Legislators eye extra tax revenue

Wednesday, April 21, 1999 | 10:08 a.m.

CARSON CITY -- Nevada's rebounding economy may produce an extra $80 million in tax revenue for the Legislature to spend over the next two years, which could touch off a free-for-all among competing special interests.

Senate Majority Leader Bill Raggio, R-Reno, disclosed Tuesday that legislative financial experts have tentatively forecast about $40 million a year in revenues higher than expected.

Raggio said, however, that it will be up to the Economic Forum, which meets April 29, to make the firm prediction of how much tax money will be coming into the state in the 1999-2001 biennium.

Gov. Kenny Guinn, through a spokesman, said he has not had a chance to see the analysis by the legislative staff. Guinn's press secretary, Jack Finn, said if there is extra money, the governor will welcome it.

"But he's waiting for the Economic Forum," Finn said.

Raggio and Assemblyman Morse Arberry, D-Las Vegas, cautioned against raising hopes too much.

"That's not a lot of money when you're filling a $150 million hole," said Raggio, referring to the cuts that Guinn had to make to balance his $3.1 billion, two-year budget.

Raggio said $15 million alone was needed to finance Medicaid, the federal-state program for medical care for the needy.

In addition, Arberry said, the $80 million so far is "merely an assumption."

"We are not going to have a spending frenzy," he said. "I don't want anybody to get money-happy."

A mounting number of requests have come to the Legislature for extra money. Guinn said his first priority, if there are additional funds, is pay raises for state workers.

His budget does not include any money for salary increases for state workers, schoolteachers or faculty at the University and Community College System of Nevada.

Also Tuesday the Nevada Taxation Department reported that taxable sales rose 12.6 percent in February, the biggest percentage gain since December 1996.

The report showed that businesses in Clark County posted a 15.4 percent gain to $1.5 billion; Washoe County rose to $322.1 million, up 6.5 percent; and Carson City posted an 11.2 percent gain to $49.5 million. But Elko County recorded a 2.7 percent decline to $47.7 million.

Taxable sales in Clark County rose in bars and restaurants to $275.9 million, up 15.9 percent; car sales hit $177.9 million, up 20.3 percent; sales of home furniture zoomed up 22.2 percent to $88.9 million; general merchandise stores rose 20.5 percent to $115.5 million; and building materials sales rose 12.6 percent to $98.4 million.