Print
E-mail
Share
del.icio.us
digg
Newsvine
Facebook
MGM MIRAGE CEO Terry Lanni today sent an email to company employees about the teachers gaming tax petition and urging them not to sign. Here is the text of the email:
A Message from Terry Lanni
I believe every Nevadan should express an opinion in the political process. However, I also strongly believe that we should each express an informed opinion.
I’m writing to you today to warn you that a group is currently in your neighborhoods seeking signatures on petitions for a deceptive ballot measure. These people are counting on you signing their petition before you learn the facts about how damaging it could be to our state and our industry.
The success of our state’s education system is a top priority for our company, the same as I’m sure it is for each of you. But the fact of the matter is gaming companies already pay taxes that make up 50% of Nevada’s budget. Much of this money goes toward paying for children’s educations.
Some time ago, the leadership of the teachers’ union decided to try and make the biggest tax grab in Nevada history. Their plan: Change our state Constitution and raise the gaming tax by 44%. In the eyes of the teachers’ union leadership, this money would be used to give huge raises to every one of their members, with no direct tie to performance evaluations or accountability measures.
Teachers’ union leaders would have us give them hundreds of millions of dollars in new taxes for teacher pay raises, but would have no limits on how raises are assigned, no teacher performance standards, and no accountability controls to prove these millions of new tax dollars actually improve our education system at all. This tax would pay for no new books for our students, no new equipment for our classrooms, no improvements for our campuses.
The teachers’ union wants the promise of higher pay with no promise that Nevada’s children would receive a better education.
While the teachers’ union proposal is full of uncertainties, one thing is certain; a 44% increase in the state gaming tax would have a terrible impact on our company.
Money that could build new developments to attract tourists to Las Vegas would be lost.
Money that could create jobs and opportunities for our family of employees would be lost.
Money that could provide the best possible health care to our employees and their families would be lost.
Let me be clear - We are not against improving education in Nevada. Far from it, but if we are going to provide more money for education, we all deserve to know that money is going to be spent wisely, that there will be accountability for every dollar spent, and that our children will actually benefit through a better education.
This teachers’ union tax grab gives us none of those assurances, and will have a devastating impact on our company and our state. None of us should support that; and none of us should sign this deceptive petition.
If you oppose this misleading tax grab amendment, the most important thing you can do is ask the hard questions and not sign their petition.
J Terrence Lanni
Chairman and CEO
Whether implied or inferred, there is a threat in this letter, and this type of communication should never be sent to employees. It has a chilling effect on politcal discourse.
That said, you can't help but believe that in the Lanni dictionary, "informed opinion" equals "Terry's opinion."
Yes, gaming taxes provide approximately 50% of the state's budget, but look what a bargain the gamers are getting. In return, they wield nearly 100% power.
Finally, Mr. Lanni and all the self-righteous gamers, please stop the nonsensical rhetoric about gaming supporting education. You're able to collect your obscene bonuses and cater to the uber-wealthy only through the exploitation of a pitifully under-educated work force. Few people, given a proper and adequate education will ultimately be willing to deal cards, park cars, or make beds for minimum wage plus tips.
You serve yourself, your customers, and your stockholders at the expense of the majority of people in this state.
That was a stunning retort Mr. Dover.
Might I ask you one question, how much of the tax goes to new books for our students? How much goes to new equipment for the classrooms, no improvements to the schools? The school my sister teaches first grade at is older than she is and is in disrepair because of its age. The students don't have the minimum necessary resources like books or pencils, paper, or even paper towels. I have no problem with rising taxes on the casinos, but give me a brake, put the money where it belongs!
Swing and a miss MrMan. You seem to have missed my point entirely. There's a good chance we'd agree on the allocation of educational funding...assuming adequate funding for any part of education (staffing, bricks and mortar, or anything else) could ever be pried from the greedy gamers.
You are right I am sorry.
You are on the "Gaming Companies are Evil" side where I am on the "This is a Retarded Amendment to the State Constitution" side.
My bad.
I am concerned about the implications of this letter for the employees. Participating in the political process is very important and should be encouraged as a whole, but taking sides on a particular issue is a private matter for each individual to decide. Mr. Lanni's letter is inappropriate at best and heavy handed at worst.
What repercurssions or backlash would I receive as an MGM Mirage employee if I chose to express my political opinion different from that of Mr. Lanni's? The ultimate intent of this letter makes me wonder if Mr. Lanni expected to increase his employees' respect or fear for him.
None of these petitions should be signed by any rationale Nevadan. Codifying tax policy in the Constitution is ridiculous. It makes it impenetrable to change if conditions warrant it. Further, the Legislature will now likely NEVER increase funding for education because, if it was to pass, the schools would be getting more revenue than ever before. Thus not needing additional revenue from anywhere else.
I'm anxiously awaiting the letter saying why his employees shouldn't sign the Venetian proposals.
the money should be to start a dating service for teachers. maybe then they will stop dating the students. go patriots!
Fat cat casino exec cronies want you to believe it will hurt the gaming industry if they have to pay more taxes, they make billions in these casinos and pay their workers chicken feed,, the only people that make decent pay are the trade union employees, culinary is starting to catch up but the non union workers get the shaft, especially the security departments, if they wont pay decent wages (and they dont) and the health insurance isnt up to par (and it isn't) then they should have to make up for their greed somewhere, I agree with the accountability issue, but these casino execs have a history of intimidation and misinformation to keep the big bonuses and revenues coming in, if they were really interested in helping their workers, pay them a decent wage and give them the same insurance they give the union members,then they might find a sympathetic ear,I worked in the industry for over 20 years and part of that was at the MGM, let's just say I am better off out of the industry and I sure don't miss the MGM, in spite of all the PR hype there are a lot of unhappy people in that company, in the mean time the big boys keep pulling in those big bucks,this is of course all in my humble opinion and I think the big guys letter said I am still entitled to that,(can casino execs issue gag orders? hmmm, I wonder.).oh well that's all for me, watch out for the talking heads and always take notice, where the money goes the truth usually doesn't.
YEAH LOOK WHOS TALKING ,,, CHECK OUT THIS FAT CATS STOCK SALES WHICH IS PUBLIC INFORMATION
LANNI J TERRENCE
Officer 47,304 Indirect Sale at $91.50 - $92.05 per share. $4,341,0002
LANNI J TERRENCE
Officer 100,000 Direct Option Exercise at $12.74 - $12.74 per share. $1,274,0002
28-Feb-07 LANNI J TERRENCE
Officer 31,400 Direct Sale at $70.85 - $71.13 per share. $2,229,0002
28-Feb-07 LANNI J TERRENCE
Officer 68,600 Direct Sale at $70.37 - $70.84 per share. $4,844,000
LANNI J TERRENCE
Officer 120,000 Direct Sale at $68.82 - $70.11 per share. $8,336,0002
16-Feb-07 LANNI J TERRENCE
Officer 120,000 Direct Option Exercise at $12.74 - $12.74 per share. $1,529,0002
I happen to get alerts now and again relating to MGM/Mirage since my husband and I visit annually as tourists (I also lived in Vegas in the early 90's). When I saw this news story and the comments, I wanted to respond.
Unfortunately, the educational system nearly everywhere has the same problems -- inadequate classroom sizes/schools, retaining qualified educators, etc. -- So much so that this subject tends to make the evening news more often than not that "something has to be done" with little or no solutions in sight.
Everyone seems to jump on the "raise taxes" band wagon, but I never hear about how those tax dollars would be spent exactly. To me, it is like someone saying "hey, give me a $1000 and I will try to fix your toilet, but I will not warranty my work, or guarantee that I bought the right parts, or that I am accountable for when and/or if it will actually be fixed -- so here is a bucket and a roll of toilet paper for now and I will get back to you later (and likely because I will need more money from you)".
As a tourist to Vegas -- I know my gambling, shopping, going to shows, taking cabs and whatnot supports the local economy but honestly, without the incentives from the casino's inviting me to come visit with offers such as a free suite, meals and other comps, I probably would not come as often. Trust me, I am no "whale" by any stretch of the meaning so having a nearly free vacation, other than my spending money, is very nice.
Below are my questions to this discussion:
1. If the casinos did have to pay higher taxes, would that then translate into less comps for us little guys and moreover lay-offs of casino employees?
2. Without all us little guys spending our money, would the revenue of the casinos then also drop, meaning even more lay-offs of employees and moreover, less taxes going to the state?
3. What about the thousand's of other industries who benefit from my tourist dollar -- if I do not come because of lack of comps (well, me and many other folks), would those businesses be in jeopardy too?
and finally...
4. Without my tourist dollars, would that mean less money in your overall economy that is needed for education?
I am not trying to take the side of the casino mind you, but trying to look at this from the big picture.
One question I never hear an answer for is when on earth all the other businesses making millions or billions in Nevada are going to step up and pay something???? The retailers, auto dealers and big national drug chains all pay taxes in other states and certainly don't charge us any less for their products here in Nevada. They would also stand to benefit just as much from a better educated workforce. Even if the casinos can afford to pay more, isn't about time to spread the joy and responsibility to pay something back?
Obviously no one realizes that there is another petition for education being circulated.
While the one mentioned in the letter is to help fund teachers salaries...the other one being circulated is for the supplies such as books, desks, repairs, and also the programs such as art and music. I believe they have all the basis covered.
It is great that so many people are interested in this issue! However, few of you have read Lanni's msg without prejudice. Most people think they way the teacher's union wants you to think, casinos have lots of money, and the schools don't. The reality is that the casinos in Nevada pay 100% of the State portion of k-12 edcuation, and that is about 34% of the total state budget. The truth is that the school system is flush with money, what they lack is competent management of those resources.
Just recently it was announced that there was mass failure in Clark County schools on the math tests...and the educators don't know how to solve the problem. Yet those same people of demonstrable incompetence demand raises! No amount of money will solve this problem of education qualtiy. Never has, never will.
Money cannot overcome incompetence. All it does is buy complacency; that is what the union wants, fat and happy teachers.
All other casinos in other states pay more in taxes than ours. They also make less profit than Vegas. I have researched this and know what I am talking about. The other states casinos give the guest comps just like Vegas. It is about the same except for a few things like the 'Tip Compliance program' in which the hotels and the IRS can set figures like $7 an hour for tipped employees. This in turn saves the hotels and the IRS billions in cost for real audits. Our state is controlled by a hand full of greedy people unlike any state in the union. Education is about the most important business in the state, unless you don't care if your kids grow up to be minimum wage earners.
I agree with Mr. Lanni that this may not be the way to go in solving this particular problem. However, regardless of the problem, or how it can be fixed, Mr. Lanni and his kind will never want to pay for it with taxes or any other means. They don't live here, their kids don't go to school here, and they don't care about the problems of those of us who do live here. They have enjoyed the lowest gaming tax structure in the world. They never batted an eyelash when asked to pay over 40% in taxes in Macau, or double digit taxes in Michigan, New Jersey and so on. It's disgusting how they refuse to pay homage to the city that made them all wealthy.
And please Mr. Lanni, I work at the TI and our health coverage gets worse every year regardless of your bottom line. So please, cut the baloney! You may think us ignorant, we are not. Our children may wind up that way because one way or the other, you will not help us to educate them. You won't do it through a tax increase, or any other way. Be honest, all you and your cronies want are your bonuses and the other business interests you own, using your precious list of "vendors", to make money off the stock holders. Save your sales pitch for Macau. Looks like you may need it!