CARSON CITY, Nev. — An effort to reduce government waste was launched Wednesday by Nevada Gov. Jim Gibbons — who may have to run state government in the next two-year budget cycle on a spending plan that won’t grow beyond the current $6.8 billion budget.

Gibbons announced formation of the Spending and Government Efficiency, or SAGE, Commission, a panel modeled after former President Reagan’s Grace Commission that in 1984 produced nearly 2,500 ideas for cutting government waste — but saw disappointing results.

The Republican governor named Bruce James — credited with turning around the federal Printing Office which he ran from 2002 to 2007 — to the new state commission. Gibbons will name five other members and ask state lawmakers to name another six members.

“The more we can save by implementing operating efficiencies, the better we can meet the needs of our state with the resources we have,” Gibbons stated.

The current budget has gone through big changes as a result of a revenue shortfall projected to top $900 million by mid-2009. Gibbons ordered a 4.5 percent cut in budgets for most agencies in January.

He and legislative leaders followed up in April with still more reductions.

While the reductions delayed many state building projects and some new programs, the plan avoided layoffs of state workers or cuts in operating budgets of government agencies, and preserved scheduled pay raises for state employees and teachers.

The goal of the newly formed SAGE Commission is to come up with moneysaving ideas that will work rather than wind up in a long report “that sits on a shelf and collects dust,” Gibbons said.