Nevada government may be headed to shutdown

CARSON CITY — State government might not have money to operate after June 30 unless Republicans and Democrats can agree on a new state spending plan, the Legislature’s top administrator said Wednesday.

“I don’t know what can be done (to keep state offices open),” said Lorne Malkiewich, administrator of the Legislative Counsel Bureau. “This has never happened before.”

The possibility that Republicans and Democrats won’t compromise on state spending and possible tax increases became obvious during “Committee of the Whole” meetings Tuesday in the Assembly and Wednesday in the Senate.

In the Assembly, all 26 Democrats made nonbinding votes that they cannot support the cuts to education proposed by Gov. Brian Sandoval in his $5.8 billion budget, while all 16 Republicans said they support the governor’s budget and will not back tax increases. Because it takes a two-thirds vote to pass taxes, Republicans can block any tax increase.

Conversely, Sandoval needs Democrats’ support to pass his budget. If they pass tax increases and a larger budget and he vetoes it, then there would be no funds to continue paying for state government — including having correctional officers guard prisoners — on July 1.

Senate Majority Leader Steven Horsford, D-Las Vegas, pointed out in an interview last week that Republicans can block tax increases, but Democrats also can prevent Sandoval’s budget from being approved.

Malkiewich expressed doubt that legislators can pass a continuing resolution to fund general government expenses. Such resolutions often are used by Congress to fund federal spending temporarily when there are budget impasses.

He pointed out that the state constitution requires education budgets to be approved by the Legislature before other budgets can be passed to fund general government operations, such as the Department of Corrections, the Department of Motor Vehicles and the Nevada Highway Patrol.

So if legislators have not resolved their education spending differences by June 30, then they would be prohibited by the constitution from passing a plan to fund the rest of state government.

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.