CARSON CITY -- The 2009 Nevada legislative session opens on Monday, with Republican Gov. Jim Gibbons and Democrats in charge of the session at odds -- and likely to stay that way unless a big wad of federal "stimulus" dollars eases the state's budget crisis.

The 2009 session is like nothing seen in decades in Nevada. State budgets usually go up, but due to the recession, Gibbons' spending plan for the next two fiscal years goes down. His $6.2 billion proposal is about 9 percent lower than the current budget.

The governor's proposal is more than $2 billion short of what state officials say is needed to maintain government services at current levels and deal with inflation and increased demands.

The stimulus plan being considered in Congress could fix most or all of that shortfall -- although legislators have been warned not to bank too heavily on a "Santa Claus" bailout complicated by federal rules that set conditions for receipt of the money.

Pending final action on the funds, the lawmakers' initial review of Gibbons' budget made it clear they're ready to junk many of his proposals and come up with a plan of their own that won't have the same deep cuts in areas such as human services and education.

The current standoff between the governor and lawmakers may not degenerate into a pitched, partisan battle over the course of the four-month long session since Gibbons says he's working on a revised budget that will take into account the stimulus funds.

But that supplementary' budget plan still may not be enough, especially if the federal stimulus funds don't cover the $2 billion-plus shortfall and Gibbons continues to balk at new taxes that would erase the need for steep spending reductions.

Assembly Speaker Barbara Buckley, D-Las Vegas, and Senate Majority Leader Steven Horsford, D-North Las Vegas, aren't talking new taxes at this point. Instead, they're challenging the governor's budget in many areas and saying they'll detail their spending priorities in two months, midway through the 2009 session.

In an interview prior to the session start, Gibbons said there's "absolutely nothing to be gained by the negative rhetoric" that he saw in the initial budget review. He groused about partisanship, although some key Republicans joined in with the Democratic critics.

Buckley and Horsford complained that the deep cuts proposed by Gibbons shows he "has chosen mediocrity for our state and our children" by eliminating many essential services and was on a "reckless and irresponsible" path.

Gibbons said he was required by law to work with revenue estimates provided by the state's Economic Forum in coming up with his plan. He also called for the Democrats to state publicly what taxes they'd propose to raise.

While silent on the subject of higher taxes, the legislators say they'll review the many business tax breaks that have built up over the years in Nevada. They also want to find ways of nabbing tax cheats who haven't been paying money owed to the state.

Legislators also plan to develop new protections for consumers to prevent more housing foreclosures. Nevada has the highest rate of foreclosures in the nation.

One of the Democratic lawmakers' greatest concerns is the $2 billion in spending proposed by Gibbons for human services programs. While up about 4 percent, they say it would keep Nevada at or near the bottom nationally in critical areas, including mental health programs.

The plan includes cuts in Medicaid reimbursements to hospitals and doctors. Critics say the reductions will only shift the costs elsewhere -- and probably increase them.

Legislators, backed by more than 2,500 students who demonstrated in Las Vegas and Carson City, also questioned Gibbons' plans to cut funding for Nevada's K-12 schools and higher education system by an overall 15 percent.

The governor's proposed $3.15 billion in state general fund spending for education accounts for nearly 51 percent of his total plan for the coming two fiscal years.

While K-12 funding would drop by less than 3 percent, state support for universities and community colleges would plummet by more than a third under the governor's spending plan. The reductions are even deeper for the two state universities in Reno and Las Vegas -- about 50 percent.

His bare-bones budget also would reduce pay of government workers and educators by 6 percent, and would suspend longevity and merit pay increases and other benefit reductions. Gibbons said he's cutting his own pay by the same amount and will ask lawmakers to restore the cuts -- assuming they OK them -- once the economy permits.

Concerns also have been voiced about proposed cuts in benefits to former and current government workers covered under the Public Employees Benefit Program. Current state retirees would see PEBP subsidies cut by 50 percent. All such subsidies would be erased for Medicare-eligible retirees, and for anyone retiring after July 2009.

A move to close the old Nevada State Prison also has come under fire from lawmakers who want more details and say the proposed shutdown might not produce the Gibbons administration's estimate of a $37 million budget savings.

Plans to close the Tonopah Conservation Camp have also drawn fire from Tonopah-area residents for similar reasons.

Also facing criticism is the governor's proposal to cut staffing for the state's Nuclear Projects Agency, charged with fighting federal efforts to open a high-level nuclear waste dump at Yucca Mountain, and to reduce funds for lawyers involved in a complex court battle against the dump.

The governor's proposed budget also would slash Nevada's share of funds for the bistate Tahoe Regional Planning Agency, charged with protecting scenic, mile-high Lake Tahoe, by 41 percent.

Despite all the differences, there are some areas of agreement, such as the need for "green jobs" and the need for renewable energy expansion in Nevada. Gibbons favors legislation to speed permits for energy projects, and says utilities should further increase their use of energy produced by solar, geothermal, wind or other alternative sources.

And while the differences may delay solutions on many key issues, the lawmakers will have plenty of other matters to debate while those differences are worked out. In advance of the session, more than 240 proposals dealing with a wide array of topics were prepared for quick introduction at the session's start.