Assembly OKs help in building schools

Wednesday, May 28, 1997 | 10:48 a.m.

CARSON CITY -- In a near party-line vote, the Assembly approved a proposed constitutional amendment allowing the state to help build schools.

Assembly Joint Resolution 9, which was approved 24-18 and sent to the Senate, would amend the Constitution to raise the debt limit from 2 percent to 3 percent of assessed property valuation, with the money being used to build and refurbish the public schools.

School construction has been financed in the past by voters in each county deciding whether to approve bond issues. At the last election, only Clark and Mineral county voters passed school construction bond issues. They failed in Elko, Washoe and Storey counties and in Carson City. And another school rehabilitation financing plan in Storey County failed at the polls this month.

The amendment would have to pass this Legislature, be approved again in 1999 and then be ratified by the voters in 2000. If it were in effect now, it would mean the owner of a $100,000 home would pay about $21 to $25 extra in property tax a year.

Assemblywoman Chris Giunchigliani, D-Las Vegas, who sponsored the amendment, said if approved by the voters, the Legislature would decide how to distribute the money. She added the extra debt on the state "would not negatively impact the state's bond rating."

Assemblywoman Joan Lambert, R-Reno, said that if the bonds were sold slowly and carefully, it would probably not impact the state's bond rating. If the bonds were quickly sold by the state's treasurer's office, it would drive down the state's AA rating and cost Nevadans millions of dollars in higher interest payments when it borrows money, she said.

Several opponents were also worried about the "equity issue" on how the money would be divided.

"I don't know how it would be equally divided," said Assemblyman John Carpenter, R-Elko, who said Elko and Lyon counties have 77 and 79 cents on the property tax rate to pay for school construction. "We're doing our part.

"If the state gets into this, there will be a great deal of inequities," Carpenter said.

Also being discussed this legislative session are plans to raise the hotel-motel room tax to help pay for school construction.

Shortly before the vote, Republican members of the Assembly held a closed door caucus to discuss whether to support the proposed constitutional amendment. Dennis Nolan of Las Vegas was the only Republican to break ranks and vote for the measure.

Assembly Speaker Joe Dini of Yerington and David Goldwater of Las Vegas were the only Democrats to oppose the resolution.