Guinn: Hold petitions, wait for studies

Tuesday, Sept. 14, 1999 | 10:40 a.m.

CARSON CITY -- Gov. Kenny Guinn, who unveiled his blueprint for a major study on government spending and revenues, says he opposes initiative petitions by Sen. Joe Neal, D-Las Vegas, to raise the gaming tax or by the schoolteachers union to impose a 5 percent tax on business profits.

"Before you raise taxes or cut services, you need an analysis," Guinn told a news conference Monday. He has formed a 16-member steering committee composed of legislators, business people, state employees and local government representatives to look for ways to save money.

Guinn in his State of the State message in January promised "the most comprehensive review of state government in the history of the state." His plan will target human resources, education, conservation and natural resources, motor vehicles and public safety, prisons and business and industry.

He said he will examine the spending of the University and Community College System of Nevada and the public schools, which comprise about 55 percent of the state's general fund budget. That spending has been left to the university Board of Regents or the local school boards. But Guinn said the state appropriates that money and he has authority to review how it is being used.

The steering committee will study what programs are necessary, how they are paid for, whether some should be shifted to local governments to avoid duplication and whether some boards and commissions might be eliminated. The governor also said his administration will produce detailed estimates of what tax revenue will be needed in the future to support the state spending.

The steering committee will be headed by Denice Miller, senior policy adviser to the governor, and Don Hataway, deputy state budget administrator. Members are Lt. Gov. Lorraine Hunt, Assemblyman Greg Brower, R-Reno, Sen. Maggie Carlton, D-Las Vegas, Assemblyman Lynn Hettrick, R-Minden, Assemblyman Dave Parks, D-Las Vegas, Charles Archer, Marcia Bandera, Jeanne Botts, Dale Erquiaga, Fred Gibson, Paul Gowins, Marvin Leavitt, Luther Mack and Terry Murphy.

Asked about the proposed initiative petitions, Guinn said, "This is not a way to run your business." He complained the gaming and business tax plans would earmark money for education without any study to determine if money is needed in other areas.

Neal said Guinn's opposition to the initiative petition will not deter him from starting the drive to raise the gaming tax from 6 1/4 percent of gross revenue to 8 1/4 percent. Guinn's proposal, Neal said, is just another study aimed at heading off higher taxes on the casino industry, which is promoting growth but not paying its share.

Guinn's steering committee will hold its first meeting Sept. 21 in Carson City and will conduct a series of sessions, ending with its final recommendations in mid-June next year. Guinn's chief of staff Pete Ernaut will be spending time during the next several months meeting with major industries, labor groups and policy-makers to listen to their suggestions about Nevada's tax structure.