Neal to run for governor

Larry Henry

Monday, Jan. 5, 1998 | 10:07 a.m.

Saying he'll renew his call for higher casino taxes, state Sen. Joe Neal has confirmed weeks of speculation by declaring that he's running for governor.

Neal, 62, said the public resents that Nevada casinos, which enjoy clout at the state Legislature, pay the lowest gaming gross revenue tax rate in the nation.

The Legislature last voted to raise the gaming gross revenue tax rate in 1987.

"You have a gaming faction that controls everything and gets what it wants," said Neal, D-North Las Vegas. "People are pissed off at what's going on. It's time the citizens take back control themselves."

Neal is expected to portray the leading contender, Republican Kenny Guinn, as the gaming industry's favored candidate. Guinn's campaign contributions exceed $2.4 million, with more than $1 million coming from the casino industry. Circus Circus Enterprises has given Guinn $300,000.

"It's directed at controlling this individual in the governor's office," Neal said. "It doesn't have a damn thing to do with good government."

Guinn's campaign manager, Pete Ernaut, a Reno Republican assemblyman, said the percentage of Guinn's contributions from casinos, about 40 percent, is low. Casino taxes make up almost 50 percent of the state budget.

"Anybody who knows Kenny Guinn knows beyond a shadow of doubt that Kenny Guinn is independent, ethical and beholden to no one," Ernaut said.

Neal wouldn't say how much money he has raised, but he conceded the total is far less than $10,000. Candidates with more than $10,000 were required to file a report with the secretary of state's office on Dec. 31. Neal did not file.

"I'm running a poor man's campaign," Neal said.

Casino lobbyist Harvey Whittemore said he has raised money for Neal in past campaigns and hinted that he might help Neal in the governor's race if Neal asks.

"He has been a friend more than he has opposed us," Whittemore said. "He perceives that it's good politics (to attack casinos)."

In 1996, at least seven casino companies, including Mirage Resorts Inc., Harrah's hotel-casino, and Circus Circus Enterprises, contributed a combined $10,000 to Neal's Senate campaign. He raised more than $62,000 in total contributions.

Neal said Nevada casinos, which pay 6 1/4 percent on gaming gross revenues, should be paying up to 12 percent. The Illinois Legislature recently approved a measure to tax casino net proceeds up to 35 percent. Casinos in Iowa and Missouri pay 20 percent on gross revenues.

Nevada executives argue that casinos can afford more elsewhere because competition is limited. In Nevada, which has no restriction on the number of casinos, higher taxes could force marginal casinos to close and throw thousands of employees out of work, casino executive argue.

Neal has said he'll push for a casino tax increase even if he doesn't become governor. Neal was re-elected in 1996 to a four-year term and will serve in the Senate at the next Legislature in 1999 if he doesn't win the governor's race.

Neal said he supports a proposal by a senior-citizens coalition to circulate an initiative petition doubling the casino gross revenue tax rate.

Neal introduced a bill at the 1997 Legislature that would have allowed counties to raise the gross revenue rate to at least 8 1/4 percent for growth-related needs, but the measure died on the Senate floor.

Neal, the first black elected to the Senate, has served since 1973.

Neal said his campaign also will focus on the need for lower health-care costs and assurances that consumers won't pay higher electric bills when private utility companies begin competing with Nevada Power Co. and other monopolies.

Hollywood producer Aaron Russo, a Republican, and Democrat Jim Champagne are also running for governor.