GUINN BACK ON THE JOB AFTER PROSTATE SURGERY

Governor Calls Deficit 'Devastating'

On his first day officially back to work after prostate surgery, Gov. Kenny
Guinn on Wednesday called figures reflecting Nevada's deficit "devastating."

Guinn, 66, called a news conference to assure the media he was in good
health and has returned to work full-time after a three-week recovery.

He underwent the surgery to remove his cancerous prostate Sept. 23.

Data Guinn reviewed within the past few weeks show the state's deficit
could be well over $300 million, he said.

He said in the first three months of the state's fiscal year, gaming
revenue was down $21 million.

And while Medicaid is down to about 200,000 cases from 250,000, Guinn said,
the state's budget is still working off projections of only 132,000 cases.

"We're still in the position where we have to worry about how the economy
is doing," Guinn said. "Nevada is in a very fragile position. And I'm going
to do something about it one way or another."

Guinn was less forthcoming on the tax task force, which is considering
increasing property taxes and raising cigarette and liquor levies.

Guinn reviewed the task force's work while he recuperated, but he said he
is not giving its members any input.

He said the task force will work independently until it comes up with a
formal recommendation for the 2003 Legislature in November.

At that time, Guinn will determine whether he will create a parallel budget
or one balanced by new revenue.

Guinn defended the idea of increasing cigarette and alcohol taxes, adding
that he didn't think the taxes would affect Las Vegas' reputation as an
adult playground.

Guinn noted that the amount of new money allocated to governors has
steadily dwindled while Nevada's population skyrockets.

"If things stay just the way they are ... if nothing is done, do you know
how much we'll have in new money -- zero," Guinn said.

During the 1997 Legislature former Gov. Bob Miller received $543 million in
new money. When Guinn was elected in 1999, $378 million in new money was
allocated.

Since Miller's term, Guinn said, Nevada has grown by 350,000 people.

The 20,000 new students in Clark County schools this year alone require an
additional $76 million, Guinn said.

"We just can't maintain this growth without doing something dramatic," he said.

Guinn's comments on the upcoming elections were brief.

Guinn said he doesn't plan to back any candidates because he wants to focus
on his own campaign.

"You have to be careful (supporting other candidates) when you're running
your own race,"Guinn said. "So I've done very little. My first
responsibility is to take care of the state. My second is to take care of
me. Let the rest fall as it may."

Guinn, who raised about $6 million during his 1999 campaign, has only
raised about $3 million this election.

Guinn said he will vote against Question 9, which would legalize small
amounts of marijuana. He said he already signed a bill legalizing medical
marijuana.

Guinn, who was accompanied Wednesday by his doctor, Ikram Khan, also
defended his decision to have his prostate surgery out of state.

The surgery was performed at the UCLA Medical Center. Guinn said he hasn't
received much flak for making what he called a personal decision.

"You need some privacy," he said. "Health is very personal. I don't take
the advice of the general public as to what to do with my health. I take
the advice of my doctors right here in Las Vegas."

Khan said Guinn returned home the day after the surgery and experienced no
complications. Guinn has been walking every day and is no longer on medication.

Though he has been working six or seven hours a day, Guinn said he is
looking forward to returning to his 12-hour-a-day work schedule.

"I can get back to my full schedule now," Guinn said. "I don't have much of
a choice."