Sandoval adviser: judgment of the blowing hole in budget 10 times greater than expected

Justin m. Bowen Gov. Brian Sandoval addresses Las Vegas Chamber of Commerce Wednesday 26 January 2011 at a lunch held at the Four Seasons Hotel in Las Vegas. ' By Anjeanette Damon (contact) Friday, may 27, 2011 | at 12: 36

A ruling Thursday by the Nevada Supreme Court opens a 656 million dollar hole in Gov. Brian Sandoval proposed budget, an issue about 10 times what was originally expected, according to new figures from his administration.

At a late press conference announced the Sandoval's senior advisor, Dale Erquiaga, the new figures after the Governor's legal counsel advised the interpreting judgment in General.

-The extent of the problem is much greater than expected, "said Erquiaga. "It is about 10 times worse than some initially thought."

The Court's decision centered on a dispute over whether the State can take $ 62 million in user fees from Clark County clean water Coalition for a scuttled water projects.

The precedent-setting case, however, that many of the local money grabs Sandoval had relied on to help him to avoid raising taxes.

In addition to the 62 million dollars from the clean water Coaltion, Sandoval now find a way to replace the following revenue sources:

• 38 million dollars from the counties of coffee producers accident and medical help resources.

• 247 million dollars from the school district debt reserve funds.

• $ 83.4 million in property tax diversion from Clark and Washoe County.

• 225 million dollars from a local tax increase earmarked for the financing of education.

The Democrats had already rejected several of the Sandovals funding mechanisms, to find ways to avoid debt reserve, property tax and room tax grabs. This option relies on expanding the tax increases that 2009 will be repealed.

Remove sunset on these taxes would net the State 712 million dollars.

"We will not speculate in the evening, the solutions are," said Erquiaga. "The problem is much worse than we thought. We'll start working with the solution. "

Sources close to the Governor said he did not have the appetite to reduce 656 million USD from the already beleaguered State budget and he will likely support extending tax increases in 2009.