them all is University Chancellor Jim Rogers. What a shock.

Cutting 6 percent from the university system budget would come to a relatively small $64 million out of a total budget of some $1.3 billion. But Rogers told “Face to Face’s” Jon Ralston that the university system is already “falling apart” and that such a budget cut would be a “stab in (the) heart.”

“We’re not going to do that,” Rogers says he said to the Gibbons. “We can’t do that.”

We’re not going to do it? Would somebody please tell me who died and made Jim Rogers governor. Last time I checked, he didn’t even run for the office, let alone win it. Exactly who the heck is this man to tell the Governor and taxpayers “I won’t tighten my belt”? He sounds like a petulant child. I haven’t seen the interview on Jon’s show yet, but I’m envisioning the man stamping his feet while holding his breath ‘til he turns blue.

I remember as a kid my dad telling my younger brother to take the trash out. My brother told my dad he wasn’t going to do it. So my dad said that when he finished taking out the garbage he was then going to do the dishes. My bro’ said he wasn’t going to do that either. So my dad said after he took out the garbage and did the dishes, then he was going to clean the basement. My brother, hard-headed German that he was, still didn’t get the message and said he wasn’t going to do it.

The rest of us kids were cheering him on, “Go, Greg, go! You tell him!” Because every time Greg said he wasn’t going to do something…bam!…he ended up with another one of our chores. It was a thing of beauty. I didn’t have to cut the grass for a month!

But back to Mr. Rogers. According to him, there just isn’t a dime to spare in the university budget. So Gov. Gibbons reportedly asked him what Mr. Rogers thought the Governor should do. And I’m sure his answer is going to shock you.

“I think your first obligation is to provide services for all the necessary things that government should be providing services for, and then you balance the budget,” Mr. Rogers told Mr. Ralston that he told Gov. Gibbons. “You go out and find the revenues if the revenues are in excess of what you’re doing now.”

Rogers said that meant calling a special session of the Legislature and raising taxes. The Governor, to his credit, reminded Mr. Rogers that he wasn’t going to raise taxes.

This is, in fact, EXACTLY the conversation this state desperately needs and should have had during the last legislative session. But the players opted to kick the spending can down the road instead of addressing it. I’m adamantly opposed to raising taxes, but we simply cannot keep adding huge new increases to government spending without eventually running out of money no matter how vibrant our economy is. However, that’s exactly what Nevada’s Legislature has done - and that includes spendaholic Democrats AND rubber-stamp Republicans.

The discussion this state needs to have is what, in Mr. Rogers words, constitutes the “necessary things” that government should be providing.

Is college itself a “necessary thing”? No. A lot of folks successfully make it through life without a college education. College isn’t exactly food, shelter, clothing or 99-cent shrimp cocktails. I’m not saying college isn’t beneficial to a lot of people, but it’s not “necessary.”

And why should the government be running a university system at all? There are an awful lot of good PRIVATE colleges and universities out there. Maybe we should be discussing if $1.3 billion to fund a university system at all is “necessary.” Or at the very least, whether or not everything Mr. Rogers’ university system is spending our money on is “necessary.” For example, is a dental school really “necessary”?

And then go through the rest of the budget, line by line, and ask the exact same question: Is this necessary?

Which brings me to my final point, and then I’ll let you get back to doing all the necessary things in your life.

Every time I bring up spending cuts, someone asks, “Well, smarty pants, what would you cut?” And that’s a fair question. But in order to answer it, you need to have the same information the Governor’s office and the Legislature have. Which is why I pushed so hard for spending transparency during the last session.

In a growing number of states - sometimes legislatively, sometimes by executive order - every dime the government spends is now being disclosed on a website which each and every citizen can readily access from their computer at home or office.

This information is already recorded and available on Nevada’s internal computer system which is maintained by the Controller’s office. All the government needs to do is make that internal information available to the public. And then let the public start picking through all the “necessary” things the government is currently spending our money on and decide whether or not it is truly “necessary.”

At the very least, the Governor could implement this good government reform via Executive Order for his own office. That would set a good example and be a good start. So what about it, Governor?

Until the government opens its books to the people, there should be no special session and no tax hikes. And when Jim Rogers or someone else asks, “What would you cut?” - just respond, “Show me the books and hand me a red pen. Lots of ‘em!”

6 Responses to “Mr. Rogers’ “Necessary” Neighborhood”

  1. “is a dental school really ‘necessary’?”

    The dental school would be a good place to start cutting, and not 6%. 100%.

    During the 2005 legislative session, Senator Bob Beers said, “The state could save more than $23 million over the next two years by eliminating the dental school at UNLV and sending the students to other schools.”

    When Republican Senator Rawson pushed for the establishment of the dental school, he claimed that it wouldn’t cost Nevada taxpayers because Medicaid dental funds would be diverted to the school. Well, that didn’t work out, and now we’re on the hook to support this school that recently graduated and sent out into dental practice ten students who cheated to complete their coursework.

    If Senator Beers’ $23 million estimate is still valid, eliminating the dental school would leave Chancellor Rogers with only an additional $41 million in cuts to come up with.

  2. From the October 15 issue of the Northern Nevada Business Weekly:

    “An obscure law that confines vineyard wine sales to rural counties put the kibosh on some professors’ plans to fund their agricultural research facility at University of Nevada, Reno.
    “Twelve varieties of grapes are plump and ready for harvest at the one-acre Valley Road Vineyard and Experimental Winery. The 1,000 vines are capable of becoming 2,000 bottles of wine, says Dr. Grant Cramer, professor of biochemistry in the College of Agriculture, Biochemistry and Molecular Biology.
    “But officials believe a state law passed in 2005 limits by-the-glass sales of wine to wineries located in counties with less than 100,000 population.
    “The bill was championed by Alfredo Alonso, lobbyist for Southern Wine and Spirits, a large distributor operating in 11 states, who brought the bill to the attention of Barbara Buckley…..She brought the bill before the State Assembly, according to records at the Legislative Council Bureau in Carson City.
    “The bill came before the state legislature the same year that Frank-Lin Distillers Products Ltd., a large California company, planned to build a facility at the Reno-Tahoe Industrial Center in Storey County. It also planned to sell its blended scotch at retail. So the bill also prohibited a company from both blending and selling. Frank-Lin has not relocated here. ‘This past year we wanted to go commercial, to help fund the research,’ says Cramer. ‘This statute prevents commercial wineries from forming in Washoe County.’ While Valley Road’s potential output is small, he says, some people would be willing to pay top dollar for the experimental winery’s offering at auction.”

    2,000 bottles of wine per year isn’t a big deal. Selling these bottles of wine wouldn’t put a dent in the system of higher education’s budget shortfall, but it wouldn’t hurt either.

    This is an example of a government entity trying to follow Chuck’s advice to be more competitive and think more like a business. Unfortunately, it can’t do this because there’s a law that prohibits them from doing so.

    And who promoted the law that prohibits the university from doing this? Southern Wine and Spirits of Nevada, headed up by Larry Ruvo.

  3. Great Job Mr Smith!
    While reading the local papers, I noticed the Nevada cattlemen’s Association, isn’t their group president a big friend and employee of jim gibbons?, is asking for a federal government bailout of their private industry because it is dry here in the West! LOL! Hey, times change, so private business that is in the freemarket world of Ayn Rand needs to adapt, not seek PUBLIC WELFARE! Hypocrites!

    Oh, and Muth is warning us of Mitt Romney and his Bain Capital going in with the Chinese to buy 3Com and how it is upsetting crazy Kit Bond and the Heritage Foundation because the Chinese are like an enemy of US!

    So the great savior Fred Thompson is dust, now Romney is soft on Communisim and terrorism. Who the hell is left on the Right?

  4. Southy: No idea what connections Governor Gibbons and Preston Wright have. However, Mr. Wright lives in the Elko area, so I’m sure he didn’t support Senator Titus in last year’s gubernatorial election.

    By the way, are you a baseball fan? If so, can you give me an idea of how many fans the Las Vegas 51s draw per home game? I’m just curious because the nutcases who run the asylum up here are trying to bring a AAA baseball team to Reno. For a AAA team to be profitable, it supposedly needs to draw 5,000 paid attendees per game. Clark County is at least twice as big as Washoe County, so I’m curious how their AAA team is doing. I don’t think any AAA team up here would ever make it, and then we the taxpayers will be stuck with the cost of bringing a team here and have nothing but an empty stadium to show for it. This is what happens when the city council and the county commission are full of baseball fans, and the local casinos think it would be a great idea to bring a baseball team here, but none of these people who think it’s a great idea want to pay for it, so they’re going to stick it to the rest of us so they can enjoy the games for a year or two before the team’s ownership figures out that baseball in Reno ain’t profitable and they leave for greener pastures.

  5. It’s too damn hot to sit and watch baseball in the summer, in the sun, in Las Vegas. If the casino owners want a AAA team, let them exercise their “free market” rights and pay for it.

    As for Wright, he’s a member of the State’s Nevada Rangeland Resources Commission.

  6. Southy: I stand corrected regarding Preston Wright. I was looking at the wrong website.

    Regarding Mr. Rogers, if push comes to shove and the budget cuts become a reality, I wouldn’t be surprised if a lawsuit is filed against the State of Nevada and Governor Gibbons to force a tax increase vs. a budget cut for the system of higher education. And if this lawsuit is filed, I also wouldn’t be surprised to find that Mr. Rogers is funding it from behind the scenes. With his megalomaniacal tendencies, does anyone think Mr. Rogers is going to take orders from Governor Gibbons and not try to circumvent him?

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